Spending in mobile games dominated by “whales”

Playnomics sheds some light on spending in mobile games

Playnomics, a social game analysis firm, has released new data concerning the financial aspects of mobile games and in-app purchases. Mobile games are typically free to obtain, which is partly why they have become so popular among consumers. Because many of these games are free, developers rely heavily on advertisements and in-app purchases to generate revenue. In-app purchases, often referred to as microtransactions, are somewhat controversial among consumers, but any controversy surrounding the issue has not been enough to deter consumers from actually spending money on mobile games.

Spending dominated by top 1% of consumers

According to the data from Playnomics, there is a significant disparity among the consumers that are spending money on mobile games. The data shows that the top 1% of new consumers spending money on these games represent 33% of all spending on these games. These consumers are referred to as “whales” in the mobile games space because they hold considerable purchasing power. The data also shows that the top 20% of consumers represent more than 90% of all spending in mobile games.

Mobile Games SpendingMajority of consumers are not spending money on mobile games

Playnomics has examined the behavior of more than 1.7 million consumers that play mobile games and social games. The company found that approximately 0.77% of these consumers were spending money on in-app purchases. The data suggests that the vast majority of consumers are not spending any money on mobile games, apart from the price they pay to acquire games that are not free outright. Playnomics notes that the top 1% of consumers spending money on these games represent the majority of the spending being seen in the mobile games space.

Data shows that a single consumer can spend as much as $7,400 on mobile games

The data shows that a single consumer that is in the 1% bracket can spend as much as $7,400 on in-app purchases. The average consumer will spend approximately $43 on mobile games and in-app purchases. Playnomics notes that consumers will typically spend nearly 30 minutes per play session and complete an average of 5.9 play sessions in any given day.

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