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 internet 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% Google 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 73 72 72 72 72 72 70 70 69 67 65 64 63 14% 18 18 18 18 18 18 17 17 16 15 14 14 13 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 44 44 43 43 42 41 40 39 38 37 37 37 37 37 37 36 36 36 35 35 34 34 33 33 32 31 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 1,966 906 816 942 649 665 564 623 323 258 251 366 323 155 152 172 82 221 79 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.