2023 is shaping up to be
a challenging year for gaming at marketers, facing an economic downturn,
a post-COVID digital cooldown, and continued iOS measurement limitations. But just like savvy players
use the best weapons to face tough “bosses”, you too can equip yourself with the right
tools to overcome the challenges. Hey, I'm Nate from AppsFlyer,
and in this video, I'll talk you through the top
five gaming app trends for marketers based on our insights
from 38 billion installs, so you can prepare for the battle ahead. Starting with trend number 1 –
A drop in installs post-COVID. As the post-COVID era unfolded,
we saw an 8% growth in Android app installs from 2021 to 2022, only one fifth of the 60% growth we saw in 2020.
Whereas game installs on iOS dropped
5% due to continuing privacy shifts. The top category, as far as growth is concerned, was Social Casino which came out on top with an impressive 48% year over year growth on Android, and 17% lift on iOS. Moving onto trend number 2 –
a drop in consumer spend During the second half of 2022, we saw in-app purchase revenue drop 7%
compared to the first half, with iOS down 13% and Android down 6%. This trend was mostly driven
by the economic downturn which impacted consumer spending across the role-playing
and Casino genres where high IAPs lead to high total spend.
Next up is trend number 3 –
A rise in iOS ad spend driven by higher cost per install rates Because of rising cost per installs, iOS saw a 20% year-over-year
growth in ad spend, while Android saw only a 2% increase in spend
thanks to a steadier cost per install. Now onto trend number 4 –
A 35% surge in the cost of media on iOS in the second half of 2022. In the second half of 2022, we saw the cost per install on iOS
climbed steadily to $3.8, all the way up from $2
in the first quarter of 2021. Overall, there was a 35% jump
from last year, forcing iOS advertisers to accept fewer paid installs,
while maintaining the same spend levels. This shows the value of iOS players,
as marketers insisted on keeping the same budget despite
the pressure of the economic downturn. Lastly, trend number 5 –
The US attracts almost half of rising global user acquisition spend. With a high cost of media,
the US’s $12.2 billion user acquisition spend was nearly half of the global total, making it the most competitive
and lucrative gaming market in the world.
At the same time, the explosive growth of
mobile gaming in developing countries can be attributed to greater access to smartphones. Now that you're up to date on the state
of gaming app marketing, here are our 5 best strategies on how to navigate this
challenging year. Number 1, focus on hybrid monetization. AB test in-app purchases and in-app advertising to see which drives more revenue,
and then segment your users accordingly. Number 2, go deep to learn more about SKAN 4.0. By understanding
the complexity of SKAN 4.0 you'll make the most of its offering
and stay ahead of the curve. Number 3, explore global opportunities. Expand your reach by testing
your acquisition plans in high-population and low-cost per install countries,
like Indonesia, India and Vietnam. Number 4, use remarketing to reach out to existing
and lapsed users. to help you boost app sessions
and lifetime value. And lastly, leverage owned media to reduce costs. Using your free channels like email
and push notifications is a great way to reach new
and existing players without eating up your budget, especially during a downturn.
That wraps up our take on the state
of gaming app marketing this year. Make sure to check out the full report
in the description below for more exclusive
trends and recommendations. If you have any questions
about today's video, leave a comment below. And, make sure you subscribe to our channel
to stay updated on the latest app marketing content. Thanks for watching and see you next time..
