NPD: freemium games - a ticket to a profitable future

Those mobile application developers who want to make more money may want to consider the option of converting a paid application to a free one with the ability to monetize purchases within the application, says a new study. After downloading freemium games in mobile stores, 40% of consumers decide to make an in-game purchase, explains NPD research firm. Most of them are men. Analysts explained that while women play more freemium games, they are “among those who are least likely to pay for the upgrade.”



Freemium games are becoming increasingly popular in the mobile market. Applications are free to download and play, but for additional features or certain items, developers are already asking for money.



Already several studies conducted in recent months have underlined the importance of in-game purchases. For example, research firm IHS in January found out that in-app purchases last year amounted to $ 970 million , representing 39% of all costs for mobile applications. By 2015, this figure could grow to $ 5.6 billion, or 64% of the market.

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At the same time, for example, the decision of Appy Entertainment to make their game Trucks and Skulls, previously priced at $ 0.99, free, increased profits from the game by 150% and, surprisingly, the company did not receive a single complaint from those who had previously bought the game.



“In 2012 it will be harder for stores and developers to actually charge an advance payment for their products in the presence of huge competition from free content.” Says Jack Kent, an IHS analyst. "Instead, the industry must rely on a freemium model and monetize content through in-app purchases."



Earlier this month, the Amazon app store announced shopping for apps in the Apple App Store and Google Play, the former Android Market, has long been offering this feature.

NPD, in turn, found that purchases in applications begin to fall after a person has been playing the game for more than a month, which makes it necessary for the developer to target the “fresh” audience who just downloaded the application and started using it.



Freemium games are widespread, 85% of those who know about application downloads, downloaded such programs. In total, 38% of the US population from 2 years and older is currently playing some kind of freemium games, says NPD.



In its study, NPD surveyed 6,400 people.