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Old Mar 31, 2014, 04:37 PM   #1
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iOS Users Overwhelmingly Prefer Free Games With Advertisements to Paid Titles




The majority of iOS users prefer iOS games that are available for free and supported with advertisements, according to a new study conducted by Wild Tangent in collaboration with analytics firm IHS Technology.

The survey, which queried 500 iOS users, saw 86 percent of respondents state that they prefer free games with ads over paid games without ads. Broken down, 70 percent of respondents preferred free games supported by advertising, while 16 percent were in favor of freemium games with the option to pay for levels. Just 14 percent of those surveyed preferred iOS games that required money upfront to download.

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When asked about their preference for the types of games online gamers preferred, advertising supported games were chosen by the vast majority of those surveyed. 70% of respondents said they preferred free games supported by advertising and 16% preferred freemium games with the option to pay for levels in the game. Only 14% preferred online games they had to pay for to play.

Gamers also prefer advertising models that give them control over their viewing. When asked if they prefer games that let them choose when and how to view ads over those that do not, 71% preferred that level of control.
Gamers also overwhelmingly preferred value exchange ads within freemium games, which allow users to play videos or view other advertisements in exchange for in-game currency or items. The recently released Disco Zoo provides a good example of such a system, rewarding players with in-game Bux for viewing short videos. The addition of free in-game items acquired through advertisements boosted time spent within games by approximately 28 percent.

Over the course of the last several years, freemium games have largely replaced paid titles as the standard in the App Store. As of today, 43 of the top 50 apps listed on the App Store's Top Grossing chart are freemium gaming titles. Several others are non-gaming apps that offer in-app purchases, and only one paid game, Minecraft - Pocket Edition is ranked as a top grossing app in the number 18 spot.

Some of the most popular freemium apps in the App Store, like Clash of Clans and Candy Crush Saga, have generated millions of dollars in revenue. Clash of Clans, for example, is said to earn approximately $1 million per day through add-on content, booster packs, and more, while Candy Crush Saga earns upwards of $834,148. In comparison, Minecraft - Pocket Edition is estimated to be earning $60,000 per day -- not exactly small change, but nowhere near the revenue popular freemium games can bring in.

Given the sheer amount of money that freemium and free games supported with advertising make for developers, it is not surprising that the freemium business model has largely taken over the App Store.

According to IHS, by 2017, only 10 percent of mobile and tablet gaming revenue will be generated by paid downloads, with the rest of revenue coming from ad-supported free apps. Today, approximately 15 percent of gaming app revenue comes from paid apps, with 85 percent being generated through in-app purchases.

Article Link: iOS Users Overwhelmingly Prefer Free Games With Advertisements to Paid Titles
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Old Mar 31, 2014, 04:38 PM   #2
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Add me to the other column please.
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Old Mar 31, 2014, 04:39 PM   #3
Lesser Evets
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It took research to find out people prefer FREE things?
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Old Mar 31, 2014, 04:39 PM   #4
Eddy Munn
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A survey of MacRumors audience would probably differ greatly.
I can't stand adverts in games, and don't mind supporting a developer for a game I really enjoy.
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Old Mar 31, 2014, 04:39 PM   #5
sesnir
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Really? A company with an ad platform says that iOS users overwhelmingly prefer free games with ads?

And the sample size is only 500... were they employees of WildTangent?
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Old Mar 31, 2014, 04:39 PM   #6
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wow... 500 people.. that's frikkin huge sample to conclude the findings..
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Old Mar 31, 2014, 04:40 PM   #7
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As a gamer, I don't like how this shapes the mobile gaming industry (IAPs, freemium, pay-to-fast-forward games). As someone who likes money, I understand why developers go this route instead of something like Republique.
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Old Mar 31, 2014, 04:40 PM   #8
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These are not at all the same gamers as the ones that play on consoles.
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Old Mar 31, 2014, 04:40 PM   #9
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People are so disappointing, aren't they?
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Old Mar 31, 2014, 04:41 PM   #10
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Ugh. I like when games are free so that you can learn if they stink without paying money, but past the trial phase, I will not play a game with ads. It either needs a paid full-version or an in-app option to pay to turn off ads.
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Old Mar 31, 2014, 04:41 PM   #11
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What I like are when apps are free with Ads, then they have an inApp purchase option to remove the Ads.

I like it because then I get to try the app out "risk free" then basically pay the developer if I like their app.

I really stinks to have a paid app without a trial version, only to find out it isn't what you needed or wanted.
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Old Mar 31, 2014, 04:41 PM   #12
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BS stats.
Just get rid of in-app purchases for good please.
They SUCK.

