Survey: 0.15% of mobile gamers make up half of all revenue

Money On Hook

In -app purchases rake it in from tiny fraction of players, reveals new study.

A new survey has shown that only 0.15% of mobile gamers account for 50% of all in-app purchases, putting paid to any scepticism of the free-to-play model of casting a wide net and relying on a minority of high spending customers.

As reported on by VentureBeat, the survey by Swrve found that the vast majority of gamers keep their wallets firmly closed around mobile titles, but that companies rely on high-rollers.

This represents a double edged sword for games developers, with the analysts at Swrve saying the potential cash cows are few and far between, while the general gamer is increasingly accustomed to free gaming experiences and often jump ship to the next title.

The survey also found that all of the in-game purchases were made by 1.5% of active players, 10% of which were the high-rollers, or “whales”, responsible for 50% of revenues.

Perhaps most importantly, while it may take gamers some time to make their first in-app purchase once they do it usually represents the start of a trend, with a second purchase following in 1 hour and 40 minutes on average.

“That means getting people to make that first purchase is a critical thing… For the second purchase, timing is equally important,” Swrve CEO Hugh Reynolds explained.

 

image: © Tax Credits

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