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?
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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