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Mobile and Tablet Gaming MOBILE AND TABLET GAMING 2014 DECONSTRUCTING MOBILE AND TABLET GAMES PATRICK WALKER H EAD OF I NSIGHTS AND A NALYTICS EEDAR IS WORLD’S LARGEST VIDEO GAME-FOCUSED RESEARCH FIRM • GamePulse • Data Feeds • Dashboards • Investment Services • Legal Services • Mock Reviews • Sales Forecasting • Custom Research • Syndicated Reports EEDAR Database • Custom Surveys 50,000 Games 80 Million Data Points vCONTEXTv IS EVERYTHING 1. Market Sizing & Segmentation M OBILE GAMING GROWTH DRIVEN BY M OBILE DEVICE ADOPTION NA Mobile Gamers - By Device NA Mobile Gamers [Q3 2014][Active SP/Tablet Gamers] [2012-2014][Active SP/Tablet Gamers] 200 180 160 35% 140 49.7MM 120 50% 71.0MM 100 194.8 80 164.2 Millions 141.9 60 125.2 111.3 15% 40 84.1 21.3MM 20 0 2012 2013 2014 Own a Smart Mobile Device Play Games on their Smart Mobile Device Smartphone Only Tablet Only Smartphone & Tablet vCONTEXTv IS EVERYTHING DUAL SMARTPHONE/TABLET G AMERS ARE DRIVING THE REVENUE NA Mobile Gaming Revenue ($MM) - By Device Avg. Monthly Avg. Yearly Gamers Total Spend Spend Spend (MM) (MM) 15% Smartphone $1.12 $13.46 49.7 $668 $668 Tablet $1.64 $19.73 21.2 $419 SP/Tablet $4.04 $48.45 71.0 $3,438 9% Total $2.72 $32.65 141.9 $4,633 $420 Smartphone/Tablet Gamers spend 76% almost: $3,438 •4X Smartphone Gamers •2.5X Tablet Gamers Smartphone Gamers Tablet Gamers Smartphone/Tablet Gamers vCONTEXTv IS EVERYTHING MOBILE SPENDING IS A POWER CURVE Near 50/50 Revenue Split Share of Mobile Players and Revenue - By Mobile at $10/Month Segmentation Gamer Segment % of Players % of Revenue 45%46% 49% 49% 51% 6% 0% Non-Payers Moderate Payers Heavy Payers 45% of mobile gamers vCONTEXTv IS EVERYTHING WHALES ARE MORE LIKELY TO BE MALE NA Mobile Gamer Gender % Male % Female Heavy Payers 71% Male All Mobile Gamers 44% 56% Heavy Payers 71% 29% Moderate Payers 59% Male Moderate Payers 59% 41% Non-Payers 37% 63% Non-Payers 63% Female 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% vCONTEXTv IS EVERYTHING WHALES ARE OLDER NA Mobile Age 2013 2014 Heavy Payers 71% Male 31.2 Years Old Moderate Payers 36.6 34.6 59% Male 32.5 30.2 31.2 28.0 Years Old 26.7 28.0 27.7 Non-Payers 63% Female Non-Payers Moderate Payers Heavy Payers All Mobile Gamers 26.7 Years Old vCONTEXTv IS EVERYTHING WHALES USE BOTH DEVICES NA Mobile Gamer Device Usage % Smartphone Only % Tablet Only % Smartphone and Tablet Heavy Payers 71% Male 31.2 Years Old All Mobile Gamers 35% 15% 50% 77% SP/Tablet Moderate Payers Heavy Payers 11% 12% 77% 59% Male 28.0 Years Old 63% SP/Tablet Moderate Payers 23% 14% 63% Non-Payers Non-Payers 38% 16% 38% 63% Female 26.7 Years Old 38% SP/Tablet 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% vCONTEXTv IS EVERYTHING SPEND IS ONLY PART OF THE PICTURE A more nuanced definition of Investment needed vCONTEXTv IS EVERYTHING INDEXING INVESTMENT : THE CORE STATUS SCALE • Two key components of investment Non-Payer Moderate Payer Heavy Payer MONEY Light Player (<1hr/wk) CASUAL SEMI-CASUAL MIDCORE TIME Moderate Player (1-4hr/wk) SEMI-CASUAL MIDCORE SEMI-CORE Heavy Player (>5hr/wk) MIDCORE SEMI-CORE CORE • Redefining “Core” • “Casual” and “Core” as levels of investment vCONTEXTv IS EVERYTHING INDEXING