MOBILE GAMINGAPPS REPORT2018 User Acquisition Trends and Benchmarks

MOBILE GAMINGAPPS REPORT2018 User Acquisition Trends and Benchmarks

Introduction

3

Average Costs & Conversion Rates

5

Gaming App Engagement by Platform

9

Gaming App Engagement by Gender

13

Gaming App Engagement by Region

16

Monthly Trends

21

Engagement by Gaming Subcategory

27

Gaming Ad Spend by Ad Format

31

Spotlight on Rewarded Video

34

Conclusion

40

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018

2

PLAY NOW

Introduction
It’s official. As of July 2018, more money
has been spent on Gaming—in all its
forms and formats—than any other kindof entertainment on the planet. It’s amassive industry worth almost 3 times asmuch as the movie industry. One growthengine is mobile, and its contribution to
the total is nearly as epic as the hit titles
and game franchises it has produced.
On the demand side, insane growthis fueled by 3.39 billion mobile users
worldwide and an explosion in thenumber of micro-leisure moments—
minutes of downtime when users can(and increasingly do) reach to mobile
games to add interest and excitement totheir daily routine.
On the supply side, app market data
provider App Annie counts nearly
900,000 games live across theapp stores globally (approximately
350,000 on the Apple App Store andapproximately 550,000 on Google Play).
Do the math and mobile gaming apps
represent about 15% of the total apps

live in the app stores today.
Other app categories are on the move,but mobile gaming apps continue to leadthe pack. In fact, global games researchfirm Newzoo forecasts that games willaccount for a whopping 72% of total
global app revenues, or $58.1 billion, by
2020.
Clearly, an avalanche of apps indicates ahealthy and robust App Economy wherecompanies with the right app and theright approach can lay the groundwork
for a solid and sustainable app business.
However, a maturing market is also a
crowded and competitive space where
the ability to collect data and analytics
on its own is no longer a source ofcompetitive advantage.
App marketers in this hotly contested
market require insights around theactivities, opportunities and events
that will allow them to get the mostmileage out of their chosen monetization
strategies. Marketers that embrace theF2P model need data to turn players into

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 20183

Games will account for a whopping 72%
of total global app revenues, or $58.1
billion, by 2020.
purchasers; marketers that monetize
their games through advertisingneed data to match campaigns withaudiences. In both cases this reportequips app marketers with what theyneed to make data-informed decisions,ensuring they acquire and engage
audiences that are both high-value andhighly profitable.
The 2018 Mobile Gaming Apps Reportdraws from Liftoff internal data from
June 1, 2017, through May 31, 2018—
spanning nearly 47 billion impressions(46,776,245,374 to be exact) acrossover 658 million (658,586,911) clicks
and over 15 million (15,358,421) installs.

Specifically, the report tracks costs
and engagement metrics across theentire Gaming funnel: Install, Register,
In-App Purchase. It also breaks down
data by platform (iOS and Android),user demographics (gender) andregion (APAC, EMEA, LATAM and North
America).
This new edition of the report also
compares data across a variety of
gaming categories (Casino, Casual andStrategy) and uniquely offers actionableinsights on how app marketers canharness rewarded video as an effective
monetization tool.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018

4

Average Costs & Conversion Rates
Lower costs and higher engagement rates tell two stories. It could
be that gaming apps are becoming an integral part of how users
spend and enjoy time on mobile.
Or it could be that app marketers havebecome data-savvy and increasingly
excel at using data to activate andmotivate their target audiences. Eitherway, it’s a positive and promisingdevelopment that bodes well formarketers determined to inspire andinfluence users at intent-rich moments(Registration and In-App Purchase) after
the install.

down on the previous year ($4.07)—all

As the Gaming Engagement funnelshows, it costs an average of $3.75
to acquire an install. That’s nearly 8%“crowd-pleasers” thanks to enjoyable—

the more remarkable if we consider
that fierce competition would typically
push acquisition costs through the roof.
At first glance, it would appear thatdata-savvy marketers are indeed at
the top of their game. But it may also
be that many of the popular gaming
title categories analyzed in this dataset
have cemented themselves as realeven addictive—game mechanics. The
data doesn’t say for sure.

OVERALL GAMING APPS COSTS & CONVERSIONSINSTALL$3.75

REGISTER$6.88

IN-APP PURCHASE$28.05

54.6%
Install-to-Register

13.4%
Install-to-In-App-Purchase

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 20185

Registration
Deeper in the funnel, the situation is similar. The cost to acquire
a user who completes a registration ($6.88) is 23% less than theprevious year ($8.94), while engagement rates at that stage show a
20% increase.
This suggests users understand andappreciate gaming apps and respondto their advertising campaigns. It’s
impressive growth that should spur app
marketers to do more to engage further
now that the barriers are down.

across all categories “use 3 or more

Some inspiration comes from mobile
video ad network AdColony. It
observes that 71% of the top publishers

where more interaction via moreengagement methods to retain theirusers,” with push notifications topping
the list. Gaming app marketers havecleared the Registration hurdle,
breaking the ice in a conversation
channels (messaging, email and modal
messaging) can help clinch the deal.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018

6

In-App Purchase
Which brings us to in-app purchases (IAP), a fairly common andvery lucrative model where app marketers drive purchases (‘Gold,’‘Power-Ups’ or ‘Continue Playing’ passes) allowing users toenhance the playing experience.
It works when app marketers succeed

Once again, the relationship between

in making tantalizing offers and users

costs and engagement rates shouldcommit to opening up their wallets.

inspire app marketers to go the distanceIt’s not a walk in the park, but Liftoff
data shows that app marketers could
be in their stride. What appears to be

and develop user acquisition campaigns
that capture audience attention andcatapult spend. Stakes are high, but soa modest engagement rate at 13.4%

is the pay-off as some strategy games

represents a massive 67% increase overchalk up in-app spend, on average,

the previous year. At $28.05, the costof $550. (Analytics and measurement

to acquire a user who completes an IAP

firm Slice Intelligence, now Rakuten

is almost a bargain compared to theIntelligence, reports mobile gamers$50.69 price tag in 2017.

spend an average of $87 on IAPs.)

