Gaming
APPOCALYPSE NOW: MOBILE ADVERTISERS HAVE THEIR SAY ON PRIVACY-FIRST MARKETING
– Industry defining report from Tenjin and Growth FullStack sheds a light on mobile marketing one year on from Apple’s privacy changes –
Tenjin, a leading mobile measurement platform for indie and mid-sized mobile game publishers, together with Growth FullStack, a platform powering custom business intelligence for mobile advertisers, today release the full report of their revelatory research findings about the state of mobile marketing.
With billions of people shopping, socializing, scrolling and, of course, gaming on mobile for up to a third of their waking moments, it’s hardly surprising that mobile ad spend reached a spectacular $300 billion in 2021. This amount could hit as much as $350 billion in 2022, reflecting the strength of an industry boosted by permanent changes to user behavior brought about by the global COVID-19 pandemic.
Yet, for an industry that is so accustomed to knowing whom its dollars target and the return on investment they deliver with pinpoint granularity, the last year has been a rude awakening. Privacy-first changes have forever altered familiar ways of targeting and measuring ad performance, particularly on what is often seen as the most lucrative ecosystem of them all – Apple’s iOS.
Between the doomsaying predictions and a picture of booming ad spend, the reality mobile advertisers are operating in is much more nuanced. Tenjin and Growth FullStack wanted to drill deeper, and commissioned market research agency Atomik Research to conduct an online survey of more than 302 mobile advertisers in the UK and US.
Christopher Farm, CEO and Co-Founder of Tenjin, said:
“While the appocalypse may not have materialized as first predicted, our research shows that there are indeed some tectonic shifts underway. The reality is that the full ramifications of privacy-first marketing aren’t yet understood, even by people like us who spend their days entirely focused on deciphering them and coming up with solutions.”
Key findings:
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Expectations vs reality – Despite feeling reasonably well prepared for Apple’s privacy changes (53% fairly, 15% very), the majority (55%) of mobile advertisers say that mobile advertising became more difficult in 2021. This had a considerable negative impact on advertisers’ revenues – The median estimated revenue loss due to Apple’s privacy changes was 39%.
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Patchwork strategies – Mobile advertisers are using a patchwork of strategies to achieve success. 85% used probabilistic attribution or fingerprinting in 2022, despite more than three-quarters (77%) expecting Apple to clamp down on fingerprinting.
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Teething problems with SKAN – Making the most of Apple’s anonymized SKAdNetwork data is a challenge for mobile advertisers. Few (32%) of companies have access to in-house data science talent, but three-quarters (75%) have implemented some form of marketing automation to gain insight from large, disparate datasets.
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Gaming – Mobile games advertisers felt the impact of Apple’s privacy-first changes most keenly of all. They were more convinced that mobile marketing became more difficult in 2021 (gaming 68% vs 43% non-gaming), more likely to shift budget to Android (63% vs 48%), and use attribution methods such as probabilistic attribution or fingerprinting (91% vs 70%).
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Optimism for 2022 – Despite a tough 2021, mobile advertisers are largely positive and bullish. 85% were optimistic that marketing would be less challenging in 2022, while almost two-thirds (65%) planned to increase rather than decrease their ad spend.
Christopher Farm commented on the findings:
“Mobile marketing can be best characterized as in a zombified state that’s somewhere between the familiar era of unrestricted targeting and the new, privacy-first one. The sustainability of the current patchwork model remains to be seen. It’s likely that, in the not too distant future, committing to understanding SKAN will become imperative rather than optional. And yet, despite a rough 2021 for mobile advertisers’ bottom lines, and with more change ahead, our research shows that advertisers’ optimism remains strong. After all, one thing is unchanged: the best mobile content and services are in high demand from billions of people the world over, on both iOS and Android.”
The research fieldwork took place with 302 companies with no known affiliation to Tenjin or Growth FullStack, and was conducted by Atomik Research, an independent creative market research agency that employs MRS-certified researchers and abides to MRS code.
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Gaming
The mobile gaming market is growing and attracting new companies. GAMIVO is the latest example
Usually, consoles and PCs come to mind when discussing the gaming industry. The mobile sector is often treated as a child of a lesser god, even though it generates almost as much revenue as console and PC combined. Some companies can see this potential. For instance, the e-commerce platform GAMIVO has recently entered the mobile market, allowing players to buy in-game items cheaper.
Back on course
The entire video game industry has evolved incredibly, but the most spectacular has been the growth of the mobile sector. It expanded from 36.9 million dollars in 2016 to 93.2 billion in 2021. Unfortunately, the gaming market suffered from a decline that stemmed from the overoptimism of the pandemic era. As a result, the mobile gaming industry revenues dropped to 92.2 billion in 2022 and to 90.5 billion in 2023. Recent information has indicated this was a necessary correction rather than a long-term trend.
