Brutally Honest #81: User Acquisition in the Post IDFA World

User acquisition strategies in the mobile gaming sector must evolve to address the challenges of the post-IDFA environment, specifically regarding placement optimization and audience scaling on major platforms like Facebook and Google. While granular data might suggest that specific manual placements, such as Facebook Video Feeds, offer superior performance, these results are often misleading and lack the scalability required for significant growth. Relying too heavily on manual placements can restrict the reach of the underlying algorithm, causing campaigns to fatigue prematurely.

Effective scaling requires a strategic approach to audience size based on the specific optimization goal. Campaigns focused on mobile app installs should target a minimum of one million users, while those optimized for app events require a broader reach of two to five million. For value-based optimization, the target audience should exceed five million users to allow platform algorithms sufficient room to operate. While manual placements can be useful for advertisers on limited budgets seeking high-value targets, automated placements are generally superior for scaling as they leverage machine learning to maintain performance across a wider inventory.

The broader gaming industry is currently experiencing significant volatility, exemplified by the financial struggles of major entities like the Embracer Group. The strategy of aggressive acquisition fueled by stock value has proven unsustainable, leading to the removal of such companies from major global stock indices and necessitating the divestment of key assets. This instability highlights a shifting landscape where both marketing tactics and corporate growth strategies are under intense scrutiny as the industry adjusts to new privacy standards and economic pressures.