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 20187

Integrating creatives that amaze andengage can make all the difference inyour campaign.
Mobile games can generate tremendous market where netting “Whales,” the 10%
amounts of revenue from IAPs, butof the in-game purchasing population

more gaming apps in the marketplacethat accounts for 90% of mobile gaming

mean more competition for marketerssales is getting harder, and finding thedetermined to grow their share of the“white whales,” the top one percent ofpie. App marketers with these ambitions

whales that account for an astonishinghave to get smarter about how they

58% of total in-app purchases, is nearlywield data to identify and influence

impossible. Integrating creatives thatBig Spenders. But improved targeting

amaze and engage can make all theis just a part of it. Remember: this is adifference in your campaign.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 20188

Gaming App Engagement by Platform
Overall, iOS users come at a higher price. But high engagement rates
suggest iOS users also offer app marketers better value for money.
At $5.31, the cost-per-install on iOS is60.4% more than Android ($3.31). Thisgap is even greater further down in
the Gaming funnel. For example, thecost to acquire an iOS user who goeson to register ($11.08) is 73.9% morethan Android. Significantly, the gap
narrows at the next stage to just 21.7%.
But looking at costs in isolation isa strategy likely to burn as muchmoney as it generates. At a time when
app marketers are laser-focused on
creating value for their users—andtheir companies—after the install, an
approach that prioritizes engagement
rates has serious merit.
A closer examination of conversion
rates suggests app marketers who
spend on iOS are getting good value
for money. While iOS users are notrushing to register, they are eager
to purchase. At 21%, IAP conversion
rates are nearly double that of Android
users (10.8%).

Are Android users uninterested in
making a purchase? Or are appmarketing campaigns failing to inspire
the all-important impulse buy? The
data doesn’t say for sure. To be fair,
we must also consider that Liftoff data,
which draws from campaigns across
350 Gaming apps (58% iOS and 42%
Android), may overemphasize this
disconnect somewhat–but that doesn’t
negate the substantial evidence thatapp marketers may be missing the mark.
Similar to the engagement patterns
we observed in our 2018 Mobile
Shopping Apps Report, we see that
Android costs and conversions at the
middle-funnel stage of Registration are
in a rare balance.

vsMobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018

9

GAMING APPS COSTS AND CONVERSIONS BY PLATFORM

Android vs. iOS

52.0%
Install-to-Register

10.8%
Install-to-In-App-Purchase$3.31

INSTALL

$5.31

$6.37

REGISTER$11.0848.0%$30.79IN-APP PURCHASE$25.30

21.0%

On the cost side, Android users area steal at $6.37. Couple that with animpressive install-to-register rate of
52% (8.4% more than iOS), and it’s
clear that app marketers have cleared
a significant hurdle. They have earned
the attention (even trust) of Android
users who are willing to interact withthe app and input essential datathat smart app marketers can use toengage and re-engage these users todrive deeper funnel conversions.
So, why aren’t they doing it?
The answer is likely linked to theperception that iOS is the platform
preferred by Big Spenders. To

Install-to-Register

Install-to-In-App-Purchasebe fair, it’s not a mere stereotype.
It’s supported by data across avariety of reports and surveys. App
market data provider App Annie,
for example, reports that iOS users,
as a rule, are far more likely thanAndroid users to spend money
in and on apps. An examinationof total app downloads across allapp categories in 2017 reveals that
Android users accounted for 70% of
total downloads, but generated only
34% of total app consumer spend.
(Significantly, App Annie also tells usthat “Games accounted for nearly 80%
of worldwide consumer spend acrossiOS, Google Play and Third-Party
Android app stores.”)

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018

10

APPLE USERS MORE WILLING TO PAY FOR APPS

Apple App Store

Share of app consumer spend
Google PlayApple App Store

Google Play

46

54

61

67

68

70

14

31

38

38

34

34

54

46

39

33

32

30

86

69

62

62

66

66

2012

2013

2014

2015

2016

2017

2012

2013

2014

2015

2016

2017

* Google Play is not available in China

Share of app downloads

Share of Worldwide App Downloads and Consumer Spend by App Store (in %)*.
Source: Statista

It would seem that iOS users are theprize. But a review of market data,collected and collated by Nebojsha
Mitrikeski, independent researcher
and Game Director at Snowball
Games, indicates Android is coming
on strong. “We’re witnessing therise of the Android market,” he tells
Liftoff in an interview. “It *is* finallyhappening.” In 2017, for the first time,
he reports the industry was “starting
to see high-grossing games that makethe same amount of IAP revenue onboth platforms.” As he sees it: “Android
spenders do exist, they just need to becarefully targeted by UA because there
is a lot of jitter and noise in the Android
shops.”
His observations dovetail with new
findings from AppsFlyer. The mobile
app tracking and attribution analytics
platform teamed up with Facebook to
examine differences between organicand non-organic traffic and the impact
on lifetime value (LTV). Among the key
findings: the performance gap between

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201811

iOS and Android is much smaller in
Gaming than it is in Shopping andTravel apps. Specifically, revenue froman average iOS user is only 28% morethan Android. It attributes this to theadvancement of Android as a platform
and the application of data-driven
marketing by app marketers to target
and trigger purchases.

