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ChinaJoy 2019 tenjin's take on hyper-casual

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ChinaJoy 2019 tenjin's take on hyper-casual

  1. 1. HYPER-CASUAL MARKET ANALYSIS AND INSIGHTS Christopher Farm, CEO @TenjinIO cfarm@tenjin.io
  2. 2. Chris Matthaus Carole Mei-han Roman Makoto Pooja Kana TENJIN’S SUCCESS TEAM IS ON THE CUTTING EDGE OF HYPER- CASUAL DATA SETS
  3. 3. WE WORK WITH LEADING HYPER-CASUALS
  4. 4. Teach best practices through modules. Use cases through real-life scenarios. Customer Success Native or 3rd party campaign attribution. Ad revenue & IAP ROI and cost aggregation. Data warehousing & BI. Products Free to start. Affordable pricing as you grow (10x cheaper). Pricing THREE MAIN REASONS TOP GAME PUBLISHERS CHOOSE US
  5. 5. HYPER-CASUAL APPEAL IS GROWING
  6. 6. use tenjin : )apps are hyper-casual 9/10 7/10 THE TOP CHARTS ARE MOSTLY HYPER-CASUAL Source: Appannie
  7. 7. AFTER UNPRECEDENTED GROWTH IN 2018, IN 2019 HYPER- CASUAL MAU IS STILL GROWING MAU *projection based on the data from 1st half of 2019 *
  8. 8. BEFORE 2017 THERE WERE ONLY 3 MAIN PUBLISHERS FOR HYPER-CASUAL GAMES
  9. 9. 2018 & 2019 INTRODUCED MANY MORE PLAYERS
  10. 10. HYPER-CASUALS LOOK EAST FOR GROWTH & ROI
  11. 11. WESTERN HYPER-CASUALS ARE SPENDING MORE IN CHINA Growth in user acquisition spend (2017-2018) 82%
  12. 12. USER ACQUISITION IN CHINA IS INEXPENSIVE Source: Tenjin CPI
  13. 13. MONETIZATION THROUGH ADS: THE CHINESE MARKET IS MATURING QUICKLY AS ECPM IS CATCHING UP TO TIER 1 MARKETS eCPM
  14. 14. We expect the a big global Hyper- casual game developer to come out of China.
  15. 15. USER ACQUISITION FOR HYPER- CASUAL GAMES
  16. 16. ARPU Number of users (thousands) TRADITIONAL USER ACQUISITION FOR IAP GAMES REQUIRES NARROW TARGETING. HIGH COMPETITION  HIGH CPI
  17. 17. HYPER-CASUAL GAMES ARE BUILT FOR BROAD DEMOGRAPHICS. BROAD TARGETING  LOW COMPETITION  LOW CPI ARPU Number of users (thousands)
  18. 18. HYPER-CASUALS ARE FAMOUS FOR THEIR SHORT TIME TO BREAK EVEN. THAT ALLOWS ADVERTISERS TO ACT QUICKLY 7 Days Profit >30 Days Growth
  19. 19. CROSS-PROMOTION INCREASES THE “NETWORK RETENTION” OF YOUR PORTFOLIO FOR HIGHER MONETIZATION Ad networks App A App C App B App C App B
  20. 20. HYPER-CASUALS NEED AFFORDABLE TOOLS TO GROW
  21. 21. HYPER-CASUAL LTV IS 5X LOWER THAN OTHER GENRES: AFFORDABLE TOOLING IS REQUIRED Hyper-casual LTV is 5 times lower than in other genres 5x
  22. 22. FREE FACEBOOK ALLOWS TO RESEARCH CREATIVES AND GAME CONCEPTS
  23. 23. FREE TOOLS LIKE GAME ANALYTICS ALLOWS TO ANALYZE PRODUCT METRICS
  24. 24. USING AD MEDIATION IS A MUST FOR MAXIMIZING AD REVENUE
  25. 25. FREE TENJIN CALCULATES AD LTV & ROI OF ADVERTISING CAMPAIGNS WITH BEST PRACTICES
  26. 26. 1) Hyper-casual phenomenon is growing worldwide 2) Adoption of hyper-casual apps has increased dramatically and is moving East 3) China is one of the most attractive markets for hyper-casuals: CPIs are low and monetizing eCPMs are high 4) When doing user acquisition for hyper-casual you need to keep in mind broad targeting, short TTBE and cross-promotional effect 5) Hyper-casual LTVs are 5x lower and require affordable tools SUMMARY
  27. 27. Thank you! Questions? Send me an email at cfarm@tenjin.com Christopher Farm, CEO @TenjinIO cfarm@tenjin.io