INVESTMENT : THE CORE STATUS SCALE Demographic Breakdown of Mobile Market # of Males (MM) # of Females (MM) Age 30.0 33 31 31 25.0 30 29 28 20.0 27 27 26 25 15.0 23 10.0 21 19 5.0 17 27.8 11.9 18.1 22.2 16.9 19.1 11.9 7.2 3.7 3.2 0.0 15 Casual Mid Core vCONTEXTv IS EVERYTHING 2. Mobile Gamer Activity INVESTED GAMERS USE THEIR DEVICES MORE Smartphone and Tablet Usage – Smartphone and Tablet Usage – Casual Mobile Gamers Core Mobile Gamers Smartphone Tablet Smartphone Tablet Play Games Play Games Use Other Apps Use Social Media Use Other Apps Use Social Media Direct Direct Watch Movies Watch Movies Communication Communication Read Books or Read Books or Browse Internet Browse Internet Magazines Magazines vCONTEXTv IS EVERYTHING CORE GAMERS PLAY FOR DIFFERENT REASONS •Mobile games are used Top Reasons for Mobile Gaming most frequently to “Pass Pass Time While Waiting 49% the Time while Waiting” Lower Priced Games 36% •Availability of Low Take a Break 33% Priced games matters Use a Device I Used for Other Purposes 32% more to Casual Gamers Casual Mobile Gamers Relax 30% •Core Gamers experience: Relax 78% •Relaxation Pass Time While Waiting 76% •Challenge Take a Break 70% Use a Device I Used for Other Purposes 67% CoreMobile Gamers Challenge Myself 62% % of Mobile Gamers Who Endorsed the Reason as Very Important vCONTEXTv IS EVERYTHING CONSUMER SEGMENTS PLAY MOBILE GAMES FOR DIFFERENT REASONS Lesser Spenders Endorse Playing Mobile Games to Pass Time or Take a Break From Other Activities vCONTEXTv IS EVERYTHING CONSUMER SEGMENTS PLAY MOBILE GAMES FOR DIFFERENT REASONS Heavier Spenders Endorse Playing Mobile Games for Reason Related to the Games Lesser Spenders Endorse Playing Mobile Games to Pass Time or Take a Break From vCONTEXTv IS EVERYTHING Other Activities 3. The Mobile Gaming Funnel THE MOBILE FUNNEL vCONTEXTv IS EVERYTHING THE MOBILE FUNNEL vCONTEXTv IS EVERYTHING SOCIAL & S TOREFRONT ARE KEY Sources Mobile Gamers Use to Discover Mobile Games Top Charts 43% Word of Mouth 36% Featured App 35% Saw Someone Play 33% Friend's Facebook Post 21% Video Service 19% Facebook Invite 18% Source Type: Facebook Ad 18% Social Banner Ad in Another App 18% Storefront Traditional Gaming Website 18% Social Network Currency Offer 16% Paid Acquisition Discovery App 16% Media Other Social Networking 15% Mobile Gaming Website 14% Twitter 14% Text Message 13% Mainstream Media 13% Percentage of Mobile Gamers that Often Use Source vCONTEXTv IS EVERYTHING CORE GAMERS FAVOR THE STOREFRONT Top Discovery Sources Top of Charts 30% Word of Mouth 25% Saw Someone Playing 23% Featured App 21% Casual Casual Mobile Gamers Facebook Invite 8% Top of Charts 64% Featured App 62% Word of Mouth 47% Saw Someone Playing 47% CoreMobile Gamers Gameplay Video 44% Percentage of Mobile Gamers who Often Use the Source vCONTEXTv IS EVERYTHING BRANDING PLAYS A CRITICAL ROLE IN DISCOVERY Influence of Brand on Mobile Game Download Established Mobile Game Branding 61% Other Game Branding 44% Console Video Game Branding 36% Movie Branding 33% Other Media Branding 29% Product Branding 21% Celebrity Branding 13% Percentage of Mobile Gamers that Endorse Type of Branding as Influential vCONTEXTv IS EVERYTHING THE PERFECT TEACHER ON BRANDING Who better to