When it comes to driving deepfunnel engagement, Android users
are apparently a tough nut to crack.
However, the massive growth of Android
as a platform, which has pulled ahead of
iOS boosted by 1.5 million new Android
devices activated daily, will certainly
reward app marketers who have theperseverance to try.

iOS users, as a rule, are far more likely
than Android users to spend money inand on apps.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201812

Gaming App Engagement by Gender
A comparison of acquisition costs and engagement rates
indicates males cost more and engage less compared to females,
a demographic that has evolved to become both power users andsuper-shoppers.
While marginal differences in install

rates (9.39% for females and 7.16% forcosts ($3.66 for males and $3.84 formales) Liftoff observed in 2017.

females) would indicate males are
the bargain, a closer examination of

The message to app marketers:

conversion rates reveals females are infemales are a premium user segment,

fact the most valuable gamers.

so open the aperture of how you view
and pursue this gender. But don’t be

Take the middle-funnel stage ofblind to some of the more noteworthy

Registration. At $7.51, females costdifferences between males and20.2% less than males to acquire. Even

females, starting with game genre taste

better, the conversion rates for females

and preferences. DeltaDNA, an insightare 26% higher than for males. IAPs

consultancy providing data analytics toare also a stage where differences
between males and females point thehelp developers make games better,

way to massive opportunity to buy

observes that “women have a strong
preference for puzzle games, while

low and sell high. At 16.7%, the install-men prefer strategy and action games.”

to-purchase rate for females is an

Casino games, it adds, are “near genderincredible 79% higher than for males.

neutral.”This is a far cry from the conversion

The install-to-purchase rate for females is
an incredible 79% higher than for males.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201813

This has powerful implications for app
marketers, particularly as recent datafrom games research firm Newzoo
shows “women are playing more thanever before.” Significantly, males andfemales may be alike in their passion
for mobile gaming apps, but theydiffer in how they discover them. This
insight alone provides important clues
on the contexts (and channels) where
advertising (and targeting) can deliver
positive results.
Specifically, Newzoo reports, social
circles are key for female players,
with 39% of them discovering a gamethrough friends or family, and 20%

through social networks. Males are adifferent story. “A comparatively low
27% discover games through friends
or family. Instead, 26% of men discover
new titles through review or gamesites and 24% through online video
channels.”
While app marketers should appreciate
the obvious differences between males
and females, they should not overplay
them. Newzoo’s examination of thegender and age divide of all gamers
shows “the gap between the twogenders in the overall games market isnarrow.” Mobile gaming apps are almost
equally popular among males andAge / Gender

Share of online population that gamesof gamers

per segment and gender

52%

8%

48%

48%

12%

13%

37%

35%

46%

20%

of gamers
are women

15%

23%

15%

10%
7%

PC
M10-20

M21-35

M36-50

M51-65

M10-20

F21-35

F36-50F51-65

MEN

MobileWOMEN

Console* Research among online population aged 10-65 in 13 countries

GAMING GOES MAINSTREAM

Demographic Insights on Gamers 2017
Source: Newzoo

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018

14

GAMING APPS COSTS & CONVERSIONS BY GENDER

Male vs. Female

48.8%
Install-to-Register

9.3%
Install-to-In-App-Purchase$3.66

INSTALL

$3.84

$7.51

REGISTER$6.25$39.32IN-APP PURCHASE$22.99females, with “52% of males and 48%
of females playing mobile games morethan once a month.
In theory, that means more opportunities
to reach and engage females witheffective campaigns and appealing
creatives. In practice, however, that isn’t
happening—yet.
It may be that app marketers are focusedon return-on-ad-spend (ROAS) andgetting back the money their companies
invested to produce strategy and action
games which target males and—as arule—are vastly more expensive andcomplicated to maintain than puzzle
games, for example. Or it may be thatapp marketers, surprised by the shift
in gaming behavior, have yet to adapt
to the fact that females are playing in
unprecedented numbers.

61.5%
Install-to-Register

16.7%
Install-to-In-App-Purchase

Either way, app marketers could beleaving money on the table. A recent
study of gender in mobile gaming
reveals that, of the top 100 grossing
games on Google Play, the vast majorityof icons feature male characters. Little
wonder that 60% of women who play
mobile games believe most games are
not made for them. Based on this, thereport concludes that “although women
prefer mobile games more than men, themobile gaming world has a long way to
go before it’s truly inclusive.”
Indeed, there is a noticeable bias
against female players that could becosting app marketers a bundle. Fromicons to creatives, app marketers arewell advised to review their assets andapproaches to make sure they have what
it takes to attract, acquire and convert
females.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201815

Gaming App Engagement by Region
A review of costs and conversion rates suggests the action isconcentrated in North America, but the future opportunity is in APAC.
North America, the birthplace of iOS
devices and the starting point for thetremendous growth of the global App
Economy, is an advanced and mature
market. It’s also a market where mobile
gaming apps compete with otherforms of entertainment for two scarce
resources: consumer attention andspend. Games may still be a hot item,but other app categories includingVideo (Netflix), Music (Spotify) andSocial (Tinder) are also accounting
for a more significant percentage oftime and money spent. Against thisbackdrop, games research firm Newzoo
forecasts games growth and spend will
experience a slow down–albeit at anextremely high level.
In contrast, APAC is a market full of
growth potential. Granted, there areimportant differences between theindividual countries, with much slower
growth (but higher spend) in mature
markets like Japan and South Korea andmuch more rapid growth in China andSoutheast Asia. But, on the whole, theregion is booming.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201816

