More than 70% of mobile app users are spending “nothing or very little”

Challenges in monetisation

More than 70% of US mobile app users are spending “nothing or very little” on downloading apps and making in-app purchases, according to new data from ABI Research, indicating that developers still face a number of challenges in monetising their offerings. ABI found that while two-thirds of app users have spent money on apps, a small pool of big spenders are playing a disproportionate role in generating revenues in the market. Currently, just 3% of mobile app users represent around a fifth of overall spending, indicating that the mobile app market is relying on a small group of hardcore users to drive revenues. While the mean amount spent on apps per user is USD14, this the median drops to USD7.50 as those paying very little pull down the total.

The median amount among the consumers who spend money on apps is much lower than the average, just USD7.50 per month,” says senior ABI analyst Aapo Markkanen. “This reflects the disproportionate role of big spenders as a revenue source. The highest-spending 3% of all app users account for nearly 20% of the total spend, while over 70% spends either nothing or very little.”

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