New AppsFlyer Report Finds Gaming Apps Mostly ROI Positive
Did you realize it has been 10 years since the iPhone first came into our lives? It feels like only yesterday we were all trying to beat our own snake records. Alas, our snake days are long gone, but that’s probably a good thing. Today’s mobile games are far more exciting, not to mention major money makers. With 2.1 billion players, smartphone and tablet games are predicted to generate $45.7 billion in revenue in 2017. By 2020, revenue will hit $64.2 billion, so while the market is massive and constantly growing, so is the competition.
To help gaming app marketers make the most of their budgets and optimize their ROI in this extremely competitive space, we created The State of Gaming App Marketing, offering findings and insights from every step of the funnel, including marketing, installs, engagement, revenue, cost, and most importantly — ROI.
This market is constantly changing and evolving as it grows — so what’s new from Q3 2017? Plenty. We have lots of data insights in the report but here a few highlights:
Share of Google and Facebook in the Media Mix By App Size
We grouped Facebook and Google in order to calculate their total share among overall non-organic traffic across different sizes of apps, grouped according to the level of UA activity.
We all read the posts covering Facebook and Google’s “duopoly” when it comes to digital advertising.When comparing app sizes, we found that the smaller a gaming app, the higher the share of Facebook and Google in its media mix. In fact, the share of the smallest group of apps is more than 2x larger than the largest group. It appears that smaller apps rely on self-service networks like Google and Facebook that are easier to use and don’t require many additional resources. Larger apps, with larger UA teams, larger budgets, and presumably more wiggle room for trial and error, use a wider variety of networks at the expense of the tech giants.
Retention Score By Platform in Top Markets
Our data shows that both in iOS and Android, the most loyal users globally are in Japan, where the average retention score was 60% higher than the global average, and 40% higher than in other top markets. Another interesting finding is that Android users in India have a retention score 30% higher than the global average.
Unlike the vast majority of countries in the report, where the difference between platforms was rather marginal, we see a significantly higher iOS retention score in Brazil and Indonesia — almost 5 times the global average.
Day 90 ROAS By Platform in Top Markets (Non-Organic)
Now let talk about what matters most — the bottom line. When it comes to return on Ad Spend, we can see that the only country nearing the break-even point (100%) is Vietnam — its rise to the top can be primarily attributed to the low cost of media in the country. Depending on game maturity and platform, it could take anywhere between 3 and 9 months to reach this point.