Distimo, MEF: Games represent 36% of app downloads, 71% of revenue
Mobile commerce company MEF and mobile apps analytics firm Distimo have today released a joint report on worldwide app store trends, finding that while games may only represent 36 percent of all app downloads, they account for more than 71 percent of total revenue on iOS and 89 percent on Google Play.
The report found that the Apple App Store accounts for 65 percent of total revenues globally, regardless of app category, while Google Play has gained significant ground in the last six months, now sitting at 35 percent.
As expected, the freemium games model (free app download with available in-app purchases) accounts for the most game-specific revenue, with 86 percent of game revenue in the App Store and 94 percent of game revenue in the Google Play store generated via that model.
Only seven percent of the game revenue in the App Store and four percent in the Google Play store is generated by pay-once-and-done apps. Another seven percent and two percent of the game revenue in the App Store and Google Play store, respectively, is earned in apps that have both a paid download and available in-app purchases.
Other entertainment apps account for only eight percent of total downloads, and two percent of total revenues on the Apple App Store. The social networking category comes in sixth for total number of downloads, but accounts for three percent of total revenue.
Even though paid games account for far less revenue than those in the free-to-play model, there’s still room for developers to boost revenues with that strategy. According to another Distimo report from February 2013, a simple price drop of a paid iPhone app can increase revenue by up to 95 percent in the first three days after the price drop. That same strategy sees increased revenue for iPad apps of up to 51 percent.
MEF and Distimo’s full report is available to all MEF members. Check out the MEF website for more.