April 2014
Featured in this insight: IT & telecommunications
Survey finds majority of gamers prefer adverts in free games over paying for games: According to a study conducted among 500 gamers, on behalf of Electronic Arts and WildTangent, a company that powers game services for different companies, more than four fifths (86%) of players would rather have a free game, supported by adverts and in-game transaction, than pay full price for the game itself.
Further findings also predict that micro transactions spent on freemium games will account for two fifths (39%) of the total money spent on video games in North America by 2017. Likewise, mobile, tablet and PC gaming, where the majority of games using the freemium business model are found, will account for half (54%) of the spending on games content by 2017.
The EA backed survey forecasted that by 2017 only a tenth (10%) of mobile and tablet games will earn their revenue through a paid download.
Christine Arrington, senior games analyst at HIS, said:
“The research shows that gamers embrace value exchange ads, which demonstrates the progress the industry has made with advertising in and around video games… As gamers become more accustomed to in-game advertising, it becomes essential for brand marketers to find creative ways to use value exchange advertising while developers must ensure gamers have easy access to these offers.”
The term freemium is a pricing strategy by which a product or service is provided free of charge, but money (premium) is charged for enhanced features, functionality or virtual goods. The word ‘freemium’ is a combination of the two aspects ‘free’ and premium’.
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