In-app purchases: the future of mobile app revenue

A new research from Gartner predicts that by 2017, in-app purchases (IAP) will represent about 48% of revenue for mobile app stores, compared to just 11% in 2012. In-app purchases are expected to double this year and will reach $4.6 billion.

Gartner projects that IAP will overtake paid download sales in 2017 generating $37 billion.

IAP will become a major monetization method for apps stores and developers.

Gartner predicts that “IAP is a promising and sustainable monetization method because it encourages performance-based purchasing; that is, users only pay when they are happy with the experience, and developers have to work hard to earn the revenue through good design and performance ».