Back in June of 2009, Flurry posted an article talking about “The Awesome Potential of iPhone In-App Purchases.” Well, today, they have the facts and figures to prove it. According to Flurry’s study, conducted using some of the leading iOS apps with 2.2 million users combined, in-app purchases are the leading source of revenue for social networking and social gaming applications.

In 2010, sales of virtual goods are overtaking advertising on the iOS platform by 80%. Most advertising revenues came from the 2009 Holiday season but in 2010 revenue has shifted from ads to virtual goods month after month.

Admittedly, the idea that consumers acquiring virtual swords, gold coins and respect points can outperform advertising seems counter-intuitive; however, this phenomenon is neither new nor unique to the iOS platform.

One factor of the low advertising levels could be the ‘old-school’ thinking of Ad agencies. They are slowly accepting mobile as a media platform and are skeptical about the potential of social games and media as a way to advertise. They’re really missing many opportunities to reach all of the iOS (and other mobile platforms) users who are already using things such as in-app purchases.

As social games continue to expand their consumer reach, … their relevance will increase. In fact, with mobile social game critical mass now rivaling TV prime time viewership, Flurry anticipates a stronger ad revenue generation through mobile social networking and games in 2011.  Over the next 18 to 24 months, Flurry predicts strong revenue growth from both virtual goods and advertising revenue from social gaming.

Note: Google’s Android Market doesn’t yet support in-app purchases this model is not yet viable for Android apps.

[via Flurry]