teach the industry about branding than someone who is really only a brand? vCONTEXTv IS EVERYTHING BRANDING PLAYS A CRITICAL ROLE IN ENGAGEMENT 78% Mobile •Strong Mobile Brands appeal to 53% 52% all segments of Mobile Gamers Other Game 41% 50% Movie 27% 37% Other Media Core Gamers 25% •Core Gamers are very Casual Gamers 70% Console responsive to Console Franchise 24% Branding 36% Product 16% 14% Celebrity 9% vCONTEXTv IS EVERYTHING INITIAL ENGAGEMENT – SOCIAL AND GENRE DRIVE E XPECTATIONS Reasons Mobile Gamers Download Mobile Games Price 66% Game Genre 47% Friend Recommendation 44% Graphical Quality 44% User Reviews 43% Played A Free/Lite Version 42% Star Rating in the App Store 41% Heard People Talk About It 37% Near Top of Download Charts 37% Screenshots in App Description 35% Known Brand 33% Source Type: Seeing a Video of Gameplay 31% Social Art Style 30% Storefront Featured App 29% Game Aspect Published Reviews 28% Media Attractive App Icon 26% Game Name 24% Controls or Input Method 24% Part of An Existing Franchise 24% Magazine Advertisement 16% Percentage of Mobile Gamers that Endorse the Reason as Very Influential vCONTEXTv IS EVERYTHING THE MOBILE FUNNEL vCONTEXTv IS EVERYTHING THE CORE LOOP DRIVES ENGAGEMENT vCONTEXTv IS EVERYTHING EASY TO LEARN, DIFFICULT TO M ASTER IS KEY Features Mobile Gamers Share About Controls Are Easy To Learn 43% Lots of Content 41% Gameplay Is Challenging 40% Story Is Interesting 39% Gameplay is Simple 38% Quality of Artwork 37% Uses Humor 36% Gameplay is Innovative 34% Lots of Customization Options 32% Can Compete Against Others 31% Features Familiar Brand or IP 26% Long Gameplay Sessions 26% Short Gameplay Sessions 24% Large Community and/or Good Social Features 21% Percentage of Mobile Gamers who Cite Feature Often when Sharing About a Game vCONTEXTv IS EVERYTHING Feature Preference is Tied to the Type of Game Combat City Builder Feature Categories Most Important to Target Consumer Group [Ranking Score = Reverse of Average Rank Position] Guilds 6.7 Clan v Clan 6.6 PvP 6.0 Customize Squad/Base 4.9 Graphics 4.7 Theme/Setting 4.2 Combat 4.1 Upgrade… 4.0 Single-Player 3.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Ranking Score (1-7) v Clash of Clans – The Power of Updates Clash of Clans Monthly Revenue Clan Wars 4/2014 $60 [USA][iOS] $50 Dark Elixir Hero Abilities & Winter 1/2012 Theme 12/2013 $40 Leagues 2/2012 $30 Millions $USD) Millions $20 $10 $0 Monthly Revenue ( Revenue Monthly v THE MOBILE FUNNEL vCONTEXTv IS EVERYTHING SHARING BEHAVIORS M IRROR FAVORED DISCOVERY SOURCES Mobile Gaming Sharing Activities Tell friends about the game verbally 38% Show friends gameplay 29% Give the game a star rating in the storefront 22% Invite friends to play through Facebook 19% Tell friends about the game via SMS 17% Write a review in the storefront 16% Post about the game on Facebook 16% Invite friends through email 14% Post about the game on other social sites (Pinterest, Twitter, etc.) 13% Discuss the game on the forums 13% Post a video of gameplay footage 11% Percentage of Mobile Gamers that Often Engage in the Activity vCONTEXTv IS EVERYTHING GAMERS SHARE ABOUT DIFFERENT THINGS Most Shared About Features Fun
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