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LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT

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LEVELING UP YOUR MOBILE GAME:

USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics2

Introduction:

Section 1:

Section 2:

Section 3:

Section 4:

Section 5:

TABLE OF CONTENTS

Challenges and Opportunities for Mobile Game Developers

Sizing up the Mobile Gaming Market

The Explosive Growth of Mobile Games

Mobile versus Console Gaming?

Navigating the App Ecosystem

The Mechanics of Game Development and the Need for Marketing

The App Ecosystem Challenge

The Mobile Gamer: Demographics and Usage

Light Gamers and Heavy Gamers: Traits and Behaviors

Usage Patterns: The Average Mobile Game Day

Use Cases and Best Practices for Mobile Game Developers and Marketers

Use Case I: Refining Discovery and Download Tactics

Use Case II: Improving Mobile Game Adoption Performance

Use Case III: Segmenting Gamer Types

Conclusion and Key Takeaways

3

4

5

6

9

9

10

13

14

15

17

17

20

22

24

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics3

INTRODUCTION:

Challenges and Opportunities for Mobile Game DevelopersWhether you’re a big-time game publisher or indie, new entrant or long-time player,

the challenges facing every mobile game developer today are similar: Get the right users

to discover and download your game, and then keep the attention of your audience as

long as possible.

However, these are not the only hurdles mobile game developers face. At Verto Analytics,

our single-source audience measurement solution allows us to track the same segment of

users and their usage patterns across every device, app, and platform they use throughout

the day. Because of this approach, we can clearly see some of the most persistent chal-

lenges for game developers in their quest to achieve market share. Specifically, almost all

game developers struggle to answer these questions:

• Do certain mobile games possess superior adoption characteristics?

• Which audience traits elicit passion and repeated use?

• Why do some games retain loyal users while others fade into obscurity?

Our audience measurement data, which focuses on mobile users, is especially relevant

now that the market has largely left console games behind. Consumers are downloading

and playing games on their mobile devices in staggering numbers, and the old stereotypes

about gamers (their age, gender, and the times they’re likely to be engaged with games, for

example) no longer apply. In a highly competitive market, we hope game developers and

marketers will leverage the statistical insights, audience measurement data, and analytical

strategies in this report to maximize user performance and monetary potential.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics4

SIZING UP THE MOBILE GAMING MARKET

Section 1:

How big is the mobile gaming market? Verto Analytics data reveals that 105.6 million U.S.

consumers now play mobile games via smartphones and tablets every month. This group

represents approximately 43 percent of the total U.S. population (ages 18 and older).

In the world of apps, mobile games are not the largest category, especially when compared

to social or shopping (Figure 1). However, the category possesses one extremely unique

characteristic—users spend an enormous amount of time engaged with mobile games

each month (Figure 2). Mobile gamers comprise 57 percent of all mobile app users.

Top Mobile Categories, Ranked by Audience Reach

Source: Verto Analytics, April 2016, Mobile Devices Only

Figure 1

Source: Verto Analytics, April 2016, Mobile Devices Only

Figure 2

Top Mobile Categories, Ranked by Monthly Time Spent

Verto Analytics defines a

mobile game in this report

as any app-based game

played on an internet-

enabled mobile device such

as a smartphone or tablet.

Social Networking

Utilities

Productivity

Lifestyle and Shopping

Photo and Video

Travel and Navigation

Entertainment

Games

Music and Audio

Finance

50% Reach 100% Reach

179,399,491

177,133,980

150,407,273

147,003,032

127,208,767

122,647,672

109,199,332

105,649,843

102,841,817

96,263,820

Social Networking

Games

Photo and Video

Utilities

Entertainment

Lifestyle and Shopping

Productivity

Travel and Navigation

Music and Audio

Finance

4.91 BN

1.15 BN

704 MM

660 MM

357 MM

304 MM

199 MM

173 MM

163 MM

54 MM

179,399,491

105,649,843

127,208,767

177,133,980

109,199,332

147,003,032

150,407,273

122,647,672

102,841,817

96,263,820

Aggregate Time Spent(Hours per month)

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics5

The Explosive Growth of Mobile Games

Consider the following facts about the growth of mobile games:

• Mobile gaming revenue hit $30 billion worldwide in 2015, surpassing

console gaming at $26.4 billion. (Source: Newzoo)

• Active iOS consumers in the U.S. spent an average of $35 on apps in 2015,

70 percent ($25) of which was for games and in-app purchases within

games. (Source: IDC)

Verto Analytics data indicates that, while games rank eighth in overall reach, loyal

and passionate players help the category dominate in time spent (second overall) among

all app users (Figure 2). In the aggregate, U.S. app users spend an incredible 1.15 billion

hours each month playing games on smartphones and tablets. That’s approximately

12 percent of all monthly app time.

However, despite the enormity of the user base (105.6 million) and the amount of time that

users spend playing mobile games, today’s mobile game developer faces two immediate

challenges: fragmentation and new competitors.

