The gaming app market is booming, particularly in Apac, where 48 per cent of all gaming app installations occurred last year and users spend 35 minutes per session, according to a report by measurement and analytics company Adjust. A prime example of this boom is Monopoly Go, which was a top-grossing game in 2023, the same year it was released. In fact, many gaming sub-verticals saw strong growth last year (racing was up by 61 per cent, simulation was up by 53 per cent and arcade was up by 38 pe
per cent).
Singapore, Indonesia and Japan drove the most organic gaming app installations, while South Korea had the highest median advertising revenue per mile, followed by Japan and Singapore.
Additionally, gaming in-app revenue globally is rising, with a 6 per cent increase year on year in 2023.
According to April Tayson, regional vice president for Inseau at Adjust, a number of factors are contributing to Apac’s dominance, which is largely driven by demographic and player preferences.
“Apac markets tend towards action and role playing game (RPG) titles, which have longer session lengths by nature. Add to this the fact that the region produces a number of AAA (high-budget, high-profile games) titles and you can see why APAC leads the charge,” she told Inside Retail.
She also said that when it comes to session lengths, games in the action sub-vertical continue to garner the most play time, despite a slight decrease from 2022.
“They’ve maintained the top position in session lengths due to the action subvertical’s immersive gameplay and dynamic narratives, which encourage extended play sessions,” she added.
Additionally, social features like multiplayer modes foster connections between players, driving ongoing engagement.
Apart from well-thought-out creatives and engagement strategies, Tayson also noted that game developers are using artificial intelligence (AI) and personalisation to keep gamers engaged. Enriching the user journey is all about fostering retention and nurturing loyalty.
The emergence of connected television
With gamers engaging with their connected devices for more than two hours a day, Tayson mentioned that connected television (CTV) is becoming a highly strategic channel for developers, studios and marketers to grow their mobile gaming apps.
She sees a significant opportunity for marketers to explore this space, as generative AI tools are also making advertising more performance-driven.
“When data is at the heart of a campaign, we see stronger outcomes, including at a creative level. When factors such as audience, vertical, and platform are considered, marketing teams can produce better creatives that grab and retain audiences’ attention,” she explained.
For example, she said that incorporating popular gaming mechanics into advertising creatives has shown promise for attracting larger audiences, increasing the pool of potential conversions.
“Hybrid monetisation continues to be a key strategy, as games that previously focused on monetising through in-app purchases are incorporating ads, and those primarily ad-based are adding more subscription and in-app purchase options,” she elaborated.
One example she cited was Vietnamese mobile game publisher, VGP, which partnered with TikTok for Business, which is a method of delivering advertising to users who have the potential of becoming high-value customers.
The bigger picture
According to Tayson, the Apac region’s booming organic install rates and session lengths has created vast potential for innovation and growth.
By embracing technologies like AI and CTV, marketers can explore new monetisation models and foster community engagement, whilst unlocking new levels of success and perhaps even reshaping the gaming landscape.
“Interest in mobile gaming is as strong as ever, and as marketing teams increasingly adopt new technologies and approaches to advertising and monetisation, we anticipate an overall turnaround in the numbers throughout 2024 and beyond,” she opined.
She also highlighted the importance of privacy-centric technology in enabling growth without the dependence on device-level data.
“By staying ahead of the curve on privacy changes and the tools that solve them, and by adapting to more personalised user experiences, marketers can create a holistic strategy that will place them at the forefront of gaming growth,” she added.
Tayson has some advice for marketers who are interested in this area of growth. One should embrace new platforms, and not fear them.
“Expansion can seem daunting, but a diverse revenue stream, like one spanning mobile, PC, and consoles, is a sound business principle that will present extensive reach across a growing younger demographic that will very soon have its own spending power,” she stressed.
She said marketers should “plant the seed early to capitalise on loyalty later on”. Expanding platform horizons will also lead to additional monetisation strategies beyond what mobile apps can afford.