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Report Says In-Game Purchases Will Rise to $4.8 Billion in 2016

I swore I would never do it. My friend swore she’d never do it. And still, after months of fighting the urge, we both did it. We both spent money in-game in order to advance play. A mighty eagle, here, an extra life there. The question now is, where will it end?

If Juniper Research is right, it may not end until we’re both out on the street begging for change in order to buy Words with Friends tokens.

Juniper says we (all of us, not just my friend and I) spent $2.1 billion on in-game purchases in 2011. They expect that number to rise to $4.8 billion in 2016.

Mobile Commerce Dollars Nearly Double But Not Everyone is Buying

Statistics are a funny thing. 118% growth and 6.7 billion sound like great numbers. But let’s take a look at how things really add up.

This chart from eMarketer shows some amazing growth in the mobile commerce market. Look at that 118.8% increase in 2010. Sounds great, until you realize that prior to 2010, mobile commerce didn’t really exist. It was just people using the internet access on their phones in order to buy something.

The dollar hop from $3.5 billion to $6.7 billion in 2011 is very nice. But folks spent $37.2 billion online just this past holiday season alone. So, it’s still a very small part of overall spending.

I’m not knocking mobile, or the rise in m-commerce. I just want to look at it with glasses that aren’t tinted a rose color.

Consumers Still Don’t Know What to Do with QR Codes

QR codes are popping up everywhere. Not long ago, these mysterious patterned squares could be found in an occasional magazine or on a mailer. Now you can find them on grocery displays, packaging, even on bus shelters.

More QR codes must mean more people are using them! Right? Sort of. A new study from Chadwick Martin Bailey shows that people are scanning, but they don’t know what do with the results.

Here’s a visual from Marketing Charts:

I’m part of that top line, too. When QR codes were new, I scanned them all the time. Now, I rarely bother. I find that most codes just lead me to a website that I could have arrived at more easily by typing in the URL. Other than that, I’ve been led to a few recipes and some behind the scenes videos for movies. Nothing thrilling and certainly nothing worth sharing.

Android Market Passes 400,000 Apps. Should We Care?

I am torn on passing along information like this. It seems to be important for a split second to me but the data is quickly followed by a “So what?” moment that is just as strong. Maybe hearing your comments on this kind of “news” would be helpful but let’s get back to the original intent.

According to Distimo, a Netherlands company who claims expertise in app stores (whatever that actually means you can figure out on your own), reports that the Android app market has reached a milestone of 400,000 apps. They made a picture to “prove” it.

iPad 2: How Low Will Apple Go?

There are lots of rumors flying this morning about a potential, hefty price drop in iPad 2 when the iPad 3 comes to market. On the surface, this doesn’t seem like news at all. It makes sense to discount older versions of technology in order to make way for the new, but how low will Apple go? That’s the big question.

It all stems from a report that claims Apple is going to release two versions of iPad 3, one with more bells and whistles than any human being could actually ever need, and a more basic upgrade. The idea is to give them a range of price points from $499 to $399 and then the assumed $299 for the old iPad 2.

What Performance Should You Expect from In App Ads?

Mobile is on everyone’s minds these days. Whether you are talking about iOS v. Android devices or wondering just how many people have smartphones these days, there is plenty to discuss.

As marketers we are most interested in who has them and if they respond well to advertising. eMarketer points out some data around the performance of in app ads that is, well, not exactly awe-inspiring. First, there is a look at some data from a Lab42 study about just how many in app ads users click on.

Of course, I can only speak from a personal perspective but I don’t know if I have clicked on more than 10 ads anywhere in my life so to see that even some 30% have clicked on 6 or more in app ads is interesting to me. Of course, the other 70 percent is at 5 or less clicks with 20% of those surveyed never clicking on an in app ad.

Android Vs iOS Should Be Fun to Watch Moving Forward

As we approach the time of year where folks tend to back off just a little we decided to give you some eye candy to consider courtesy of the SAI Insider and Horace Dediu of Asymco. At an activation rate of around 700,000 devices a day Android is doing well but it’s not outpacing iOS activations that are estimated to hit 260 million in 2013 (by one analyst’s guess prediction).

This is not about whether Android is better than iOS devices. Clearly in the tablet market that has not panned out has it? It does say that the Android devices are likely hitting a more budget conscious market with low end phones. No harm in that because that gives more people a chance to use the mobile Internet. An article from Reuters talks about that very phenomenon in Europe.