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New Moloco Study Reveals Untapped Opportunities in Global Mobile Gaming Markets

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New Moloco Study Reveals Untapped Opportunities in Global Mobile Gaming Markets

New Moloco Study Reveals Untapped Opportunities in Global Mobile Gaming Markets

Business Wire

Published on : Oct 30, 2024

Moloco, a leader in operational machine learning (ML) and performance advertising, recently released findings from its study Beyond Borders: Mobile Gaming Insights for Global. This study highlights a missed opportunity for mobile gaming app marketers to drive significant growth through user acquisition (UA) outside traditionally targeted countries. By diversifying ad spend globally, marketers could tap into high-value users and achieve better outcomes in new markets.

  • Concentration in Key Markets

    • Currently, 71% of mobile gaming ad spend is concentrated in just 10 countries, with nearly 40% focused on the U.S. alone, followed by 6% in the U.K., 5% in Germany, and 4% in Japan. This narrow focus indicates potential for growth in under-targeted regions.
  • Regional Focus by U.S. Marketers

    • U.S.-based gaming app marketers direct 60% of UA spending toward North America (U.S., Canada, and Mexico). When combined with spend in Europe, this percentage rises to 82%, suggesting missed opportunities in regions like Asia Pacific and beyond.
  • China's Diversified Strategy

    • Chinese mobile gaming marketers lead the way in diversifying global ad spend. With only 36% of their budget directed at North America, they prioritize markets in Europe, Asia Pacific, and other global regions, achieving broader audience reach.
  • High-Value Users Across Borders

    • High-value users—defined as the top 10% of payers in each market—consistently drive 70-85% of in-app purchase revenue across markets and genres. This consistency suggests that expanding UA strategies to new markets could unlock high-value users elsewhere.
  • Global Opportunities in Paid User Acquisition

    • While paid user acquisition is prominent in top countries like the U.S., Japan, and South Korea, countries such as Brazil, Greece, Iceland, Netherlands, UAE, and South Africa also show potential. By targeting these less competitive regions, marketers could efficiently reach high-value users.

Expert Insight: Tom Shadbolt, Senior Insights Manager at Moloco, noted the opportunity for marketers to think beyond conventional markets. “The hyperconcentration of ad spend in a few countries creates a huge opportunity to uncover high-value users in new global markets through targeted user acquisition,” he said. Sarah Yamanouchi, Head of Growth Marketing at Rec Room, echoed this sentiment, emphasizing the efficiency and growth potential in markets beyond the usual focus.

Methodology: Moloco data scientists analyzed outcomes from over 4,000 mobile gaming apps, considering both paid and organic user acquisition data across 195 countries. The data, covering September 2023 to September 2024, included in-app purchase (IAP) revenue metrics from over $3 billion in D7* revenue and detailed insights from data.ai, a Sensor Tower company, to provide a holistic view of global paid user acquisition.

Moloco’s research highlights a significant opportunity for mobile gaming app marketers to achieve growth by exploring less saturated global markets. By expanding beyond traditional regions and focusing on high-value users across borders, marketers can enhance their UA strategies and capitalize on untapped revenue potential in emerging regions.