Mobile analytics and billing provider Bango published a blog post yesterday indicating that less than 5% of mobile revenue in 2010 were generated via in-app billing. Though sluggish, the company also predicts in-app revenue growth of 600% in 2011.
“In the mobile market, in-app billing as a charging model has been talked about for a long time,” the post explains. “This is the idea that the download happens without charge, but continued use of the app, or particular app features, would trigger a charge to the consumer. The thought is that this model provides for unobstructed access to the app to maximize distribution, followed by payment at the optimal time of usage, to maximize conversion rates.”
While there’s many possible reasons for the slow adoption of in-app billing by developers, Bango says a large factor is technical limitations on the part of app stores. For example, RIM has yet to implement an in-app billing model for its App World marketplace, but plans to in early 2011. Factors like this helped Bango arrive at the 600% growth prediction for next year, which also equates to nearly 30% of all mobile app payments.
“The platform battle next year will focus on developers as much as users, who will need to determine which of the app platforms to prioritise for development and distribution,” the post continues. “Those that deliver most revenue will capture greatest mind-share.”
