User Acquisition reports and market data
Documents
two & a half gamers session #2 - UA & Creative trends 2022, Microsoft + ATVI, TOP10 gaming M&A
The gaming industry is currently undergoing a structural transformation defined by aggressive consolidation and a fundamental shift in user acquisition strategies.
- Microsoft’s $68.7 billion acquisition of Activision Blizzard marks a structural industry shift toward metaverse infrastructure and the consolidation of high-value intellectual property.
- Post-IDFA user acquisition strategies are shifting away from Facebook toward a diversified portfolio including TikTok, Google, and Unity to mitigate rising costs and declining performance.
- Developers are increasingly porting mobile titles to PC to reduce friction, expand revenue streams, and ensure sustainable growth beyond mobile-only ecosystems.
two & a half gamers session #4 - How to soft launch a mobile game Ad monetisation Perspective
The mobile gaming industry is undergoing a significant transformation, with ad spend projected to reach $130 billion by 2025.
- Mobile ad spend is projected to reach $130 billion by 2025, forcing developers to shift budgets from traditional platforms like Facebook toward emerging channels like TikTok.
- Developers should target at least five rewarded video ad impressions per daily active user during the soft launch phase to meaningfully increase lifetime value.
- Hybrid monetization models are essential for resilience, with a balanced 50/50 split between in-app purchases and ad revenue providing the flexibility needed for value-based user acquisition.
User Motivations to Hit Your Target Audience
Effective mobile user acquisition requires a strategic shift from basic performance metrics toward a deep alignment between ad creative and core player psychology.
- Only 4% of casual game advertisements currently leverage the twelve primary psychological drivers necessary for effective user engagement.
- While playable ads offer the lowest cost-per-install, banner ads consistently deliver the highest return on ad spend across the gaming, e-commerce, entertainment, and finance sectors.
- Casual gaming acquisition strategies should prioritize highlighting player milestones, whereas midcore titles require creative content focused on excitement and thrill.
The Hyper-Casual Benchmark Report: Q3 2022
The Hyper-Casual Benchmark Report for Q4 2022 provides a comprehensive analysis of the mobile gaming landscape, focusing on key performance indicators including cost per install (CPI), ad spend distribution, and user retention.
- Retention is the primary differentiator for success, with top-tier hyper-casual games significantly outperforming the median cohort as acquisition costs rise.
- Median cost-per-install (CPI) reached record highs in Q4 2022, hitting $0.20 on Android and $0.42 on iOS.
- iOS consistently outperforms Android in retention, with top-tier titles achieving 45% Day 1 retention on iOS compared to 38% on Android.
Mobile Ad Creative Index: 2022
The 2022 Mobile Ad Creative Index analyzes performance trends and benchmarks across four major mobile app verticals: gaming, e-commerce, entertainment, and finance.
- Playable ads in the gaming sector achieve the lowest cost-per-install (CPI) at $1.98, while banner ads generate the highest 30-day return on ad spend (ROAS) at nearly 22%.
- iOS advertising costs are frequently double those of Android, making Android the more cost-effective platform for mobile user acquisition.
- There is a significant disconnect between player psychology and creative execution, with only 4% of casual game video ads and less than 1% of midcore ads successfully targeting specific player motivations.
Modern Mobile Consumer 2022: App Discovery Report
The Modern Mobile Consumer 2022: App Discovery Report examines the evolving journey of mobile users from initial app discovery to daily usage and long-term engagement.
- Mobile gaming has become a universal behavior, with 60% of non-gaming app users playing mobile games daily, matching social media as the top usage category.
- In-app advertising is a primary driver for app discovery, leading to downloads for 70% of gaming audiences and 78% of non-gaming control group users.
- While users typically maintain over 20 apps on their devices, the majority limit their daily engagement to only five to ten apps.
Store Intelligence Data Digest: Q2 2022
The global mobile application market experienced a pivotal transition in the second quarter of 2022, characterized by a 2.5% year-over-year decline in total downloads to 35 billion.
- In a historic shift for the U.S. App Store, consumer spending on non-gaming applications surpassed gaming revenue for the first time, driven by a 129% increase in non-game subscription revenue compared to 2019 levels.
- The global mobile market saw a 2.5% year-over-year decline in total downloads to 35 billion in Q2 2022, though Google Play retained the largest share with 27.2 billion installs.
- Meta solidified its market dominance by owning four of the top five most-installed apps globally, contributing to an 11% year-over-year increase in the company's total downloads.
Mobile App Trends 2022
The mobile app industry experienced a period of robust expansion throughout 2021, characterized by $170 billion in consumer spending and $288 billion in advertising expenditures.
- The mobile industry generated $170 billion in consumer spending and $288 billion in advertising expenditures during 2021.
- Apple’s App Tracking Transparency framework saw a 25% global opt-in rate, exceeding initial industry expectations for resilience.
- Fintech and gaming led installation growth at 35% and 32% respectively, while e-commerce downloads increased by 12%.
UA Creatives Testing | How Traplight Games Optimizes Mobile Ads for Battle Legion
Mobile user acquisition strategies for the title Battle Legion rely on a modular production pipeline that systematically tests creative variables to maximize install-per-mille.
- Creative assets must be tailored to specific placement types: shorter ads perform best in Facebook Feeds, while longer-form content yields higher conversion rates in the Audience Network.
- Performance optimization requires aligning video duration with algorithmic constraints, such as the 15-second unskippable limit for in-stream video placements.
- Traplight Games utilized a modular production pipeline to test 64 distinct ad variations over a three-month period to maximize install-per-mille (IPM).
Changing Navigation Mid-Flight: 'War Dragons', a UX Redesign on Mobile
The modernization of the mobile title War Dragons centers on a comprehensive user experience overhaul designed to resolve navigation inconsistencies and inefficient screen utilization.
- The 'War Dragons' UX redesign resulted in a 30% increase in time spent in-game, a 27% increase in daily active users (DAU), and a 10% improvement in early player retention.
- A phased rollout strategy—moving through concept, engineering, and testing phases—allowed the team to mitigate risk and gather continuous feedback while maintaining a live product.
- To modernize the 2015-era interface, the team replaced fragmented, undersized windows with standardized mobile design patterns, such as carousels and consistent sidebar navigation, to improve ergonomics and discoverability.
Data Ethics in Gaming (Philosophy Friday #2)
The gaming industry increasingly relies on alternative data providers to bridge information gaps, validate investment strategies, and inform high-stakes decisions regarding development and mergers.
- The SEC imposed a $13 million penalty on App Annie for misusing confidential data to manipulate market estimates, highlighting the severe legal risks associated with relying on non-public information for investment and development decisions.
- Gaming companies are facing increased regulatory scrutiny, with the SEC now utilizing financial disclosure requirements to address internal issues like harassment and discrimination, signaling an end to the industry's historical regulatory exemption.
- The industry is experiencing a shift toward a more virtuous model of data governance, where transparency and explicit user consent are becoming mandatory to maintain sustainable practices and avoid player backlash.
Panel: Should influencers be at Arm’s Length or Considered Part of Your Team?
Influencer marketing has evolved from a superficial promotional tactic into a sophisticated, strategic pillar of modern brand growth.
- Influencer marketing is shifting from transactional, one-off promotions to long-term ambassador programs designed to build sustained audience loyalty.
- Effective campaigns prioritize creator autonomy, allowing influencers to leverage their specific community expertise to craft organic messaging rather than forcing them into rigid, brand-dictated niches.
- Brands should adopt a pragmatic, experimental framework by starting with small-scale tests to validate return on investment before committing to long-term partnerships or in-house management.