Currently, only two individual games—Candy Crush Saga and Words with Friends—reach

5 percent of mobile app users each month (Figure 3). While leading mobile game devel-

opers such as Supercell, King, and Zynga are common fixtures among the ranks of top

performing games, few of their individual games (four at present) reach more than 3 percent

of all mobile app users.

U.S. app users spend an

incredible 1.15 billion hours each

month playing games

on smartphones and tablets

Top Mobile Games

Figure 3

1

2

3

4

5

6

7

8

9

10

Candy Crush Saga

Words With Friends

Candy Crush Soda Saga

Solitaire

Clash of Clans

Cookie Jam

Trivia Crack

Candy Crush Jelly Saga

Yahtzee With Buddies

Despicable Me

King

Zynga

King

MobilityWare

Supercell

SGN

Etermax

King

Scopely

Gameloft

12,598,973

12,549,077

8,114,555

7,881,945

6,113,596

6,024,079

5,763,985

4,581,438

3,933,836

3,295,849

5.09

5.07

3.28

3.18

2.47

2.43

2.33

1.85

1.59

1.33

RANK TITLE DEVELOPER USERS (#) REACH (%)

Source: Verto Analytics, April 2016, Ranked by Monthly Reach, Mobile Devices Only

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics6

Gamer.biz confirms that the mobile gaming marketplace is crowded. As of April 2016, more

than half a million mobile games were available for download in the iOS App Store alone,

with approximately 300 new submissions arriving each day.

Even with such fierce competition for gamer attention, 77 mobile games currently deliver

an audience of one million or more monthly users. Of these, five games reach more than

five million players while another two games deliver audiences of more than 10 million

(Figure 4).

With such explosive user growth, mobile represents a rich and fertile ground for

attracting legions of new gamers and passionate fans.

For console game heavyweights, mobile represents a natural extension of their existing

game brands and franchises; and it’s no wonder they’re moving into mobile platforms

with full force. Microsoft, Sony, Ubisoft, Capcom, EA, and Nintendo have all adjusted their

development plans with the mobile gamer in mind. However, Nintendo and the rest will no

doubt experience similar challenges of getting users to discover and download their mobile

games—just like incumbent developers (including Supercell, King, and Zynga).

As more games and even more gamers emerge, expect more

mobile game titles (currently 77) to surpass the one million mark

in audience reach.

Figure 4

# OF MOBILE GAMESMOBILE GAMES USER DISTRIBUTION

10+ MM users

5-10 MM users

2-5 MM users

1+ MM users

2

5

16

54

Reach of Top Mobile Games, Mobile Devices Only

Source: Verto Analytics, April 2016. Reach of Top Mobile Games, Mobile Devices Only

Mobile versus Console Gaming?

Miitomo represents Nintendo’s first

foray into mobile gaming. It follows

Sony, Microsoft, EA, Ubisoft, and

other console game developers now

focusing on mobile.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics7

What’s the appeal of mobile gaming over traditional console gaming? We know that console

games typically offer higher-resolution graphics, faster action, and more immersive game-

play versus their mobile equivalents. However, at least three factors may be contributing

to the growing dominance of mobile:

Ease of access:

Console games are typically tethered to home-centric devices. By contrast,

mobile users can easily download games from an online app marketplace

practically anytime, anywhere, and start playing instantly. Words with Friends,

Candy Crush, Bejeweled, Angry Birds, etc., now help people fill the time

while commuting, waiting in line, taking long trips, or during any moment

inviting distraction.

Lower “initial” game costs:

While newly-released console titles may cost $60 or more, most mobile

games operate using dramatically different business models. Mobile games

tend to be either free (free to play) or low cost (paid). For example, Minecraft:

Pocket Edition is $6.99, while slither.io is free. Both offer in-app purchases. If

players wish to specialize or “speed up” gameplay, in-app purchase options

offer extra gems, coins, tokens, new levels, new characters, etc. In other

words, user impatience is rewarded.

2.

3.

Low cost of entry

Consoles and handhelds (PlayStation 4, Nintendo 3DS, etc.) require an upfront

technology investment. For mobile gaming, no extra device is required. Nearly

70 percent of U.S. consumers already own a smartphone, and 45 percent own a

tablet (Figure 5). If these multi-purpose devices are internet enabled, consumers

are already equipped to play most mobile games.

1.

Figure 5

% of U.S. adults who own the following devices

Device Ownership Trends—U.S. Adults 18+

100%

80

60

40

20

0’04 ’11 ’15 ’04 ’10 ’15

35

71

Cellphone

Smartphone

Desktop or laptop

Tablet computer

45

3

’04 ’10 ’15

73

92

65%

68

Source: Pew Internet, October 2015

Verto Analytics defines the

app marketplace in this paper

as the digital location where

mobile device users can

purchase/download apps: this

includes the Apple iOS App

Store and Google Play on the

Android platform.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics8

Words With Friends

Candy Crush Saga

Solitaire by MobilityWare

Daily Celebrity Crossword™

Candy Crush Soda Saga

Spider Solitaire Free by MobilityWare

Yahtzee With Buddies

2048

Trivia Crack

1010! Puzzle

Candy Crush Saga

Candy Crush Soda Saga

Words With Friends

Candy Crush Jelly Saga

Clash of Clans

Cookie Jam

Solitaire by MobilityWare

Trivia Crack

Farm Heroes Saga

Minecraft - Pocket Edition

APPLE APP STORERANK GOOGLE PLAY

1

2

3

4

5

6

7

8

9

10

Figure 6

Top ten game rankings of “paid” and “free to play” offerings in Apple

App Store and/or Google Play.

