Only 0.15 percent of mobile game players contribute to fifty percent of the revenue made by in-app purchases, according to a survey done by Swrve.
Swrve, a mobile analytics firms conducted a first-ever Mobile Games Monetization survey. The findings revealed some astonishing facts about mobile game players and mobile game revenues. The chief finding of the survey suggests that a measly 0.15 percent of all mobile players account for half of the monthly revenue earned from in-game purchases. This means that majority of players deliver no revenue and reiterates the importance of acquiring and retaining users that fall into the "high spender" category.
Other findings revealed that in January only 1.5 percent of all mobile game players made any sort of in-app purchase. The survey also found that only 49 percent of mobile game players make at least one purchase per month while 13 percent of all players make more than five purchases per month. Researchers also found that most of the purchasing activities take place within the first 24 hours the game is downloaded and played for the first time.
"What's interesting is that while many consider the freemium model to be successful, there is still surprisingly little data relating to exactly how consumers interact with freemium games," Swrve CEO Hugh Reynolds said, according to PCMag. "We have aggregated data from across our system to finally lift the lid on what goes on after install-and where the money is made."
The survey also noted that if a player makes a second purchase, the average time between the first and second purchase is one hour and 40 minutes. Additionally, 53 percent of players who make a purchase go on to make their second purchase within 14 days.
Approximately 14 percent of new mobile game players make their first four purchases within the first fourteen days. The average value of an in-app purchase is $5.94. About 67 percent of in-app purchasers only buy apps costing between $1 and $5. Only 9 percent of the total revenue generated from in-app purchases comes from purchases made above $50.
Swrve gathered data from more than 10 million players of freemium games during January 2014.
