eli5: why do some companies make ads about their free apps to market them?
In: Other
If you can get customers reading your newsletter, waiting for your sales, collecting your reward points and so on, they’re less likely to go to your competitors. In marketing sometimes they talk about getting customers into your “ecosystem”, and the more they invest in that, the more likely they are to stick around; if they buy from somebody else they feel like they’ve wasted the time/energy they put into getting settled in your app.
So the app isn’t a direct revenue generator, but it brings you business and possibly helps you keep people with you.
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