Despite mobile gaming’s rapid rise in recent years, their use has not displaced console

play; rather, it has extended the reach of established game brands, enhanced gameplay,

and helped expand the overall game-revenue pie.

Source: Verto Analytics, April 2016. Top Paid and Free To Play games for iOS and Android.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics9

NAVIGATING THE APP ECOSYSTEM

Section 2:

The Mechanics of Game Development and the Need for Marketing

As every game developer knows, not every mobile game will succeed in the market.

Competition is fierce (Figure 4) and, despite the enormity of the mobile gamer user base

(105.6 million), only two games—Candy Crush Saga and Words with Friends—manage to

reach 5 percent of mobile app users each month.

There is simply no guarantee that a game painstakingly developed and launched on one or

all of the current mobile app marketplaces will succeed. For every breakaway hit like Angry

Birds, Clash of Clans, or Candy Crush, thousands of well-designed mobile games still seek

the unique spark and sustained momentum that will drive adoption and loyalty.

In fact, according to a late-2015 survey conducted by InMobi (Figure 7), marketing is one

of the most challenging aspects of app development. When queried on the specific

marketing issues of importance, “discovery or awareness” and “finding the right users”

both rank at the top.

Most challenging aspect of app development Most challenging aspect of app marketing

Marketing

Design

Development

Distribution

Testing/QA

43%

21%

17%

11%

7%

Discoverability/Awareness

Acquiring the right users

Revenue model

App funding

Lack of transparency by app stores

43%

21%

17%

11%

7%

Source: InMobi Mobile Developer Survey, late 2015

Figure 7

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics10

The App Ecosystem Challenge

HOW DO CONSUMERS DISCOVER MOBILE GAMES?

Three distinct stages connect users to the mobile games they play every month—discovery,

download, and adoption. It’s relatively easy for consumers to access and buy mobile games

(and all apps, for that matter). They simply go to the Apple App Store or Google Play via their

mobile device and make a purchase. We call this “nearly friction-free” access.

However, for app and game developers, the way consumers navigate the ecosystem poses

complications. True, nearly friction-free access means indie games like 2048, Flappy Bird, and

Crossy Road can achieve “hit status” and successfully compete among developer heavy-

weights such as Supercell, Zynga, Rovio, and King. On the other hand, how can a single mobile

game stand out among literally hundreds of thousands of available selections?

The reality is, all games are available on the same virtual store shelf. While this is great for

consumers, it’s considered by far the greatest challenge facing developers and their market-

ing partners (Figure 8). It’s very difficult to grab consumers’ attention, entice them to install a

game, and encourage them to use the game repeatedly.

According to our app marketplace attribution analysis, the largest portion of mobile game

discovery (67 percent) takes place directly within the app marketplace itself.

The ever-changing game rankings within can be influenced by any of the following:

• recent download trends,

• professional and peer reviews,

• search activity,

• category showcase activities, and more.

The remainder of mobile game discovery (37 percent) comes from external influences such as:

• general user search,

• advertising,

• social media channels,

• outside peer reviews,

• external links, and

• related non-app store referrals.

Source: Verto App WatchTM data, 18+ U.S. internet users, 2016

63%App storediscovery

37%Non-app store

discovery

Download AdoptionApp Discovery Usage Retention Monetization

Benchmarkinge�orts

Figure 8

The App Ecosystem Challenge

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics11

GAME DOWNLOADS AND ADOPTION DATA

The challenges of mobile game adoption are real. Verto Analytics attribution analysis

reveals rapid declines in usage within the first 24 hours. Depending on the mobile game,

40 percent to 60 percent of users drop off within the first full day post download.

Moving beyond the first few days to 30 days post download, average retention figures drop

to between 10 percent and 20 percent of users who have successfully installed the game.

In other words, fewer than two out of every 10 successful game downloads retain users

after 30 days.

Tracking further out, the number of remaining users who participate in in-app pay features

within games apps is smaller still—typically representing less than 3 percent of all active

players. According to game research firm Game Analytics, in-app spending figures can be

as low as 0.2 percent of all users. This means that as few as two out of every 100 active

players make in-app purchases during the lifetime of their mobile game experiences.

Fewer than 20 percent of mobile gamers stick around after 30 days; even fewer make

in-app purchases. These two insights alone should sound the alarm to both game devel-

opers and marketers and underscore the necessity of tracking user behavior along every

stage of the app ecosystem.

Depending on the mobile game,

40 percent to 60 percent of users

drop off within the first full day

post download.

Less than 3 percent of active

players make in-app purchases.

Fewer than 20 percent of mobile

gamers stick around after 30

days; even fewer make

in-app purchases.

