In 2015, US mobile ad revenue was approximately 35 percent total digital revenue. That equates to $20.8 billion. Although that is a nice chunk of money that ad revenue is pulling in, it seems that revenue from in-app purchases is completely over taking in-app ads, according to AppsFlyer State of In-App Spending.
The study done by AppsFlyer looked at “over 100 million users across over 1,000 apps that have in-app purchase activity.” The following image shows the breakdown between ads vs. in-app purchases vs paid apps. Keep in mind that these modes aren’t mutually exclusive, as non-advertising monetization dominates on a global basis.
According to the calculation done by AppsFlyer, “the average global paying user spends $9.60 a month per app, which is 20 times more than the average user.” Even here, it seems that only five percent of app users make purchases.
When you compare the amount of in-app purchases made on devices, Apple users end up spending 2.4 times more than Android users, and the number of in-app purchasers on iOS is 50 percent greater than the number of Android users making in-app purchases. The average of in-app purchase value for iOS is almost twice what it is vs Android.
Now, we will move on to geographic spending. Asia is the leading region when it comes to monthly in-app spending per user. North America took second place in the standing.
Globally speaking, 5.2 percent of users are making in-app purchases. For Asia, this number is slightly higher at 59. North America almost matches that at 5.8. But for other regions, it’s less. With this information, it’s clear that, the higher the population that has a more penetrated existing market, the higher revenue opportunity.
On another interesting note, Sensor Tower has calculated that Apple generated over $71 billion in app-related revenue to date. Previously, it was announced by Apple that they paid over $50 billion to developers. This represents the net after Apple’s 30-percent cut.
Something to keep in mind is that the data provided by AppsFlyer doesn’t reflect mobile-web advertising.