Games on Smartphones & Tablets: Demand, Revenue, Cost, Business Model, Usage, Demographics, DAUs, Genre

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iOS and Android game insights presented at Smartphone and Tablet Gaming Summit in SF, garnered from Flurry and Activision mobile game publishing partnership. Insights and data include: market size; …

iOS and Android game insights presented at Smartphone and Tablet Gaming Summit in SF, garnered from Flurry and Activision mobile game publishing partnership. Insights and data include: market size; expected DAUs; revenue potential; demographic differences, etc. per game type / genre; usage behavior; spending behavior; demographic (age, gender) differences across tablet vs. smartphone form factor and game genres.

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  • Can anyone tell me . In Top 6 Successful Game Types, What is 'investment(minor ) and investment (major)' mean?
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  • I am surprised that word games did not crack the 'Top 6 Successful Game Types.' Games such as Words With Friends, Scramble, Scrabble, etc. Is that because there are fewer entries in this category, ie you've got a handful of big names such as those mentioned and then not much else?
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  • Andreessen wrote that every sector is being disrupted by software.But the truth is that APPS are eating software. They are the deliver mechanism of software today, and growing faster than anything any of us have ever seen.Read and reference the WSJ article, “Why Software is Eating the World” by Marc Andreessen, August 11, 2011.
  • VS. TAM, iOS & Android only ¼ PENETRATED. LOTS OF GROWTH LEFT.TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS (TAM)ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVE
  • VS. TAM, iOS & Android only ¼ PENETRATED. LOTS OF GROWTH LEFT.TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS (TAM)ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVE
  • Jan 2012 – 36hrs online according to comscore. Europe: Feb 2012 – 28.2hrs online according to comscore.
  • … but they are challenged for the first time by other categories. With more competition for the consumer’s time, games companies must work harder and smarter to retain and monetize the users they do acquire.
  • Games are a disruptive force in the total gaming category, decimating the portable (aka handheld) category, traditionally dominated by Nintendo and Sony.
  • Men lead women in spending, with the greatest difference occurring in the 25 – 34 year old age group.  For freemium games, spending is concentrated between the ages of 25 - 54, with men in this age range representing nearly half (45%) of spending and women representing another third (32%).  

