Mobile Gaming Leads Mobile Revenue Growth

According to a January 2012 report,  games (49%) and social networking (30%) captured the largest proportion of consumer’s time spent with mobile applications with engaging, interactive content and experiences. The less-engaging, “read-only” entertainment (7%) and news (6%) content accounted for the small remainder of other major categories of consumption.

Mobile Apps Consumption Chart

Online games have always been popular, but the reports analysis shows a significant shift in daily interactive consumption over the last 18 months between the web (both desktop and mobile) and mobile native apps. According to

  • Smartphone and tablet users spent 94 minutes per day using applications in December 2011, compared to 81 minutes in June 2011. By contrast, during that time period, the average time spent on the web shrunk, from 74 minutes to 72 minutes.
  • During the three-month average ending November 2011, downloading of applications (44.9%) overtook browser use (44.4%) in popularity among US mobile subscribers.
  • Global revenues from in-app purchases could reach $4.8 billion by 2016, representing a 129% jump from the $2.1 billion total in 2011.
  • Forecasts total end-user gaming revenue to hit $18.3 billion in 2016, driven by downloads to smartphones, with in-game app purchases and downloads to tablets representing a similar share of that revenue.

It’s no wonder that Google changed the name of its app portal from the “Android Market” to “Google Play”.

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