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Mobile Gaming Apps Report UA Trends & Benchmarks

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Mobile Gaming Apps Report UA Trends & Benchmarks 2020 Mobile Shopping Apps Report 2 0 2 0 Mobile Gaming Apps Report UA Trends & Benchmarks With retention data from Table of Contents 1 Introduction ..……………………………..…………..……………………………………..…………….. 3 2 Highlights ….………..……….……..…………………………………..…………………………………... 5 3 Methodology ….……….…………………………….………..…………………………………….…….. 6 4 Global Trends & Benchmarks …….…………………………..…………………………..……... 9 5 Casual Gaming Apps ……………….…………………………......….……………………….…….. 22 6 Hyper Casual Gaming Apps …..…..………………..……...………………………………..…... 29 7 Midcore, Hardcore & Strategy Gaming Apps .....……………………………………….. 36 8 Social Casino Gaming Apps ...…………………………………………...……………………….. 45 9 Country Deep Dives ……..…………………………………………………...……………………….. 52 2 Introduction In 2020, mobile gaming apps rule the world, fueled by record levels of app downloads and consumer spend. Games research firm Newzoo reckons roughly one-third of the planet’s population – that’s 2.6 billion people – will play mobile games this year. That number is projected to grow to 2.7 billion by 2021. Many are gaming fans, and many more are part of a new and captive audience forced by global events to practice social distancing and use their downtime to seek digital distractions. The outcome is a "bonanza" for gaming apps, an industry sure to experience a windfall of profits despite the tailwinds of a potential global recession. Overall, mobile gaming revenues are now set to top $100 billion this year, according to the latest data from app market intelligence provider App Annie and global research firm IDC. In total, the research concludes, mobile game spending will grow to more than 2.8x over desktop gaming and 3.1x more than home game consoles. ● Mobile gaming is the fastest growing segment and will account for 48% of all gaming revenues in 2020, up 13% from the previous year, thanks to blockbuster hits, including Fortnite, League of Legends and Pokémon Go. (Newzoo & Venturebeat) ● Globally, daily in-app payments for mobile games have jumped 24% since users started sheltering at home. (Unity Technologies) ● APAC will remain the biggest market for app install advertising at $16.9 billion this year, though its growth of 32% from 2019 will be the slowest among major regions. Ad growth will be highest in Latin America, followed by EMEA and North America. (AppsFlyer) Introduction 3 More players with more time stuck at home is a combination that has catapulted interest and interaction with gaming ads. A prime example is the last 3 weeks of March 2020, which saw ad impressions increase 57% compared with the same period the previous year, according to an examination of pandemic gaming behavior and game monetization. But more audience means more competition, especially when underwhelming retention numbers turn up the pressure on marketers to budget wisely and fight smart. Unfortunately, most marketers overlook the business benefits of retargeting – an approach where marketers serve personalized ads to encourage lapsed users to re-engage, re-install or complete down-funnel conversions. Retargeting represents a "missed opportunity" that drives a "significant performance uplift," according to AppsFlyer's State of App Retargeting report. Data from the report reveals a positive impact on retention rates for Casual games in the U.S., which increased by 33% on Day 1, 50% on Day 7 and 60% on Day 30. Gaming apps are experiencing their biggest year yet. But marketers also face their toughest challenges to maintain momentum once COVID-19 restrictions ease and players shift attention to other pastimes. Liftoff partners with AppsFlyer, the global leader in mobile attribution and marketing analytics, to provide data marketers need to drive deep-funnel goals, determine the return on ad spend and define retention targets and benchmarks. Introduction (continued) 4 Report Highlights Costs & Conversions Source At $1.47, CPIs have hit an all-time low. But turning Casual and Hyper Casual players respond best to players into payers is an uphill battle. Install- Non-Organic approaches, and the highest Day 1 to-purchase costs are up 24% compared to the retention rates are a bonus. Midcore is another previous year, and conversion rates have dropped by category where Non-Organic has the edge, driving 22%. It's the opposite story for install-to-register costs, rates that beat Organic by an average of 13%. which have dropped significantly. But disappointing Organic is a draw for Hardcore players, but the engagement rates of just 3.3% (down nearly 3x from lowest retention rates (Day 1 - 29.8%) is hardly a plus. the previous year) suggest marketers may have a tough Social Casino is a mixed bag, but Non-Organic drives time ahead. the best results early in the curve. ROAS Retention A comparison across Casual, Midcore and Social North America is home to the most loyal players, Casino subcategories reveals Midcore is the taking the #1 spot in the global benchmark and top-performer with the lowest CPIs ($0.89) and the across most subcategories. Europe comes in a close highest ROAS (Day 30 - 39.5%). Significantly, Android 2nd, followed in most cases by APAC. However, a offers value for money, offering the best ROAS for the breakdown of retention by country crowns Japan the lowest cost ($0.57). Social Casino comes in last with the undisputed leader in 3 of the 5 subcategories. highest costs ($6.82) and the lowest ROAS (Day 30 - Canada, Germany and the U.K. also show impressive 32.6%). staying power. Report Highlights 5 Methodology Date Range: Jun 1, 2019 - May 31, 2020 697 303M 314M 6.5M 27.9M Apps Analyzed Installs First-Time Events In-App Purchases Customer Revenue Methodology 6 Casual Hyper Casual Midcore, Hardcore Social Casino & Strategy Casual games include bubble Hyper casual games are These are role-playing games Social casino games include shooters, match 3 games, instantly playable lightweight (RPGs) and adventure games, slots, video poker, bingo and word games, hidden object games, supported, for the delivering users a riveting and blackjack games. Gameplay games and puzzle games. It most part, by advertising. The immersive experience. combines competitive and offers a core game loop that combination of simple game Players tend to be male, and social elements to attract a keeps users loyal for months, mechanics and minimalistic the majority of revenue still broad demographic. In not hours. Casual audiences design ensures a “tap-to-play” comes from in-app purchases, general, gambling is not the are roughly 50% female, 50% experience that is highly although many companies thrill. Players are more male, and fall between the engaging. However, healthy are starting to diversify their interested in connecting and ages of 18 and 35. Games are long-term retention curves are monetization strategy. engaging to have a good time easy to play, highly addictive the exception, not the rule. in a relaxed yet familiar Examples: Empires & Allies, and drive spontaneous and environment. Examples: Stack Ball, Run War Machines: 3D Tank frequent gameplay. Race 3D, Traffic Run, Color Games, War Robots, Vikings: Examples: DoubleDown Examples: Gardenscapes, Bump 3D, Clean Road and War of Clans, Narcos: Cartel Casino, Huuuge Casino Slots Candy Crush, Magic Jigsaw Love Balls. Wars and Game of Thrones: Vegas 777, Jackpot Casino, Puzzles, Seekers Notes and Conquest. Game of Thrones Slots Bubble Birds. Shopping App Categories Casino and Fairway Solitaire. 7 Key Terms ● Organic refers to traffic you have attracted to your app (or app downloads that occur) without the direct effort or action of an advertiser to influence the audience or outcome. In this scenario, the user encounters an app or takes action because they have a high level of interest in doing so in the first place. Significantly, campaigns that recruit organic traffic also help reduce the effective cost per install (eCPI) and increase profit. ● Non-Organic refers to actions that happen as a result of any marketing activity—paid or owned. Paid marketing exposes audiences to ad campaigns. Owned marketing harnesses approaches, including email, SMS and direct response, to trigger an action, such as downloading an app. Thanks to data and analytics, marketers can focus campaigns on driving non-organic traffic and ultimately drive scale and control quality. ● Retention measures the percentage of users who continue to use your app over a given period (week, month or quarter). Knowing your app's retention rate helps you gauge app "stickiness" and understand how well your app performs over time, per user. ● ROAS (Return on Advertising Spend) shows the actual profit achieved per advertising expense in dollars. It's based on the principle of return on investment but, while ROI shows the ratio between revenue and cost, ROAS is used to evaluate individual ads and campaigns. 8 At $1.47, the cost to acquire a player plummets, down 66% from the previous year. But the cost to activate a payer rockets nearly 24% to hit the highest levels since 2018. Global Gaming Apps Cost YoY Gaming Apps Global Trends & Benchmarks 9 Gaming Apps Global Trends & Benchmarks The cost to acquire players is a steal, but all-time high costs to activate players can break the bank. Couple that hurdle with engagement rates that are the lowest in four years, and the challenges ahead are real. Marketers miss the mark with 75% of their users, a massive shift from 2018 when campaigns converted nearly half of players to payers. Global Gaming Apps Conversion Rates YoY Gaming Apps Global Trends & Benchmarks 11 Marketers can count on a 2x return on ad spend in 3 weeks. Global Gaming Apps ROAS Gaming Apps Global Trends & Benchmarks 12 iOS has a slight edge in ROAS—but at 4x the cost of an Android install. Global Gaming Apps ROAS by Platform Gaming Apps Global Trends & Benchmarks 13 APAC is a mixed bag, combining the best ROAS with the highest CPI. Gaming Apps ROAS by Region ● EMEA is the prize, promising the second-best ROAS for CPIs that are half of APAC. ● North America underwhelms with the second-highest CPIs and sluggish ROAS.
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