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BizReport : Mobile Marketing : June 06, 2016

App users spend more on in-app purchases than upfront payment

Once an app has proved it value, consumers will find it easier to spend on in-app transactions, and spend more on those transactions than on upfront app payments, reveals a new survey.

by Helen Leggatt

The survey, conducted online by Gartner, found that mobile app users spend 24% more on in-app transactions than on upfront app payments.

App users are spending $7.40 on paid-for apps every three month, but $9.20 on in-app transactions.


"This confirms that once users are confident that an app delivers the expected value without having to pay upfront, they then find it easier to spend on in-app transactions," said Stephanie Baghdassarian, research director at Gartner.

In other words, consumers like to 'try before they buy'.

Younger mobile users were found to be more confident with in-app transactions than older age groups who are more comfortable with traditional buying models.
With so many free apps available, it is hard for app developers to get people to pay for their creations. However, providing free apps and hooking consumers in, can lead to profitability via in-app purchases.

Tags: apps, in-app transactions, mobile

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