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Have you grasped these 4 major trends in global mobile games?

Every year, the dynamics of the global mobile gaming industry are constantly changing, with global market competition, rising user acquisition costs, declining user retention, and international market differences forcing developers to adjust their strategies all the time. Recently, Unity released a report on game growth and monetization, providing valuable insights needed to understand this rapidly evolving field and help mobile game developers make more informed decisions.

Based on the vast amount of platform data and analytical insights accumulated over the years, Unity's 2024 Mobile Game Growth and Monetization Report provides valuable industry insights and growth strategies for global game developers and Chinese developers going overseas based on the two key needs of "user acquisition" and "monetization", helping game developers understand how to optimize resources and maximize ROI.

Below, we'll dive into some of the key trends shared in the report.

01

User acquisition: Diversify your advertising strategy

Nowadays, the global development of mobile games is booming, but the intensification of market competition has also made the industry begin to enter the red ocean, and it is increasingly difficult to acquire users. It's critical for game studios to acquire the right users in a cost-effective way.

Marketers are doing this by developing a variety of ad optimization strategies. They combine ROAS-based, event-based, and cost-per-install (CPI)-based ad optimization to find the right players more cost-effectively. The report shows that over the past two years, advertisers on ironSource Ads and Unity Ads have further enriched their ad targeting strategies with optimization tools such as ad revenue, in-app purchase revenue, and hybrid ROAS, and adjusted their budget allocations accordingly.

Have you grasped these 4 major trends in global mobile games?

按Campaign类型划分的支出比例 - Unity Ads

Have you grasped these 4 major trends in global mobile games?

按Campaign类型划分的支出比例 - ironSource Ads

When looking at ROAS optimization tools against D7 targets, the report finds that the types of games with higher ad spend are mainly focused on ad revenue optimization, followed by mixed revenue optimization.

Have you grasped these 4 major trends in global mobile games?

D7 ROAS targets for different game types and optimization types

So, for developers, how do you choose a target event? What is the logic behind it? The report recommends selecting the top 5%-20% of users in LTV that can complete within 7 days of the game – based on ironSource Ads data, completing a specific level/level, requesting a free trial, making an in-app purchase, watching a certain number of ads, and reaching important milestones in the app are the five most commonly chosen by developers.

02

In-app purchase strategy: Repeat users are key

Building an in-app purchase system for a mobile game can be a time-consuming process, but when done right, the rewards far outweigh the costs. According to the report, 1.83% of users convert in-app purchases during their game lifecycle, and 26.47% of repeat purchases occur within 30 days of the first purchase. 1.37% will buy again in 31-60 days and 0.46% will buy again in 61-90 days or more.

Have you grasped these 4 major trends in global mobile games?

In-app purchase user payment intent

The key to implementing an in-app purchase strategy is to gain insight into user behavior through data and find those "high-value" users who are willing to spend repeatedly. Using data to discover the most effective in-app purchases, and understanding how to deploy them in their most impactful moments based on the user's progress in the game, can go a long way in helping developers reduce costs and increase efficiency. In this regard, based on the data, the report gives the types of products with strong conversion rates at different time nodes before, during, and after the game is launched.

Have you grasped these 4 major trends in global mobile games?

Product types with strong conversion rates at different time nodes

03

In-app advertising: Advertising value boost

As macroeconomic pressures rise, many players are less able to pay for in-app purchases, so more and more players are more inclined to watch ads to earn in-game rewards. Looking at 2023 and 2022, in-app advertising (IAA) penetration and depth have increased globally, with global ad penetration growing at 3.2% year-on-year, and even more so in regions with higher paying power.

Have you grasped these 4 major trends in global mobile games?

Rewarded Video Performance (2023 vs 2022)

Among them, the report shows that showing ads at key points of users can greatly increase the number of views. Understanding which rewards inspire the highest user penetration can help you gain a deeper understanding of what motivates users.

Have you grasped these 4 major trends in global mobile games?

Penetration rate of different ad placements

Have you grasped these 4 major trends in global mobile games?

The proportion of users who view your ad as a result of each reward

04

Offerwall

It has become a powerful tool to promote customer acquisition and monetization

As the customer acquisition landscape continues to evolve, it becomes increasingly challenging to reach, acquire, and retain target users at scale, and offerwalls have always been a powerful tool for advertisers to acquire and retain users. The report highlights that the Offerwall rewards marketplace for users with deeper engagement, higher retention, and faster LTV growth than users acquired by other ad formats.

Have you grasped these 4 major trends in global mobile games?

The average LTV of users across different channels

At the same time, the report also gives suggestions for optimizing the customer acquisition strategy of Offerwall, including offering rewards incrementally, adopting time-limited steps, implementing low-friction events, and mixing multiple event types.

The report answers some developers' concerns that Offerwall may lead to a decrease in in-app purchase revenue, and the report answers the data — Offerwall is actually becoming an effective tool to supplement in-app purchases and increase overall revenue. Unlocking premium content through Offerwall can also lower the threshold for users to make in-app purchases in the future. The data shows that Offerwall's monthly ad revenue per converted user is quite impressive, reaching $4.04.

Have you grasped these 4 major trends in global mobile games?

Monthly ad revenue performance per converted user by different revenue sources

The report concludes with recommendations on strategies to optimize offerwall monetization, including ensuring that the message is clear and powerful (e.g., entry copy with the word "free" often attracts more clicks), eye-catching offerwall placement, pop-ups to increase exposure, and monetary promotions.

As the author of the report, Unity has accumulated a wealth of industry insight and practical experience for a long time. Unity has a long history of empowering creators to develop and grow real-time games, apps, and experiences across platforms, and Unity Grow, Unity's growth business, has helped quite a few game developers achieve commercial success. Data.ai data shows that by the end of 2023, 84 of the world's top 100 games were using Unity Grow's growth strategy.

"By summarizing our growth experience at the forefront of the mobile gaming industry, the 2024 Mobile Game Growth & Monetization Report will provide developers with a roadmap for growth at this stage. The report not only reveals how to pinpoint user growth opportunities in a highly competitive market, but also delves into how innovative monetization strategies can be used to achieve business goals. We hope that all developers going overseas can use these in-depth insights and practical guides to take the initiative in the dynamic market and drive their business forward. ”