Brand Marketing and Performance Marketing Can Co‑exist on Mobile

The evolution of the mobile gaming industry necessitates a dual approach to advertising that integrates both brand and performance marketing. While performance marketing remains the primary driver for user acquisition due to its trackability and focus on return on investment, the massive scale achieved by titles like Candy Crush Saga demonstrates the growing utility of brand marketing. This shift is particularly relevant as developers seek to reach mainstream audiences beyond the existing pool of frequent mobile gamers.

The analysis highlights a fundamental tension between traditional brand theory and the freemium model. In traditional consumer goods, brand marketing justifies high costs by creating switching barriers and reducing consumer uncertainty. However, freemium mobile games have near-zero switching costs and no financial risk for the consumer, allowing users to sample products frictionlessly. Consequently, performance marketing—which uses algorithmic targeting to find users whose needs best match the product—remains the most efficient method for converting active mobile users.

Despite these differences, brand marketing via traditional media like television offers access to segments that performance marketing cannot reach, including infrequent mobile users and non-smartphone owners. Data from 2013 indicates that while only 56% of the US population owned a smartphone, 94% lived in homes with televisions, representing a significant untapped market. The conclusion suggests that while performance marketing is the optimal tool for converting existing gamers, brand marketing serves to create new ones. For the few games with high enough lifetime customer values to support the expense, these two strategies will grow in tandem rather than competing for dominance.