iGaming Business – Mobile applications relationship marketing specialist Swrve has reported that just 0.15% of mobile gamers account for 50% of the monthly revenue from in-game purchases.
In the company’s first ‘Mobile Games Monetization Report’, Swrve said that this finding means that the vast majority of players deliver no revenue, thus reiterating the importance of acquiring and retaining users in the “high spender” category.
Swrve also said that 50% of revenue is derived from the top 10% of those players that do make purchases.
In addition, just 1.5% of players active in the month surveyed made an in-app purchase during that month.
The report also said that 49% of all players make just one purchase per calendar month while only 13% of players make five or more purchases.
A total of 53% of players who do make a purchase go on to make a repeat purchase within 14 days while 47% do not.
Swrve also reported that 13.7% of new players make more than four purchases within the first 14 days, with 60% of this two-week revenue period accrued on the first day of life.
Hugh Reynolds, chief executive officer of Swrve, said: “What’s interesting is that while many consider that the freemium model to be successful, there is still surprisingly little data relating to exactly how consumers interact with freemium games.
“With access of tens of millions of players, we have aggregated data from across our system to finally lift the lid on what goes on after install – and where the money is made.”
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