In Marketing, there seems to exist a love/hate relationship with digital advertising. There is a number of consumers who are wary about digital advertising, which is understandable. But at the same time, they are also unwilling pay to avoid ads as well. 5,000 US adults were surveyed by AppLovin, who asked if they’d be willing t pay a monthly fee to remove ads from their smartphones.
Not exactly surprising, approximately 67 percent of those who participated in the survey said that they are unwilling to pay to remove ads.
One of the questions asked by AppLovin was “On top of your regular phone bill, how much extra would you be willing to pay per month to remove ads from your phone?”
Source: AppLovin
Based on the calculations done by AppLovin, it would cost $5 every month just for mobile publishers to break even on users who declined to receive ads. About 19 percent of those surveyed said they were willing to pay at least $5 to get rid of the ads. 33 percent were willing to pay at least $2.
Higher earners have incomes of at least $75K
Source: AppLovin
It was found that, 37 percent of high income earners (if you segment the data by income) would easily pay $2 to remove ads. From those people who are willing to pay $2, they would pay $5 for an ad-free mobile experience. 5 Percent would pay at least $10.
Although online ads are a pain to deal with for consumers, they recognize the fact that digital advertising is a necessary evil that keeps content online and on mobile devices free. Millennial Media, who did a global mobile user study, found that 79 percent of respondents “understood that adverts are shown to keep apps and content free and prefer this to having to pay for apps.”