The latest Newzoo report, issued in August 2024, shows that the industry is on the right track again. According to analysts, the mobile sector will generate revenues of $92.6 billion, representing +3.0% growth year-on-year. It’s nearly half of the entire gaming industry.
Billions of players
Revenues are crucial, but they only show part of the story. To fully understand the size and potential of mobile gaming, it’s necessary to consider the number of players, which constantly grew even when revenues dropped. Newzoo estimates that it will reach 2.8 billion in 2024. It means that almost twice as many people play on mobile devices than on PCs and consoles combined. Currently, every third person on Earth plays on mobile devices, and there’s still space for further growth.
“There are emerging markets where smartphones and mobile networks can expand, providing new potential players. Furthermore, this type of entertainment has a low entry barrier because most popular games are free and don’t require high-end devices,” explains Mateusz Śmieżewski, the CEO at GAMIVO.
One hobby, different habits
GAMIVO is an example of a company that has recently joined the party to get a piece of the mobile pie. “We examined the mobile market for a very long time, trying to find a suitable place for us. It’s essential to understand that mobile gaming and mobile gamers differ from their PC or console counterparts. You can’t do the same things you do with PC and consoles and hope to replicate your success,” said Mateusz Śmieżewski.
Studies confirm this observation. Average PC and console players spend about 2.1 hours a day in virtual worlds. It’s half an hour more than mobile gamers. However, things get interesting when we take a look at playtime per week, which is the same for mobile and console (5.4 hours) and slightly longer for PC (5.7 hours). Moreover, typical PC and console owners play 2.6 and 2.7 days a week, respectively, while mobile players play 3.4 days per week.
Those statistics prove that PC and console players are more dedicated, spending more time in games’ worlds once they enter them. However, mobile gamers prefer shorter but more frequent sessions. They play while commuting or have a short amount of free time.
“Mobile players are more willing to uninstall games and give another title a chance. Hence, the gameplay has to be captivating and designed to provide quick but intense sessions.
Furthermore, even though the average weekly playtime is identical to PC players, many mobile players don’t think of themselves as gamers,” clarifies Mateusz Śmieżewski.
Another major difference regards the way in which revenue is generated. PC and console games traditionally represent the premium model, where players buy the game. Most popular mobile releases are free and generate revenue with microtransactions. Almost all titles allow players to spend their real money on virtual coins, crystals, and other items that can be used to unlock additional content or reduce cooldowns.
Entering the mobile market
Those contrasts and nuances scare most companies from the mobile market. Let’s see how GAMIVO has coped with this.
“We decided to launch a new product category dedicated to mobile gamers. Our model allows them to top up in-game accounts cheaply. As a result, they can save up to 30% on buying virtual items, upgrades, and other content. The GAMIVO offer includes the most popular mobile titles, such as Genshin Impact and PUBG Mobile, and still extends,” describes Mateusz Śmieżewski.
“We dedicated a lot of time to research and analyses. Also, the development process required a lot of work to provide GAMIVO customers with safe transactions and a user-friendly environment. The first reactions are very positive, confirming our belief that our decision was right and there is still more space in the mobile game market,” concludes the GAMIVO CEO.
The post The mobile gaming market is growing and attracting new companies. GAMIVO is the latest example appeared first on European Gaming Industry News.
ADG
Arizona Department of Gaming Reports $43.9 Million in Tribal Gaming Contributions for the First Quarter of Fiscal Year 2025
The Arizona Department of Gaming (ADG) announced today $43,926,346 in tribal gaming contributions to the Arizona Benefits Fund for the first quarter of Fiscal Year (FY) 2025. This amount represents an
approximate 3.6 percent increase when compared to the same quarter of FY 2024.
The Arizona Benefits Fund receives 88 percent of tribal gaming contributions, providing significant dollars to support instructional improvement in schools, trauma and emergency care, tourism, and wildlife conservation throughout the state.
FY 2025 Qtr 1 Total: Tribal Gaming Contributions to the Arizona Benefits Fund.
“We are pleased to report yet another increase in the first quarter of the FY 2025, reflecting steady growth in the state’s tribal gaming industry,’ said Jackie Johnson, Director of ADG. “This growth highlights the continued strengtht
of the partnership between the state and our Arizona tribal partners. Notably, cumulative tribal contributions to the Instructional Improvement Fund have now surpassed $1 billion, demonstrating the significant and ongoing impact of tribal gaming on education and communities across Arizona.
Per the Arizona Tribal-State Gaming Compact, Tribes with casinos also contribute a percentage of their Class gross gaming revenue to cities, towns, and counties. Currently, there are 25 Class Il casinos in Arizona, which ADG
regulates in partnership with Arizona tribes. Since FY 2004, approximately $2.3 billion in cumulative contributions
have been received by the state and its cities, towns, and counties.
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