Titles sporting in app purchases might have had a slower start than many expected, but next year will see them break through into the mainstream, mopping up almost a third of the market.
That's the assessment made by analytics firm Bango, with the company predicting the 5 percent share the model currently accounts for will rise by 600 percent to a 30 percent portion in 2011.
In comparison, Juniper Research predicted that in-app purchases would overtake paid downloads as the largest part of the mobile games market in 2013.
Marketplace momentum
It's a rise that Bango claims will be largely down to a change in the set up adopted by smartphone marketplaces.
"Most [app stores] don't offer the functionality to enable payments from within the app," said Bango's marketing communications manager Vanessa Daly.
"But this limitation is starting to be lifted as app stores experiment to drive more revenue. RIM announced in September in app billing support in early 2011, for example."
It's the increased competition between the various marketplaces sporting an in app model that will then fire their collective assent.
Not only will the sheer number of apps with in app billing increase, but the variety of ways such purchases will be delivered will also broaden.
Buoyed Bango
"Near-term the developers and publishers who monetise regular use of the app streamed video and audio, games, news and alerts will most readily capitalise on in-app payment features," added Daly.
"Here, the ability to charge per play, per video or even per-page, opens up many new possibilities."
Of course, Bango has a vested interest in the in app purchase model being adopted by developers. The company currently offers its own billing service, available across multiple smartphone platforms.
[source: Bango]
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With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.
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