App developers new to the space should seek to increase brand awareness by releasing freemium products, according to Amazon App Store director Aaron Rubenson.
Rubenson claimed that Amazon statistics indicate that new apps based on the freemium model - where users pay no up-front price, but can buy additional functionality within the app - tend to perform better for new development houses, during a panel discussion at the Open Mobile Summit on Wednesday.
"It's important to remember downloading the app is only the first step. The pay-up-front model does still work for the right type of app with brand awareness. But there's a shift towards freemium," said Rubenson.
"Apps with more of a story that engage consumers in the long term tend to do very well. Monetisation is significantly downstream, revenue doesn't tend to come in on the day of download, or even in the week of download."
Rubenson highlighted the success of companies like Rovio, maker of the hugely popular Angry Birds game, as proof that new developers should follow the freemium model.
"Rovio are very good at retaining customers, renewing the life cycle, releasing new levels. It's hard work but it works," said Rubenson.
Rubinsen's comments follow on from American Express global president Dan Schulman's warnings that companies need to find new ways to target customers in order to survive.
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