Wednesday, March 23, 2016

What Drives App Revenue?

Over the last half decade, mobile app revenue sources have changed. In 2011, most revenue was earned by the sale of apps in mobile app stores. By 2015, in-app purchases had  become more important. By 2017, according to Gartner, in-app purchases will be the largest revenue contributor.

Games have become the single-biggest revenue source, as well, representing perhaps 72 percent of app revenue in 2013, according to Digi-Capital.

0.19 percent of all freemium game players contribute 48 percent of revenue, according to Swrve.

Of paying customers, 64 percent make one purchase, while only 6.5 percent of players make five or more purchases.

The average monthly spend per payer was $24.33 (up from $22 in 2014).

The typical paying player makes 1.8 purchases, averaging $13.82 per purchase.

About 2.5 percent of all purchases are now over $50 in value, and these purchases contribute over 17 percent of all mobile game revenue.

\Swrve also found that a full 64 percent of players who spend money in games only do so once in the month (up from 49 percent in the original study last year). But it’s not all bad news for publishers. Total volume of spending per month increased by nearly $3 per player to $24.66.

In September 2014, Swrve found that freemium game users spent an “average” (mean) of  $24.93. The mean number of in-game purchases per month was three, with an average value of $8.34.

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