The mobile application marketplace is booming and competition is tough. Making sense of the action via mobile analytics is critical and analytics vendor Flurry (news, site), has just announced a new release, introducing enhanced demographics, segmentation and time-based analysis.

Flurry launched last year with a bang, landing several rounds of financing. The service even got the ire of Steve Jobs for being a bit too accurate in its device tracking (tracking apps on gadgets that were actually still under development).

Just recently, Flurry released version 3.0 of its analytics service, which comes with three major new features. Best of all, it's still free!

What Does this third generation Flurry release give us?

  • Demographic Estimates 
    Flurry now gives you estimates as to the kind of audience your application attracts. Information regarding age and gender is automatically estimate so that you can fine-tune and tweak your app for your target audience.
  • Custom Segmentation 
    "Freemium" apps have been found to be the leading source of revenue for application developers. But don't take the trends at face value. With custom segmentation, you can more closely monitor the behavior of these different groups, particularly those that make in-app purchases, those who pay for power features and those who find ad-supported apps acceptable.
  • Time-based Cohorts 
    Aside from demographics, analytics should also take time-based usage into consideration. How do users spend their time on your application? Does your app keep users engaged or bored? How long does it take until a new app user moves on to the next great app?

The following image shows analytics with groups segmented into paying and non-paying customers:

Flurry -- Mobile App Analytics

According to the company, creating segments based on whether consumers have completed paid transactions allows you to "segment and seal," that is, make unique offers to each group in a way that only that group can act on.

Using this approach you can, for example, make discounted purchase offers only to payers, and serve ads only to non-payers.

Price: Still Free

Even with the new functionalities, Flurry analytics is still free to use on smartphone and tablet apps. Currently, the company reports that 50,000 developers use Flurry Analytics for more than 100,000 apps across iOS, Android, Blackberry, Windows Phone and J2ME devices.

With this much experience and data on-hand, Flurry seems positioned well to deliver when it comes to usage statistics, benchmarks, segmentation and other analytics requirements.