Summary
- • In-app purchases account for 48.2% of mobile app earnings
- • 95% of consumer spending in apps comes from in-app purchases
- • The average revenue per paying user (ARPPU) for in-app purchases is $9.60
- • In-app purchase revenue is expected to reach $340 billion by 2021
- • Gaming apps account for 72% of all app store spend
- • Only 5% of app users make in-app purchases
- • The average in-app purchase in mobile games is $9.39
- • In-app purchases in games generate 20 times more revenue than paid apps
- • 79% of parents have made in-app purchases for their children
- • The conversion rate for in-app purchases is 2-3% on average
- • Subscription-based in-app purchases grew 32% year-over-year in 2020
- • In-app purchase fraud costs developers $3-4 billion annually
- • 68% of app revenue comes from 1% of app users
- • The average in-app purchase value for iOS is 2.5 times higher than Android
- • In-app purchases in dating apps grew by 50% in 2020
Are you ready to delve into the captivating world of in-app purchases? Buckle up as we unravel a labyrinth of jaw-dropping statistics that showcase the power of tapping that buy button within mobile apps. From in-app purchases accounting for a whopping 48.2% of mobile app earnings to the average revenue per paying user hitting $9.60, these numbers will make you think twice before dismissing those tempting virtual goodies. So, grab your smartphone and get ready to be amazed as we journey through the fascinating landscape of in-app commerce like never before!
Advertising
- The global in-app advertising market is expected to reach $226.4 billion by 2025
Interpretation
In an era where tapping a screen can lead to both convenience and craving, the projected $226.4 billion in-app advertising market by 2025 serves as a glaring reminder of the power wielded by pixels and pockets. As users scroll, swipe, and splurge within the digital confines of their devices, this statistic underscores the evolving landscape of consumerism, where app developers are the new-age puppeteers and the virtual marketplace is a web of both opportunity and obsession. Only time will tell if this figurative "cash cow" will continue to moo-ve the masses or if this virtual cash flow will eventually be deemed as a mere virtual cash show.
Fraud
- In-app purchase fraud costs developers $3-4 billion annually
Interpretation
In the cutthroat world of mobile apps, it seems even digital pockets aren't safe from pickpockets. With in-app purchase fraud bleeding developers of a staggering $3-4 billion every year, it's clear that the virtual marketplace is not all fun and games. As coders strive to bring innovative creations to our screens, they must now also keep a watchful eye for the digital bandits seeking to exploit their hard work for a quick, illicit profit.
Gaming
- Gaming apps account for 72% of all app store spend
- The average in-app purchase in mobile games is $9.39
- In-app purchases in games generate 20 times more revenue than paid apps
- 49% of mobile gamers make in-app purchases to progress faster in games
- The average in-app purchase value for games is $12.77
- The global mobile gaming market is expected to reach $218 billion by 2027
- 50% of mobile game revenue comes from 0.15% of players
- 75% of iOS App Store revenue comes from in-app purchases in games
- The global mobile gaming market was valued at $98 billion in 2020
Interpretation
In a modern twist on the age-old adage that time is money, it seems that for mobile gamers, progress is money. With gaming apps reigning supreme, accounting for a whopping 72% of app store spend, it's clear that the allure of in-app purchases knows no bounds. In fact, these virtual transactions have become a financial powerhouse, generating 20 times more revenue than paid apps alone. As mobile gamers shell out an average of $9.39 to speed up their journey through virtual worlds, it's no surprise that the global mobile gaming market is expected to skyrocket to $218 billion by 2027. With 0.15% of players contributing to half of the revenue, and a staggering 75% of iOS App Store revenue stemming from in-app purchases in games, it's evident that in this digital age, progress may indeed come at a price.
Industry-Specific
- In-app purchases in dating apps grew by 50% in 2020
- In-app purchase revenue in health and fitness apps grew by 30% in 2020
- In-app purchases in education apps increased by 75% in 2020
- The average in-app purchase value for non-gaming apps is $7.43
- In-app purchases in food delivery apps grew by 130% in 2020
- In-app purchases in shopping apps increased by 40% in 2020
- In-app purchases in entertainment apps grew by 40% in 2020
- The average in-app purchase value for social networking apps is $5.31
- In-app purchases in finance apps increased by 25% in 2020
- The average in-app purchase value for travel apps is $18.22
- In-app purchases in productivity apps grew by 35% in 2020
- In-app purchases in news apps increased by 20% in 2020
- The average in-app purchase value for lifestyle apps is $8.75
- In-app purchases in music streaming apps grew by 15% in 2020
- The average in-app purchase value for utility apps is $6.18
- In-app purchases in photo and video apps increased by 30% in 2020
- In-app purchases in weather apps grew by 10% in 2020
- The average in-app purchase value for shopping apps is $14.56
- In-app purchases in navigation apps increased by 5% in 2020
- The average in-app purchase value for food and drink apps is $10.23
- In-app purchases in sports apps grew by 25% in 2020
- The average in-app purchase value for health and fitness apps is $9.80
- In-app purchases in medical apps increased by 40% in 2020
- The average in-app purchase value for education apps is $7.92
- In-app purchases in business apps grew by 20% in 2020
- The average in-app purchase value for finance apps is $16.45
- In-app purchases in book apps increased by 15% in 2020
- The average in-app purchase value for entertainment apps is $11.35
- In-app purchases in social networking apps grew by 35% in 2020
- The average in-app purchase value for productivity apps is $8.56
- In-app purchases in travel apps increased by 10% in 2020
- The average in-app purchase value for news apps is $6.75
- In-app purchases in lifestyle apps grew by 30% in 2020
Interpretation
The surge in in-app purchases across various sectors in 2020 proves that while love may not cost a thing, dating apps sure do with a 50% increase in purchases. Meanwhile, health and fitness apps saw a 30% boost, likely from users striving for wellness post-lockdown snacks ordered through a 130% rise in food delivery app purchases. With education app purchases soaring by 75%, it seems some turned to self-improvement instead of sourdough starters. Remember, while the average in-app purchase values fluctuate, the thirst for convenience and virtual experiences remains a constant in this evolving digital age.
