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20% of Facebook gamers spend money, an average of $35 per month

By on March 2, 2010

Goldman Sachs have published their eighth annual Internet survey, and Nic Brisbourne has published some highlights over at the Equity Kicker.

The key ones for me were:

  • More people would consider cancelling their Pay TV service to save money than their ISP (21% to 10%) – oh dear, Sky
  • The dominant activities on social networks are messaging (72% of respondents), photo sharing (55%) and games (27%)
    • and 20% of those gamers spend money, averaging at $35 per month
  • Two thirds of consumers prefer pay per use revenue models, one third prefer subscription services

This data applies to the US only, but is valuable nevertheless. I find the news that Average Revenue per Paying User (ARPPU) is $35, with a 20% conversion rate, to be mindboggling, and fabulous news for moving into the social gaming space.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: