The results indicate that users enjoy a more flexible experience when buying features inside an app rather than paying for an app that may not have all the features they want.Consumers spent an average of $9.20 on in-app purchases, compared to $7.40 for purchasing mobile apps.
Those ages 35 to 44 had an even split between the two spending categories.
The overwhelming majority of app revenue comes from gaming apps, which accounted for 85% of the $34.8 billion global app market in 2015, according to App Annie.Over the past eight years, developers have flocked to create mobile games as smartphones became a mainstream consumer device.
While mobile gaming apps using an up-front paid downloading model, wherein consumers paid a typically nominal fee to download an app, flourished in the early days of mobile gaming, the deluge of apps led to a change in monetization strategy.More apps started using the free-to-play F2P model, wherein a consumer can download an app for free, and is then later monetized either via in-app purchases or in-app advertising.
Since that transition, most consumers have been conditioned to expect quality mobile gaming apps for little or no cost.Jessica Smith, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile gaming that examines how the mobile gaming market has been affected by the transition to F2P monetization.It also takes a close look at how saturation in the mobile gaming category, combined with the standard F2P model, has led to numerous issues for developers, including spiking marketing costs, the premium on acquiring users who will spend heavily within a game called whales , and the impact that it's having on mobile gamers who do not spend in-app.
This has resulted in game mechanics that optimize the amount of money being spent by this small user group, which can often alienate the large swath of users who do not spend money in-app.There are numerous new solutions coming to market that offer developers and publishing houses a diverse selection of monetization models which combine in-app purchases with other methods.In full, the report:Sizes up the current mobile gaming app market and its future growth trajectory.Examines the role of free-to-play F2P games in the greater mobile gaming ecosystem.Identifies the major threats and opportunities inherent in the current mobile gaming market and in peripheral markets such as marketing.Explains the current monetization conundrum wherein the vast majority of revenue comes abysmally small segments of mobile gamers.Presents new approaches and solutions that can help mobile gaming apps monetize without alienating swaths of mobile gamers.To get your copy of this invaluable guide, choose one of these options:Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more.