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Free Apps are short-lived

It seems as if modern (commercial) life without Apps is simply impossible. But is it worth to invest all the effort and the money for just one or two days of use? Could it possibly be that traditional marketing activities are therefore still favoured by many marketing managers?

The German trade magazine handelsjournal reports that German trading companies spent some 2.2bn Euros on marketing activities in 2011, which equals roughly 3.5 % of the total turnover. The biggest share in the marketing budgets (62 %) was allotted to flyers, catalogues and advertisements, which reflects an increase by 4 % as compared to the previous year. Especially flyers have become very popular, because they are an excellent tool for drawing the potential customers’ attention to bargains or seasonal special offers. More popular than flyers was just online-marketing with an increase in expenditures of 113 %. However, that does not yet seem to be the end of the line. A further rise by 10 %  is expected for 2012, mainly due to increased social media marketing activities. So far, for merely one per cent of the trading companies mobile marketing, e. g. Apps or smart phone compatible websites, is of any strategic marketing relevance. However, three out of four traders are planning to do mobile marketing, too, as it is seen as a reliable tool for customer retention and a strong bridge between the customer and the point of sale. A recent study carried out by the US media analyst Pinch Media reveals though that only 5 % of all free Apps will still be used one month after download. After three months the rate goes further down to almost nil. Pinch Media have surveyed over 30m free APPs and were very surprised that as many as 80 % of all iPhone users stop using a free App on the day following its download.

Further information: itmagazine.ch

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