Also, has anyone tried the free version of Angry Birds lately?
Every 10 seconds you have to watch a video ad!!
Crazy!
Had to delete it straight away from my Mum's iPad.
The worst case of ads in a game that I've ever seen.
Atrocious.
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Old Mar 31, 2014, 04:41 PM   #13
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So that's people who prefer free things with adverts, NOT and I'll say again NOT In App Purchases!!!

There's a MASSIVE difference between the two. I, like many many others would prefer to just buy the game outright from the start, IAP actually affects what games I play.

The only way IAP works is as said above, if you can pay to have the ads removed.

The freemium business model is indeed the disease of the gaming world!

It is designed to nothing more then make huge profit, case in point Candy Crush Saga, the makers of which recently floated on the stock market! From a apparently free game to floating on the stock market!



http://www.bbc.co.uk/news/business-26243125

King, the computer games developer behind Candy Crush Saga, has filed to float on the New York Stock Exchange.

The British technology firm has not yet revealed the number of shares to be offered, or their price range.

However, its filing in the US reveals its "proposed maximum aggregate offering price" - the amount it is hoping to raise from the initial public offering (IPO) - is $500m (300m).

Candy Crush was the top downloaded free mobile app of 2013.

It has been downloaded more than 500 million times since its launch in 2012.

The game's popularity helped King Digital Entertainment to reach revenues of more than $600m in the final quarter of 2013, and profits of about $160m in the same period.

King says that, as of December last year, its 150 games were played more than 1.2 billion times per day.

Analysts have valued the firm at more than $5bn.

The title's impact on the company has been clear.

Before Candy Crush, in 2011, King took $64m in revenue. In 2012, Candy Crush mania had well and truly taken hold, helping the company bring in $1.88bn.

"It's got some fundamental issues," said Nicholas Lovell, director at Gamesbrief.

"Seventy-eight percent of its revenue has come from Candy Crush Saga. The concentration in one title is very big."
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Last edited by apolloa; Mar 31, 2014 at 04:49 PM.
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Old Mar 31, 2014, 04:41 PM   #14
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Quote:
Originally Posted by sesnir View Post
Really? A company with an ad platform says that iOS users overwhelmingly prefer free games with ads?
Are you suggesting it's not true? The free charts have 10x the downloads as the paid charts. I think it's pretty obviously true. A better criticism for the study is 'duh'

arn
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Old Mar 31, 2014, 04:43 PM   #15
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Well I don't
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Old Mar 31, 2014, 04:44 PM   #16
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And this is why there will be very few good mobile games that don't just repeat the same tired models with different artwork designed to financially rape their customers.
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Old Mar 31, 2014, 04:44 PM   #17
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I suspect if a vote were taken most people would prefer a paid game rather than a free game with ads, if someone else paid for it.
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Old Mar 31, 2014, 04:46 PM   #18
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Quote:
Originally Posted by arn View Post
Are you suggesting it's not true? The free charts have 10x the downloads as the paid charts. I think it's pretty obviously true. A better criticism for the study is 'duh'

arn
lol. Perhaps merely so overwhelmingly biased as to be the equivalent of doh!
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Old Mar 31, 2014, 04:46 PM   #19
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Quote:
Originally Posted by arn View Post
Are you suggesting it's not true? The free charts have 10x the downloads as the paid charts. I think it's pretty obviously true. A better criticism for the study is 'duh'

arn
How many people eat a free food sample in a shop, and then go on and buy it?
I rarely do, I enjoy the free food.
As I write this, I feel it's a bad analogy for myself, as I do often buy apps instead of using the 'lite' versions.
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Old Mar 31, 2014, 04:49 PM   #20
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Unfortunately, I am again in the minority so people will keep making games that in my opinion extort money out of you unless you have the patience of Job to wait.

I really liked the game play of clumsy ninja, but I'm not going to pay over and over again to avoid waiting, and I don't have the patience to just wait. I would have paid a small amount up front, but instead I just stopped playing. But, as I said, it looks like I'm in the minority.

Of course my idea of gaming is a FPS on my custom game PC, so I'm not a great target for casual gaming on a phone.
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Old Mar 31, 2014, 04:49 PM   #21
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Not me. I find that crap highly annoying.
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Old Mar 31, 2014, 04:50 PM   #22
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Most of the games that I've downloaded are time wasters, I don't need them to be money wasters too...
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Old Mar 31, 2014, 04:51 PM   #23
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I will always choose a paid game over "Freemium" but I'd probably choose a free version that is the exact same but with ads over a paid version.
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Old Mar 31, 2014, 04:51 PM   #24
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When it comes to games, I agree with this because I still don't consider iOS to be a real gaming platform. However I do pay for "real" apps; Tweetbot was one of the best software purchases I've ever made.
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Old Mar 31, 2014, 04:51 PM   #25
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Count me among the minority. I loathe seeing advertisements.
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