Google Android’s In-App Purchase Revenue Grows 700% In One Year

Posted May 18, 2013

Earlier this week at the I/O 2013 conference, Google discussed with developers how to make money on the Android.  According to TechCrunch, Google announced some of the stats around Google Play revenues.  Google revealed that in-app purchase revenues through Google Play is up 700% since the same time last year.  This is evident in the highest grossing rankings section in Google Play.

Google launched subscription services on Google Play around a year ago.  That service has seen inbound revenue doubling every quarter.  Some of the apps that uses a subscription model exclusively are starting to enter the top grossing list such as Pandora.

Google revealed that a key trend is that tablet users tend to purchase more in-app content, which is why they recommend developers to build tablet-optimized experiences.  There is around a 1.7x higher purchase rate on tablets compared to phones.  This makes sense because people tend to procure tablets for entertainment purchases whereas phones are used more for communication purposes.

Overall Google developers have seen increases in revenues on the Android platform.  According to Google Play Product Manger for Commerce and Monetization Ibrahim Elbouchikhi, the average revenue per user (ARPU) among the Android install base is up 2.5x compared to the same time last year.