Older Players Generate Four-Fifths of Freemium Gaming Revenue, Flurry Finds

 

Younger players from ages 18 to 24 may be the most active gamers in terms of the minutes they spend in apps compared to other age groups. But older players account for the vast majority of revenue, mobile analytics company Flurry found.

The company looked at 20 million users across all of the freemium games it supports. (Flurry has about 110,000 apps in its system.)

The company found that while 18 to 24-year-olds make up 32 percent of the time all players spend in freemium games, they only bring in 16 percent of overall in-app purchase revenue. In contrast, players ages 25 to 34 bring in nearly half of in-app purchase revenue even though they make up 29 percent of the time spent in freemium games. Thirty-five to fifty-four year-olds account for 28 percent of revenue even though they only account for 14 percent of time spent in games.

The logic behind this is pretty simple. Younger players have more time and a lower amount of disposable income. Older players are in the reverse situation as they may have more demanding jobs and families to support.

Freemium games — especially casual games — usually monetize through a system where it takes time to complete tasks like baking a virtual cake or building a virtual building. But players can bypass this time requirement by spending virtual currency. So older players who have less time and more discretionary might be more inclined to spend a little to get farther in the game without waiting.