Fierce Developer recently reported that 97 percent of all App Store revenues are earned by the top 20 percent of iOS developers and that half of all mobile games in the store produce less than $3,000 of revenue. Further still, Ilja Laurs, the founder and executive chairman of GetJar, said that 80 percent of mobile games are played only once and therefore customers will always be reluctant to pay for games.
Many game developers are shifting their focus to freemium games using in-app purchases to generate revenue, which Laurs said can generate 10 to 50 times higher value than the price of a paid app.
Today, Urban Airship announced a strategic partnership and integration with Roar Engine, which offers all the backend services game developers need to drive greater commercial success. Roar Engine’s highly configurable game building blocks manage player state, game logic, virtual goods and social mechanics, while the integration of Urban Airship’s high-performance push messaging service enables server-side game events to trigger push messages to drive greater gamer engagement and promote in-app purchase opportunities at the right time.
In related news, real-world rewards network Kiip has announced winners of its $100,000 Build Fund today, awarding twenty game and app developers $5,000 along with access to free services from Urban Airship, Stackmob and others. We’re happy to support this effort, which is meant to offer independent developers a systematic program to support their efforts post-launch. Kiip itself is pretty cool, offering players incentives from brands as they progress through levels and achievements within games.
NPD recently found that 40% of consumers downloading freemium games decided to make in-game purchases, while research firm HIS said in-app purchases accounted for $970 million in sales last year, which is expected to grow to $5.6 billion, or 64 percent of the market, in 2015.
Make sure you get your piece of the pie by thinking through monetization strategies from the get-go. We can help you too, making it easy to enable in-app purchases in your games, and powering cross-platform push messaging that has been shown to double user retention and dramatically amplify user engagement.