It’s dramatic growth that app market

of all top apps were owned by China-

data provider App Annie calls out in its

headquartered companies.

most recent data and a milestone reportthat recounts the data and events that

By 2022, App Annie forecasts APAC will

shaped the last 10 years of the iOS app

account for 64.8% of app store spend

store. It was only two years ago thatand 72.4% of global downloads. Over

China overtook the U.S. to become thehalf of the total will come from Chinalargest market by app store consumer

alone. Moreover, mobile gaming apps

spend, and the region has been thewill continue to “make up the lion’s shareepicenter of dynamic growth ever since.

of consumer spend” across all the app

In 2017, App Annie observes, China

stores—iOS, Google Play and Third-Party“dominated the charts,” and nearly half

Android stores in China.

APP STORE CONSUMER SPEND IN 2022

Note: Spend is gross; app store’s fees are included
Source: App Annie

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201817

$4.66GAMING APPS INSTALL COST BY REGION

$2.62

$2.63
$1.35

APAC

EMEA

EMEA, a diverse region where slow
economic growth in some countries,
such as the U.K., Spain and Italy has
limited app spend, is nonetheless united
in its enormous and growing passion
for mobile gaming apps. Traditionally,
the region lags behind North America,
but the gap is narrowing. App Annie
forecasts app store consumer spend will
total $21.01 billion by 2022, with mobile
gaming apps accounting for more thanhalf (63%) of revenues.
This dynamic is reflected in Liftoff data,
which draws on costs and conversion
rates to highlight significant differences
and opportunities across the same
three regions. The analysis breaks
consumer spend down by region,
providing invaluable insights appmarketers can use to make sure they

LATAM

NAR

target key markets and “fish where thefish are.”At $4.66, the cost-per-install in North
America is at the higher end of thespectrum, but it’s also what you would
expect in a mature and crowded market.
A lot of mobile gaming apps chasing
a lot of users at the middle-funnel
stage of Registration also drives costs
higher ($7.08) and engagement rates
lower (65.80%). Significantly, costs andconversions for in-app purchases are quite
the opposite. At $21.42 the cost to acquire
a user who makes an in-app purchase ismoderately higher than the cost in EMEA($16.53). But it’s an outright steal comparedto the massive $71.02 price tag attached
to users in APAC. They come in at a
whopping 3X the cost and engage at theincredibly low rate of 3.68%.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201818

REGION: REGISTER & PURCHASE COSTS AND CONVERSIONS

COST

Register$2.85

91.90%$2.73

96.32%
65.80%$7.08

IAP$71.023.68%$16.53$21.42APAC

EMEA

15.91%
21.76%

NAR

This is quite a departure from theprevious year. Compared to 2017 data
the cost to acquire a user in APAC who
makes an in-app purchase ($50.28) has
increased by 41%. Over the same period,
this cost has declined in both EMEA andNorth America, indicating that data-savvy
app marketers may have become more
adept at reaching and influencing theirtarget audience. The data doesn’t say forsure. But the data does reveal a shift inconversion rates for the better. Overall,
at 21.76% the install-to-purchase rate inNorth America has nearly doubled fromthe previous year (11.96%). It’s an evenmore dramatic story in EMEA. Thereinstall-to-purchase rates have nearlyquadrupled, hitting a high of 15.91% up
from just 3.32% the previous year.
Industry data on LATAM, a market on
the move, is sketchy. Many companies
skim over the region entirely, and thefact that Liftoff lacks complete data on
engagement rates likewise shows thatgaming companies and app marketers(whose campaign data feeds into Liftoff
insights) are not focusing a great dealof attention or spend on acquiring andconverting users in the region.
A review of campaign spend by region
underlines the disconnect, showing that
only 1% of the total spend is focusedon LATAM compared to other regions.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201819

Significantly, 62% of campaign spend isconcentrated in North America. EMEA(19%) and APAC (18%) tie for a very distantsecond place.

can be characterized as slow andComing from a relatively low base, thegrowth of the total app market in LATAM

install, a data point Liftoff pegs at juststeady. But a closer look reveals subtle
differences and exciting opportunities.
(No doubt linked to the low cost-per$1.35.)

1% LATAMCAMPAIGN SPEND BY REGION

19%
EMEA

18%
APAC

Consider the overall mobile market
potential of LATAM, a hot topic at the2018 Nordic Games conference. The
region is home to a population of 650
million, 210 million of them gamers
split evenly between male and female
players. LATAM, led by growth in Mexico
and Brazil, is a market full of promise.
Presenters at Nordic Games need little
convincing. Their decks highlighted eyewatering year-on-year games revenue
growth rates of 13.5%, resulting in amarket worth an impressive $5 billion.

