Dive Brief: 

• A recent forecast from analyst firm Gartner predicts that by 2017, 94.5% of app downloads will be free, and that only 0.01% of consumer apps will be considered a financial success by 2018. 
• Both the iOS and Android app stores have more than one million apps to choose from, creating steep competition to offer more and higher quality apps for free. 
• Many mobile apps are developed not for generating revenue, but for brand recognition, which increases the pressures for app developers looking to build a money-making app. 

Dive Insight: 

This report just underscores the idea that a mobile app should be part of a bigger brand recognition or marketing strategy, rather than a way to drive revenue. The overwhelming majority of free downloads will increase the need for in-app purchases and mobile advertising, which is where developers should focus to gain revenue.