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BizReport : Mobile Marketing : January 06, 2014

In-App Buys bigger than paid apps

For a while paid apps led the revenue segment for many developers, and for many it still does. But in 2013, a change has begun - at least for the app stores. According to new data from Distimo, in-app purchases - many times from free apps - are leading the revenue charge.

by Kristina Knight

The Distimo data focuses on revenue to app stores and finds that about 98% of Google Play revenue as well as 92% of Apple App Store revenues resulted from in-app purchases made within free apps (November 2013). At the beginning of 2013 both the Google and Apple stores saw at least 10% less revenue from in-app purchases each.

eMarketer suggests just over 40% of all app revenues will come from in-app purchases (2013) and that the share will grow to 47.5% by 2017.

As for the mobile smartphone breakdown, comScore reports Apple still leads the way with a 40% OEM marketshare, while Google/Android holds a 52% share of platform marketplace. Just over 62% of the American population now owns a smartphone with most logging on to Google sites (88% reach), Facebook (84% reach) and Yahoo sites (77% reach) most often.

And talking about apps, specifically, Facebook's app reaches 75% of the marketplace, holding the top app slot. Google Play (54% share) and Google Search (52% share) hold slots two and three with Pandora coming in fourth with a 48% share.

Image via Shutterstock

Tags: app trends, comScore, Distimo, in-app purchases, mobile apps, mobile marketing, mobile trends

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