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Dubit - Children’s In-Game Spending Children’s In-Game Spending

Kids and parents on in-game spending IAP

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Page 1: Kids and parents on in-game spending IAP

Dubit -

Children’s In-Game Spending

Children’s In-Game Spending

Page 2: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game SpendingDubit -

In App Purchasing: The Study

At Dubit we are constantly researching which games children are playing.

We’ve been there from the beginning: we began with the rise of virtual worlds, witnessed the growth of iPads and Apps, and the gradual acceptance of paying for digital content.

So, from all this time in the industry - what have we learnt?

This particular study looks at “in-game” purchases: how many kids buy, how much, and do their parents know?

In this study of 500 children from the UK, aged between 6 and 12 years-of-age, we look at all types of games, from online micro payments through to in-app purchasing on mobile.

And we provide this data as a benchmark for anyone interested in monetising kids digital entertainment, and for those concerned about kids spending online.

Page 3: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Parents and Kids: Do you play mobile games?

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25%

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Parents Kids

Yes No

Base Size: 500 Parents & Kids

Mobile gaming is incredibly popular with 91% of parents and 71% of children playing games on mobile phones. The percentage of kids who play on mobile is consistent for all ages between 6 and 12 years old.

Page 4: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Parents: Have they bought in-game?

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Yes No Don’t Play

Base Size: 500 Parents & Kids

But mobile games don’t grow on trees. They rely on people paying for them - either upfront, or paying for something in the game. In our survey, 25% of parents have paid for something “in-game”.

Page 5: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Parents: Do you let your kids make IAPs?

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Yes No

Base Size: 500 Parents

However, parents are not as willing to allow their kids to buy in-game. Only 17% allow their children to make in-app purchases, with 83% of parents keeping a tight hold on the virtual purse strings.

Page 6: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Kids: Do you know your parent’s app store password?

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Yes No

Base Size: 87 Kids who are allowed to purchase in-game

For those kids allowed to make such purchases, almost half (41%) know their parent’s app store password. That’s in spite of warnings that parents should keep their security information secret, to avoid kids spending willy-nilly.

Page 7: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Kids: Do you get permission before buying in-game?

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Always Usually Never If They’re Watching

Base Size: 87 Kids who are allowed to purchase in-game

The good news is that kids seem to be pretty (well, very) trustworthy. Even though many children know their parent’s password, the vast majority still ask for permission, with only 1% going behind their parent’s backs.

Page 8: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Kids: What is the most you have paid for a single purchase in-game?

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Under £1 £1 - £5 £5 - £10 £10 - £20 Over £20

Base Size: 87 Kids who are allowed to purchase in-game

There’s more good news. Despite fears of children breaking the bank, 73% (of the 17% given permission) spend less than £5 in one transaction: in fact the average purchase is £2.07. Not one had spent more than £20. Not one.

Page 9: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Kids: What do you like to pay for in-game?

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Unlock New Levels Cosmetic Powers Speed up time None of These

Base Size: 87 Kids who are allowed to purchase in-game

And what do they like to pay for? Children are more likely to choose to pay to unlock levels or buy cosmetic items such as clothes, than pay to speed up time (such as fertiliser in Farmville). Kids tend to have more time on their hands!

Page 10: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Parents: How much would you pay to remove Ads in a kids game?

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No Under £1 Under £3 More than £3

Base Size: 500 Parents

Finally, we asked parents about the other revenue model for games: advertising. 62% of parents would be happier to have their kids exposed to ads, than pay for the app to be ad-free. Our qualitative research on this reflects the same sentiment: parents are not that bothered about advertising in kids apps.

Page 11: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Kids Research

• Market analysis

• Prototype and concept testing

• Competitor analysis and market scoping

• IP / trend spotting

• Design & ideation

• Monetization strategies

• Ethical marketing

• Transmedia modeling

Dubit: Research, Build & Launch digital experiences for kids brands

Kids Game Development

• Game design and ideation

• Character and brand design

• Game development

• Virtual Worlds and Casual MMOs

Kids Apps

• iOS and Android games

• Interactive storybooks

Launch

• Game promotion and player acquisition

Page 12: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

Dubit: Just a few of our customers

Page 13: Kids and parents on in-game spending IAP

Dubit - Children’s In-Game Spending

If you’d like to know more about what we do checkout our website dubitlimited.com or send Matthew an email: [email protected]. We love to talk!

AddressThe Half RoundhouseWellington RoadLeedsWest YorkshireLS12 1DR

Phone(+44) 113 3947 920

[email protected]

Dubit: Get in touch!