User Discovery and Adoption Rates

• 67 percent of mobile game discovery takes place directly within the app

marketplace itself.

• Fewer than two out of every 10 successful game downloads retain users

after 30 days.

• As few as two out of every 100 active players make in-app purchases

during the life time of their mobile game experiences.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics12

ADDRESSING THE APP ECOSYSTEM CHALLENGE

The app ecosystem is a mixed blessing for game developers. While nearly friction-free

app distribution offers quick access to consumers, it’s proving difficult to consistently

capture and retain them. Overcoming this challenge requires a better understanding of the

consumer journey at all stages of the app ecosystem—discovery, download, and adoption.

These elements are absolutely critical to meet the ultimate goals of sustained usage and

monetization. We will study this ecosystem in greater detail in Section 3.

Download: Tracking Cost per Install (CPI)

Moving users from discovery to

download is just the first step in a long

and continuing process of meeting

expected performance goals. To

improve download rates, many mobile

game developers typically set aside

marketing budgets to target prospec-

tive players via search, display ads,

social, etc.

Tracking the ROI of such budget spend

means using performance metrics

such as CPI (cost per install). CPI is

simply the average cost required to

obtain a single installation of a specific

app. This metric does not reflect actual

usage of the app; rather, it reflects the

average cost of obtaining a new app

install on a user’s device.

For example, according to mobile marketing firm Fiksu, as of February 2016, the CPI on

iOS platforms was $1.78, a year-over-year increase of 39 percent from 2015 (see Figure 9).

On Android, CPI was slightly higher versus iOS at $2.51, a 66 percent increase from this

same time last year.

Figure 9

Monthly “Cost per Install” Trends

Source: Fiksu CPI Index Trend, February 2016

$4.00

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00

Feb2015

Mar2015

Apr2015

May2015

Jun2015

Jul2015

Aug2015

Sep2015

Oct2015

Nov2015

Dec2015

Jan2016

Feb2016

iOS Android

Fiksu CPI Index

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics13

THE MOBILE GAMER: DEMOGRAPHICS AND USAGE

Section 3:

To break through to consumers, game developers and marketing teams must fully

understand demographics and the behavior characteristics of mobile games users.

Such insights will help them reach and retain the right users to support performance goals.

The characteristics of today’s mobile gamers are as diverse and specialized as the

games they play.

Our data shows that old stereotypes about gamers no longer apply. Multiple mobile player

types are developing around genre affinity, the time spent playing games, as well as the

unique user experiences possible based on different screen sizes. Generational distinc-

tions among gamers are beginning to show as well.

• Candy Crush Saga (King) and Words with Friends (Zynga) both attract sizeable

Gen X and Boomer audiences (Figure 10).

• More than 75 percent of Candy Crush Saga players are age 35 and older, with

a distinctive female skew.

• Words with Friends users are approximately 70 percent adults ages 35 and older,

with a female gender skew.

• Clash of Clans (CoC) from Supercell skews male; 40 percent of its audience is

age 35 and older.

Source: Verto Analytics, April 2016

Audience Composition—Selected Mobile Games

Figure 10

18-24 25-34 35-44 Female Male45-54 55+

0% 25% 50% 75% 100%

The old gamer stereotype no longer applies.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics14

Light Gamers and Heavy Gamers: Traits and BehaviorsClearly, mobile games have attracted a new audience. This means mobile poses new and

unique design and distribution concerns compared to console-based games. For example,

while plunking down $50 or $60 is commonplace to play console or PC games (even for

poorly designed games), there is minimal monetary risk for consumers when mobile games

cost $0.99, $2.99, or even $5.99. “Free-to-play” games remove risk entirely for the user,

and developers typically seek revenue post install via in-game ads or in-app purchases.

While low-cost or “free-to-play” mobile games may expose more potential players to

mobile games, they also generate a huge influx of samplers. The challenge for mobile

game marketers is to effectively parse which users typically sample and rapidly move on

(Light Gamers) and which users get hooked, at least for a time, on the mobile games they

download and play (Heavy Gamers). When the Heavy Gamers are identified, it’s then

possible to identify the most passionate of these players, identified as Core Gamers.

A segmentation analysis of the amount of time users spend with mobile games paints a

picture of two groups with very dissimilar traits (Figure 11). The top 40 percent of all gamers

(defined as Heavy Gamers), consume 88 percent of all monthly time spent with mobile

games. Drilling deeper, the top 20 percent of gamers (defined as Core Gamers) make up

nearly two-thirds of all game play.

Conversely, the bottom 40 percent of gamers (defined as Light Gamers), are the ultimate

samplers. Light Gamers make up a scant 3 percent of time spent gaming. While Light

Gamers may download and eventually try any number of games, they quickly move on to

their next mobile experience.

