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State of the Market: Mobile Gaming in Europe

Mobile Games Forum 2013

Hesham Al-Jehani, Product Manager Mobile Europe | 23rd January 2013 [email protected]

© comScore, Inc. Proprietary. Agenda

. comScore Intro . Device Landscape . Mobile Gaming Trends . Monetisation . Summary

© comScore, Inc. Proprietary. 2 comScore

Who we are and what we do?

© comScore, Inc. Proprietary. 3 We Provide Insights and Actions

We are an technology company that measures what people do as they navigate the digital world – and turns that information into insights and actions for our clients to maximise the value of their digital investments.

© comScore, Inc. Proprietary. V0113 4 comScore is a leading internet technology company that provides Analytics for a Digital World™

NASDAQ SCOR

Clients 2,100+ Worldwide

Employees 1,000+

Headquarters Reston, Virginia, USA

Global Coverage Measurement from 172 Countries; 44 Markets Reported

Local Presence 32 Locations in 23 Countries

Big Data Over 1.5 Trillion Digital Interactions Captured Monthly

© comScore, Inc. Proprietary. V0113 5 Providing Analytics For More Than 2,100 Clients Globally

Media Agencies Telecom/Mobile Financial Retail Travel CPG Health Technology

© comScore, Inc. Proprietary. V0113 6 Some of Our Largest EMEA Clients Include…

Media Owners / Advertisers / OEMs / Operators Agencies

© comScore, Inc. Proprietary. V0113 7 Mobile Device Trends

What devices are used in EU5?

© comScore, Inc. Proprietary. 8 55% Smartphone Penetration in EU5, Close to 132 million Smartphone Users

Growth in smartphone user base EU5 (millions)

Smartphone Feature

140

120

100

80

60

40 35%

20

-

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to October 2012 9 Almost Three Quarters of All New Handset Acquisitions are Smartphones

Newly acquired handsets in October 2012

Google 59%

Feature Smartphone 27% 73% Apple 22% Other, 2% RIM, 5% Symbian, 5% Windows, 6%

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 10 Smartphone Landscape Is Dominated by Android and iOS Devices With a Combined Total of Over Two Thirds Market Share

Smartphone platform market share and growth EU5

124% 5% 6% 8% 8% 19%9% 17% 35% 20% Other 19%32% Microsoft 21% 38% 29% RIM 21% Symbian 12% 26% 20% Apple 20% 7% 47%42% 31%28% 44% 22% -29% Oct-11 Oct-12 98M 131M

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 11 Samsung The Largest OEM in EU5 Region

Device market share by OEM

Motorola Alcatel 1% Motorola 1% Other 3% Other LG RIM 4% 6% 3% 4% Sony 6% HTC Samsung 5% Samsung RIM 32% 8% 30% LG 5% HTC Sony 9% 8%

Apple 11% Nokia Apple Nokia 18% 21% 25%

Total Base = 241 Million Smartphone Base = 131 Million

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 12 Tablets Reaching 15% Penetration of Smartphone User Base iPads Make up 60% of the Total Tablet Market in EU5

Tablet ownership among mobile users in EU5 (million)

27

15.3 16 million iPads

11-Oct 12-Oct

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 13 Mobile Gaming Trends

How many mobile gamers and what are they playing?

© comScore, Inc. Proprietary. 14 Almost a Third (72 Million) of all EU5 Users Play Mobile Games 18 Million Play Daily

Played mobile game(s) (millions)

Ever in month Daily 72 72 73 72 72 72 69 70 70 65 67

63 64

14%

18 18 18 18 18 16 17 17 18

13 14 14 15

34% Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 15 Mobile Game Players Are Increasingly Playing Downloaded Games From App Stores

Downloaded V preloaded game play (millions)

Played downloaded games Played native/preloaded games 43 43 44 44 41 42 39 40 37 37 38 37 37 37 37 36 36 36 35 35 34 34 33 33

31 32

41% YoY 41%

10% -

Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 16 Most Consumers Download One or Two Games in a Month and Have Four or More Games Installed

Number of games downloaded in Number of games on phone month

10% 11% 4% 6% One 36% 34% Two 18% Three 16% Four Five Six or more 8% 18%

28% 11%

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 17 Users That Download Games Up 43% YoY to 24M The Majority of Those (20M) Downloaded Free Games

Games downloaded in month (millions)

35

30

25

Users that download FREE games 52% 20

15

10 Users that download TRIAL games 25%

5

Users that download PAID FOR games -

Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 14%

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 18 Casino, Strategy and Card Games The Three Most Popular Purchased Gaming Genres

