Some successful examples of mobile apps that have utilized a free pricing strategy include:
Snapchat
Snapchat is a prime example of a mobile app that has gained massive success by offering a free pricing strategy. Originally launched in 2011, Snapchat allows users to send photos and videos that disappear after they are viewed. Despite facing competition from other social media platforms like Instagram and Facebook, Snapchat has maintained its popularity and relevance through various strategies, including its free pricing model.
How Snapchat utilizes a free pricing strategy:
- Snapchat is completely free to download and use for all users.
- The app generates revenue through advertising, sponsored content, and premium features like Snapcash and Discover.
- By offering a free platform, Snapchat has been able to attract a large user base, making it an attractive platform for advertisers.
Candy Crush Saga
Candy Crush Saga is a highly addictive puzzle game that has become a global phenomenon since its launch in 2012. The game is free to download and play, but offers in-app purchases for power-ups and extra lives. Despite the availability of similar games in the market, Candy Crush Saga has managed to stand out and maintain its popularity through its free pricing strategy.
How Candy Crush Saga utilizes a free pricing strategy:
- Candy Crush Saga is free to download and play, making it accessible to a wide audience.
- The game offers in-app purchases for power-ups and extra lives, allowing players to enhance their gameplay experience.
- By offering a free game with optional in-app purchases, Candy Crush Saga has been able to attract a large player base and generate significant revenue.
Spotify
Spotify is a popular music streaming service that offers a free pricing strategy alongside its premium subscription options. Launched in 2008, Spotify allows users to listen to music for free with ads, or upgrade to a premium subscription for an ad-free experience. Despite competition from other streaming services like Apple Music and Tidal, Spotify has maintained its position as a market leader through its free pricing model.
How Spotify utilizes a free pricing strategy:
- Spotify offers a free tier that allows users to listen to music with ads.
- The platform also offers premium subscription options for an ad-free experience and additional features like offline listening.
- By offering a free option, Spotify has been able to attract a large user base and convert some users into paying subscribers.
Pokemon Go
Pokemon Go is a mobile game that took the world by storm upon its release in 2016. The augmented reality game allows players to catch virtual Pokemon in real-world locations using their smartphones. Pokemon Go is free to download and play, but offers in-app purchases for items like Pokeballs and incense. Despite facing challenges like server crashes and declining user numbers, Pokemon Go has continued to evolve and maintain a dedicated player base through its free pricing strategy.
How Pokemon Go utilizes a free pricing strategy:
- Pokemon Go is free to download and play, making it accessible to a wide audience.
- The game offers in-app purchases for items that enhance the gameplay experience.
- By offering a free game with optional in-app purchases, Pokemon Go has been able to attract a large player base and generate revenue.