In-app purchases

44 %
56 %
Information about In-app purchases
Gadgets & Reviews

Published on March 11, 2014

Author: rcastanon

Source: slideshare.net

Description

The Web is full of headlines that claim almost all app store revenue now comes from in-app purchases within free apps. But like much of what appears on the Internet, it is necessary to take a closer look at the numbers, to better understand the story.

Page 1 © Copyright 2014 In-App Purchases: Fool’s Gold or Pay Dirt? Raul Castañon-Martinez March 2014

Page 2 © Copyright 2014 Introduction  Recent headlines from tech sites claim almost all app store revenue now comes from in-app purchases within free apps.  It is necessary, however, to take a closer look at the numbers to better understand the story.

Page 3 © Copyright 2014 Methodology  Using our December 2013 US survey data, we created a visual representation to identify users who do in-app purchases.  We asked users who downloaded apps if these were paid or if they downloaded only free apps.  We then identified users that have done in-app purchasing in the last month and how much money they are spending on these.

Page 4 © Copyright 2014 Apps Downloads Source: Yankee Group U.S. survey data, December 2013.

Page 5 © Copyright 2014 Analysis  Two out of three smartphone owners in the U.S. never spend money on app stores.  Users that download only free apps will most likely not spend money on in-app purchases.  Users that download paid apps are more likely to spend money on in-app purchases.

Page 6 © Copyright 2014 Conclusions  Focusing on freemium and in-app purchasing might lead developers to misidentify the user segment that brings in most of the app store revenues.  These users also download free apps; in many cases, they will download a free version as a trial.  These users follow a different app life cycle as other freemium users.

Add a comment

Related presentations

Related pages

About in-app purchases - Apple Support

Get started. In-app purchases are extra content and subscriptions that you can buy in apps on your iOS device or computer. Not all apps offer in ...
Read more

Use Restrictions to prevent purchasing on your iPhone ...

Learn how to use Restrictions to protect your iTunes Store account from unintentional or unauthorized purchases. After you turn Restrictions on ...
Read more

In-App Purchase for Developers - Apple Developer

In-App Purchase for Developers. In-app purchase lets you sell a variety of items — including premium content, virtual goods, and subscriptions ...
Read more

BDZV: Was bedeutet „In App Purchase“?

Was bedeutet „In App Purchase“? Seit Juni 2009 bietet Apple die Funktion “In App Purchase” an. Die Funktion ermöglicht es Entwicklern, ...
Read more

In-App Purchase : | http://www.steinberg.net/

In-App purchases for Cubasis. FX Pack 1. Audio Demos. FX Pack 2. Audio Demos. ... Als erste In-App-Käufe stehen zwei Add-On Pakete mit Effekten bereit, ...
Read more

What is In-App Purchasing? - Definition from Techopedia

In-App Purchasing Definition ... Many in-app purchases occur in games, where users are able to purchase virtual goods for the game through the app itself.
Read more

In-AppStore.com « Freedom in-app purchases for Android ...

in-appstore helped lots of people to buy virtual goods for free. Really, why do you need to buy something in app, if you already own it? Today we are ...
Read more

Buy in-app items - Google Play Help

With some apps, you can buy additional content or services within the app. Here are some examples of in-app purchases: A sword that gives you more power in ...
Read more

What Is an In-App Purchase? - Real Simple

What Is an In-App Purchase? Learn how to avoid the hidden costs of "free" apps. ... then scrolling to Allowed Content and turning off in-app purchases.
Read more

In-app Billing Overview | Android Developers

Use In-app Billing to sell digital products, including one-time products and recurring subscriptions. In-app Billing is supported for any app published on ...
Read more