How Much Do Whales Spend?

In: ,

A quick look at spending tiers in free-to-play mobile games.

Over the last few weeks I’ve been building a set of planning tools for mobile free-to-play games, and I’m now at a point where I can share some early results.

One of my goals with these models is simple: help teams understand the spend depth* they actually need to support a viable business. It’s not enough to say “it should be large” (or infinite). Designers need a concrete sense of who they’re designing for, and how those players behave when they decide to spend.

Conventional wisdom says payers broadly fall into three groups:

  • Low spenders (minnows): roughly 50% of payers, spending up to $10
  • Medium spenders (dolphins): roughly 40% of payers, spending $10–$100
  • High spenders (whales): the remaining 10%, spending $100+

The question is: how much are whales actually spending?
In many cases, it’s not hundreds. It’s thousands.

Using the cohort split above alongside publicly available AppMagic data, I ran the numbers on three successful games:

  • Kick the Buddy (a fairly simple hypercasual game): whales spend roughly in line with other cohorts, because there are limited opportunities to purchase.
  • Marvel Snap: whales spend an average of $913. Which implies the top spenders are significantly higher than that.
  • Cookie Run: Kingdom: whales spend an average of $1,297. Again: average, not maximum.

To put that into perspective: in Cookie Run: Kingdom, whales generate over 84% of total revenue. Without sufficient spend depth, that game simply wouldn’t be commercially viable.

I’ve included a screenshot of the analysis, and there’s also a PDF version here.

Next step: I’m ready to start testing the full model with a few select studios. If you know anyone who might be interested in trying it please do send them my way.

References

* ‘Spend depth’: the maximum it should be possible for a player to spend in a given game.


Thanks for reading, drop me a line if anything here sparks a question. You can also subscribe below for occasional updates with recent posts.

Discover more from Kempt & Co

Subscribe now to keep reading and get access to the full archive.

Continue reading