The top 40 percent of all gamers

consume 88 percent of all monthly

time spent with mobile games

Source: Verto Analytics, April 2016, Mobile Gamer Segmentation Analysis of Time Spent

Figure 11

Mobile Gamer Segmentation Analysis of Time Spent

115.6M

Mobile GamersMonthly Time Spent

Playing Games

1.12B Hours

88%

3%

62%

CORE GAMERS

HEAVYGAMERS

LIGHTGAMERS

Light Gamers: The bottom 40 percent of all gamers. Light Gamers

account for just 3 percent of all time spent gaming. Light Gamers are the

ultimate samplers; they download many games quickly and move on.

Heavy Gamers: The top 40 percent of all gamers. Heavy Gamers

consume 88 percent of all monthly time spent engaged with

mobile games.

Core Gamers: The top 20 percent of all gamers. Core Gamers make

up nearly two-thirds of all game play.

Gamer Profile Types

Segmentation Analysis:

Divides gamers into distinct groups of

users based on specific characteris-

tics. In this case, we’ve grouped users

based on the amount of time spent

playing mobile games. For example,

a quintile segmentation means placing

mobile gamers into one of five groups,

each group representing 20 percent

of the whole—from lowest to highest

amount of time spent playing games.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics15

Usage Patterns: The Average Mobile Game Day Filling time during a commute, standing in a checkout line, or waiting in the doctor’s office

—on any given day, the average gamer spends approximately 24 minutes playing games

on mobile devices. According to Pew Internet, the activity has become a common practice

among nearly half of all U.S. consumers (Figure 12).

Average Time Spent Playing Games per Day (hours/minutes):

Figure 13

All Gamers:

Heavy Gamers:

Core Gamers:

Light Gamers:

24min

1h, 2min

1h, 40min

2min

+258%

+416%

-92%

Source: Verto Analytics, April 2016

On any given day, the average

gamer spends approximately

24 minutes playing games on

mobile devices.

However, usage is far from uniform from mobile gamer to mobile gamer. Wide disparities in

behavior exist between Heavy and Light Gamers. While average gamers spend 24 minutes

each day playing games, Heavy Gamers (representing the top 40 percent of gamers)

spend more than 2.5 times that amount. Among Core Gamers (top 20 percent of gamers),

the average time spent with mobile games each day is four times greater.

% of all adults who ever play video games on a computer, TV, game console

or portable device like a cellphone

Figure 12

Source: Survey conducted June 10 – July 12, 2015.

Note: Figures do not add to 100 percent due to rounding

Pew Research Center

Half of American adults play video games;

10 percent consider themselves “gamers”

Identify as “gamers”

Play games, but don’t identify as “gamers”

Don’t Play Video Games

10% 38% 51%

Play Video Games

49%

GAMER TYPE TIME SPENT PER DAY TIME SPENT COMPARED TO AVERAGE USER (%)

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics16

Considering the limited number of games all users play each month, it is critical that

marketers focus squarely on the behavior of their primary user groups: Heavy Gamers and

Core Gamers. These user segments express their ongoing passion for mobile games by

playing more than five games, on average, each month (Figure 14).

Session activity aligns very closely to the number of games played both daily and monthly

(Figure 15); Heavy Gamers play games at a rate 2.5 times greater than average players.

Average session times follow the same pattern as well.

If mobile game developers and marketers seek to a) increase loyalty among their most

passionate players, b) attempt to attract users from rival games, or c) turn light or non-

players into active gamers, understanding usage characteristics among Heavy Gamers

and Core Gamers will be absolutely essential.

PER MONTH AVERAGE SESSION TIMEPER DAY

Average Number of Game Sessions Played:

Figure 15

All Gamers:

Heavy Gamers:

Core Gamers:

Light Gamers:

4.31

10.6 (2.5x)

16.6 (3.9x)

0.6

133.6

328.4 (2.5x)

514.4 (3.9x)

17.1

5 min, 35 sec

5 min, 53 sec

6 min, 3 sec

3 min, 32 sec

Source: Verto Analytics, April 2016

Light use is even more extreme. Reflecting the nearly friction-free nature of accessing

mobile games—easy to discover, download, and then sample lots of choices—Light Gamers

(the bottom 40 percent of all users) spend a staggering 92 percent less time each day

playing games compared to the average user.

While daily time spent with games varies widely among users, the number of games

played on any given day is actually quite limited. The average mobile gamer accesses

slightly more than one game (1.3) daily (Figure 14). The figure rises to just 3.6 games on

average over the course of a month, despite the perceptually limitless choice of games

available within mobile app marketplaces and the relative ease of access for sampling.

Source: Verto Analytics, April 2016

The average mobile gamer only

accesses about one game a day.

Average Number of Games Played:

Figure 14

All Gamers:

Heavy Gamers:

Core Gamers:

Light Gamers:

1.3

1.7 (+31%)

2.3 (+77%)

1.0 (-23%)

3.6

5.2 (+44%)

6.5 (+81%)

2.2 (-39%)

PER MONTHPER DAYGAMER TYPE

GAMER TYPE

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics17

USE CASES AND BEST PRACTICES FOR MOBILE GAME DEVELOPERS AND MARKETERS

Section 4:

Use Case I: REFINING DISCOVERY AND DOWNLOAD TACTICSThanks to nearly-ubiquitous mobile access, mobile game downloads happen almost any-

where and at any time. However, different days and different parts of the day provide unique

opportunities to engage with potential mobile gamers.

