the mobile games landscape

b206The Mobile Games Landscapeb206The Mobile Games Landscape

MarketMarket

Downloaded Apps: Portio Research / System Market Share: ABI Research

App Industry NumbersIn 4 years the number of apps downloaded will more than double.

InsightCubes | Business Intelligence for Startups

http://www.InsightCubes.com/

Applift/Newzoo Infographic

Online Game Industry NumbersEurope is the best market to be in.



70.4 86.1

12.3 23.917.4% 27.8%

2013 2016

Global Games Market (Billion US$)

Newzoo 2013 Global Games Market report

mobile mobile

CAGR=27.3%

Game Market RevenueThe game market will grow 27% on average per year until 2016.



Types of Mobile Games most often played

ESA - Entertainment Software Association (US Data)

Mobile Games PreferenceCasual is king.



US Mobile Gaming Revenues (US$ Million)

eMarketer

Business ModelPaid games make more money.



AppApp $30%

70%

AppApp

30%70%

AppApp

?%?%

mobile adplatform

Paid App

Free App w/ Ad

Free App w/ DG

How does an app make money?



Key Findings - Market

People download apps more then ever and this number doesn’t stop growing.

Android is the market leader.

iOS is still important.

European users spend more money.

US generates more revenues than all of Europe.

Mobile games will capture 10pp of the entire market in 3 years.

It will almost double its revenues at the same time.

Casual games are the favorite kind of game.

Paid games make 7 times more money than games based on advertising.

In a classic business model, the company has to pay 30% to Apple/Google.

UsersUsers

27.4 28.9

Average Age

68% spend at least 1 hour a day

47% 53%

Gender Share

Millennials

Gamers DemographyMillennials are the most important audience.



Time vs. Money Spent by age group

Flurry Analytics

Who spends more time and money?Millennials spend more money on mobile games.



Greater purchasing power

Digital natives

Millennials

They look for better interfaces in terms of interactivity, visual appeal and opportunities for personalized interaction and co-creation.

They use blogs, reviews and social networks to endorse, recommend and share, but also to reposition, vent and complain.

Time spent on iOS and Android connected devices

Flurry Analytics ComScore NetMarketShare

What people do on their phonesGaming is the mains activity on phones.



Key Findings - Users

Millennials are the most important audience for a mobile games company.

Millennials spend more money on mobile games.

Gaming is the largest activity on mobile.




CompetitorsCompetitors

US$ 100 Million2013 revenue

Games based on movie licenses and original games inspired by console hits like "Grand Theft Auto" and "Call of Duty."=

The Dar WorldGangstar VegasModern Combat 3

Notable Games




It keeps cranking out successful variations of its “Angry Birds” series, whose popularity have turned the company into a merchandising goldmine.

Angry Birds Star Wars IIThe Croods

Notable Games




"Where's My Water?" series has brought in over 240 million downloads (with an estimated revenue of $1.66 per user) and spawned a line of merchandise.

Where’s my water IIStar Wars: Tiny Death StarCastle of Illusion Starring Mickey Mouse

Notable Games



What people do on mobile when they are not playing

Pew Research Center

Indirect competitors



Key Findings - Competitors

Successful games are good to be re-editing and generating more profit.

When people are not gaming on their phones, they are probably communicating.


It’s more than a game, it’s a full entertainment chain.


MarketingMarketing

Blog as a hub for information and relationship with the company

Basically, news from its products

It uses the name of its game to capture attention on Facebook



Well structured weblog

Classic Facebook approach

It incentivises users to subscribe and get more engagement

Strong presence on Youtube



Rules of engagement


One character, a lot of merchandising possibilities.


It must have something valuable to share.

It must make it easy for users to share and their friends to join.

It must reward users for sharing and offer them incentives to come back.

The more people use the app, the more value must be created for them.

Viral App Circle



Ranking = (# installs wighted/past few hours) + (#

installs wighted/past few days) + reviews (# stars + # reviews) + engagement (# times

app opened) + sales

How to get a good page rank



Easy to share and rateEasy to share and rate

FlappyBird: the phenomenon




Blogs are good to build a contact point between company and audience.

A newsletter is a good way to catch your audience attention a second time.

Cute characters conquer audience sympathy and make them more engaged to your products.

Key Findings - Marketing

Good design can make the difference for a good evaluation from a costumer.



RecommendationsRecommendations

Recommendations

1Focus on Android.

2 To reach a great success, the company needs to be popular in US, where the biggest portion of the money is.

3 If the company dos not have a good infrastructure to deal with big scale audience, Europe is the best market to be in.

4 Mobile games market is a good market to invest in because it will have a great growth with low cost infrastructure.



5 Invest in casual games development.

6 Prefer paid games instead free ones. Incorporate revenue sources on the games, like digital goods, for example.

7Be aware the company has to reserve 30% os its revenue to pay mobile platforms (Apple/Google)

8 Make your products thinking of your millennial audience: 1) very engaged people, 2) seeking good interfaces and design, 3) getting information and recommendation from social networks.

Recommendations



9 If people like to communicate a lot, your games have to connect your audience with their friends.

10 A blog is a good platform to communicate with your audience. Make it look professional but cool at the same time.

11Be open to your audience, answering all the questions and bringing to them all your public information.

12Make a Facebook page with plenty of content to engage your audience.

Recommendations



13Give one or two people on your team the responsibility of taking care of your Facebook page, building a trusting relationship with your audience.

14 Incentivise users to subscribe to your newsletter.

15Make a valuable newsletter for your audience and set a schedule to send it.

16Incentivises your newsletter subscribers to go back to your page and play the game again. Force them to get a new habit.

Recommendations



17Build cute characters those can catch your audiences attention.

18 Explore new ways to use your characters in many other products.

19 Invest in a design that makes your audience rate you more often.

20Measure all your results. Analyze your accomplishments and mistakes, and learn how to optimize your process.

Recommendations



www.InsightCubes.com March/2014Luciana Couto
