ironSource will be updating this blog post periodically, as more Newzoo studies are released.
Newzoo released their latest study titled “Betting on Billions: Unlocking the Power of Mobile Gamers”. Studying gamers in the US, UK, Germany, and France, this report sheds light on the untapped potential for brands and advertisers - providing them with useful insights when planning their brand strategy in 2019 and beyond.
Here are 4 key takeaways from Newzoo’s most recent report that we believe are most useful for brand advertisers:
Gaming is the third most popular app category
1 in 2 mobile app users have opened a game on their phone in the last seven days, making gaming the third most popular app category (tied with music), right behind social media and shopping apps. However, amongst 18-20 year olds, mobile games beat shopping apps.
Gamers have larger purchasing influence than non-gamers
Mobile gamers hold real purchasing power. They’re 23% more likely than non-gamers to influence the purchasing habits of their friends, family, and colleagues, says Newzoo. Out of the gamers studied, those who play Candy Crush and Angry Birds have the most influence. Why? Due to their older demographic. Furthermore, 66% of mobile gamers influence purchasing behaviors of those around them.
Gamers are far more receptive to advertising and brands than non-gamers
This means that mobile gamers are more likely to buy from brands that they’ve seen in ads, and that they’re also more likely to have a favorable attitude towards global brands. 1 in 2 mobile gamers are said to use advertising to keep up to date on products they want.
Evenings are the most popular time for users to play mobile games
Mobile games see the highest volume of users between 6pm-10 pm. This is a great insight for brands looking to build an in-game mobile advertising strategy - especially since gamers have more purchasing power than non-gamers.
The mobile game ecosystem is one that attracts extreme diversity amongst its users. Each game genre provides a unique experience and attracts a different type of user - this provides huge potential for brands looking to tap into specific markets.
We’ve said it before and now Newzoo is saying it again: “gamers are a lucrative, untapped audience for brands”. Brands looking to capture the attention of both a massive and diverse audience need to start considering in-game advertising. The sooner they realize this, the better.
1970s - Today: exponential growth
Video games emerged in the 1970s - by 2007 the industry grew to become a $35B business. Now, only 11 years later, that very same market is expected to generate almost $140B in revenue - an increase of $100B. These are astounding numbers that aren’t showing any indication of slowing down.
In-app advertising in emerging markets is (a major) key
Today, there are more than 2.3B gamers globally - and 95% of them play mobile games. How did we get here? As the Chinese smartphone manufacturing market expands, which is making affordable smartphones more readily available to the population, more and more people are beginning to play mobile games. While populations from China and other emerging markets don’t have as much disposable income to spend on IAPs, these gamers will instead begin paying with their time, generating the majority of revenue through in-app advertising. Can you say hyper-casual?
The lion’s share
In 2018, it is estimated that the Asia-Pacific region will generate 52% of total global game revenue - or $72B. These numbers represent a 17% year-on-year increase. Newzoo projects that the largest single market will continue to be China, and that market will reach upwards of $50B in revenue by 2021.
The mobile genre is evolving
Newzoo is claiming that over the past year, “mobile skeptics were proven wrong once again,” as publishers are developing mobile games in genres that were once considered too complex and sophisticated for mobile screens. While this trend began in China in 2015 with the launch of Tencent’s Honor of Kings, recent games like Fortnite and PUBG Mobile prove that western markets are equally as ready (and excited) for this sophisticated genre to make its way over to mobile. Now, other mechanically complex genres such as MOBAs, multiplayer RPGs, sports games, and fighting games are all making their way to mobile devices, too.
Brands coming in-game
Ultimately, Newzoo’s latest report highlights the lucrative and far-reaching nature of the games industry - especially the mobile game industry. As more of the world’s population become smartphone owners, the opportunity for brands to move in-app and in-game becomes increasingly tempting. According to Newzoo’s report, there are over 1.2B gamers in the world. Thats 1.2B opportunities to reach new audiences. Developers, get ready for the influx of brand demand.
And, to conclude
The gaming industry continues to not only grow, but thrive. This year alone, consumers are predicted to spend over $92B on apps, and more than 75% of this revenue will be generated by mobile games. The gaming industry continues to lead the way in both monetization and engagement, and we can only expect these numbers to keep growing. We are excited to see what 2019 has in store.