An analysis of weekly download data from Verto Analytics provides some valuable clues

to the best days and times to engage with gamers. In April 2016, average download rates

peaked on Tuesdays and Sundays (Figure 16). While the end of the week (Friday through

Sunday) is a generally favorable period overall, game downloads tend to peak on Sundays.

Tuesdays also prove to be solid days for promoting downloads. Still considered a primary

launch day for digital movies and console games, Tuesdays are likely benefiting from a

halo effect from related consumer shopping activities (such as Blu-ray and on-demand

movie releases)

Source: Verto Analytics, April 2016, Mobile Devices Only

Figure 16

Daily Average Downloads—Games Category

Please Note:

Downloads data in this study

reflects the rate of successful

installations of mobile games.

In other words, a download equals

a full install.

In April 2016, average

download rates peaked on

Tuesdays and Sundays

9,000,000

8,000,000

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

-

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Nu

mb

er

of

Do

wn

loa

ds

Week Day

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics18

A drill-down of daily data reveals further insight on the download ebbs and flows during

the two biggest download days (Figure 17). On both days, we observe a general increase

in overall activity as the day progresses—a common observation seen on most days

of the week.

Tuesdays reveal a broader increase in downloads during the morning and evening

commutes, as well as a spike during lunch. We also see a broader increase during the

Sunday afternoon hours as well as an expected surge on both days during primetime

—ground zero for cross-screen activity in the home.

Source: Verto Analytics, April 2016, Tuesday and Sunday, Mobile Devices Only

Figure 17

Hourly Aggregate Downloads—Games Category

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Tuesday Sunday

Nu

mb

er

of

Do

wn

loa

ds

Time of the Day

Specific timeframes on

Tuesdays and Sundays

are the most popular days

for downloading.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics19

Figure 18

Weekly Active Gaming versus Weekly Average Game Downloads per Day

Source: Verto Analytics, April 2016, Mobile Devices Only

The social act of gaming (both solo and with others online) takes priority Wednesday

through Friday, especially the evening hours. They stand out as the most active days for

game play. Conversely, consider Tuesday, Saturday, and Sunday as “shopping days.” These

are the quieter “down times” when consumers consider new mobile game experiences.

The user dynamics here suggest varied messaging opportunities exist by both day and

time (e.g., targeting shoppers and active players on different days) which could potentially

achieve some cost savings (lower CPIs) as well.

58,500,000

58,000,000

57,500,000

57,000,000

56,500,000

56,000,000

55,500,000

55,000,000

54,500,000

9,000,000

8,000,000

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

Active Gamers Average Downloads

Act

ive

Ga

me

rs

Ave

rag

e D

ow

nlo

ad

s

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Key Insight:

Mobile game marketers should consider testing commute times and middays as they may

offer lower-cost CPI options for attracting installs for specific games. Comparing weekly

gaming activity to weekly average installs reinforces this suggestion (Figure 18). Concentrated

download activity on specific days runs counter to the most active gaming days.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics20

Use Case II: IMPROVING MOBILE GAME ADOPTION PERFORMANCE

The first few days after a game is downloaded see the speedy departure of most mobile

game users. In fact, mobile game companies will see two specific types of downloaders:

samplers and players. Samplers are the downloaders who try a game and move on. Players

are those who stick around to play the game consistently.

Moving beyond the first few days of downloading, retention does not get much better. As

detailed in Figure 19, all app categories—even social and shopping—must contend with the

stark realities of the sampler segment. By day seven, apps in some categories may see user

retention rates drop to a mere 20 percent or even lower as the weeks progress.

Samplers: Similar to shoppers who try on many pairs of shoes without buying them, samplers typically

download multiple new apps in a flurry. Samplers try a few of them before quickly moving on to their

next mobile experience. As detailed in Figure 19, 40-60 percent of downloaders forgo use of a given

game within the first 24 hours of downloading it.

Players: The other downloader type, players, tends to take shape after a few days; these are the ones

who do not leave. Borne out of the vast noise of samplers, these are the users developers and marketers

should watch very closely. From this group come the Heavy and Core Gamers, as well as highly-

coveted spenders—the 3 percent of all mobile gamers who make in-app purchases (Figure 11).

Source: Verto Analytics, April 2016, Mobile Devices Only

Figure 19

Daily Average Retention by Category—First 60 Days

100%

80%

60%

40%

20%

0%

D0 D7 D14 D21 D28 D35 D42 D49 D56

Photo and Video Lifestyle and Shopping Entertainment Music and Audio

Social Networking Travel and Navigation Games

Retention of popular app categories

• The first week is the most critical, especially the first few days

• Retention drops well below 50% in most app categories

• App sampling is the norm; a byproduct of so little ecosystem friction

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics21

Despite the rabid sampling by most app users, the games category has a slightly more pos-

itive adoption story to tell. Boasting some of the most passionate users (Figure 2, second in

monthly time spent), mobile gamers tend to be somewhat more selective with their down-

load choices. Retention rates for mobile games consistently outperform all other categories

over their first two months of use (Figure 19).

