china for the win! what publishers need to know to succeed in this emerging market
TRANSCRIPT
CHINA FOR THE WIN!What Publishers Need to Know to Succeed in This Emerging Market
Infrastructure for in-app
video advertising
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A LITTLE ABOUT ME
Colin Behr
VP, Business Development & International@colinnathanbehr
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10,000
196countries served
2 Billion+monthly video views
200 Million monthly unique devices
top apps
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IF YOU REMEMBER ANYTHING FROM THE SESSION…
The opportunity is
vast
Entering China
is complex, but
not impossible
Control is worth
the challenge
1 2 3
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HOW VAST?
550Mmobile devices
240Mmobile devices
96% have at least
one gaming app installed
28%spend more than
an hour a day playing
Chinese mobile gamers
install a new game every
3.48 days
Sources: Nielsen: bit.ly/17gCjes; TalkingData: bit.ly/1JqaPVf; Venture Beat: http://ow.ly/JHAIZ; Pew Research: http://ow.ly/JHAPl
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2014 GROWTH IN MOBILE GAMES
Developers
84%236%
Total Revenue
Source: talkingdata.com/index/#/datareport/-1/en_us
Users
162%
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7 Realities of Publishing in China
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Reality #1:Android dominates the market
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ANDROID DOMINATES THE MARKET
68%market share
32%market share
Source: talkingdata.com/index/#/datareport/-1/en_us
10Source: xiaomishop.com
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GOOGLE’S MARKET SHARE IN CHINA
“Chinese Android users
only used Google Play
for downloading 5.6% of
all mobile apps on their
devices.”
-Umeng Analytics
68%
5.6%
Source: Umeng Analytics; TalkingData
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Reality #2:100s of app stores =
a fractured market
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72.6% of apps in China are from alternative app stores
Source: bit.ly/1Lemowm
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360 MOBILE ASSISTANT
• 360 is virus prevention software
• Huge Android app store
• 275 million monthly users
• 30 billion downloads
• Offers localization support to developers
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TENCENT MYAPP
After captivating players in the US, MinoMonsters sought to reach an
international audience. Partnering with Vungle, MinoMonsters attained a
6x increase in installs worldwide. • Developed by Tencent, who started messenger
QQ (829 million active users)
• Also connects to QQ browser and WeChat
• 110 million daily downloads (Dec 2014)
• King launched Candy Crush Saga on Tencent
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BAIDU
After captivating players in the US, MinoMonsters sought to reach an
international audience. Partnering with Vungle, MinoMonsters attained a
6x increase in installs worldwide. • Search giant used by more than
700 million
• Has its own app store with direct
integration to search results
• Recently acquired 91 Wireless,
increasing its reach into app
distribution
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Reality #3:Culturalization is critical
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LOCALIZATION VS. CULTURALIZATION
PocketGems is a leading mobile game developer with
over 150M downloads. Vungle drives a record-breaking
volume of impressions for PocketGems worldwide.
Source: bit.ly/1vHbYfA
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GOOD CULTURALIZATION
PocketGems is a leading mobile game developer with
over 150M downloads. Vungle drives a record-breaking
volume of impressions for PocketGems worldwide.
▪ Use culturally relevant scenarios
▪ Tie thematically into holidays
▪ Run relevant advertising
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Reality #4:Mobile piracy is rampant
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MOBILE PIRACY IS RAMPANT
PocketGems is a leading mobile game developer with
over 150M downloads. Vungle drives a record-breaking
volume of impressions for PocketGems worldwide.
Consumer
piracy
Competitor
piracy
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Reality #5:Social doesn’t mean
Facebook and Twitter
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(Weixen)
Messenger app
Sina Weibo
“Chinese Twitter”
RenRen (means “schoolyard”)
Social network for college students or connecting with
old friends
Tencent Weibo
Microblogging with focus on
communication among friends
QQ & Qzone
Messenger app & Facebook-
style social network
73% of
market
share+
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Reality #6:Your APK must be hosted
in country
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Reality #7:Monetization must go beyond
IAPs
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SUCCESS WITH A PAID APP IS POSSIBLE, BUT
HARDER
31.2%
11.3%
17.3%
23.4%
4.7% 4.3%2.3%
3.8%1.7%
Card Battle SLG MMORPG Turn-basedRPG
Action Card &Board
TowerDefense
Casual Other
Paid App Revenue by Genre
Source: TalkingData bit.ly/1JqaPVf
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CHINESE USERS ARE SPENDING MORE MONEY IN APPS
8.7%
9.6%
5.4%4.7%
6.7%
8.5%
3.8%
5.0%
9.5%9.2%
7.4%6.9%
9.6%
10.9%
6.6% 6.5%
Card Game Chess Game Simulation Strategy Action RPG Puzzle Casual
Android In-App Purchase Revenue by Genre
Source: talkingdata.com/index/#/datareport/-1/en_us
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CHINESE USERS ARE SPENDING MORE MONEY IN APPS
6.5%
3.5%
5.8%6.7% 6.6%
7.2%
4.6%
2.7%
10.8%
3.8%
9.4%8.5%
9.4% 9.5%
4.1% 3.0%
Card Game Chess Game Simulation Strategy Action RPG Puzzle Casual
iOS In-App Purchase Revenue by Genre
Source: talkingdata.com/index/#/datareport/-1/en_us
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USE THE RIGHT BILLING PARTNERS TO BOOST
IAPS
Transactions by Payment Method Spend by Payment Method
AliPay,
59%
AliPay,
49%
UniPay,
20%
UniPay,
25%
TenPay,
10% TenPay,
13%
Service Card, 7% Service Card, 7%Pre-paid Card, 4%
Pre-paid Card, 6%
Source: TalkingData bit.ly/1JqaPVf
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In China, 9 in 10
smartphone owners
clicked on a mobile
advertisement
in the past month.
MOBILE ADVERTISING FORMAT CHINA %
Video 36
Mobile coupon 33
Banner 9
Ad displayer after in-app activity 8
Search 7
Text 4
Audio 2
Other 1
Source: “Mobile Advertising in China,” Price Waterhouse Cooper, May 2014
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In-app video ads extended
user session length by 25%
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PLAN FOR MONETIZATION FROM THE BEGINNING
Peak
Median half-life of games:
2 months post-peak$
Source: Benchmarking the Half-Life and Decay of Mobile Apps, Flurry.com 2/20/14
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PARTNERS
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WHERE DOES THIS LEAVE YOU? DEPENDS ON YOUR
SIZE.
CASUAL/
LOW LTVMIDCORE HARDCORE
SMALL PublisherDirect/Publishe
rX
LARGE PublisherDirect/Publishe
r
Direct/In-
house
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IF YOU REMEMBER ANYTHING FROM THE SESSION…
The opportunity is
vast
Entering China
is complex, but
not impossible
Control is worth
the challenge
1 2 3
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MEET THE SPEAKERS!
Join us tonight from 6-8pm @ Oola(RSVP in back)
Ben BearVP, Sales
Colin BehrVP, Business Development
and International
Michal PilawskiVP, Product
Jahed MomandSr. UX Designer
Q&A
Questions?
CHINA FOR THE WIN!What Publishers Need to Know to Succeed in This Emerging Market
Infrastructure for in-app
video advertising