How to maximize in-app purchase revenue in games

Emily Greer at Kongregate has a great presentation from Casual Connect on maximizing revenue from in-app purchases:

She brought some great statistics from Kongregate’s games, a broad enough sample to see how differing strategies impact ARPU. A few things that she highlighted that we see come up repeatedly:

  1. Low entry prices don’t work. $0.99 in-app purchases don’t entice more people to purchase, and simply drags down the average purchase price and ARPU.
  2. Big spenders represent 50%+ of revenue for high performing games. While they are less than 10% of users, they are critical for overall monetization. You need a strategy for how a user can engage
  3. Prices of in-app purchases are usually inelastic. Put differently, great games can raise prices on their in-app purchases and increase ARPU. (connect this to #1 and #2 for more justification)
  4. The highest earning games are all about retention. Games with great long-term retention keep the interest of big spenders and create an in-game economy that continues to provide reasons for them to spend over time.

Emily backs it up with lots of stats from Kongregate and some case studies. If you want to read about how to make more money, go read the piece. It’s full of gold nuggets from her hard won experience.

When you’re ready to put it into action, integrate Think Gaming’s SDK. We make it easy and automatic to uncover your own gold nuggets.