Category: Mobile Gaming

Most mobile games revenues come from a tiny fraction of players

| April 20, 2015

The results of a recent data analysis from Swrve showed that 60 percent of income is generated by 0.23 percent of users.

A new report has now been released by Swrve, a mobile marketing automation company, and it has revealed that a very large portion of the total revenues brought in by mobile games are actually generated from a tiny sliver of the total number of players.

This suggest that the majority of gamers are either cheap or they know that they can enjoy a game without paying.

What the Swrve report indicated was that 60 percent of the total in-app revenues from mobile games were being generated by a tiny 0.23 percent of all of the players. This clearly represents a very small number of the total players and it suggests that these paying players – known by the industry as “whales” – should be treated in the same way that high rollers are treated in Vegas. The report from Swrve was based on data that was collected based on 20 million players of smartphone and tablet based games that are free-to-play.

While this may make it seem that mobile games have a rather dim looking future, that is not necessarily true.

Mobile Games RevenueAt the same time that it seems that only a very tiny number of players are providing most of the revenue for these mobile apps, the average amount that is being spent on these video games has risen to $29.17 from having been $22 at the same time last year. So there may not be a large percentage of people paying to play, but those who are have an average spending amount that is 33 percent higher within the span of only one year.

Other key findings from this research include:

• Among customers who pay to pay on mobile apps, 44 percent made a single purchase, while 20 percent made 5 or more.
• The average paying player makes an average of 3.5 monthly purchases at an average of $8.27 per purchase.
• 21.9 percent of purchases are of mid-tier virtual items (priced between $10 and $20), and they made up 38.6 percent of the total revenue, which is a figure that had been 22 percent at the same time in 2014.
• The average amount of time spent playing mobile games before the first purchase is made is 15 hours, which has dropped from being just over 23 hours, last year.

Mobile games are outspending consoles on national television advertising

| April 13, 2015

Small publishers are forking over huge amounts of money to make sure their products are seen.

Although the console gaming is known for the massive budgets it has for advertising its products on television, the latest trend has actually been for smaller publishers of mobile games to put together some considerable TV campaigns.

In fact, those smaller game companies are outspending their console counterparts at an incredible rate.

Recent statistics released by iSpot.tv have shown that among the top five video category advertising spenders on television, four are within the mobile games space. Together, those companies spent more than $130 million in the first quarter of this year. The top three were King, Machine Zone, and Supercell and their spending made up 30 percent of the entire video games category ad spend on television.

This spending on advertising for mobile games on TV outpaces that of the established console giants.

TV Advertising - Mobile GamesIn fact, those smaller mobile gaming companies didn’t just spend more than Nintendo, PlayStation and Xbox, but they also spent a larger amount than the game manufacturers for those consoles, including Electronic Arts, Ubisoft, and 2K.

Speculation in the industry has suggested that the reason for this trend is due to the shifts occurring within the video game industry as a whole. In 2014, console manufacturers had still been holding the lead position in terms of spending within the video game category. The reason was that Microsoft and Sony were trying to give an explosive launch to their new generation devices (Xbox One and PlayStation 4). The combined spending of those two companies made up 36 percent of the entire category. However, during the same period this year, the combined spending of those brands represented only about 10 percent of the category.

While the first quarter of the year is typically a rather slow one when it comes to console game advertising, as they will usually spend the largest amount of money during the fourth quarter when they release their biggest titles, this doesn’t change the fact that publishers of mobile games are spending a larger amount now than they ever have before on television advertising.