Advertising was responsible for 67.1 per cent of the revenue from arcade gaming apps in 2021. The revenue from mobile arcade games was only made up of 32.9 per cent of in-app sales. In comparison, mobile casino games only made 23.8 per cent of their money from advertisements and 76.2 per cent from in-app purchases.
With on-the-go amusement and a variety of genres that cater to all types of players, mobile gaming has engulfed the lives of millions of people. Mobile gaming generated more revenue than console and PC gaming combined in 2022. In 2022, there were 1.75 billion mobile gamers globally, but by 2026, that number is expected to rise to 2.2 billion. Mobile gaming market revenues are predicted to grow alongside an expanding user base, rising from 152.5 billion to 211.9 billion during the same time period.
One of the best ways to monetize in the freemium model is through in-app purchases:
What is the process?
Users who are playing a mobile game can buy features or things with real money using in-app purchases. Depending on the sort of game, that could mean anything from additional lives, gold, weaponry, unlocking levels, etc. This choice may be presented at any time during the game. However, it’s a standard practise in mobile gaming to subtly promote in-app purchases when a player requests help. Tenth time getting stuck on a level? A purchase will get you out. In-app purchases typically give gamers access to some form of extra value and are optional. In most circumstances, purchasing IAPs makes it simpler to level up and win or make any kind of progress.
Players receive a premium gaming experience when they pay for in-app purchases. At the same time, it is a highly valuable and well-liked source of income for game publishers. Additionally, the app stores will make it apparent if a game features in-app purchases if it does. What happens if a user decides to purchase something? Simpler does not exist. Some would even claim that it is overly basic. Users can add their card to cover any app-related expenses when they register an account on the App Store or Google Play. The amount is automatically charged to the card when the user makes in-game transactions. Therefore, making an in-app purchase is as simple as clicking a button.
In-app purchases are especially common among gaming apps when it comes to numbers. However, other app categories also frequently use them. These statistics are interesting.
IAP Facts You Should Be Aware Of:
By the end of 2022, it is anticipated that in-app purchase revenue will total $204 billion. In addition, it is anticipated that this amount will increase to $231 billion by 2023, $254 billion by 2024, $271 billion by 2025, and $285 billion by 2026. (Statista). Business of Apps reports that 50% of non-gaming apps presently monetize through in-app purchases, compared to 79% of gaming apps. Getting a user to pay for something in the freemium economy is challenging, as is well known. For the first time, especially. To put it in money, the average cost of persuading a mobile gamer to make their first in-game purchase is $35.42. (Lift-off).
AppsFlyer stated earlier this year that since Apple updated its App Tracking Transparency policy in June 2021, in-app purchase revenue for mobile games has decreased by 35% globally. In-app advertising (IAA) revenue is reportedly expected to increase by 55% in the US market during the same period.
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