Juniper: In-App Purchases To Trump Mobile Ads

By On January 5, 2011 · Leave a Comment

Juniper Research has issued a new report on the mobile gaming market which states that while mobile ad revenue will grow tenfold from $87 million in 2010 to $894 million by 2015, mobile ads will still generate far less revenue for developers than download fees and in-app purchases. Juniper estimates that by 2015, download fees and in-app purchases will generate ten times the revenue of mobile advertising. In practical terms, Juniper Research says this means that only the very biggest mobile gaming hits (like Angry Birds) can expect to generate substantial revenue off of an ad-supported publishing model.

The report still argues that mobile advertising is a ripe market for brands to enter. In addition to seeking ad placement in games like the ad-supported Android version of Angry Birds available through GetJar, brands can attempt to promote themselves through creation of branded mobile games. The report points to successful games carrying the Barclaycard and Volkswagen brands as proof. The report also points out that creating branded games can help developers like Fishlabs and Firemint generate more revenue, more quickly. In previous reports, Juniper Research has called for total mobile game revenue to top $11 billion by 2015.