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Mobile Monday: Game Apps Earn 4x Non-Games, Gen Z Spends Big on Digital Content

Posted Jun 24, 2019

As they enter into adulthood, Gen Z is starting to make meaningful purchases and gaining the attention of brands and advertisers. A comprehensive report on the generation’s digital behaviors revealed that they are not only spending a considerable amount of time on mobile devices but are also spending money on them. Meanwhile, a recent industry analysis proved that game app publishers are earning significantly more than non-gaming apps. Learn more about these studies in this week’s Mobile Monday!

Average Revenue of Mobile Game Publishers Continue to Grow
Sensor Tower, mobile measurement firm, recently revealed that the top 100 app publishers on the Apple App Store earned 65% more than those on the Google Play store. App Store publishers grossed $83.8 million while Google apps made $51 million during Q1 2019. The overall growth in earnings was a result of higher consumer spending which is up 12% in comparison to Q1 2018. In the past five years, the average spend in Q1 increased by 285% with the App Store seeing a growth of 291% and Google Play seeing 289%.

Games continue to be huge money-makers amongst app publishers. Top game publishers on both Apple and Google stores achieved an average of approximately $115 in consumer spend. This result is nearly four times more than the $29 million average of top-non-gaming publishers. Game publishers on the App Store generated $70.3 million during the first quarter of this year, 48% more than Google Play’s total of $48 million. Despite this gap in income, Google Play games’ revenue had a larger increase year-over-year at 12.6%, while the App Store’s earnings increased by 9.8%

Most of Gen Z is Constantly Online
Snap Inc. recently released a report The Youth of the Nations: Global Trends Among Gen Z that examined the generation’s digital behaviors. Gen Z is the first generation of digital natives and their habits and attitudes reflect that. Around 64% of respondents said they are constantly online and 57% felt more insecure without their mobile phone than their wallet. Additionally, the age group spent an average of 4 hours and 15 minutes per day on their mobile devices during 2018 which is the most time of all the generations.

Gen Z is also moving away from using laptops and desktop computers as their main source for internet access.  A majority of the age group (78%) regard mobile as the most important device to access the internet with millennials not too far from that percentage at 74%. This heavy dependance on mobile is also seeping into purchasing habits. When it comes to entertainment, Gen Zers are spending their money on digital content rather than traditional or analog. The top three types of digital content purchased by this age group in the last month Seep were music downloads (26%), music streaming services (25%), and mobile games (21%). This research could be beneficial to advertisers who are looking to reach the generation as their spending power grows.

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