In-App Purchases Generate More Revenue than Ads

Analytics firm Flurry has published a new report which shows that in-app purchases have displaced ads as the top source of revenue for mobile games and social networking apps on the iOS platform. In fact, in September 2010, virtual goods accounted for 80 percent of mobile developer earnings in these categories. According to Wedbush Morgan Securities, social gaming should be a $1.6 billion industry this year and could hit $4 billion by 2013.


Android, Apple’s primary rival, does not currently allow in-app purchases.

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