#Asia Global champion: Asians spend 40% more in-app purchases than the rest of the world


A study by AppsFlyer reveals in-app spending patterns of mobile users around the world

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Global mobile marketing attribution analytics company AppsFlyer today announced the results of its State of In-App Spending report, which detailed in-app purchase (IAP) behaviours of more than 100 million mobile app users across over 1,000 apps.

While only five per cent of app users actually make these purchases, they still play a significant role for businesses.

“As app developers lay out their development, marketing and engagement strategies, it is critical for them to understand the differences in in-app spending behaviours across different platforms, geographic regions and app categories,” said Ran Avrahamy, AppsFlyer’s VP of Marketing, in a statement.

“While only a small portion of app users actually spend money on in-app purchases, app developers and marketers can capitalise by ensuring they always offer an optimal in-app experience, and by constantly measuring and optimising their activities in order to build a strong base of loyal, valuable users,” he said.

Examining data from April and May 2016, the report studied nearly 30 million purchase events conducted by over 100 million users across over 1,000 apps that have in-app purchase activity. The total spend analysed in this report was US$300 million worth of in-app transactions.

e27 compiled key findings from the report for your reading convenience.

Also Read: How does Asia fare in the global accelerator report 2015? It’s a mixed bag

While the average global user spend US$0.50 a month per app with purchase activity, Asian users are ahead of the game with US$0.70 spend, followed by North American with US$0.61.

“The findings suggest that mobile-first Asian users are more likely to trust and rely on their mobile-savviness to spend money in app,” according to the report.

Asian users also tend to spend big on IAP with 75 per cent higher spent and an 85 per cent higher average purchase than global users (US$32 versus US$56 and US$12.92 versus US$7).

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The report also introduced a concept called “whales phenomenon,” a well-documented fact that very small percentage of gamers contribute a significant share of the in-app revenue in gaming. Only 3.5 per cent of gamers spend money in-app, but those who do tend to spend big: 30 times more than the average gamer (paying and non-paying) with US$9.39 versus US$0.32 per month per gaming app.

Compared to gamers, there are more shoppers spending for in-app purchases (12 per cent). This is understandable as downloading a shopping app indicates that strong intent to make a purchase. However, the average purchase of virtual good is still much lower than physical good (US$7 versus US$36.54).

As can be seen in this graphic, in general iOS users also tend to spend more (50 per cent higher) compared to Android users:

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Android users also tend to spend money for utility apps (memory booster, launchers, anti-virus, etcetera), five times more than iOS users. The average in-app spend for utility apps in Android is US$0.85 compared to only US$0.24 for iOS.

Also Read: Ant Financial report: China’s online spending shifts to services and leisure

So what are AppsFlyers’ recommendations for mobile app developers?

Apart from measuring in-app spend, total revenue, and cost to determine your ROI; ensuring smooth payment process; focussing on paying users, as well as educating the market about the benefits of in-app purchases, the report stressed on the potential that Asia has for the future.

“There’s much to gain from going East: higher payouts from users on top of lower costs than Europe or the US. But if you do make the move, know this: the Asian market is a different animal altogether so make sure you know the market before you proceed,” it stated.

Image Credit: Tim Gouw on Unsplash

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