Transcript

  • 1. Keep Your IP. Hold on to Your Hat.Peter Farago @FlurryMobileVP Marketing GAP@flurry.com
  • 2. App Measurement & Advertising PlatformFlurry AnalyticsBetter apps on iOS, Android, BB, WP, HTML5 App Developers: 70,000 Live Applications: 190,000 Devices per month: 540M Sessions per month: 38B Events per month: 400BAppCircle Ad NetworkAcquisition & Monetization: iOS, Android App Developers: 6,200 Devices per month: 250M Daily Completed Views 3M
  • 3. “Software is Eating the World” Andreessen in WSJ
  • 4. iOS & Android Addressable Market GLOBALPOPULATION 7 BILLION Sources: United States Census Bureau, based on Accenture analysis
  • 5. iOS & Android Addressable Market GLOBAL POPULATION 7 BILLIONMOBILE PHONESUBSCRIPTIONS 6 BILLION Sources: US Census Bureau; International Telecommunication Union; based on Accenture analysis
  • 6. iOS & Android Addressable Market GLOBAL POPULATION 7 BILLION MOBILE PHONE SUBSCRIPTIONS 6 BILLION INTERNET USERS2.3 BILLION Sources: US Census Bureau; International Telecommunication Union; based on Accenture analysis
  • 7. iOS & Android Addressable Market GLOBAL POPULATION 7 BILLION MOBILE PHONE SUBSCRIPTIONS 6 BILLION INTERNET USERS 2.3 BILLIONiOS & ANDROID550 MILLION Sources: US Census Bureau; International Telecommunication Union, Flurry; based on Accenture analysis
  • 8. iOS & Android Addressable Market GLOBAL POPULATION 7 BILLIONMOBILE PHONE SUBSCRIPTIONS 6 BILLION 9% VS MOBILEINTERNET USERS 2.3 BILLION 24% VS INTERNETiOS & ANDROID550 MILLION Sources: US Census Bureau; CIA World Factbook; Flurry; based on Accenture analysis
  • 9. Penetration of WW Population, 5 Years After Launch 8X 3X 2X 8% 4% 3% 1% PCs (1988) Facebook (2009) Internet (2000) iOS & Android (2012) Sources: United States Census Bureau, International Telecommunication Union, Facebook, Flurry
  • 10. Apps Eating the Internet U.S. MOBILE APPS VERSUS WEB CONSUMPTION WEB BROWSING MOBILE APPS 94 81 MINUTES 70 66 74 MINUTES 7264 MINUTES MINUTES MINUTES MINUTESMINUTES 43 MINUTES June 2010 Dec 2010 June 2011 Dec 2011 Sources: comScore, Alexa, Flurry Analytics; Smartphones & Tablets, U.S.
  • 11. iOS & Android Games Command Consumer TimeDAILY SMARTPHONE APP CONSUMPTION, MINUTES PER CATEGORY, WW 7 7 10 10 12 11 24 15 25 24 Q1 2011(68 minutes) Q1 2012 (77 minutes) Games Social Networking News Entertainment Other Source: Flurry Analytics, Smartphones, WW
  • 12. iOS & Android Games Eat Traditional Gaming Revenue U.S. PORTABLE GAME SOFTWARE BY REVENUE 19% 34% 36%11% 57% 58% 70% 9% 6% 2009 2010 2011 iOS & Android Sony PSP Nintendo DS Source: Flurry Analytics, The NPD Group; Flurry analysis & estimates
  • 13. Indies Dominate on iOS & Android INDIE VS. ESTABLISHED GAME SESSIONS ON iOS & ANDROID, WW 40% 32% 44%60% 56% 68% Q1 2010 Q1 2011 Q1 2012 Independent iOS & Android Game Developers Game Companies from other Platforms Source: Flurry Analytics
  • 14. Business Model: App Store Top 25 Grossing UNITED KINGDOM FRANCE GERMANY 4% 16% 24% 84% 96% 76% UNITED STATES CHINA TOTAL 8% 12% 13% 92% 88% 87% IN APP PURCHASE PRICING PREMIUM PRICING Source: iTunes App Store, May 2012, Flurry analysis
  • 15. Apps vs. Games: App Store Top 25 Grossing UNITED KINGDOM FRANCE GERMANY 28% 40% 36% 64% 60% 72% UNITED STATES CHINA TOTAL 12% 12% 30% 70% 88% 88% GAMES APPLICATIONS Source: iTunes App Store, May 2012, Flurry analysis
  • 16. Gen Y Plays… TIME SPENT BY DEMOGRAPHIC18% Males (53%) Females (47%)16% 17% 17%14% 15%12% 12%10% 11% 11%8%6% 7% 7%4%2% 2% 1%0% 13 – 17 18 – 24 25 – 34 35 – 54 55+ Source: Flurry Analytics
  • 17. …But Gen X Pays MOBILE FREE-TO-PLAY GAMES: MONEY SPENT BY DEMOGRAPHIC30% 29% Males (58%) Females (42%)25%20% 20%15% 16%10% 12% 9%5% 3% 2% 7% 1% 1%0% 13 – 17 18 – 24 25 – 34 35 – 54 55+ Source: Flurry Analytics
  • 18. Men Spend More per Transaction MOBILE FREE-TO-PLAY GAMES: TRANSACTION SIZE BY DEMOGRAPHIC$16 $16.4 $15.5 Males ($15.6)$14 $15.2 $14.8 Females ($11.9)$12 $12.0 $12.0 $12.5 $11.8$10 $10.4$8 $8.2$6$4$2$0 13 – 17 18 – 24 25 – 34 35 – 54 55+ Source: Flurry Analytics