Individual mobile games also offer unique adoption details on both samplers and players.

A comparison of four popular mobile games shows that each has a slightly different reten-

tion makeup (Figure 20). For example, strategy game Clash of Clans (CoC) boasts some of

the most loyal users, with retention rates flirting around 60 percent for several days during

the first week of usage.

Conversely, a mobile game like Solitaire by MobilityWare is hugely popular, even though

card games have multiple variations available from multiple developers. While MobilityWare’s

Solitaire is a top-five game, it is consistently challenged by lower-than-average retention rates

(20 percent by day one). Though samplers may try the card game, many quickly move on and

seek a different experience.

Key Insight:

Each mobile game in the top 10 likely offers a slightly different adoption story—something

marketers should keep in mind when considering their messaging strategies, especially if the

goal is to create more Heavy Gamers and improve overall adoption. For example, Clash of

Clans, which already boasts higher overall loyalty, could message new gamers with added

inducements to boost session frequency or extend gameplay (average session time).

Source: Verto Analytics, April 2016, Install Rates on Mobile Devices Only

D0 D1 D2 D3 D4 D5 D6 D7 D8 D9 D10 D11 D12 D13 D14

Candy Crush SagaWords with Friends Solitare by MobilityWareClash of Clans

100%

80%

60%

40%

20%

0%

Figure 20

Daily Average Retention–Select Mobile Games

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics22

Use Case III: SEGMENTING GAMER TYPES

Moving beyond the first week post download, most mobile games experience a gradual de-

cline in retention over time (Figure 20). However, users who remain beyond those first few

days represent potential new additions to a mobile game’s Heavy Gamer group. Consider

them the flip side of samplers; Heavy Gamers represent the most passionate and dedicated

player base.

Segmentation analysis of individual games reveals an extremely high concentration of play-

ing time among the Heavy Gamer subset of users (Figure 21). In each case among these top

games, the Heavy Gamer group (representing the top 40 percent of users) represents more

than 90 percent of all time spent with the individual game.

Source: Verto Analytics, April 2016, Segmentation Analysis of Select Game Apps

Figure 21

CORE GAMERS

HEAVYGAMERS

LIGHTGAMERS

94.4%

92.9%

92.0%

For example, 40 percent of Candy Crush Saga (CCS) players make up 94.4 percent of

all time spent with the game. Conversely, the remaining 60 percent of CCS players take

up only 5.6 percent of game time. Words with Friends, Clash of Clans, and many other

top games offer similar stories of Time Spent per Month concentration among their

Heavy Gamers.

Segmenting Heavy Gamers from the rest of a game’s app user group may offer further

insights into understanding and developing stronger user retention and monetization

strategies. For example, per Figure 22, there are typically very distinct differences

between a game app’s average user versus a Heavy Gamer (top 40 percent of users).

In the case of Clash of Clans, Heavy Gamers average a staggering 332 sessions per

month compared to the average player, at 110 sessions. Similarly, Heavy Gamers who

play Words with Friends represent double the number of game sessions each month

versus average users.

Heavy Gamer Segment: Monthly Time Spent

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics23

Refining the segmentation process may offer new, more discrete, messaging opportunities

for developers—speaking with potential users differently depending on their frequency of

use, length of session time, frequency of sessions, relationship with other popular games,

increased use, decreased use, etc. Additional segmentation tactics are possible depending

on developers’ and marketers’ objectives.

Key Insight:

No matter the mobile game, observing underlying player behavior is the key to continued

performance. Segmenting Light Gamers and Heavy Gamers represents just one example for

extracting deeper player insights.

Challenge: Are there any significant differences in player traits between my Heavy Gamers

(top 40 percent) and my Core Gamers (top 20 percent)?

Goal: Increase sessions and average time spent of the lower end of the Heavy Gamer

group (range of players between top 20-40 percent, aka non-Core Heavy Gamer).

Challenge: Similarly, what other games do my Core and Heavy Gamers also play each month?

Goal: Attract switchers. Shift playing time from the competition to my mobile games.

Challenge: Among my Light Gamers (samplers), which games do they play most often?

Goal: Attempt to retarget Light Gamers to take a second look.

Challenge: Which new games share the most audience with my current top mobile game?

Goal: Identify the new challengers for the attention of my Core and Heavy Gamers.

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00

Avg

. Se

ssio

n D

ura

tion

Sessions per Month

0 50 100 150 200 250 300 350

Impact of Heavy Gamer Usage on Overall Mobile Game Behavior

Source: Verto Analytics, April 2016, Quintile Analysis of Select Game Apps

Figure 22

Challenges and Goals for Developers and Marketers

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics24

CONCLUSION AND KEY TAKEAWAYS

Section 5:

In the simplest terms, success in mobile gaming means attracting the right users and keep-

ing them engaged well past download. However, achieving such success today while facing

new competitors, more mobile games, and ever-fickle audiences—all encompassed within a

nearly friction-free distribution environment—has never been more challenging.

