SuperData released a new report on the US digital games market. Here are the interesting points:
- There are 287 Million Mobile Active Gamers in the U.S.
- $1.2 Billion in U.S. digital game sales for December 2014
- 11% Year over on year growth in December 2014, compared to December 2013
- 17% Growth in mobile digital revenues
- 10% Increase in console digital sales
- 10% Decrease in social game revenues
- Average spend on PS4 was $11.09, down from $20 in November 2014
- Average spend on Xbox One was $6.88, down from $21 in November 2014
- Average spend on Steam was $2.35, down from $8 in November 2014
I was looking for some data on Cost Per Install (CPI) for games in Japan and a friend of mine who runs a large studio there sent me this link, a blog post by InMobi that I missed in January. It basically sets out the relative cost of mobile installs worldwide. While it isn’t exclusive to games, we can use it to decipher regional costs. To get started, I went over to one of my favorite CPI sites, MobPartner, to check out their scrolling list of live CPI transactions. If you like to watch CPI bidding, it’s the best place to watch the action. Here are a couple pics to illustrate the CPIs today:
As you can see, Empire: Four Kingdoms is buying a lot of installs and they are ranging in the U.S. between $1.90 and $2.40 and hitting $3.05 in the U.K. I would guess the higher priced acquisition in the U.S. is on a better performing network, or more proven ad channel that provides players that either convert a bit higher, or have a higher Lifetime Value (LTV). You need to balance cost with volume in any acquisition campaign, but that’s probably obvious.
So now let’s dig into the InMobi data. We know that their numbers are not just games, so we need to create a reference point.
The 174 is a number from InMobi on the relative cost per install in the U.K. related to the U.S. Since we know what Goodgame Studios is paying for their users we know the numbers in bold to be true. The InMobi numbers don’t quite match up yet. The difference is 160.5 instead of 174, which is roughly 92.2 percent of the difference. I broke down the numbers with the Relative CPI (R CPI), the Adjusted Relative CPI (AR CPI) and came up with the Actual Game CPI (AG CPI) below. It looks about right to me in terms of acquisition costs. I hope it’s helpful for you too.
|| $ 3.05
|| $ 2.22
|| $ 1.90
|| $ 1.66
|| $ 1.52
|| $ 1.47
|| $ 1.47
|| $ 1.42
|| $ 1.35
|| $ 1.31
|| $ 1.24
|| $ 1.05
|| $ 0.98
|| $ 0.70
Our friend Moacyr Alves, president of ACIGAMES (the major games association in Brazil) sent us a nice presentation on the current Brazilian Games Market. Here are some of the key data points:
- 85 Percent of Brazilian gamers play on PC
- 73 Percent of Brazilian gamers play on smartphones
- 66 Percent of Brazilian gamers play console games
- 31 Percent of Brazilian gamers play on tablets
- Action and adventure games are the most popular genre among men (23 percent) and women (20 percent)
- 70 Percent of smartphones and 71 percent of tablets are Android OS
- 6 percent of smartphones and 18 percent of tablets are iOS
- 9 percent of smartphones and 7 percent of tablets are Windows
There are now 100 Million Samsung Galaxy S phones in circulation. The first Galaxy S was launched in 2010. These Android OS phones break down in terms of model as:
- 25 million Galaxy S smartphones
- 40 million Galaxy S II smartphones
- 41 million Galaxy S III smartphones
Apple hit the 100 Million iPhone mark in March 2011 after four years.
According to Kantar Worldpanel ComTech: iOS was the top selling smartphone platform in the U.S, for the 12 week period ending November 25th, 2012. iPhone 5 helped push the number past 50 percent, the first time iOS has hit that level.
U.S. smartphone sales break down as:
- iOS – 53.3%
- Android -41.9%
- Windows Mobile – 2.7%
- Other – 2.1%
I just got some new data points on the video game industry in Turkey:
- Turkey has a population of 78 million people, with 50 percent under 25 years old
- 33 percent of the population of Turkey has Facebook accounts
- 92 percent of the total population has a mobile phone, 30 percent of which are smartphone users
- Turkey has seen a 25 percent increase in video games sales 2009-2011
- 28 percent of the population plays video games
- Turkey has 22,500 cyber cafés
- 40 percent of the population has internet access at home, 72 percent of which are playing games
- 52 percent of the gaming population pays for games
In an article on GamesBeat, information was given as to how GREE values mobile installs when determining what to spend on user acquisition.
*In Japan, GREE’s mobile install Lifetime Value (LTV) is around $15
*In the U.S.A., a mobile install is valued between $2-$5
*GREE says they have a 50 percent organic install rate and they tune the amount they are willing to spend on an install accordingly.
*The average install they are paying is in the $2 range according to the article.
Flurry released new data that gives insight into the demographics of smartphones and tablets, as well as how people spend their time on the devices.
- Smartphone users tend to be younger than tablet users, 30 years of age versus 34 years of age
- Almost 75 percent of smartphone users are 34 years of age or younger
- More than 66 percent of tablet users are over the age of 25
- Smartphones break down 56 percent male and 44 percent female
- Tablets split by gender are 51 percent male and 49 percent female
- 67 percent of time spent on tablets is attributed to playing games
- 39 percent of time spent on smartphones is attributed to playing games
According to Strategy Analytics, and a VentureBeat article, we have a pretty good view of what is happening in the mobile market with respect to smartphones and tablets. Growth continues in the market and Android continues to gain market share from Apple.
- Global tablet shipments reached 24.7 million units in the third quarter of 2012
- Apple iOS slipped to 57 percent global market share
- Android captured a 41 percent global market share
- Apple shipped 14.0 million iPads worldwide in Q3
- Global Android tablet shipments doubled annually to 10.2 million units
- Global tablet shipments grew just 43 percent annually in Q3 2012, compared with 289 percent annually in Q2 2011.
- 162 million smartphones sold globally in the third quarter of 2012
- While Samsung shipped 56.9 million smartphone units
- Apple shipped 26.9 million iPhones
iSuppli released a projection that Apple will ship 149 Million smartphones in 2012. This is up from the 2011 total of 93 Million units, an increase of 60 percent.