  • 19. Sessions per Category, Smartphones vs. Tablets Smartphones Tablets Games 50% Games 58%Social Networking 22% Social Networking 14% Entertainment 6% Entertainment 11% Lifestyle 5% Utilities 3% Utilities 4% News 2% News 2% Books 2% Other 11% Other 10% Source: Flurry Analytics, Q1 2012; 160,500 apps, 97 Billion Sessions
  • 20. Time of Day Usage, Smartphones vs. Tablets Source: Flurry Analytics
  • 21. Gender by Category, Smartphones vs. Tablets Source: Flurry Analytics
  • 22. Age Distribution, Smartphones vs. TabletsAverage AgeSmartphones: 27 41%Tablets: 38 13% 20% 9% 20% 41% 17% 13% 9% 17% 13 - 17 18 - 24 25 - 34 35 - 54 55+ Smartphones Tablets Source: Flurry Analytics
  • 23. Top 6 Successful Game TypesENDLESS PASS TIME NURTURING & COLLECTING BUILDING & SIMULATION SOCIAL RPG GAMER’S GAME POKER / CASINO
  • 24. Endless Pass Time Examples Age Distribution 30% 25% 20% 15% 10% 5% Angry Birds Fruit Ninja 0% 13-17 18-24 25-34 35-54 55+ Key Genre Attributes• Intuitive, simple puzzle/arcade mechanics 58% 42%• Leverages h/w (touch, accelerometer) DAU 1,000,000• Cute, often original IP; mass-mkt appeal Monthly Revenue $500,000• Infinite replay value; lots of power-ups Investment (minor) $100,000• May have social leaderboards Investment (major) $400,000
  • 25. Nurturing & Collecting Examples Age Distribution 35% 30% 25% 20% 15% 10% 5% Dragonvale Dream Pethouse 0% 13-17 18-24 25-34 35-54 55+ Key Genre Attributes• Nurturing (tamagotchi) gameplay 41% 59%• Avatar / dress-up style content DAU 300,000• Endless variety of virtual goods Monthly Revenue $900,000• Strong social / show-your-friends sharing Investment (minor) $100,000• Often w/ underlying econ sim mechanics Investment (major) $400,000
  • 26. Building & Simulation Examples Age Distribution 40% 35% 30% 25% 20% 15% 10% 5% Smurfs’ Village Kingdoms of Camelot 0% 13-17 18-24 25-34 35-54 55+ Key Genre Attributes• Building & simulation gameplay 49% 51%• “Empire” expansion / leveling up DAU 400,000• Content / power-up unlocks Monthly Revenue $1,200,000• Has both virtual currency & goods Investment (minor) $100,000• Light social collaboration & sharing Investment (major) $500,000
  • 27. Social RPG Examples Age Distribution 40% 35% 30% 25% 20% 15% 10% 5% Crime City Original Gangstaz 0% 13-17 18-24 25-34 35-54 55+ Key Genre Attributes• Text-based RPG mechanic 79% 21%• Player-vs-player gameplay DAU 150,000• Energy / HP depletion Monthly Revenue $600,000• Clan / team dimension + message / chat Investment (minor) $100,000• Mission-based & level progression Investment (major) $400,000
  • 28. Gamer’s Game Examples Age Distribution 50% 40% 30% 20% 10% Infinity Blade II Real Racing 2 0% 13-17 18-24 25-34 35-54 55+ Key Genre Attributes• Platform-leading graphics 91% 9%• Strong physics engine / middle-ware DAU 50,000• Sports / battle / racing style sub-genres Monthly Revenue $400,000• Defined win-lose outcomes Investment (minor) $100,000• Premium pricing model, often $4.99+ Investment (major) $400,000
  • 29. Texas Poker / Casino Examples Age Distribution 40% 35% 30% 25% 20% 15% 10% 5% Zynga Poker Card Ace: Casino 0% 13-17 18-24 25-34 35-54 55+ Key Genre Attributes• Synchronous, Online Multi-player 68% 32%• Private + public tables, chat enabled DAU 200,000• Texas Poker dominates, inherently social Monthly Revenue $1,000,000• Blend of competition + social Investment (minor) $100,000• Acquiring chips = perfect freemium model Investment (major) $400,000
  • 30. Flurry Services Analytics: Increase Your App Engagement and Retention1 • Free and powerful. Leading app analytics (iOS, Android, WP, BB, J2ME, HTML5) • Understand and segment app audiences to maximize engagement and revenue AppCircle: Build & Grow Your App Audience2 • Acquire users with high-quality app recommendations and videos (iOS, Android) • Win-back your best users to build the most loyal and best monetizing audience AppSpot: Maximize Your App Audience Revenue3 • 2X revenue, reduce cost with free ad serving and mediation, yield-optimized ads • Max eCPMs with mediation and yield optimization leveraging Flurry’s big data set • Max eCPMs selling direct, segmented parts of your audience to top advertisers
  • 31. Thank You!Peter Farago @FlurryMobileVP Marketing GAP@flurry.com