62%
NAR

There is merit in “fishing where the fishare”—and that’s why North America
has the edge. But there is also value
in building competitive advantage in
untapped markets and “blue oceans.”
Your strategy and priorities will always
depend on your category of app andyour company goals, but the promiseand potential of markets outside North
America, specifically APAC and EMEA,
should encourage app marketers tomove out of their comfort zone to explore
opportunities before their competitors get
wise–and move fast.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 20

Monthly Trends
Cost-per-Install by Month
Seasonality is a factor that continues to impact acquisition costs andcost-per-action. However, a closer examination of the data reveals
important windows of opportunity when app marketers can drive
positive results without draining budget.
At a high level, it’s interesting to notethe monthly CPI trend is nearly identicalto the pattern observed in the 2017
Gaming Apps Report. Predictably, thepeak season is around the holidays,a period when users are unpacking
smartphones they received as gifts andspending a multitude of micro-leisuremoments exploring the wealth ofgaming apps at their fingertips.

App marketers have a choice. They
can choose to compete for users—andpay increasing CPIs–in the run-up to
the holidays when users’ attention is
likely riveted on mobile gaming apps.
(Although data also shows other formsof entertainment, such as streaming
music and video are also competingfor time and money spent.) Or they
can target different periods, such assummer (notably August when CPIs

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201821

App marketers can choose to compete forusers—and pay increasing CPIs — in the
run-up to the holidays. Or they can target
different periods, such as summer.
hover around $3.00), when users arewrapping up vacations and staycations
and turn their attention to finding fun
ways they can end the season on ahigh note.
Even better is the month of February,
when CPIs are $2.91 and users appear
to have shifted focus from fresh starts
and New Year’s resolutions and put life
goals on the back burner. Maybe they

are playing games to pass the timeleft after attempts to find new partners
or friends didn’t work out. Or perhaps
users are treating themselves to quality
entertainment, downloading games asa reward for making tough decisions
and sticking to them. The data can’t tell
us for sure. But it does highlight several
months when app marketers can counton acquiring users at bargain prices.

GAMING APPS AVERAGE COST-PER-INSTALL BY MONTH

$5
$4.06

$4.05

$3.78

$4
$3.45
$3.27

$3.46

$3.31

$3

$3.11

$3.00

$2.93

$2.91

$2.74

$2
Jun-17

Jul-17Aug-17

Sep-17Oct-17

Nov-17

Dec-17Jan-18

Feb-18Mar-18Apr-18May-18

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 22

Registration Cost and Engagement by MonthOf course, the real payoff comes when app marketers can buy low
and engage high. An examination of Liftoff cost and conversion dataat the middle-funnel stage of Registration reveals several months
when conditions are conducive to achieving both.
One such month is July, when the costto acquire a user who completes aregistration hits a low of $6.09, and theinstall-to-register rate soars to a highof 56.7%. July is also a late summer
month when downtime is abundant.
Strict routines give way to vacations,staycations or just a general winding
down of the daily grind of work, schoolor college. With some extra time on

their hands, users are more open
to interacting with gaming apps andinputting the information that paves theway for deeper funnel engagement
and—ultimately—in-app purchases.
Whether users are on the beach, stuckat the airport or just eager for a changeof pace, gaming apps can provide
on-demand entertainment to match themoment.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 23

After July, costs increase andother apps and app categories compete

engagement decreases, a dynamic

for user attention.

that indicates users are settling backinto the routine that demands a bigger

Hot competition for eyeballs andchunk of their attention. Work, school

audiences cools after January, driving

and the run-up to the holiday shopping

a dip in costs that unfortunately

season occupy users’ minds. Moreover,coincides with a decline in engagement

new seasons of favorite shows on

rates. Campaigns in March, however,

Netflix or new releases of films leave

benefit from a readjustment. Costs hit

less downtime. January, a monthan acceptable $6.73, and install-to-synonymous with fresh starts, is a month

conversion rates climb to 46.3%. In many

when users are receptive to checking

ways March is a mirror image of July,out new gaming apps. But engagement

indicating that uneventful months are

has a high price. The install-to-register

perhaps the best times to target in order

rate hits an impressive 46%, but

to grab user attention and encourageregistration costs rocket to $8.82 asinteraction with your gaming app.

GAMING APPS REGISTRATION COSTS & CONVERSIONS BY MONTH

$10

60%

56.7%
$9.19
56.2%
46.0%
$8.20

$8

43.2%

49.6%

$8.82

$8.51
46.0%

46.3%

$7.63

34.5%

40%

$7.12

$7.56

36.2%
29.8%

$6.53

50%

$8.06

42.2%

$7.20

$6.09

46.5%

30%
$6.73

$6

20%
Jun-17

Jul-17Aug-17

Sep-17Oct-17

Nov-17

Dec-17Jan-18

Feb-18Mar-18Apr-18May-18

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 24

In-App Purchase Cost and Engagement by Month
Driving registrations is about capturing user attention and trust;driving in-app purchases is about capturing share of wallet.
It’s all about pinpointing the right times
to influence behavior and encourage
the all-important impulse buy. An
obvious match is the winter holiday
season, a time when splurges andsprees are part of our collective default
state.

before,” culminating in $300 million inpurchases made on New Year’s Day
2018 alone. Apple further reported
that total spending on apps (purchases
and downloads) during the holiday
week beginning December 24 hit anastronomic $890 million.

