dws16 - game summit - fabien pierre-nicolas, app annie

Mobile: Know the Present, Prepare for the FutureSean Kauppinen & Fabien-Pierre Nicolas

CONFIDENTIAL PROPERTY OF APP ANNIE | DO NOT DISCLOSE | © APP ANNIE 2015

Key Tool Used: App Annie Intelligence

Games

Social

Investors

Platforms/Mobile

Media/ Entertainment

Additional Industries

App Annie products are used by 94 of the top 100 publishers and have more than 800,000 registered app professionals

And many more…


My (Gaming) Background

▪ 10+ years in Gaming from Console to PC F2P and then Mobile▪ 5+ years in mobile marketing and several hits with $50 M+ in revenues

Global App Market Update


Global App Revenues to Exceed $188 Billion in 2020

Revenue = gross consumer spend (not net to publisher)

$188B

▪ Over 22% of growth YoY for the 2016 – 2020 period

$88B$69.7B


▪ Google Play is 2x downloads of Apple’s App Store but only 50% of the IAP revenue

▪ Android revenue per download is 4 times lower = Highlight need for a well-thought ad monetization strategy

App Stores Download & Revenue Trends

*For 2015


China’s Continued Ascent

▪ In Q3 2016, China became the largest iOS market in revenue (new) after taking the lead in downloads in 2015


Apps Increase from 15% to 26% of IAP Gross Revenue

▪ Non Gaming Revenues will explode by x4.2 from 2016 to 2020 and hit 26% of revenue

Zoom on France & Europe


Only a Few European Publishers Topping the Charts…

▪ Only 6 European publishers in App Annie Top 52 vs. 16 from Japan or 17 from the US


2 European Markets are at scale: Germany & France

▪ Germany and France are still in the Top 10 in term of revenue but with a big gap versus Top 3 markets = need to leverage English speaking markets (US, UK, CA, AU)


Top Grossing French Publishers Globally / France*

▪ Gameloft is still the only publisher in the Top 50 globally but, locally, 5 French publishers in the Top 50 (same count as Germany)

Publisher name Global RankGameloft / Vivendi 30

Ubisoft 136

Deezer 152

Pretty Simple 155

GEB Adopte Un Mec 324

Happn 448

Anuman 615

Coyote System 645

GOTO Games 690

Sublinet 726

Publisher name France RankGEB Adopte Un Mec 7

Deezer 10

Gameloft / Vivendi 13

Coyote Systems 30

Happn 50

Orange 52

Ubisoft 56

Ankama 58

Le Monde 65

Pretty Simple 66Source: App Annie Intelligence, January to September 2016, iOS

4 Ideas for the Future


4 Recommendations for French Publishers

▪ App feature impact is declining as Apple / Google promote search ads and personalization = great to help accelerate but doesn’t replace growth plan.

▪ Consolidate in your vertical to expand globally: dating, gaming, press… as acquisition costs are rising.

▪ Dare to develop in the top 4 English speaking markets and raise $$$ from VCs, if needed, to do so. +22% CAGR in next 5 years = great growth story!

▪ Bet aggressively on advertising monetization for Android and explore CPMs for iOS non paying users to increase LTV.

Source: App Annie Intelligence, January to September 2016, iOS

The View From the Battlefield


My Game Background

Founder and CEO of IDEA (International Digital Entertainment Agency)20+ years experience in the games industry

Sony Online, Ubisoft, 3dfx, bleem!, Frogster, PlayFast, othersHave worked on more than 590 titlesWhat I do:

Mentor CEOsStrategic AdvisorBoard MemberBusiness DevelopmentMarketing StrategyAngel Investor


Technical Market Trends

• Space - App sizes are increasing (device storage is not keeping up) iOS 7 – 512GB


Technical Market Trends

• Server calls for APIs are maxing out titles• Per API call pricing reduces the money developers

are making


There’s a Wall (Not a Great Wall)

• New games have even greater challenges to reach the charts• Established games are entrenched on devices• Less time to monetize as lifetime engagement decreases• No sane publisher shows ads for other company’s games

to paying users


This Seems Wrong

• You’re literally buying bodies to stack up to chart the game in hope that organic traffic hits and you monetize those users.


So How Are Companies Adapting?

• Need to look outside of established mobile acquisition marketing channels

• Build feeder apps (news aggregators, garage sale finders, dating apps, etc.)


Market Trends

• More companies are moving to VR (Good Luck over there!)

• Monetization techniques are getting more sophisticated – Annuities and Subscriptions + Loyalty Programs


More Trends

• Cost of service is becoming a consideration with 90%+ of users not spending any money (they are a cost)

• Looking at deeper data analysis to prioritize service quality and support for payers and their social graph inside and outside a game (Xtralife)


Emerging Markets are Not Shangri-La

• Emerging markets are not ready for current games• Cheaper (mostly Android) smartphones• Slower data networks• Need localization and culturalization• Difficult for those that want to purchase, to buy• Lack of credit cards• Caustic billing (up to 80% revenue share to carriers)• Massive Piracy


Opportunities

• Break out the back-catalogue!

• Look to smarter design that fully understands economy

• Facebook - Facebook Gameroom (125 Million Players)

dws16 - game summit - fabien pierre-nicolas, app annie

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