Purchased games by genre (000s)

885 862

670 627 536 519 506 470 454 346 342 321 312 308 254 156

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 19 Action & Adventure Games Show the Strongest YoY Growth Whilst Retro Arcade, Board & Quiz Games Are Falling in Popularity

Purchased games genre by growth

90%

57% 55% 49%

33% 21% 12% 11% -15% -19% -20%

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 20 Demographic Profile of Game Purchasers Describe A Typical 25-34 Year Old Employed Male on a Post Paid Tariff in UK, DE and Italy

Corporate 31 Age (%) 7% Plan

Female 22 38% 20 Prepaid Male 29% 62% 11 Postpaid 9 7 64%

13-17 18-24 25-34 35-44 45-54 55+ Other Retired 4% Country 3% France Unemployed Status 10% 9% United Spain Kingdom 11% 32% Employed part time 10% Employed Italy Full time 23% Student 59% 15%

Germany 24%

Source: MobiLens™. © comScore, Inc. Proprietary. 21 Data based on three month moving average to Oct 2012 Distinct Audiences For Some Game Genres But Shifts Are Observed in Gaming Preferences Across Age and Gender Demographics

65%

55% Kids Family Quiz Music Arcade 45% puzzle Word or

Number Board Card Retro 35% Strategy Arcade Simulation

% % Female Action/ 25% adventure Casino

1st person shooter Racing 15% Sports

5% 25 26 27 28 29 30 31 32 33 34 35 Median Age

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 22 Three Quarters of Mobile Gamers Are Smartphones Owners and Half of Smartphone Gamers Use Android Devices

Platform share of mobile gamers

Google 50%

Feature Smartphone Apple 25% 75% 26%

Windows, 5%

RIM Symbian 7% 10%

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 23 Top 10 Gaming Handsets Dominated by Apple and Samsung Smartphones in EU5 Region

iPhone 4 iPhone 3G 5.6M 1M

iPhone 4S iPhone 3GS 4.3M 1M

Galaxy Ace BB Curve 2.5M 1M

Galaxy S3 Galaxy Mini 1.7M 1M

Galaxy S HTC Wildfire S 1.2M 0.9M

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 24 Multi-Player Gaming and Sharing Scores Are The Primary Activities Within Social Gaming

Social gaming activity (millions)

Logged in 10.5

Played with other people 6.8

Invited friend to play 5.3

Shared score on leaderboard 4.9

Used chat 3.2

Sent/received gift 1.8

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 25 Monetisation

Where is the ROI?

© comScore, Inc. Proprietary. 26 14% of Mobile Gamers Made In-Game Purchases Almost 80% of Those Were Smartphone Users

In-game purchasing (millions)

Purchased cash, points, or tokens 4.6

Purchased virtual goods 3.9

Upgraded game or added levels 2.6

Purchased gift for another player 0.4

Source: MobiLens™. © comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 27 Mobile Gamers Show a Higher Propensity to Recall Seeing In-Game Adverts Than Connected Media Users

36% of Smartphone Gamers Recall Seeing In-Game Adverts

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 28 Apple App Store The Most Popular for Game Purchase Google Play the Most Popular for Free Game Downloads

Store Where Mobile Games Was Downloaded (millions)

6,832 Purchased Free 5,141

3,134

1,879 1,966

906 816 942 649 665 564 623 323 258 366 323 155 152 172 82 221 79 251 76 54

Source: MobiLens™.

© comScore, Inc. Proprietary. Data based on three month moving average to Oct 2012 29 Summary

Take Aways

© comScore, Inc. Proprietary. 30 Summary

• Mobile gaming continues to grow in EU5 region and uptake is driven by increasing ownership of smartphones. • iPhone gamers display the highest propensity to play, trial and purchase games, although Android platform has the highest volume of gamers. • Therefore, develop for Android and iOS devices to maximise audience reach for downloadable and purchased games. • Monetisation still mainly through game purchases, in-game purchases and in- game advertising. • Operator portals are still an important channel for mobile games downloads - free and purchased. • There are distinct target audiences for different game genres but preferences change over time. • For social gaming focus on the multiplayer gaming experience.

© comScore, Inc. Proprietary. 31 Thank you for your attention

• For more information on data source visit MobiLensTM at comScore.com/Products/Audience_Analytics/MobiLens • For free mobile data insights visit the comScore Data Mine at comScoreDatamine.com/category/mobile • Look out for the forthcoming Future in Focus free White Paper at comScore.com/Insights • Follow us on @comScoreEMEA

© comScore, Inc. Proprietary. 32