It’s a time to buy apps of all kinds,
especially games, which is why Apple
reported a “record-breaking holiday
season” in 2017. Indeed, app andgames shopping was bigger than “everThis dynamic dovetails with Liftoff datathat shows install-to-purchase rates
reach their highest point (22.4%) in
January. Importantly, acquisition costs
are also low as many apps, not just

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 25

gaming apps, appear to have dialed
down their holiday spend. While thewindow of opportunity is wide open in
January, it shuts abruptly in February,
when engagement rates drop by 54%
to hit 10.2%, and acquisition costs risethrough the roof to reach $28.50. Two
explanations for this spring to mind. It
could be that users are reserving spend
for other events, such as Valentine’sDay. Or it could be that engaging andentertaining campaigns worthy of theirattention, which were in over-supply
during the holidays, have lost theirmojo.
Another month worth noting is Octoberwhen app marketers can buy low($20.32 IAP) and engage high (17.0%).
But rather than focus efforts on months
that offer opportunities, such as

October and January, app marketers
should also ask themselves if they can
do more to drive sustained purchases
all year long.
The emergence of games as themost popular form of entertainment
in the world and the recognition
that consumers, because of mobile,
are “never not shopping” aredevelopments in our culture and our“selves” that have a profound impact.
Campaigns that target our growing
passion for games or our willingness to
dip in and out of mobile offers during
our multitude of micro-leisure moments
have a higher likelihood of reaching
us in a context that matters to us asindividuals. Granted, seasonality hassome influence on user behavior andpreferences, but it doesn’t dictate them.

GAMING APPS IN-APP PURCHASE COSTS & CONVERSIONS BY MONTH$35$33.92$32.94$30$28.49$31.36$28.50$27.60 17.0%$24.63
13.0%

$25
12.1%

$20

25%

22.4%
$29.14$26.86

15%
12.1%

11.6%

11.9%

$22.6411.8%$20.32

9.1%

20%

10%

11.4%

11.1%
10.2%
$18.13$15

5%Jun-17

Jul-17Aug-17

Sep-17Oct-17

Nov-17

Dec-17Jan-18

Feb-18Mar-18Apr-18May-18

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 26

Engagement by Gaming Subcategory
Gaming apps are growing in number and variety at a rapid rate. In theprocess, they have not only evolved in terms of graphics and mechanics.
Acquisition Costs and Engagement by Subcategory
Today gaming apps also span many
genres that target an even greaternumber of audience segments,
personas and player types. In thisexpanding market gaming companies
can win big with blockbuster titles orbuild a sustainable business catering to“long tail” tastes.
The route you choose will always
depend—first and foremost—on yourbusiness goals. But it’s also helpful
to know which app categories are
crowded and competitive, and which
ones are full of potential. With this inmind, Nebojsha Mitrikeski, independent

researcher and Game Director at
Snowball Games, decided to movebeyond the app store rating andrankings to determine the *real* winninggames types and categories.
Drawing on data provided by Apptopia
and the results of personally playing andtesting both the all-time top 300 grossing
games in the U.S. Apple App Store and the
top 300 grossing games from newcomers,
Nebojsha shows that Strategy and Puzzle
game genres lead the pack. Casino andSlots games also enjoy a top-notch spot in
the all-time hits list.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 27

USA TOP GROSSING GAMES: THE REAL GAME TYPES

Source: Snowball Games

Serendipitously, the genres thathave proven crowd appeal are alsoa match with the leading gaming app
subcategories Liftoff has chosen to
detail in its breakdown of data byacquisition costs and engagement rates.
Map this data to a deeper understandingof the defining characteristics of eachgaming subcategory and some intriguing
patterns emerge.

The less demanding the gameplay (forAt a high level, the more involved the
gameplay (for example, Strategy), themore effort (and expense) needed toacquire users who will go the distance.
However, the opposite is also true.

from the get-go? Fierce competition

example, Casual), the less the cost.
This can be linked to a number offactors:
GENRE: Strategy games are as common
as fish in the ocean, but only 10%of all app users across all gaming
categories combined are whales. Are
app marketers up against tough odds
and complex gameplay might explain
why this group also has the highest
CPIs ($5.75) and the highest cost-perpurchase ($41.76). Casual games, on

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 28

the other hand, are also common, butthey don’t require substantial timecommitments. Onboarding is a breeze
and players can be up and running (andpaying) in no time. Might this explain
why installs are a steal at just $3.12 andinstall-to-purchase costs ($27.05) are
the lowest of the group?
GENDER: Males gravitate to Strategy
games while females prefer Casual.
Earlier sections in this report show
males are expensive to acquire andsuggest females may be excluded frommany campaigns and creatives. Could
app marketers be painting themselves
into a corner? Again, it certainly goesa long way toward explaining thesignificant difference in install costs.
INTENT: Casino games are gender
neutral, but users of both sexes engage

with this subcategory with a goal inmind. Whether it’s a chance to win at
Poker or the opportunity to make a
bet on the outcome of a championshipsoccer game, users understand thevalue proposition. This might explain
why costs are moderate across thegaming funnel, and less than those ofStrategy games, where the benefit isless clear-cut.
It’s a similar story for conversion
rates. Casual games, the easy, breezysubcategory that users can dip in andout of as and when they please, don’t
require a lot of commitment. Casual
games have to convince users to comeback, and they have to rise above thenoise in a crowded market space. Little
wonder that they come in cheap but also
at the lower end of the scale with thelowest engagement rates in the group.

