Adverts, in-app payments, and one-off up front costs may be putting users off downloading your app, according to research commissioned by Tutela. The Canadian analytics company also investigated the viability of an alternative app revenue stream, based on data collection, during the same research.
Apparently, 63% of people avoid apps because of too many ads, and aren’t that keen to pay for an app up front, or for an in-app charge to unlock new features, either. The research shows only 12% were likely to pay any in-app fee, and only 17% wanted to pay a standard flat rate download charge.
Tutela has an ulterior motive for illustrating how these monetization techniques can slow app adoption. By using its SDK, developers earn revenue by collecting anonymous network data from their apps, which is eventually used to create detailed coverage maps. This method was favored by 45% of those surveyed as a monetization technique.
Tom Luke, Tutela’s vice president, explained:
“Revenue growth is a huge challenge for the mobile app industry. Collecting signal strength statistics in the background can help mobile app publishers boost revenue without affecting user experience – while also helping to improve the world’s mobile 4G coverage.”
The survey says 95% of app users questioned — a total of 600 from the U.S. and U.K. — would use an app that collects these anonymous statistics.