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.

2 comments on “How to maximize in-app purchase revenue in games

  1. Emile Jobity says:

    Youll talk about retention alot. I dont want the internets version, what is retention to thinkgaming? What is its value, what does it mean?

    • togilvie says:

      Hi Emile –
      We talk about retention because we think it’s the most important aspect of creating a successful game. To us, it’s a way of measuring whether users are engaged with your game and having fun. Typically, it’s measured as the percentage of players that return after trying out your game. For example, day 7 retention is the percentage of players that play on the 7th day after they first played your game.

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