Problemet med "gratis"
Most advertisers want people to buy their product, i.e. pay for it. When an app (on any platform) is free and sponsored by ads, a large portion of its user base will be people who want something for free. If we’re allowed to generalize here, they don’t want to pay if they can avoid it.
Spotted the problem yet?
How do you sell to people who don’t want to pay? This dilemma will be even more pronounced in apps where there are paid, ad-free options in addition to the free, ad-sponsored version. The most valuable customers for advertisers would be the ones who paid for an app, not the ones who opted for the free version.
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