2018 in mobile gaming in retrospective. What can we expect in 2019 based on AppsFlyer data? Where did the money go? How are growing different game genres in terms of UA budgets? How budgets were shifting in different games categories? Where the cost of acquisition is going up and where it is going down?

1. The State of Gaming App Marketing

2. We Live in the Age of Gaming

3. 3

4. Data Sample
4
Duration:
Varied time frames
throughout 2018
Non-Organic Installs:
2.1 billion from 5,500 apps
(minimum of 3,000 per quarter)
2,500
Apps measuring
in-app purchases
1,100
Apps measuring
in-app ad revenue
30 million from 1,200 apps
Installs with
cost data

5. 5

6. Cheaper & Stronger Devices Enable Advanced Gaming
6
From To

7. 7
Basic gameplay
Hyper Casual
Advanced gameplay
Role-playing games
MOBA
Two Seemingly Opposite Directions

8. The gaming
explosion has
demanded scaled
marketing
efforts.
8

9. 9
Increased Spend Across the Board
Non-Organic Install Share Among Apps with Marketing Spend
Midcore &
Strategy
Casual

10. 10
The Rise of Hyper Casual Games
% Change in Average Number of Non-Organic Installs by Gaming Genre (2018)

11. 11
Extra Special Recognition Goes To...

12. 12
Hyper Casual: Big Growth, Small Global Share
NOI Distribution By Category (Q3, 2018)
4x

13. 13
NOI Distribution By Category (Q3, 2018)
Midcore & Strategy: Largest & Still Growing

14. 14
Buckle your seatbelts, the West is going East!

15. 15
Traffic Comparison of Non-Asian Apps in East Asia*
Share of Apps by Activity (Jan. 18 vs. Oct. 18)

16. 16
Non-Organic Installs Jump, Especially for Casual Games
Non-Organic Install Increase
Same Apps + Launched in region
Overall
Midcore &
Strategy
Casual
Games
+80%
+15% +160%

17. 17
The Bad News
Low % Making IAPs
Poor Retention

18. 18
Finding Revenue-Generating Users Remains Elusive
Day 90 Percentage of Buying Users (Non-Organic, IAP)
Midcore & Strategy

19. 19
Finding Revenue-Generating Users Remains Elusive
Day 90 Percentage of Buying Users (Non-Organic, IAP)
Casual

20. 20
Solution: Other Revenue Streams, including IAA

21. 21
Ad Revenue Increasingly Important for Some Genres
Revenue Split: IAA vs. IAP (2018)
Casual

22. 22
Ad Revenue Increasingly Important for Some Genres
Revenue Split: IAA vs. IAP (2018)
Midcore & Strategy

23. And retention
is still a huge
challenge...
23

24. 24
Midcore & Strategy Games Dominate
Non-Organic Installs Retention Rate Trend

25. 25
Midcore & Strategy Games Dominate
Distribution of Retargeting Conversions By Category Group

26. 26
Budget Allocation Heavily Favors UA
UA vs. Retargeting Conversions Per Category Group

27. 27
Most Gaming Apps Not Running Retargeting
Share of Apps Running Retargeting by App Size

28. 28
But Those That Do
Day 30 Retention Gap Between Gaming Apps Running Retargeting vs. Apps That Don’t
+33%

29. 29
The Good News
Gaming App Marketers:
In A League of
Their Own!

30. 30
ARPU Rising
% Change in Non-Organic ARPU (2017 vs. 2018)

31. 31
Lower Fraud
App Install Fraud Rate Trend (2018)

32. 32
Significant Gaps in Media Cost
CPI (USD, January 2019)

33. Full Report @
appsflyer.com/library
33

34. So… Are you ready to ride the
next wave in the Age of Gaming?
34

35. 35

36. 36
appsflyer.com/mama-boards

37. Thanks!
mariano@appsflyer.com