More gamers are making fewer in-app purchases

Anne Freier

In App Monetization

March 30, 2016

swrve

Swrve, the mobile marketing automation provider, recently unveiled its latest Monetisation Report 2016, which finds that the vast majority of mobile game players deliver no revenue. On average, paying gamers spend $24.66 a month, up from $22 in 2014.

64% of paying consumers only made a single purchase during the month of February 2016, up from 49% in Swrve’s 2015 report. Another 6.5% made up to five or more purchases monthly. That is down from 13%. Swrve found that there was a definite trend towards lower volume purchasing in-app.

More gamers are making fewer in-app purchases

swrve

Source: swrve.com

The average value of an in-app purchase was $13.82. Revenue was mostly driven by purchases between $5-$20.

Revenue and unit sales for in-app purchases

swrve

Source: swrve.com

Swrve has previously released findings which point towards 50% of all revenues made coming from just 10% of those making the purchase. This figure hasn’t changed all that much, with 48.4% of revenue now contributed by the top 10% of spenders. However, the 60% of all payers now contribute just below 20% of all revenues, which represents a slight increase.

10% of spenders contribute to 48.4% of revenues

Screen shot 2016-03-30 at 10.56.14 AM

Source: swrve.com

Spending varies significantly by day after game download. Most paying gamers (59%) make a purchase within the first day after downloading a new game. This drops to 7% after one week.

Day of purchase after download

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Source: swrve.com

The same is true for revenue generation, which is highest during the first day after download (55.5%) and drops as low as 3% on day 4 and remarkably recovers around day 5 to 22%. This may be due to players having successfully tested the game to warrant a purchase by day 5.

Revenue by day after download

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Source: swrve.com

Swrve also looked at the frequency of second purchases and found that 56% of payers made a repeat purchase, whilst 11% of new players even made five or more purchases within the first 14 days.