mobile gaming

Mobile Gaming Set to Grab 60 per cent Market Share: Report

The report highlights that casual games dominated the mobile gaming industry bringing in over US$3 billion in sales in in-app purchases revenue
Mobile Gaming Set to Grab 60 per cent Market Share: Report
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Entrepreneur Staff
3 min read

Growth in mobile games is accelerating and is set to reach the 60 per cent market share in gaming consumers spend this year, according to a 2019 User Acquisition Trends & Benchmarks report, jointly published by Liftoff and AppsFlyer. The report highlights that casual games dominated the mobile gaming industry bringing in over US$3 billion in sales in in-app purchases revenue. 

According to the report — which analysed 555 mobile gaming apps for the period between 1 June, 2018 to 31 May, 2019 — puzzle games alone generated 34 per cent more revenue than the year before, while arcade games generated nearly twice as much more than the previous year. It further suggests that despite the high cost of acquiring a new gaming user, the user’s interest to continue gameplay far outweighs the relatively steep cost of US$30.05 to acquire a new user.

“There will be moderate increases in costs and impressive double-digit conversion rates point to users still needing some convincing early in the funnel. Nevertheless, trends show that they are willing to pay, play and stay around – particularly if the sub-category offers a habit-forming core loop. This impact will be especially prevalent in emerging regions where the potential is huge yet offer lower costs and healthier retention curves,” Liftoff’s statement cited the company's VP of Marketing, Dennis Mink.

Credits: Mobile Gaming Apps Report 2019 User Acquisition Trends & Benchmarks 

Likewise, social casino games have captured the gameplay market by tapping into users’ emotions, while promoting friendly competition. The social casino game industry generated US$1.27 billion within the first few months of 2018. It said that competition and low risk investment is likely to ensure user retention. Driven by high rewards and a strong customer loyalty, social casino users are increasing in the West than they are within Asia. The report suggests,social casino gameplay has a retention rate of 32.2 per cent on Day 1 and maintains this retention rate all the way into Day 30.

"Social Casino marketers have become experts at driving users back to their app over time and maximizing monetisation potential in the process. But recently we've seen the rapid advance of in-app advertising and events aimed at integrating advertising into the gameplay in order to monetize non-paying users, which is the segment that comprises the vast majority of users,” the statement cited AppsFlyer’s content head, Shani Rosenfelder.
Credits: Mobile Gaming Apps Report 2019 User Acquisition Trends & Benchmarks 

Within the casual games market, the hyper casual games segment is also proving to be a lucrative medium for monetisation. Citing data from app analytics firm, Apptopia data, worldwide downloads of hyper casual gaming apps pegged at nearly 630 million, generating over US$53 million in in-app purchase revenue. Such games are driven by design, and makes money through advertisements. The Liftoff report suggests that hyper Casual titles are creating new audiences without not cannibalizing existing ones.

According to research firm providing market intelligence for games, Newzoo, mobile gaming will generate revenues of $95.4 billion by 2022.

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