Data & Research

40% of freemium gamers now happy to spend cash in play

Men more likely to make IAPs than women

40% of freemium gamers now happy to spend cash in play
As consumers become more comfortable with the freemium model, so their spending in-game is increasing according to numbers published by market research firm the NPD Group.

The firm concludes 40 percent of gamers who play freemium games go on to spend money on in-app purchases (IAPs) in order to 'enhance their experience'.

 

The firm's survey of 6,416 people also deduced that, on the whole, females play the most free-to-play games, but males are more likely to make IAPs.

Free-for-all

NPD claims the freemium model as a whole is growing in prevalence thanks to the ease of availability of free to play titles across a variety of devices and operating systems, with only 15 percent of gamers who are aware of freemium games choosing not to play them.

But amassing downloads doesn't necessarily mean the IAPs will follow.

According to NPD analyst Anita Frazer, many developers are still learning how best to get consumers to open their wallets.

"The majority of freemium gamers who opt to pay to upgrade their experience do so within the first month of playing a particular game," said Frazier.

"When designing a game, it's important to consider features that would drive quick conversion to pay."

Gender wars

Going deeper into the numbers, NPD describes conversion rates as "sticky", with 84 percent of players taking on trial versions choosing to play on afterwards.

Of those that gave up at the end of the trial, males between the ages of 13 to 24 are the dominant group.

"Males and those ages 18 to 34 are traditionally seen as a big part of the core gamer audience, so it's likely these groups are not quite as engaged with freemium because the gaming experience is quite different from what they are used to from the games they play on consoles, handhelds or PC's," added Frazier.

"At a minimum, for these gamers a freemium game would provide a different experience, like a snack versus a full meal."



[source: NPD Group]

Fresh out of the packaging, Tom joins Pocket Gamer with a chip on his shoulder and a degree in Journalism. Naively, Tom believes there's a star-studded career in video games and has penned words across the internet in between praying to the almighty Nintendo gods.