Users prefer in-app purchases to new app sales

BII

Mobile users are willing to spend money on apps, but it's just a question of how.

A new Gartner survey reveals that mobile users are more willing to spend money on in-app features than they are to pay to download an app in the first place. The survey showed that users on average spend 24% more for in-app purchases than for apps themselves.

The survey included 3,000 users in the U.S., U.K., and China and asked these consumers how much they spent on mobile apps and on in-app purchases in the last three months. The results indicate that users enjoy a more flexible experience when buying features inside an app rather than paying for an app that may not have all the features they want.

Consumers spent an average of $9.20 on in-app purchases, compared to $7.40 for purchasing mobile apps. And age was a factor, as younger users (ages 18 to 34) spent more in-app while older users (age 45 and older) were more likely to just buy apps outright. Those ages 35 to 44 had an even split between the two spending categories. The survey also noted that younger users are not likely to change their habits anytime soon.

The survey suggested that developers should provide consumers with options for recurring in-app transactions and, all-encompassing, one-time upgrades for a premium version of an app.

But in-app advertisements are not the way to go, as only 20% of respondents said they "often click on advertisements contained within mobile apps." This is a problem for app creators, as In-Mobi reports that 63% of developers choose to monetize their apps through in-app advertising.

For more, see the detailed report on mobile gaming from BI Intelligence. Click here to learn more about how you can gain risk-free access today.