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MONETIZATION
REPORT
January 2014
INTRODUCTION
The mobile games industry has undergone a revolution in the past few
years.
From a situation that many on the outside looking in would view as normal - namely consumers
paying for a game up front - we have migrated to the freemium model in which developers
effectively give the product away and then rely on in-game purchases.
Average monthly
spend is $15.27
1.5% of players
purchased
in January 2014
NUMBER OF PURCHASES
The illustration below indicates the percentage of payers making the
absolute number of purchases - from 1 to 5 or more.
VALUE OF PURCHASES
We saw above that the average value of an in-app purchase is $5.01.
How that figure breaks down sheds interesting light on the relative
contributions of different purchase types, or value levels, to the bottom
line of a freemium game business.
This illustration shows in-app purchases in value buckets (as individual purchases) and, plots
both the % of purchases that fall into that bucket, and the total % of revenue accrued from that
bucket.
66.8%
27.4%
27.0%
22.4%
22.4%
14.0%
9.1%
8.2%
1.9%
$ 1-5
$ 6-10
$ 11-20$
0.7%
21-50$
51+
In-App purchases of
over $50 contribute
9% of all revenues
50.8%
(#4.0, $6.20)
16.3%
(#3.2, $4.90)
(#2.6, $4.10)
(#1.8, $3.30)
(#1.6, $2.60)
(#1.2, $1.70)
(#1.2, $2.80)
0.7%
1.4%
2.2%
2.8%
0-10%1
0-20%
20-30%
30-40%
(#1.2, $0.90)
4.0%
40-50%
(#1.8, $4.00)
10.2%
6.9%
4.8%
50-60%
60-70%
70-80%
80-90%
90-100%
30000
Min [ hrs: 0]
20000
10000
01
00
200
Hours
300
10
46.9%
MAKE ONE PURCHASE
21.8%
MAKE TWO PURCHASES
11.2%
6.4%
13.7%
11
30000
Min [ hrs: 0]
20000
10000
1002
00
Hours
300
12
60.8%
ACCRUED ON DAY 1
10.9%
ACCRUED ON DAY 2
6.0%
ACCRUED ON DAY 3
4.1%
ACCRUED ON DAY 4
3.2%
ACCRUED ON DAY 5
15.0%
ACCRUED ON DAYS 6-14