23 Aug

The Industry’s Fastest Growing Segment- Mobile Game


Worldwide, mobile games are advancing their share on the total games market through rapid growth. More than a billion people worldwide played games on mobile devices last year. While smartphones are ahead in usage, revenues from games played on tablets are growing more rapidly. Another trend is distribution of mobile games from messaging app platforms, especially widespread in Asia.

Mobile games are booming in other regions worldwide also. In Latin America, Mexico leads in share of smartphone users playing games on their devices, while in the Middle East &Africa, South Africa is another example where mobile gaming revenues are higher than revenues from computer online games.

Mobile Game Marketing tools:

a.Free-to-play model is an effective games marketing tool

Why are free-to-play games so successful? Because they have more users. The low entry barrier entices players to check a game out, since they have nothing to lose. It’s risky for the publisher, in a way, because the success of the game relies on how engaging and entertaining it is to play. But once they know they like a game, a percentage of users will become hooked enough to want to unlock more features or get ahead in the game; that’s when they will make their first purchase. Typically, free-to-play games offer low conversion rates, with a minority of highly engaged users, but the total addressable market is huge. Free-to-play and free games tend to attract more downloads. In terms of the top 10 grossing apps worldwide, every single one is a free-to-play game.

b.Free-to-play games and LTV optimization

Free-to-play and paid apps should be considered as two completely different products. Free-to-play games have multiple pricing points (such as unlocking levels, purchasing objects and weapons and so on), less abrasive advertising and shift the focus to high LTV user acquisition, calculated over a mid-term period (180 days) by analyzing early behavior and demographic characteristics. An effective, LTV-optimized user acquisition strategy will increase conversion rates, with the first job of publishers and developers being to make a great game in terms of content, user experience and design.

The freemium business model

Most of the revenue made in the App Store comes from freemium apps, especially the Games category, which, from January to November 2013, saw 90 percent of revenue generated by free-to-play apps offering in-app purchases. It probably works both ways; the revenue is high because there’s a large amount of free apps available, and there are a large amount of free apps because the potential revenue is high.

In Summary

Mobile Gaming Development is everywhere, even used to impart education to children. Mobile has not only transformed the gaming industry, it has transformed the way — and the reason why — games are played. “People want to interact with their friends. They want to compete against each other. They want to share those experiences. It’s a very interconnected gaming world.” For a game to succeed, proper marketing strategies are very important to make the idea success.

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