Consumable in-app purchases only generate 35% of mobile revenue

Single-use item that removes ads from a game is brought by more than half of players, but only contributes one per cent of income
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Offering players the ability to buy in-game content once for a higher fee, rather than attempting to coerce them into multiple cheaper purchases for consumable boosters, could be more prosperous in the long run.

That’s one of the main takeaways from a new report by mobile analytics firm Soomla of the last quarter, which found that almost two-thirds (65 per cent) of mobile revenue is generated by ‘lifetime’ goods.

Single-use goods, such as timed boosters and lives, only contributed 24 per cent of revenue, with packs of in-game currency the least profitable business model, offering just 11 per cent.

Despite this, almost the same number of players opt to buy lifetime goods versus single-use items, with 49 and 44 per cent of purchases, respectively. Currency packs saw just seven per cent of purchases.

The disparity in revenue can be found in the pricing structure; the average price of lifetime items was found to be $2.60, with single-use items costing around half of that – $1.

One single-use item that has sparked the interest of players is the ability to remove ads. Just one per cent of revenue is generated by such purchases, but more than half (56 per cent) of gamers buy an ad-free experience when offered.

Once players have been hooked by paying in a game, they are six times more likely to buy again. Those who invest in an in-game purchase within 24 hours of installing a game are nine times more likely to buy again.

Unsurprisingly, two-fifths of players who spend more than $25 in a single game commonly go on to spend in another title.

Seasonal sales are another proven tactic; average revenue per paying user (ARPPU) exceeded the annual average by 83 per cent during December 2015.

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