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Generation X make more in-app purchases than any other group

ironSource delve into app monetisation and discovery
Generation X make more in-app purchases than any other group
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IronSource has published two new reports, diving into app monetisation and app discovery.

In the monetisation report, ironSource and Tapjoy discovered that Generation X is most likely to make in-app purchases “occasionally” or “often”, although this same demographic is also the most likely to prefer an ad-supported model to in-app purchases.

24 per cent of zoomers in the study support the option to pay a one-time fee to remove ads, indicating the importance of diverse monetisation streams to appeal to the greatest number of users.

78 per cent of mobile gamers surveyed stated that they usually download free apps, while 52 per cent tend to download free apps with optional in-app purchases. The non-gamers surveyed had similar spending habits, with 76 per cent and 46 per cent, respectively.

Over the past five years, the free-to-play market has grown, with 43 per cent of gamers and 33 per cent of non-gamers reporting that they’re downloading more free apps and fewer paid apps. However, 17 per cent of gamers report that they’re making more in-app purchases, compared to 15 per cent of non-gamers.

Free-to-play remains dominant

35 per cent of gamers report that they never pay for apps, while 20 per cent are willing to spend up to $5 and 18 per cent willing to spend around $1. Non-gamers were three per cent behind in every metric at 32, 17, and 15 per cent respectively.

37 per cent of gamers report occasionally making in-app purchases of a few dollars each, compared to 28 per cent of non-gamers. 16 per cent of gamers purchase $10-$20 bundles, compared to 15 per cent of non-gamers, while 28 per cent and 27 per cent, respectively, never make in-app purchases.

App discovery

70 per cent of gamers surveyed reported downloading apps after seeing mobile ads for them, with the majority of mobile gamers having 20 or more apps installed on their devices. However, between 39 and 50 per cent only use five to ten apps daily.

Consumers rate video ads, interactive ads, and app store ads as the most helpful when it comes to app discovery, showcasing again that app selection and placement is key to user acquisition.

32 per cent of gamers preferred app store ads, such as Apple search ads (ASA), while 21 per cent of non-gaming audiences favoured a combination of video ads and promotions.

Rewarded ads proved to be the most attention-grabbing, with 36 per cent of the gaming audience and 33 per cent of non-gaming audiences paying more attention, dispelling the myth that rewarded ads are only suitable for gaming apps.

Social media apps proved to be the most popular across demographics, with 72 per cent of gamers and 60 per cent of non-gamers using such apps daily. In contrast, 69 per cent of the gaming audience and 60 per cent of the non-gaming audience play mobile games daily, while 36 per cent of both groups use streaming apps, such as Netflix and Spotify, daily.

Yesterday, we reported that ASA has seen a 5 per cent increase in share of wallet over the past year. Following a battle between ironSource, Unity, and Applovin, ironSource and Unity recently confirmed that their planned merger is moving forward.