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Flurry: Virtual goods account for 80% of monthly revenue per user on iOS

Following the Facebook model
Flurry: Virtual goods account for 80% of monthly revenue per user on iOS
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Any app evangelists who predicted that revenue generated from the sale of virtual goods would soon outclass advertising should now stand up and be counted.

According to analyics firm Flurry, that's exactly what's happening on iOS, with a study of 2.2 million gaming network users on the platform revealing a surprising but steady lean towards in app purchases since the turn of 2010.

Taking advertising to the sword

In a blog post made on the firm's site, Flurry's VP of marketing Peter Farago claims the sale of virtual goods now accounts for more than 80 percent of the monthly revenue generated per user.

"The majority of revenue generated from advertising occurs during the 2009 holiday period," he says in the entry, adding that the shift towards virtual goods kicked off in early 2010.

"Admittedly, the idea that consumers acquiring virtual swords, gold coins and respect points can outperform advertising seems counter-intuitive, however, this phenomenon is neither new nor unique to the iOS platform."

The social network

Indeed, Farago suggests the current social gaming surge is essentially providing a model that iOS developers are now all too keen to follow.

An apparent reluctance by the advertising industry to embrace mobile platforms has resulted in developers seeking revenue elsewhere the $4 billion industry social gaming is set to become by 2013 (according to Wedbush Morgan Securities' Michael Pachter) the prime target.

"With mobile social game critical mass now rivaling TV prime time viewership, Flurry anticipates a stronger ad revenue generation through mobile social networking and games in 2011," Farago continues.

"Over the next 18 to 24 months, Flurry predicts strong revenue growth from both virtual goods and advertising revenue from social gaming."

[source: Flurry]