Why is the opportunity for marketing free apps larger than paid apps? Analyzing user engagement trends, mobile app advertising trends, and details regarding the lack of attention being given to free apps compared to paid apps gives some strong indications. The explosive growth of mobile apps since Apple’s App Store launched on July 10, 2008, has led to increased competition as well as innovation. App store revenues are expected to grow from $4.2 billion in 2009 to $29.5 billion in 2013. Mobile advertising expenditures are predicted to increase 28 percent to $914 million in 2010.
The value of free mobile apps is not limited to advertising revenue; free mobile apps are also the leading influencer on paid downloads and support the rapidly booming virtual goods business through in-app purchasing. The importance of free apps is misunderstood by developers, as the number of paid apps is disproportionate to their demand and revenue contribution.
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