GAMING APPS COSTS BY SUBCATEGORY

CasinoCasualStrategy

INSTALL

$5.24

$3.12

$5.75

REGISTER

$6.88

$8.47

$6.17

IN-APP PURCHASE$30.36$27.05$41.76

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 29

Casino games offer a chance to win, andusers will pay for the privilege. This helps
explain why the install-to-purchase rate
for this subcategory leads the group with
an impressive 17.3%.
Casino and Strategy games aresubcategories with a purpose thatdemands user attention and buy-in.
Casino games offer a chance to win,
and users will pay for the privilege. This
helps explain why the install-to-purchaserate for this subcategory leads the groupwith an impressive 17.3%.
Strategy games may start out as a hardsell, but they are also addictive. Overall,it’s a subcategory that enjoys massive
and lasting appeal among highly
engaged and loyal “tribes” who tend toplay these games over months, evenyears.
Of course, exploring all the possible
reasons and scenarios to explain the
differences in costs and conversion
by subcategory is beyond the scopeof this report. The purpose here is not
to answer the “why” question. The
aim is to provide app marketers witha benchmark, allowing them to gauge
campaign efforts and set performancegoals they can optimize to moving
forward.

GAMING APPS CONVERSIONS BY SUBCATEGORY

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 30

Gaming Ad Spend by Ad Format
For the first time, Liftoff examines acquisition and engagement costs
across the Gaming funnel, breaking down the data by platform (iOSand Android) and ad format (Banner, Interstitial, Native and Video).
At a high level, the breakdown of ad

most app marketers who cut theirspend by format–a data snapshot based

teeth in digital marketing on the web.

on the last 30 days–shows that app

More importantly, these ad formats

marketers focus the majority of their

are universally understandable andspend on static formats (banner andaccessible by users everywhere on theinterstitial). This combination accounts

planet—regardless of whether they havefor 56% of ad spend on Android anda high-end device or a low-end legacy

61% of ad spend on iOS.

smartphone. This is particularly important
for the 2.3 billion Android users on the

The choice is a safe one. Banner andplanet–many of whom are using phones

interstitial ads are familiar territory forthat are two or more years old.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201831

AD SPEND BY FORMAT: ANDROID VS IOS

Android vs. iOS

22%

21%

VIDEO

BANNER

19%
VIDEO

7%

9%

NATIVE

INTERACTIVE

13%
NATIVE

29%
BANNER

13%

35%

INTERACTIVE

INTERSTITIAL

32%
INTERSTITIAL

Granted, static ads bridge the digital
divide, but they also top the list of mobile
ads that tend to annoy users most. In
fact, a recent Brand Receptivity Neuro
Lab Study, which was designed to help
marketers understand how consumers
react to and engage with different ad
formats using technology to monitor
people’s neuro and biometric responses
before, during and after the delivery ofa mobile ad, found that users respondnegatively to intrusive ads.
The emotional response to a full-pageinterstitial ad is off the charts, resulting
in pupil dilation, increased heart rate
and other biometric data that shows

this ad format actually activates thebrain’s “fight-or-flight” center. But static
ad formats are not just annoying. A
2017 survey of mobile users in the U.K.
places them among the ads users arealso most likely to forget.
While app marketers can harness
better ad creatives and approaches
to get more value out of banners andinterstitials (perhaps even reinforcing
the message with emails or more
personalized push notifications
once users opt-in and provide that
information), there’s plenty of mileage inmore interactive and innovative formats
such as native and video.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 32

Consumers engage with native ads 2060% more than standard banner ads.
Native ads are less likely to lead to user
churn and ad fatigue.
According to research from global
business analyst IHS Technology andcommissioned by Facebook’s Audience
Network, nearly two-thirds (63.2%) of all
mobile display ads will be native by 2020.
And for a good reason. The same study
found that consumers engage with nativeads “20-60% more than standard bannerads.” Native, the report observes, is lesslikely to lead to user churn and ad fatigue.
More importantly, it’s an ad format
that drives higher retention rates (upto 3x), eCPMs (up to 2x) and clickthrough rates. Based on the benefits
and current rates of uptake among
advertisers, the researchers forecast
native will account for $53 billion in
total advertiser spend by 2020. Withso much promise and potential, it’ssurprising that native accounts for sucha comparatively small percentage ofcurrent spend. Specifically, Liftoff datashows native accounts for 13.4% of ad
spend on Android and just 7.5% on iOS.

Perhaps it’s early days, or maybe gaming
app marketers have yet to grasp themechanics of social and storytelling to
get the most out of their campaigns. The
data doesn’t say for sure.
Video appears to be more ready forprime-time. Liftoff data indicates appmarketers are becoming aware of theopportunity, which is why this ad format
already counts for 22% of ad spend
on Android, and 19% of ad spend on
iOS. While this data snapshot doesn’t
provide clear evidence that video ads
are the ones to watch (no pun intended),a review of market data confirmsthat video advertising is “rising up to
take a central role in influencing andenhancing the purchasing process.”
It’s why mobile measurement company
Zenith forecasts mobile video ad
spending will grow 49% to nearly $18
billion this year, while fixed online video
ad spending is expected to decline 1.5%
to $15 billion.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 33

Spotlight on Rewarded VideoOne type of video ad that quite literally pays dividends is rewarded
video.
The ad format, which gives players theopportunity to watch an ad in exchange
for a reward within the game, satisfies
both stakeholders. For publishers
looking to reduce their dependency
on in-app purchases, which are greatto earn but harder to encourage,
rewarded video offers an effective
monetization tool.
Players, on the other hand, gain
additional benefits in the game without
having to wait or pay. In fact, a recent

user survey from video ad network
Unity Ads reports almost 80% of
players are open to engaging with avideo ad for an in-game reward. The
same study found that “less than 1-in-10
developers saw retention drop after
introducing rewarded video ads. Little
wonder that Unity Ads hails rewarded
video as the market’s “hottest revenue
generator.”
How big is the surge toward rewarded
video and how much does it deliver?

