In-App Purchases Yield More Revenue Than Mobile Ads [STATS]

By
Jennifer Van Grove
 on 
In-App Purchases Yield More Revenue Than Mobile Ads [STATS]
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A look at the chart below shows that for the month of September, the average monthly advertising revenue is roughly $1 per app user. For virtual good sales, however, the revenue per user is closer to $8.

Flurry data also highlights that, as of February, mobile advertising revenue per user has remained flat, while in-app purchases are trending upward. "During 2010 ... revenue increasingly shifts from advertising to virtual goods sales until reaching a proportion of more than 80% from virtual goods," according to the report.

Comparison data from Android devices is non-existent because the Android Market does not yet support in-app purchases, a potential huge shortcoming of Google's mobile app store if the iOS data is reflective of app user interests. Apple, on the other hand, has allowed in-app purchases since the release of iPhone 3.0 OS in mid-2009.

At the time, Mashable's Ben Parr predicted, "The iPhone 3.0 OS could be transformational. Just as the Internet transformed how people purchase goods and services, the new iPhone features may build an economy for on-demand goods and services that do not depend on any specific location or time."

Flurry's data represents just a slice of the iOS picture, but we believe the study's takeaways to be sound. When application makers build compelling game experiences, users will spend money to upgrade their experience -- it's the same money-making model we already know works on the web.

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