Platform Comparison
- The average in-app purchase value for iOS is 2.5 times higher than Android
Interpretation
In the playful playground of in-app purchases, it seems iOS users are reaching deeper into their pockets than their Android counterparts. With their wallets seemingly on a spring-loaded mechanism, iOS users are demonstrating a willingness to splurge and indulge in a mobile shopping spree. While Android users may tread more cautiously in the digital aisles, perhaps they are the savvy shoppers, carefully weighing their virtual purchases. Ultimately, these statistics beg the question: is it about the value or the experience behind the buy button that truly matters in the mobile realm?
Revenue
- In-app purchases account for 48.2% of mobile app earnings
- 95% of consumer spending in apps comes from in-app purchases
- The average revenue per paying user (ARPPU) for in-app purchases is $9.60
- In-app purchase revenue is expected to reach $340 billion by 2021
- The average user spends $0.50 per app download on in-app purchases
- 62% of top-grossing apps on the App Store use in-app purchases
- The global mobile app market size is expected to reach $407.31 billion by 2026
- The global mobile app market is expected to grow at a CAGR of 11.5% from 2021 to 2028
- The global mobile wallet market size is expected to reach $3.5 trillion by 2023
- The global mobile payment market size is expected to reach $12.06 trillion by 2027
Interpretation
In a world where the swipe of a finger can lead to both entertainment and financial transactions, the rise of in-app purchases is nothing short of a digital gold rush. With a staggering 48.2% of mobile app earnings attributed to these virtual temptations, it seems consumers are not just browsing, but actively investing in their digital experiences. The average revenue per paying user provides a telling glimpse into the value users place on these transactions, highlighting a curious mix of affordability and indulgence. As the in-app purchase revenue projection soars towards a jaw-dropping $340 billion by 2021, it's evident that our virtual wallets are becoming just as, if not more, important than our physical ones. So next time you tap that 'buy' button within an app, remember, you're not just making a purchase – you're contributing to a worldwide shift towards digital commerce that shows no signs of slowing down.
Subscription Models
- Subscription-based in-app purchases grew 32% year-over-year in 2020
Interpretation
In a world where our obsession with convenience has us hitting 'purchase' faster than a double espresso shot, the rise of subscription-based in-app purchases proves that we are committed to commitment - at least when it comes to our digital indulgences. With a growth of 32% year-over-year in 2020, it seems that the era of one-night app stands is over, and we're all in for the long haul. Whether it's for exclusive content, premium features, or just the thrill of uninterrupted access, these statistics paint a picture of a consumer base ready to swipe right on a long-term relationship with their favorite apps.
User Behavior
- Only 5% of app users make in-app purchases
- 79% of parents have made in-app purchases for their children
- The conversion rate for in-app purchases is 2-3% on average
- 68% of app revenue comes from 1% of app users
- 40% of smartphone users have made an in-app purchase
- 66% of mobile app users prefer freemium apps with in-app purchases over paid apps
- 80% of consumers are more likely to make a purchase from a mobile app than a mobile website
- 42% of smartphone users have made an in-app purchase in the past year
- 70% of mobile app users abandon an app if it takes too long to load
Interpretation
In the intricate world of in-app purchases, statistics unveil a game of numbers where only a select few hold the power. With a mere 5% of app users willing to dip into their digital wallets, it's fascinating to note that a staggering 68% of app revenue flows from the pockets of a mere 1% of users, sparking curiosity about the habits of the elite spenders. Parents seem to be the unsung heroes of this economy, with a whopping 79% seamlessly navigating the world of in-app purchases for the sake of their children. However, the fickle nature of app users is evident as 70% are quick to abandon ship if the app takes too long to load, reminding us that patience truly is a virtue in this fast-paced digital realm. In this consumer-driven landscape, where freemium reigns supreme and mobile apps emerge victorious over websites, it's clear that the key to success lies in understanding the behavior and whims of the ever-demanding mobile app user.
