Are In-App Purchases Enough?

Posted on March 7th, 2014 by


Last week, Swrve released a report about in-app purchasing in mobile games. The reports found that only 0.15% of all mobile gamers contribute 50% of all the revenue from in-app purchases in free-to-play games. Of these spending users, 49% make only one in-app purchase per month, and 13% make five or more purchases. Once an initial in-app purchase is made, 53% of spending users will go on to make a second purchase within 14 days, while 47% of users don’t make a second purchase. Despite the various incentive campaigns by mobile game developers, a huge majority of users will never spend any money at all within a mobile game.

 

So, what does this really mean for mobile game developers?

 

The Good:

 

This report further supports the idea of there being a group of “power users”, or “whales” to use the casino term. While the number of power users is small, developers can use their analytics to single out these specific users. Once this group has been identified, developers should begin to implement a user retention campaign aimed at this group. Offer them discounts on the in-app store or give them “VIP” access to any game updates or new apps in beta.

 

Also, this report shows that getting a user to make that initial purchase will increase chances of them spending in the future. Devs should take this into account. Think about offering some kind of “welcome” discount for the in-app store to new users, encouraging them to make a purchase.

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More Mobile App Companies Move Towards IPOs…

Posted on October 25th, 2013 by
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Every mobile games developer wants to achieve the same kind of viral success that “Candy Crush Saga” and “Clash of Clans” have achieved. The mobile games industry is exploding, especially as developers move to “freemium” business models. Some may think that mobile game developers would be wary of going public with their success after witnessing Zynga struggle to maintain users after its IPO (initial public offering). However, several mobile game and app companies are making some steps towards going public, illustrating the insane capital success of the mobile games industry. Let’s take a look at a few:

 

First on the list is Supercell, a Finnish mobile gaming company, which is best known for “Clash of Clans” and “Hay Day”. Supercell recently sold 51% of itself to SoftBank andGungHo, makers of “Puzzles and Dragons”. This partnership is foreshadowing for Supercell. The company aims to take its products global, and it is now able to do so with help from SoftBank and GungHo. This will be an interesting “test-drive” of sorts for Supercell to see if their apps are popular enough to keep users engaged before they try to file for an IPO.

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App Monetization: A Glossary of Strategies

Posted on October 11th, 2013 by
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App monetization should be an integral part of any app development strategy. If you are just entering the industry, it can be difficult to keep up with all of the monetization types and buzzwords. We hope our guide to app monetization will provide you with the information you need to make the best decision about how to monetize your app.

 

First, there is really only one question you need to ask yourself with developing a monetization strategy: paid or free?

 

Paid apps and free apps are the two main branches of app monetization. Deciding between these two branches is an important first step for developers.

 

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To Go Freemium Or Not to Go Freemium [Infographic]

Posted on September 3rd, 2013 by


“Freemium” apps (or apps with in-app purchases) are the latest and greatest monetization trend in the mobile app industry. To put it simply, freemium falls somewhere between free, ad-supported apps and paid apps on the app monetization spectrum.  With the overwhelming success of games like Candy Crush Saga, freemium has been a popular topic of conversation in the mobile app world.

 

You may be asking yourself: What is behind this trend? Should my app go freemium??

 

Check out our infographic below!

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7 Basic Tips for App Monetization

Posted on July 16th, 2013 by


It can be discouraging to put so much time and effort into your app, and then see none of your work pay off (literally). So, we are going back to our roots and sharing 7 basic tips for monetizing your app:

 

 

1) Have a monetization plan from the beginning

 

With all of the programming work that you need to put into your app, it can be overwhelming to have to think about app monetization strategies. But, it will be beneficial to you in the long run to start formulating a monetization strategy from the very beginning.

 

Do your research! Explore different monetization strategies and different app monetization platforms. Find a strategy that will work best with your particular app. For example, you may find that the “freemium” strategy is best for your specific app. You may even find that pay-per-download is the best model for you, or that an app monetization platform like ours is the best fit for you.

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Are Freemiums the Best Way to Go? Or Do Users Ignore the App Once It Asks Them to Pay?

Posted on August 1st, 2011 by


The idea of freemium applications is that the initial version of the app is free, which appeals to the user and raises their interest in downloading the app. Although, once the user begins to form an addiction to the app and desires additional features, an upgraded premium version is available. In this way, developers can monetize their applications by originally including well-placed ads in their free version, and later upselling their users on extras increasing their profits. Although it is a fun idea, freemiums are usually more successful with gaming apps, which have been largely popular with at the Apple App Store (and not quite as popular at the Android Market).

On the bright side, freemiums have also been proven to be more successful than pure paid apps. They grab the user’s attention by originally appearing as free, and later revealing more features that appeal to the already game-obsessed user. Statistics show that while roughly 80% of all free apps have been downloaded over 100 times in the Google Android Market and Apple App Store, only about 20% of the paid apps have been downloaded over 100 times.

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