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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E. Zachary KnightMatt, So you feel confident enough to make the call that petitioning target to remove GTAV is "bullying and threatening" but not confident enough to make the call on Intel/Gamasutra. Finding it hard to take your gripes seriously.07/28/2015 - 8:27pm
Andrew EisenAs for gamers holding media sites accountable? If you mean, how to respond to opinion pieces you disagree with, yes, there are tons of more appropriate means.07/28/2015 - 8:27pm
Andrew EisenAgain, no one likes being lumped in with the bad apples. Gamers or feminists so lets all strive not to do that, yes? Could the petitioners gone about it a better way? Yes, it could have been more factual in its petition, for starters.07/28/2015 - 8:25pm
Mattsworknamefor gamers to hold the media sites they had issues with accountable? If we look at those questions, I think we find the answer to the first one07/28/2015 - 8:20pm
MattsworknameEZK: I can't answer that, Im split on it cause I feel both are wrong ,but at the same time, I don't know if theres other ways to go about those seperate con.cerns. Was there a better way for feminists to make there point about GTA? was there a better way07/28/2015 - 8:20pm
MechaTama31Ok, a very different topic.07/28/2015 - 8:13pm
MechaTama31On a slightly different topic, in about a month my fiance will be a Mrs., but I'll still be a Mr., as I've always been. Hardly seems fair. I want a nifty new title!07/28/2015 - 8:13pm
E. Zachary KnightMatt, So, what is it? Is petitioning Intel to pull ads from Gamasutra "bullying and threatening" or is it justified? You can't have it both ways, especially if petition Target is "bullying and threatening".07/28/2015 - 8:10pm
Andrew EisenWhat this comes across as is "we need to find a way to silence anyone who says something we don't like."07/28/2015 - 8:08pm
Andrew EisenAnd how was Gamasutra not accountable for the opinion piece it published and refused to pull or edit even after advertising had been pulled?07/28/2015 - 8:08pm
Andrew EisenThere are tons of options when it comes to an opinion piece you don't agree with. Stating otherwise is dishonest or shows an extraordinary lack of imagination.07/28/2015 - 8:07pm
Mattsworknamethem acounatble. We just didn't have many opttions at the time07/28/2015 - 8:05pm
MattsworknameEZK:I never said it was justified, I just said that some people felt they didn't have any other means to hold them accountable. Weather it's justifited or not is somethign to debate, but I was never a big fan of it cause I wanted some other way to hold07/28/2015 - 8:04pm
Mattsworknameprice07/28/2015 - 8:03pm
MattsworknameAndrew: Your not wrong andrew, but gamasutra , and others like it , were called to task by the audiance that felt they had turned there backs on them. True or not, in media, you have to know how to reach an audiance, and chosing not to, well, you pay a07/28/2015 - 8:03pm
Andrew EisenAt the end of the day, even when Intel pulled its advertising (albeit, temporarily), Gamasutra showed its journalistic integrity by not removing or editing the opinion piece.07/28/2015 - 8:00pm
Andrew EisenNot liking Gamasutra is fine. The audience is primarily industry folk and it's not a game-focused site so it's probably not targeting you anyway.07/28/2015 - 7:57pm
E. Zachary KnightMAtt, So, an online petition asking Target to stop selling GTAV is "bullying and threatening" but a petition and boycott of Intel to force them to stop advertising on Gamasutra is justified?07/28/2015 - 7:56pm
Andrew EisenTrue or not, what it came across as a bunch of people lashing out at a publication over an opinion piece.07/28/2015 - 7:56pm
MattsworknameTo be honest, I've never liked them, but mostly cause rather then being a game focused site, they felt to political for my taste07/28/2015 - 7:56pm
 

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