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BizReport : Mobile Marketing : December 13, 2011

Those incentivized apps? Not driving engagement, finds study

In the iTunes app store, arguably the largest app store in the mobile space, sixteen of the twenty-five top-grossing apps are free. These apps depend on advertising for revenue. A new study finds that incentivized apps - the kind which offer consumers virtual goods, gaming credits and the like - are actually failing to engage mobile users while ad-supported apps have a growing fan base.

by Kristina Knight

pontiflex-img.jpgAmong the interesting survey highlights:

• 3% of smartphone users who have downloaded incentivized apps use it 'often'
• 62% report downloading incentivized apps for the incentive and then uninstall or ignore the app
• 12% of smartphones users, 24% of tablet users say they prefer paying for apps rather than using ad-based apps

"These findings highlight the importance of providing mobile app advertising solutions that are native to mobile environments," said Zephrin Lasker, co-founder and CEO, Pontiflex, which commissioned the study. "First, they clearly show how incentivized app solutions might not be conducive to brands and developers looking to build long term relationships with consumers. Secondly, the results demonstrate that consumers value free apps and express a preference to non-intrusive mobile app advertising solutions."

Interestingly enough, the survey finds ad-based apps, which are seen by some in the industry as clunky are actually gaining more consumer attention. Researchers found about half of tablet users prefer free apps - as long as the ads are delivered in-app rather than requiring them to leave the app. However the ad does matter, and many mobile users don't want to view video or have video ads take over their mobile screen to subsidize the app they're using.

Harris Interactive conducted the study for Pontiflex between November 10 and November 14, 2011; more than 2,800 US adults were surveyed.

Tags: app content, appvertising, incentivized apps, mobile marketing, Pontiflex

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