Developers that make specialized apps for independent software vendors are more likely to offer paid apps vs. free apps. According to a study by Evans Data Group that surveyed developers that use app stores to distribute their apps, 74 percent of those making specialized apps for commercial ISVs prefer paid apps over free apps. These paid apps include paid apps supported by advertising, paid apps supported by in-app purchases and the option to try an app for free before requiring payment. Basic paid apps contributed to 50 percent of these developers' paid app strategies.
The use of a variety of paid models for this group "fits in with the new avenues of growth now available to software vendors seeking to reach users on a variety of devices," the report said.
The firm found that enterprise developers, consultants and systems integrators who write software for enterprise customers also issue paid apps but they do so with less frequency than commercial ISVs and they are more likely to bolster their paid app strategies by adding advertising and in-app purchasing services to their paid apps.
Developers representing device manufacturers and the scientific community also favor paid apps. The developers who focus on free apps include freelancers, moonlighters, students and professors. This group offers about half of its apps for free with advertising and gives the other half of its apps away for free without receiving any revenue.
Source: Evans Data Corp.
The monetization models included the following: paid apps, paid with ads, paid with in-app purchases, free with ads, free with in-app purchases, free with no revenue opportunities and free trials that require a later payment to continue use of the app. Developers were segmented according to the following categories: commercial ISVs; developers for custom shops, SIs or value-added resellers; corporate enterprise developers; corporate developers supporting specific internal customers; original equipment manufacturers; scientific developers; and others that include freelancers, moonlighters, students and professors.
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