Machine Zone, Supercell and King spent $200M on US TV ads in 2015

hello welcome to his daily I'm John Jordan so the big news in the mobile game space today is some interesting numbers from a u.s. research company looking at the amount of money that on the games industry spending on us TV ads so let's get the figures right so come a bit of my cheeky so the the company is an eyespot TV the research company that they put out figures for they've been kind of tracking estimating the numbers for 2050 so overall the curve it's estimated increase in spending from 2014 2015 was a rise of forty-seven percent so pretty substantial and in terms of the amount of money as well that's pretty substantial that's so that's six just under 630 million dollars was spent on us TV cable advertising so it's not looking at online or spin or any of my letters looking at at ustv spending so

is this I guess a small part of what companies are spending on advertising for their games but I'm something that's growing kind of rapidly and it's particularly interesting because we've I guess historically for the last decade we've seen big console games or big pc games spending money on ta TV advertising it's only really been in the last may be really 2014 realize when we start to see some spending and 2015 is seen a real explosion in companies spending mobile games probably spending money on TV advertising we can see that from kind of some of these some of them sort of things really so in 2014 actually the biggest company spending money on TV advertising in the US was king so King was doing an IPO at the time so you cannot really want to get his fingers up and it spent about 45 million dollars on TV advertising and king again is a big spender this year so skinny ism is the fifth biggest spender

in 2015 it's been about the same actually didn't read change change very much chef spirit tiny bit less and then in 2014 Activision PlayStation the second and third biggest and then come to all know the supercell so superspar cell in 2014 spend about 35 million dollars on advertising now in 2015 supercell basically spent about twice as much money on us advertiser us TV advertising avoid it but it was only the number two biggest spending games company so the biggest spending games company of 2015 in the US no surprise at all my guests to most people in the industry machines oh so machines own isn't absolutely juggernaut it's in 2015 year's biggest gamer has came out 2014 her game of war I'm obviously kind of famously they have had Kate Upton Upton as the as the kind of the figurehead and lots of ads of her being uh got it in

the game or her basically a or adverse really but released it out and it back nose with a lot of money do it spent 93 million dollars on us TV advertising which compares to about 60 million dollars for super cell so it spent significantly more than the second place and it is interesting that if you look down the top five big spenders on us TV advertising for games in 2015 three of them so machines own super cell and king are all mobile only developers and so actually Nintendo in their PlayStation were number six Warner's was seven bucks off of that it was only a nine Bethesda ten you can really see at the top end the people are spending a lot of money our mobile game studios and what's interesting about those there's been this discussion for a long time what we call user acquisition so basically marketing to get users into your game and not people saying I was too expensive it's not working anymore now there's definitely arguments around kind of how how long how well it works now how old targeting it is and prices have

been going up constantly and since that's kind of a that's good for the industry kizim that's people are understanding how much money you can how much money you can get off players how much money players are paid to spend so the cost of getting them gets more and i love it within the system as well if you have them a mobile game that has adverts in it if the cost of a user's going up you're getting more money for your adverts in some pool tournament not really interesting is is in 2015 we saw a big movement come outside what Michael traditional user acquisition so we've seen a lot of you know after I xenapp people's games advertising in facebook online advertising facebook was really big 2014-2015 machine big-spending beaker of bog spending on TV stuff which is in a sense harder to track is harder to track what TV advert is doing in terms of increasing your balance you can't do it but it's harder you can't track in the same way also on those card companies who've been doing this big TV ad spending like machines own and and

supercell also looking at kind of other so machines n did do some stuff in Instagram it's very realistic game called movis fracking the end of last year 2050 you're spending a lot of money probably in scrambles in the best place to be spending money for another best audience people spending money there and also be seeing kind of other companies who just can't can't spend 100 million dollars whole TV advertising looking through other kind of what is more creative user acquisition and they all come you know other things like the youtubers and twitch and and not kind of so kind of hardcore what I've been kind of cooling now speaking with machines own include got a brute force new way they've got so much money now and they're so well in tune to how much it costs to get a use and how much money they can generate from a user I mean they're just really kind of like bring up big artillery to kind of create these big brands in these you know hundreds of millions of dollars we are perennial because a game of war debt billion-dollar franchise in terms of the monies generate and they understand that market really well so you can't really compete with those not you could argue

all you super selves can compete with can compete with with wishing integrity comes to that these strategy what everyone else is having to come up with other ideas and I think that's good for entry he can't contest assume that as it is a kind of one solution fits all for your game depends on the game your audience need to understand these things as much more granularity than we did in the past so I guess that's the new today's lot somehow she comes to spend a lot of money on on TV advertising not for everyone but there are always ways to get users into your game so just maybe have to think of it smarter than before so I forget to subscribe to our YouTube channel and come back tomorrow and see what the news is then we'll see you then