91% of Mobile Game Revenue is Spent on In-App Purchases

Research firm Newzoo released some interesting numbers from March 2012. One of the most fascinating tidbits was that American mobile gamers are incredibly fond of in-app purchases. Of the mobile-game revenue in America accounted for by Newzoo, 91 percent was in-app purchases as opposed to money spent buying games. Check out some additional details below.

For both Android and iOS devices, the majority of money is not spent on downloading games but within the games: an astonishing 91% for Android and 91% for iOS games. This share is significantly higher in the US than in Germany and France, where figures are between 73% and 87%. The comparison does not include advertising revenues.

Even though this is a small sample that only covers one month out of the year, the numbers are astonishingly high. I figured in-app purchases made up the majority of revenue, but I had no idea that they were so dominant.

The one caveat is that Newzoo did not include ad revenue. Ads are a much bigger deal on Android than they are on iOS. I know several developers that make a good amount of money on Android thanks to in-game ads. And really, the point of most Google products is to collect information to serve relevant ads. Even though Newzoo was up front about not include ad revenue, the picture it paints isn’t the clearest because of this omission.

These figures also made me think about my own purchasing habits. I spend a lot more on apps than in-app purchases. This puts me in the minority. What are your spending patterns like? Do you spend more money on games or in-app purchases? How much do you spend per month on in-app purchases?

[Via: Newzoo]