28 May 2013Playnomics:
Out of a pool of 50 million active users during Q1 2013, we examined over 1.7 million new Non-Arcade players who joined during the first two weeks. For those players only, we observed their monetization behavior over the entirety of the first quarter. By the end of Q1 2013, almost 14,000 players in the cohort of 1.7 million had monetized, roughly 0.77%.
These are some mind-blowing statistics. 0.77% of their audience generated all of Playnomics’ first quarter revenue, totalling a tad under $600,000. The other 99% of players contributed zero to the company’s income, but have the essential role of attracting the 1% of players who become devoted to the games and are willing to pay for additional content.
Furthermore, 1% of the 1% who payed any money are responsible for a third of total revenue. That’s 134 people contributing a combined sum of $190,000, with an average spend of over $1,400 each.
Now, visualise expanding the sample population, slightly, to the top 20% of the 1% who payed any money. This tiny group (approximately 2700 people) accounts for 90% of total revenue.