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Microtransactions Exceed Ad Profits on the iPhone

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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