Virtual goods overtaking advertising on iOS says Flurry | Mobile Development | Mobile Entertainment

Virtual goods overtaking advertising on iOS says Flurry

Virtual goods overtaking advertising on iOS says Flurry
Stuart Dredge

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Development / October 15th 2010 at 10:17AM

Virtual swords beat in-app ads?

Virtual goods are now generating much more revenue for iOS developers than advertising, according to stats published by analytics firm Flurry.

It tracked revenues from a sample of social networking and social gaming apps for iPhone, and found that by September this year, in-app purchases were accounting for more than 80% of their revenues.

"Admittedly, the idea that consumers acquiring virtual swords, gold coins and respect points can outperform advertising seems counter-intuitive; however, this phenomenon is neither new nor unique to the iOS platform," blogs Flurry's Peter Farago.

He points out that virtual items are already a bigger source of revenues for Facebook games than advertising, hinting that iOS is following the same path.

However, this could change. "With mobile social game critical mass now rivaling TV prime time viewership, Flurry anticipates a stronger ad revenue generation through mobile social networking and games in 2011," writes Farago.