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August 15, 2011, 5:15 am UTC
Are we ready to pay for the apps we use on our smartphones? This is the question that has a frequent answer, no. why does it happen.
Most of you would agree to the fact that as far as we are getting all these freebies we use them and also appreciate them to an extent but the moment you put a price tag to these offerings, we would think several times before making a buying decision. Nielsen agrees to this fact and also substantiates it with a study aligned with Cable & Telecommunications Association for Marketing (CTAM) and states that 63 percent of survey respondents said that “free or low subscription rates” is the most important attribute for a video app. In fact, as long as consumers can get the video app for free, or at a low cost, more than half (56%) of respondents said they don’t mind mobile advertisements on video apps—especially if it allows them to access content for free.
In addition, 65 percent of video app users surveyed said that word-of-mouth plays an important role in deciding which video apps to use. This surely validates the popularity of the apps and then the medium and for sure the people advertising during the video or in the apps get a greater mileage through this word stretch.
Off course the truth is undeniable that marketers cannot pass over this medium as it is unarguably becoming the bridging factor between the other media. The study also showed that video app usage increases consumer engagement with TV programs, networks and related websites. Roughly 85 percent of video app users surveyed said they watch the same amount or more of regularly scheduled TV since they began using video apps, and nearly half (46%) reported being more engaged with the programs or networks associated with the video apps after accessing them. In addition, 35 percent report that video app usage causes them to visit the network or program website associated with the video app more than they had before they started using the app.
Nielsen and CTAM also conducted the first-ever qualitative study of “sync-to-TV” apps which found these apps increase consumers’ engagement with television programming rather than distracting from it. Sync-to-TV refers to a second screen app on a tablet device that recognizes audio codes embedded in a program as it’s broadcast through a TV set, and launches interactive and social networking features on the device that correspond with the programming on the TV screen.
Study participants reported that the sync-to-TV experience made them more likely to pay heightened attention to the program, thus increasing their engagement with the program and advertising, and keeping them tuned in longer.
There have been incredible step up seen in mobile communications over the years and this technology spread has made people extensively use different mobile-based applications. Be it banking sector or social networking, you will find various mobile applications available for different mobile handsets. As we are discussing the point of free applications must be a minor set of people who believe that mobile apps should be paid probably the biggest benefit of going with a paid application is the income potential. But money can be made from free applications primarily by using a pay-per-click advertising model, which is very similar to Adsense. The study clearly shows that the consumers say the best things in life are free.
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