Mobile app users are spending $7.40 on paid-for apps every three months and $9.20 on in-app transactions, resulting in a quarter more spending on in-app transactions
According to an online consumer survey by Gartner, app users spend 24% more on in-app transactions than on upfront app payments.
The survey found that younger people are more confident with in-app transactions than their elders. Although in-app transactions typically drive higher mean spending across all age bands (except for the 35-44 band, where in-app transactions equal upfront payments), the gap between the two models is wider among the younger users — the 18-24 and 25-34 segments. Younger users are more confident in spending within an app than older users, who are more comfortable with the classic model of buying to own and use. For mobile app providers, going forward, younger generations are unlikely to lose confidence and expectations about in-app transactions.
The survey also found that more than 65% of respondents said their spending remained the same across paid-for downloads and in-app transactions. However, among users who have changed The survey also found that more than 65% of respondents said their spending remained the same across paid-for downloads and in-app transactions. However, among users who have changed spending levels on mobile apps in the last year, 62% have increased their in-app transactions, versus 55% for paid-for downloads.
Providers wishing to focus on offering the best customer experience should be wary of in-app advertising, which, according to the survey, has yet to prove that it delivers value to the user. Only 20% of survey respondents indicated that they “often click on advertisements contained within mobile apps.” More importantly, almost two-thirds said they do not click on ads within mobile apps.
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