Mobile applications represent a huge and massively lucrative market. According to Flurry, a leading analytic firm operating in the mobile space, mobile applications accounted for $10 billion in revenue during 2012. The firm has released a report concerning the lucrative mobile applications business, which highlights the impact of free mobile games. The report shows that though free mobile games do not cost anything to play, that account for the majority of the revenue seen in the mobile applications market.
80% of revenue generated through free mobile games
Mobile games are among the most popular applications that are available to consumers with smart phones and tablets. These games often provide hours of entertainment and are typically designed to be very addicting. For many, mobile games are valuable assets because most of these games are free-to-play. Most of these games are filled with advertisements, however, which is part of the reason why they are generating so much money. According to the Flurry report, free mobile games accounted for 80% of the $10 billion in revenue the app market saw t his year.
In-app advertisements help generate revenue
In-app advertisements are not the only thing generating income for mobile games. Many games come equipped with a “cash shop,” which offers bonuses, new equipment, and exclusive features to gamers that want to spend money on the game itself. These cash shop marketplaces are very common in free-to-play games and account for the majority of the revenue they manage to generate. The report also shows that consumers spend large amounts of time on free-to-play games, thus increasing the likelihood that they will purchase something from the cash shop.
Free-to-play games are a lucrative business
The free-to-play model has become very lucrative for developers of mobile games. The report suggests that most developers have yet to identify the ideal niche in which these types of games flourish. Companies like Electronic Arts and Zynga have managed to find a way to make free-to-play games highly appealing to consumers with some cash to spend. Though the latter has been experiencing financial problems of late, Electronic Arts may serve as a powerful example of how to develop games that emphasis participation in a cash shop.
Denny is a graduate of the California State University of Northridge where he majored in Journalism and American History. Denny writes for Mobile Commerce Press on a part time basis while also working on his own ebook, The Only Mobile Marketer Left Standing. We've been told this title may change at least a hundred times before or even after publishing.