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


 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
MattsworknameHey, slightly off topic, but, anyone got a good sugestion for a flight stick for elite dangerous?04/21/2015 - 12:38am
Matthew Wilson@pm intreasting the gta5 port was already good from what I have read.04/20/2015 - 9:32pm
Papa Midnighthttp://www.pcgamer.com/gta-5-pc-patch-reduces-cpu-usage/04/20/2015 - 9:00pm
PHX Corp@zippy I'm Probaly going to Warn my uncle who is a techie that it may come out at the end of july04/20/2015 - 8:45pm
Matthew Wilson@zippy I want windows 10 badly, but that is because I am stuck on 8.1 yuk. that being said the new dx12 looks very good, and the reported performance gain from it.04/20/2015 - 8:00pm
ZippyDSMleeMy body is readY! http://www.afterdawn.com/news/article.cfm/2015/04/20/amd-microsoft-to-launch-windows-10-at-the-end-of-july04/20/2015 - 7:54pm
PHX CorpI may have posted this before but a leaked email from Sony pictures has the MPAA written all over it http://www.extremetech.com/computing/203654-leaked-sony-emails-show-mpaas-opposition-to-fair-use-confirms-users-are-viewed-as-thieves04/20/2015 - 4:53pm
Mattsworknameyet another reason the DMCA should be dismantled and rewritten04/20/2015 - 4:41pm
Matthew Wilson@zippy that is worse than the ESA thing.04/20/2015 - 4:26pm
ZippyDSMlee0-o good luck with that car companies, http://www.autoblog.com/2015/04/20/automakers-gearheads-car-repairs/04/20/2015 - 4:07pm
Andrew EisenYes, hence my subsequent shout.04/20/2015 - 3:15pm
Matthew Wilsonwhile the article itself isnt that great, but the point is still valid.04/20/2015 - 3:14pm
Andrew EisenProfessionals do need to be mindful of what they say on social media though. That's true.04/20/2015 - 3:11pm
Andrew EisenWell, it was almost a decent article from Techraptor. Some day. Some day...04/20/2015 - 3:09pm
Matthew Wilsonhttp://techraptor.net/content/gamings-pr-problem both game devs and pr people alike need to to keep in mind, when your on twiter you are also representing the company you work for.04/20/2015 - 2:39pm
E. Zachary KnightI don't really care either way, but that was just my understanding based on previous reads.04/20/2015 - 2:13pm
E. Zachary KnightBut now I am confused. I thought Johnny Storm was the adopted one, but the dad is black. Does that mean that Sue is adopted or is it just an interracial marriage with existing children?04/20/2015 - 2:12pm
E. Zachary KnightNew Fantastic 4 trailer finally shows powers and just a wee bit of whimsy. Not too much mind you. No need to dilute the dark and brooding. http://www.comingsoon.net/movies/trailers/431505-the-new-trailer-for-fantastic-four-is-here04/20/2015 - 2:11pm
E. Zachary KnightOk. Just checked another of my Twitter accounts and there is a setting, opt-in. So it looks like a slow roll out.04/20/2015 - 1:17pm
E. Zachary KnightI agree. I looked but could not find any settings for DMs. So either there is no opt-out or they are slowly rolling it out one block of users at a time.04/20/2015 - 1:11pm
 

Be Heard - Contact Your Politician