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Miniscule number of mobile gamers contribute to in-game revenues
The vast majority of mobile gamers playing freemium games never contribute to revenue through in-game purchases, according to new research from mobile app analytics platform Swrve.
In its first ever Mobile Games Monetization Report, Swrve reveals that a tiny percentage of mobile gamers account for half of all monthly revenues via in-game purchases.
While the number of players that actually do make a purchase is very low - 1.5% of players active in a month - those 'whales' or lucrative group of gamers who spend outsized amounts of money on virtual currency make up only .15% yet account for half of all revenues.
"What's interesting is that while many consider that the freemium model to be successful, there is still surprisingly little data relating to exactly how consumers interact with freemium games," said Swrve CEO Hugh Reynolds. "With access of ten's of millions of players, 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."
Other key findings from Swrve's report include:
- Half (49%) of those who make a purchase do so only once per calendar month;
- 13% of paying players make five or more purchases;
- The average time to purchase is under 24 hours, the period during which a significant amount of spend activity takes place;
- Purchases of between $1 and $5 represent the majority (67%) yet contribute only 27% of total revenue.
- The average value of an in-game purchase is $5.94.
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