Research: Consumers Spend Big on Portable Digital Goods

July 25, 2011 -

The average purchase price of virtual goods in free-to-play games on mobile devices is $14, according to a new report. According to data collected by mobile analytics firm Flurry, consumers who make in-app purchases are willing to spend large amounts of money than they might have if they simply downloaded it for 99 cents. Flurry claims that 51 percent of in-app purchase transactions come from transactions that are $20 or more. The $20-or-more transactions account for only 13 percent of the total number of transactions.

“We were surprised the numbers were so high,” says Peter Farago, vice president of marketing at Flurry. “Clearly, the high end of the spending drives the average up.”

The group also claims that the digital distribution of games is disrupting the portable retail market dominated by the Nintendo DS and Sony PlayStation Portable devices. The revenue share of portable games for iOS and Android has risen from just 1 percent in 2008 to 34 percent in 2010, which is clearly a dramatic shift away from retail. Nintendo’s market share in portable games declined from 75 percent in 2008 to 57 percent in 2010.

Flurry’s numbers are based on data from 3.5 million consumers. About 71 percent of the transactions were for $10 or under; 16 percent were for $10 to $20 purchases; and the under-$10 category, most transactions were at the $9.99 level, followed by $4.99 and then 99 cents. Consumers spent 99 cents less than 2 percent of the time.

Flurry notes that the biggest decision consumers make buying or downloading a game in the first place. Once a consumer is committed to a game, they are willing to pay large amounts for items in the game. In this situation spending is very high — 5 percent of all purchases are for amounts greater than $50. Flurry calls those who spend a lot of money on in-game purchases "whales." Flurry is telling game creators to design their games to accommodate these big spenders.

By the end of 2011, Flurry claims that total U.S. iOS and Android game revenue will be well over $1 billion.

Source: Venture Beat


 
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prh99No, but I looked it up and it's basically spyware. Their privacy policy says their apps tracks among other things your location and browsing habits via cookies.02/28/2015 - 8:20am
Ryan RardinHas anyone here heard of an app called iCitizen? It's basically Yelp for politicians.02/28/2015 - 5:16am
Andrew EisenAh, not linked in the way you (and everyone else) want and expect. That's true.02/27/2015 - 10:06pm
Matthew Wilsonthey are not linked in a way that tracks purchases though. the fact that they have to send a code for the other system shows that they are not linked in the way it counts.02/27/2015 - 9:39pm
Andrew EisenAccounts are already linked. Have been for quite a while. Also, Mario vs. Donkey Kong was announced as a cross-buy title during last January's Nintendo Direct.02/27/2015 - 9:25pm
Matthew Wilsonhttp://www.vg247.com/20…/…/27/olli-olli-3ds-wii-u-cross-buy/ I wounder if this is a sign that Nintendo may finally link accounts across the 3ds/wiiu in the near future.02/27/2015 - 9:18pm
prh99http://www.romanoriginals.co.uk/invt/70931?colour=Blue The dress does comes in white and blue but both have black lace and a sheer back top, I don't see gold or brown. 02/27/2015 - 8:54pm
ZippyDSMleeDungeons was a so bad so good game to me so I been keeping up with its sequel which will more of a Dungeon Keeper clone. As for pre order out of 7 preorders I was not burnt by 2... Add my contempt of most of modern game design.Ya I have all kinds of hurt.02/27/2015 - 8:40pm
MechaTama31I don't even want to know...02/27/2015 - 8:22pm
ZippyDSMleeFun? I can do fun…. I think LOL. Dungeons 2 is on preorder but not via steam... >> Hell I am breaking all kinds of personal butthurt rules to even THINK about pre order...02/27/2015 - 8:12pm
E. Zachary KnightHad some fun discussions about that dumb dress on Facebook. I opened the original picture in GIMP and sampled the colors and determined them to be Blue and Gold. People still say I am wrong.02/27/2015 - 7:41pm
ConsterTime for something completely different: #teamwhiteandgoldllama!02/27/2015 - 7:27pm
ZippyDSMleeAndrew Eisen: I'll try. ^^02/27/2015 - 5:40pm
ZippyDSMlee james_fudge: That’s what I been doing damnit!! *bites your leg*. LOL All but a couple posts have been written in word 2010. This has had my full attention so I’ve been able to keep some consistency up today which is nice a shame it’s still gibberish ><02/27/2015 - 5:38pm
Andrew EisenLike I said, if you want to have a discussion or get a question answered, I'm more than happy to oblige. All I ask in return is you have enough respect for everyone else to take the time to compose a readable post.02/27/2015 - 5:35pm
ZippyDSMleeI suppose it would be poor of me to say this but thank you for taking the time to reply to my questions, it does help me every now and then to discuss things and update or refine my opinion on stuff.. I do miss the forums here….02/27/2015 - 5:31pm
james_fudgeYou could run it through Word :) It's not that hard.02/27/2015 - 5:30pm
ZippyDSMleeSomething’s I can be clearer on more simple constructs making me better understood. Stack my weaknesses with complex constructs and my bad sense of humor and ya it’s a mess.. Consistent clarity is a pain in the butt for me.02/27/2015 - 5:22pm
ZippyDSMleeHave I ever held a covnersion this long that dose not have issues?02/27/2015 - 5:18pm
ZippyDSMleeBetween being learning disabled and having “quirks” from 5th grade I communicate in streaming conscious, I derive information from written words out of order giving me issues revolving around context.02/27/2015 - 5:17pm
 

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