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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Andrew EisenThe story you just linked to? The story you asked if anyone had seen? Yes, THAT obnoxiousness. I've heard it parroted for nearly two years now.11/27/2014 - 7:57pm
ZippyDSMleeAndrew Eisen: That shes an ex con man?11/27/2014 - 7:54pm
Andrew EisenI've heard the same obnoxious horse poo for years. It's nothing new.11/27/2014 - 7:45pm
ZippyDSMleeAlso anyone see this? http://guardianlv.com/2014/11/anita-sarkeesian-unmasked-feminist-icon-or-con-artist/11/27/2014 - 7:28pm
ZippyDSMleeEvil within is a badly designed game.11/27/2014 - 7:28pm
Andrew EisenSure but you said "widens," hence my confusion. Looking into it, yep, there's a tweak to completely re-frame the image, adding more info at the top and bottom. You apparently need a fairly beefy rig to keep it running smooth when you do that though.11/27/2014 - 6:48pm
Matthew Wilsonthere is vertical fov, not just horizontal fov11/27/2014 - 6:38pm
Andrew EisenWell, you can widen it to 3:1 or even 10:1 but I don't know why you'd want to. From what I understand it's the missing visual info at the top and bottom that some object to, not that there isn't enough on either side.11/27/2014 - 6:36pm
Matthew WilsonI think it widenss the fov, so you get to see more.11/27/2014 - 6:31pm
Andrew EisenI don't see how as doing so would not add any visual information to the top or bottom of the screen.11/27/2014 - 6:04pm
Matthew Wilsonfrom what I read, getting rid of the black bars and stretching it out made for a better play experience.11/27/2014 - 5:59pm
Andrew EisenFrom what I hear, there's a ton of "look up and shoot at the guys above you" stuff in the game that the wider frame doesn't accommodate such actions well.11/27/2014 - 5:55pm
Andrew EisenHaving a game run in scope is not necessarily a bad thing but like any aspect ratio, you have to compose your shots correctly.11/27/2014 - 5:55pm
Neo_DrKefkaThe Evil Within was pretty bad and to make it worse the way the screen size made it hard for you to see even on a big screen it really hurt the game. Being Artistic is great but when you focus on art rather than what sells you run the risk of that happen11/27/2014 - 5:33pm
Matthew WilsonI kinda hope this is not true. http://www.nintendolife.com/news/2014/11/nintendo_might_not_be_making_more_gamecube_controller_adapters_at_the_moment11/27/2014 - 1:34pm
Matthew WilsonI saw that. I wish people would stop preording, but sadly that will never happen.11/27/2014 - 1:26pm
Papa MidnightUbisoft has cancelled the Season Pass for Assassin's Creed: Unity (http://www.reddit.com/r/pcmasterrace/comments/2ni2ac/ubisoft_cancel_season_pass_for_ac_unity/)11/27/2014 - 1:08pm
NeenekoBut now I can use the christmas discount justification too,11/27/2014 - 11:46am
NeenekoI am also sorely temped by Civ:BE, mostly because I have a demo coming up and I know my productivity will tank.11/27/2014 - 11:45am
MaskedPixelanteThe Evil Within is only a month old, right? And it's already 66% off...11/27/2014 - 10:29am
 

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