Spotting the Mobile Spenders: An Analysis of Paying Smartphone and Tablet Gamers

The mobile gaming industry is experiencing significant expansion, with global revenues projected to reach $25 billion in 2014. This growth is driven by a rising share of paying users, which has increased from 36% to 46% in Western Europe and the United States over the past two years. Contrary to the perception that mobile markets are saturated, the industry continues to see strong year-over-year growth, particularly in mature regions where increased conversion rates and higher average monthly spending per user are fueling revenue gains.

Data indicates that mobile gaming is increasingly comparable to console and PC gaming in terms of monetization. While the free-to-play model dominates, the demographic profile of mobile spenders is distinct: they are predominantly male, often hold full-time employment, and frequently have children. These users exhibit higher engagement levels, not only within games but also across social media and retail platforms, suggesting that mobile spenders represent a high-value consumer segment beyond their gaming habits.

The analysis highlights the Amazon Appstore as an undervalued channel, noting that its users are the most likely to spend money compared to those on Google Play or Apple platforms. Furthermore, tablet users—specifically those on iPad, Windows Surface, and Amazon Fire devices—tend to have higher incomes and a greater propensity for spending. While recommendations from friends and family remain the primary driver for game discovery, big spenders are uniquely motivated by competitive advantages, whereas minor spenders prioritize entertainment value. As mobile gaming continues to capture a larger share of the global entertainment market, it is projected to account for up to 50% of total game revenues by 2017, supported by a combination of primary consumer research, transactional data, and financial market analysis across 25 countries.