In-App Game Purchases Rise By 23.5% As US ESports Digital Ad Revenue Increases By 12%

According to the research data analyzed and published by SafeBettingSites.com, the eSports sponsorship segment, which includes ad revenue, is projected to grow at 7.5% year-over-year (YoY). Comparatively, other segments like digital revenue and streaming will grow at 60.9% and 44.9%, respectively.

Based on a study by AppsFlyer, there was a 15% increase in in-app purchase revenue in H1 2020, compared to an 11% decline in ad revenue.

In-app Game Purchase Revenue Grows by 23.4% in H1 2020

The global eSports market is expected to rake in $973.9 million in revenue in 2020. Of this amount, sponsorships (including ads) will account for more than half, $584.1 million despite its slow growth rate.

On the other hand, US eSports digital ad revenue will grow at 12% in 2020 to $196 million. That will be nearly half its growth rate of 23% which was recorded in 2019. Revenue from video ads in gaming content will grow at a faster rate of 18% to surpass $1.56 billion.

According to Sensor Tower, global mobile app revenue from purchases rose by 23.4% in H1 2020. From a total of $50.1 billion, games accounted for $36.6 billion marking a 21.2% growth YoY.

However, due to the drop in ad revenue, games using the hybrid monetization model also declined. These games that combine in-app purchases and ads for monetization declined by 8% YoY according to AppsFlyer. For casual and mid-core games using the model, there was a 30% drop in ad revenue. Despite this, in-app purchase revenue was able to grow by 130% during the same period.

According to Unity, in-app purchase spending spiked by 24% at the peak of the pandemic. At the same time though, the price game publishers pay for ads (average cost per install) fell by 33%.

The full story, statistics and information can be found here.

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