Attaining success in mobile gaming today means going much further. It means observing

your potential users along every stage of the app ecosystem—from discovery and down-

load to eventual adoption. It means tracking mobile game downloads, retention rates, and

average session times—and creating player segmentation profiles such as the Heavy Gamer.

It means tracking all related competitive moves through the same exact lens.

The insights generated here will help inform your distribution and monetization strategies

for the next round of mobile gaming innovation.

Attaining success in mobile

gaming today means observing

your potential users along every

stage of the app ecosystem.

More Developer Competition on the Way

—An already competitive developer space just got even more crowded. Recent moves by

Nintendo, Sony, Capcom, EA, and other console gaming giants suggest that mobile is now

a central component of their development strategies.

Forget the Console Gamer Stereotype

—There are new demographic and segmentation rules to learn for each genre and individual

mobile game. Take the demo profiles of both Words with Friends and Candy Crush Saga

as excellent examples. Both mobile games heavily skew female with an age footprint that’s

mostly over age 35.

While Size Matters, Engagement Is Essential

—While the mobile games category is sizeable, ranking eighth in overall reach among

app users (105.6 million), time spent is the real story. Games represent the second largest

category in overall time spent using apps in the U.S., second only to social. U.S. mobile app

users spend more than 1.15 billion hours each month playing games.

A Nearly “Friction-Free” Ecosystem Is a Mixed Blessing to Game Developers

—While near-ubiquitous access to apps is a clear benefit to consumers, it’s less so for

mobile game developers. When hundreds of thousands of mobile games sit side by side

on virtual shelves, it’s hard to consistently stand out. Discovery ranks as the #1 challenge

of game developers in 2016.

The Games Category Requires a Unique Marketing Approach

—Ubiquitous consumer access means mobile game marketers must be smarter and more

aggressive in hopes of standing out among so many competitors. Use mobile-centric consumer

data and insights to track consumers through the entire app ecosystem—from discovery to

download to eventual adoption.

KEY TAKEAWAYS

1.15 Billion

hours each month

playing games.

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics25

Mixed Exposure Strategy Needed Between App Marketplace and Outside Platforms

—Apps are typically discovered in two ways—either directly through an app marketplace

(63 percent) or through outside platforms (37 percent) such as search, advertising, social,

peer, and personal reviews.

Recognize the Unique Download Behaviors for Individual Mobile Games

—Specific days of the week provide excellent opportunities for developers to have their

games discovered and downloaded. While Wednesday through Friday represent the days

of highest gameplay, Tuesday and Sunday stand out as unique opportunities for users to

discover new mobile games.

Extreme Sampling Should Always Be Considered the Norm

—The by-product of near-ubiquitous access to apps (mobile games or otherwise) is a high

sampling rate among users. But the sampling reality is that, within 24 hours, 40-60 percent

of new users may have already moved on to other mobile experiences.

The First 2-3 Days Post Install Are the Most Critical

—While huge disparities in retention performance are possible, depending on the category,

retention rates can drop to as low as 20 percent or more for some apps within the first few

days. It is critical to pay close attention to these shifts in initial game usage as there may be

very high costs associated in acquiring new users.

Every Mobile Game Has a Primary User Constituency

—It’s the marketer’s job to find players who remain after the first few days and are potential

candidates for a game’s primary user set—better known as their Heavy Gamers. Represent-

ing the top 40 percent of all mobile gamers, Heavy Gamers make up over 88 percent of all

time spent playing games.

Develop a Heavy Gamer Segmentation Strategy

—While you should build multiple player segments over time to better track underlying user

behavior, Heavy Gamers represent an excellent first step for understanding and enhancing

retention and monetization strategies. Focus on them.

63%App storediscovery

37%Non-app store

discovery

CORE GAMERS

HEAVYGAMERS

LIGHTGAMERS

LEVELING UP YOUR MOBILE GAME: USING AUDIENCE MEASUREMENT DATA TO BOOST USER ACQUISITION AND ENGAGEMENT Verto Analytics26

ABOUT VERTO ANALYTICSFrom market insights to the demographics of mobile ownership, Verto Analytics

publishes a regular series of industry reports that applies our single-source audience

measurement data to specific use cases and challenges across several industry sectors and

segments. To learn more about our research, visit vertoanalytics.com/data-insights/

The Verto Analytics single-source measurement methodology is based on behavioral

data gathered from a panel of consumers that own and use multiple devices. We measure

from the point of consumer interaction across all platforms, media, content, and devices.

Our panelists, who are compensated for their participation depending on their demo-

graphics, opt in to install a measurement app on their digital devices. Simply put, we

quantify the consumer journey from one device to another.

Verto Analytics provides a single-source audience measurement solution for monitoring

the complex behavior of today’s consumer on every device, app, and platform they use

throughout the day. We provide data and insights that inform marketing, competitive

intelligence, media buying, and product strategy and development.

Backed by EQT Ventures, Conor Venture Partners and Open Ocean Capital, Verto is a

privately held global company with offices in New York City, San Francisco, London, and

Espoo, Finland. Read our blog, follow us on Twitter, or learn more at vertoanalytics.com.

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