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BizReport : Mobile Marketing : June 22, 2015

Declining in-app purchases in games buoyed by increased spend value

New research from Return Path reveals that in-app purchases made in mobile games have been in steady decline this year, but at the same time revenue has been buoyed by bigger orders.

by Helen Leggatt

In their analysis of in-app purchases within games such as Game of War, Clash of Clans, Candy Crush and Pet Rescue among 18,000 U.S. consumers between January 2014 and March 2015, Return Path found a trend of declining numbers of in-app purchases.

This trend, says Return Path, "signals a potential struggle among top game makers to maintain the levels of in-app purchase activity they drove in 2014".

However, despite these declines, in-app revenue gains were experienced in the first quarter of 2015. In the case of the much-advertised Game of War, while in-app purchase volume declined 21% in March after peaking in January, collective total monthly spend did not. Instead, in-app spend rose by 5% in February, decreasing just 1% in March. Furthermore, volume declines were offset by players placing significantly larger orders. The game's average order value climbed 9% to $67.23 in February and another 21% to $81.10 in March.

The reason for this trend may, says Return Path, "reflect game companies' strategic shifts to focus on their most engaged players for their in-app revenue, or a broader trend among users as dedicated gamers invest in their passion while more casual players lose interest and spend less".

Image via Shutterstock

Tags: gaming, mobile, trends

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