Editor's Notes

  • Data science and success team helps customers understand the best way to run marketing analytics and infrastructure for developers who want to get to scale
    We have a over decade of experience working with the best hypercasual developers and helping them understand all the details of their marketing data and making sure they get the tools to optimize their ROI and budgets
  • We work with some of the largest global hypercasuals in Europe, North America, Asia, Australia
    Although based in specific regions, they are able to scale globally with varying requirements in each of their gaming niches
  • - We provide our decades of UA insight, products and an affordable price to measure all the requirements for measuring marketing ROI
  • This is mostly due to the demand that users have for these games.
    Historically games required a lot of time investment and thinking to get to a certain point within the game
    Users are now looking for short distractions at zero cost. This is why they are ok with ads getting served to them.
  • The mobile game industry rarely gets to experience this type of y/y growth. These estimates are based on what we see in the industry.
    FB as an example is just over 2b MAU – this industry is almost half that
    China is not yet tapped and we are seeing a lot more opportunity for growth there
  • Before 2018 there were 3 main HC publishers that were dominating...
  • - 2018 and early 2019 brought us more publishers that are frequently hitting the top 10 ...
    - They are now trying to capture marketshare by moving east
  • Noticing a lot more user acquisition getting done over the past two years in China – clearly identified user base that wants customers
    There is a phenomenon that we are seeing over in the east as well through data
  • Relative to other countries, user acquisition is inexpensive
    In fact, the trend in China is that CPIs (cost per install) are decreasing because of the unmet user demand
    Every other country is experiencing the natural trend of increasing CPIs in hypercasual
  • This is in stark contrast to monetization metrics that drive LTVs
    China eCPMs is increasing while the rest of the world is decreasing
    Low CPI and increasing monetization indicate hypercasual games are downloaded often and there is an unmet user demand in China
    The other thing to recognize here is that the west eCPMs are decreasing. This points to the fact that margins are slipping in other major countries and China is the next frontier
  • So once you start building Hyper-casual games, how do you think about user acquisition?

    I’ll start a bit with the generic theory on the demographics that hypercasuals target, then move into some benchmarks to shoot for.
  • - IAP based games did their user acquisition campaigns around a few users would would spend a lot of money on in app purchases.
    - This generated the majority of the economics for RPGs, MMOs, and even casual free to play games
  • The inverse is true for hyper-casual games
    Users don’t want to buy pay for the game, but a lot of people will play them
    They are monetized through ads, so a lot of people contribute a small amount of revenue which can add up to a good business

    The takeaway here is that this is a much larger base of users that you can target and a broader demographic. This keeps competition for bids lower when doing user acquisition.
  • General rule of thumb
    If you want to profit, make sure your time to breakeven is around 7d
    If you are looking for growth, it can be longer like 30d
    For clarity this means
  • Another trick: because of their short development cycles, most hypercasuals have many games at a time
    Cross promoting their other titles allows them to retain their traffic and continue monetizing each of their portfolio applications, increasing their monetization
  • Because of their 5x lower LTV, hypercasual game developers look for affordable tooling
    Here’s some of the tools that we see most game developers use

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