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.
Neo_DrKefkaA big name in the Gamergate movement Kingofpol uses a offensive term about autistic people and in turn the entire GamerGate community lashes out at him. We do not need false leaders who think they can say anything https://twitter.com/Kingofpol10/20/2014 - 11:07pm
Papa MidnightMP, honestly, I'm struggling to make heads or tales of the events being outlined in that reddit thread. I've never heard of Siliconera before, either.10/20/2014 - 10:48pm
MaskedPixelantehttp://www.reddit.com/r/vita/comments/2jbn6u/former_siliconera_moderator_leaks_screenshots_of/ Siliconera mods accused of deleting user comments that were pro Vita.10/20/2014 - 9:23pm
quiknkoldhttp://www.diamondbackonline.com/opinion/article_3fbc52ec-57eb-11e4-ba91-0017a43b2370.html10/20/2014 - 9:16pm
Neo_DrKefkaId love to see people come 2gether whether your 4 or against gamergate to gather 2gether and support an anti bullying charity and I would love to see a pro and anti gamegate debate on a neutral platform that promotes discussion and solutions10/20/2014 - 8:33pm
Neo_DrKefkaWhen someone was seriously hurt by a violent altercation. They have a prospective that people who have not had this experience lack. Bullying is a serious issue10/20/2014 - 8:30pm
Papa MidnightStraw Man to the fullest, but it gets the point across.10/20/2014 - 8:26pm
Papa Midnighthttp://i.imgur.com/dw0YPon.png10/20/2014 - 8:25pm
quiknkoldby doing something, Charitable Donations is an example.10/20/2014 - 8:06pm
quiknkoldAndrew : I dont accept any worded apology unless I can look the person in the eye when they say it. For me, he'd either have to make a video so I could read his bodylanguage, or actually do something. actions speak louder than words.10/20/2014 - 8:04pm
quiknkoldwell if they are looking for social pollution, Twitter is a great breeding ground for it. Its a breeding ground for deviance.10/20/2014 - 8:03pm
Andrew Eisenquiknkold - He had three tweets worth of apology the following day.10/20/2014 - 8:00pm
quiknkoldyou know, people keep saying Biddle's comment was sarcasm, but the thing is, Sarcasm doesnt translate well in Tweets. I took his words as really hateful, and unless I see an honest apology, I'm not going to be happy with him.10/20/2014 - 7:38pm
Matthew WilsonI doubt it will change much.10/20/2014 - 7:21pm
MaskedPixelantehttp://www.bbc.com/news/technology-29689949 Google's current piracy fighting plan.10/20/2014 - 6:58pm
Andrew EisenYikes. http://boingboing.net/2014/10/20/vultures-circle-gamergate.html10/20/2014 - 6:25pm
Neo_DrKefkaDestructoid Editor in Chief stepping down after allegations surface about blacklisting will he be next? http://allmannerofnerdery.tumblr.com/post/100526443850/im-leaving-destructoid10/20/2014 - 6:05pm
james_fudgethere's some inside baseball stuff going on in this Andrew - likely some stuff we don't know10/20/2014 - 3:30pm
E. Zachary KnightGreat musical video about online trolling. https://www.youtube.com/watch?v=_nS-QeM2ne810/20/2014 - 2:46pm
Andrew EisenBut again, this whole thing is just too damn vague to form an opinion on.10/20/2014 - 2:40pm
 

Be Heard - Contact Your Politician