January 31, 2012

Freemium Comes of Age.

In a previous blog post, dated April 2011, we shared insights into the different ways of monetizing apps.  Since then we have seen many developers adopt the freemium model as they became more adept at balancing the proportion of free they give away and the premium they charge.

Key of course is increasing traffic (to your app) and securing premium conversions while minimizing cost. In 2011, Djuzz distributed more than  90.7 million downloads of 20,000 free & freemium titles, at no charge to brands and developers. 

The freemium approach has become significant as brands too are offering their apps for free, as a means of selling consumers a product within the app (airline, hotel and rail booking apps come to mind).

Many businesses are launching apps without earning direct revenue from them.  Movie studios in particular release games and applications as a means of building greater awareness of their move (and DVD) releases. For media brands, mobile is an opportunity to deliver content to audiences that may have previously been beyond reach.

But of key importance for brands is uncovering how your core value proposition can be extended to mobile audiences. We expect:-

  1. The demand for content will continue to rise. In Jan 2012, downloads have increased 19% (9 million in Jan 2012) compared to the monthly average of 7.5 million per month in 2011. 
  2. To distribute a more diverse offering of content to mobile consumers. This will mean increasing our inventory to 30,000 games, 20,000 videos and 15,000 music tracks by end of 2012.
But it’s worth noting that monetizing mobile is still in its infancy and that the app industry will continue to evolve rapidly in 2012.  The early winners will be the brands that continue to invest in creating an engaging experience with the mobile audience.