- Mobile gaming app marketers may be missing out on opportunities to uncover high-value users and drive growth in global markets
- According to new research, 71% of mobile gaming app marketing spend is focused on 10 countries
- Indian IAP gaming app marketers focus budgets outside of Asia Pacific with higher relative spend in Europe (33%) and North America (35%)
Moloco, a leader in operational machine learning (ML) and performance advertising, today announced the results of a new research study, Beyond Borders: Mobile Gaming Insights for Global which shows that mobile gaming app marketers are overly focused on a limited number of countries. This research suggests that mobile gaming app marketers around the world may be missing out on hidden opportunities in additional countries that would accelerate user acquisition (UA), tap into high-value users, and drive significant growth.
“This research intends to inspire marketers to think outside of their comfort zone. The hyper concentration of advertising spend in a few countries creates a huge opportunity to uncover high-value users in new global markets that can be unlocked through targeted user acquisition strategies,” said Tom Shadbolt, Senior Insights Manager, Moloco. “Perhaps there is some bias that is creating a self-fulfilling prophecy as marketers focus their spend too narrowly. The key learning from this research is that marketers may be missing out on opportunities to capture users of value and that constant experimentation of new audiences is essential as global markets evolve.”
IAP gaming Asia Pacific, allocating only 16% of their budgets to the region, while favoring Europe (33%) and North America (35%) as key areas for investment. This is a notable shift that highlights India’s focus on expanding its footprint across global markets. We have observed this trend among gaming apps with in-app purchases including mid-core (RPG, Strategy, Simulation), Casual Game (Match) and social Casino apps. For such apps, Indian marketers are investing significantly in regions like Latin America (LATAM), the Middle East and North Africa (MENA), and Sub-Saharan Africa—directing 16% of budgets to these regions, compared to a global average of 13%. On the flip side, when looking into advertising in India itself, the median advertiser's Average Revenue Per Paying User (ARPPU) in India stands at $5.44, compared to a global average of $11. India’s exceptionally low cost of acquisition opens new possibilities for global mobile gaming marketers to capitalize on paid opportunities and acquire high-value users effectively.
“This research highlights the immense potential for Indian mobile gaming apps, especially IAP gaming app marketers to capture new audiences across emerging and established global markets,” said Siddharth Jhawar, GM, Moloco, India. “As the global landscape evolves, constant experimentation and expansion into diverse markets will be key to sustainable growth. In addition, for advertisers outside of India, there might be untapped hidden opportunities for growth in India given the low cost of user acquisition in the region.”
The study revealed that:
- 71% of mobile gaming app marketing spend is highly concentrated in 10 countries. In addition, around 40% of spend is directed towards ads in the U.S. alone. The U.K. comes in second with 6% of the total spend, followed by Germany at 5%, and Japan at 4%. For this analysis, Moloco considered marketing spend that is primarily focused on user acquisition efforts related to in-app purchases (IAP).
- U.S.-based mobile gaming app marketers direct 60% of their user acquisition spend to North America (U.S., Canada, and Mexico). When combining spend in both North America and Europe, that number increases to 82%, which indicates potential opportunity for user acquisition in other regions, particularly Asia Pacific.
- Mobile gaming app marketers in China are leading the way in diversifying global marketing spend and growth. As an export-oriented market that aims to acquire users outside of the home country, China is ahead in terms of diversified global growth. Only 36% of spend is directed at the U.S., Canada and Mexico with greater relative spend in Europe, Asia Pacific and other global markets.
- High-value users exist beyond geographic boundaries. 70-85% of in-app purchase revenue is driven by the top 10% of payers in each market that was researched. Distribution of payer value is relatively consistent across markets and genres indicating potential for expansion with targeted user acquisition strategies.
- Paid user acquisition can unlock opportunities in new markets. While paid user acquisition is most scalable in countries that receive significant marketing spend such as the U.S., Japan, and South Korea, there are pockets of opportunity to target high-value users in countries such as Brazil, Greece, Iceland, Netherlands, the United Arab Emirates, and South Africa.
“It’s tempting to focus on large markets because they’re familiar and marketers are used to advertising there,” said Sarah Yamanouchi, Head of Growth Marketing at Rec Room, the publisher of a popular free online multiplayer game. “However, there is significant opportunity beyond these traditional markets where the competition is lower and hitting your KPIs can be much more efficient.”
Methodology
To inform this research, Moloco data scientists analyzed performance outcomes from thousands of mobile gaming apps, focusing on those that monetize primarily through in-app purchases (IAP). IAP refers to transactions made within mobile apps that allow users to buy virtual goods or premium features. Unless otherwise stated, the timeframe for the data was September 2023 to September 2024. The research data set included:
- More than 4,000 gaming apps (with advertising spend exceeding US$200,000 per year) across key mobile gaming genres
- More than $3 billion in D7* revenue from paid and organic sources
- Data collected from 195 countries
In addition, Moloco data scientists utilized information from data.ai, a Sensor Tower company, for details about install estimates, overlaid with Moloco’s predictive models, providing a broader view of global paid user acquisition activity.
To access the full research and the complete methodology, please visit Beyond Borders: Mobile Gaming Insights for Global Growth.
*Day 7 (D7) revenue refers to revenue from a new user within the first seven-day period from downloading the mobile app
