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Microtransactions Exceed Ad Profits on the iPhone

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According to GamesIndustry.biz, analytics service Flurry is reporting that approximately 80 percent of revenue from iPhone apps now come from virtual goods.

From GamesIndustry: "For the month of September, Flurry found that the average monthly revenue per user in its surveyed Apps was $9 from virtual goods sales, and just over $1 from advertising. While advertising revenues were roughly the same in September 2009, the estimated average monthly revenue per user from virtual goods has grown from around $1.70 in the space of a year."

This is particularly interesting given that not too long ago, ads were hailed as the go-to method for profitability on the iOS app market.

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William Haley
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