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 34

Global real-time advertising platform
Smaato draws from 2017 data to offersome answers. It reports that spending
on rewarded video by its clients has
more than doubled (153%). Impressions
from rewarded video are up 96%, andeCPMs are up 48%. Much of the growthcame from gaming apps.
Liftoff data from the last 30 days
(June 27 through July 26) shows thatrewarded video accounts for justunder 17% of total ad spend. As this is asnapshot, it’s not possible to evaluate
the trend or calculate the growthtrajectory. Fortunately, a wealth of

third-party research has already madethat case crystal clear.
Mobile video ad network AdColony
reports that, on average, video ads
drive a significant share of publisher
revenues (31% for gaming apps and
36% for non-gaming apps). Moreover,a March 2017 survey by the same
company found that game publishers
believe rewarded video offers the bestuser experience, with 75% calling it
out as the most effective monetization
method for mobile. IAPs came insecond place with 63% and interstitials(44%) came in a distant third.

THE REVENUE DIVIDE: GAMES VS OTHER APPS

4%

1%

3%
21%

31%

43%

36%

Gaming
Apps

10%

19%

30%

3%

VIDEO ADSDISPLAY ADS

Other
Apps

NATIVE ADS

IAP & MCOMMERCE

INSTALLS & SUBSCRIPTIONSAFFILIATE DEALS

Advertising Provides 76% of Revenue for Non-Gaming Apps
Source: AdColony

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 35

CPIs may not be the biggest bargain–
but there’s tremendous value in using
rewarded video to motivate and activate
quality users.
Clearly, rewarded video is an extremely
effective ad format. But it’s also more
expensive. Liftoff’s data snapshot
confirms what you would expect:
added-value comes at a higher pricetag. At $3.28, CPIs for rewarded video
are 20.5% more than for non-rewarded
video ads ($2.72).
Focus only on the cost-side of theequation and you might be blinded tothe impressive conversion rates that
result when you present users with an
ad format they accept and appreciate.
No dilated pupils, no heavy breathing.
Just quiet contemplation as users

view an ad format that can enhance
gameplay, not interrupt it.
This dovetails with Liftoff conversion
data which shows conversion rates forrewarded video (9.45%) are double therates for non-rewarded video (4.84%).
Even better, the cost to acquire users
who will take an action after viewing
a rewarded video is significantly
less. Do the math, and CPIs may not
be the biggest bargain–but there’s
tremendous value in using rewarded
video to motivate and activate quality
users.

GAMING APPS COSTS & CONVERSIONS BY VIDEO AD TYPE

Rewarded Video vs. Non-Rewarded Video$3.28

INSTALL

$2.72

9.5%

4.8%

Install-to-IAP

Install-to-IAP$34.73IN-APP PURCHASE$56.19

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 36

Harry Bienenstock
Digital Marketing Manager, WSOP

Rewarded video is crushing it and Playtika’s Harry
Bienenstock helps you place your bets–and your priorities.

The data shows rewarded videos is
a top performing ad format acrossthe board. It contributes to increased
revenues for app companies and abetter quality experience for users,
who prefer the ad format to all others.
There’s a lot to win and a lot at stake.
To help you place your bets and map
out a strategy that will ensure you get
the most mileage and value out ofyour rewarded video spend, we get acrash course with Harry Bienenstock,a Mobile Hero and a digital marketing

manager specializing in user acquisition
for Playtika, the world’s largest social
casino gaming company. Harry is
responsible for the #1 mobile poker
game in the U.S., World Series ofPoker (WSOP). He draws from six yearsof experience in digital marketing–previously working in affiliate
management and digital marketingfor iGaming then moving into user
acquisition in social casino gaming—toshare his pick of the top 4 factors youneed to have top of mind.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 37

VIDEO FORMATS: More formats =more reach. Videos come in a variety offormats, so make sure your videos fit themedium and the message. Landscapeand portrait are a must if you want to
tap into all of the available inventory.
But it doesn’t pay to scrimp on square,
the most popular format for social andchannels including Facebook and
Google AdWords. Having one video inthree formats is by far the most costeffective approach. To save time andmoney when you’re creating videos(either in-house or outsourcing), givethe team the direction and edits for thevideo, then when finalized, have themcreate a version across all sizes.

VIDEO LENGTH: Time is money.
Approach rewarded video as you would
if you were advertising on TV. You’relaying down cash upfront for airtime. But
there’s a big difference playing in yourfavor: your audience can’t click away.
You have up to 30 seconds with an
engaged audience (that you’re paying
to be in front of in the first place), so
make the most of it. Don’t short-change
yourself or your app business by using
shorter clips.
CREATIVE: Tell a story. The best video
ads use the full 30 seconds to tell astory, so do exactly that. Storyboard
your clip and follow the same steps

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 38

you would if you were producing ashort film. That means starting with an
introduction, followed by rising action,a climax, and—most importantly–aconclusion. Repurpose with a purpose.
Rewarded video should capture user
attention with the help of effective
and–above all–proven creatives. Aimfor brand consistency and harness
elements and images that are alreadydelivering results as part of your app
preview videos, Facebook videos orother ad units. Mix and mash it up to
produce a compelling video. But don’t
get carried away with bells and whistles.
Make sure the final cut resonates withyour users, and it’s not just what yourmarketing team thinks looks good.

USER QUALITY: Buy the best users.
Even the best videos can miss themark if you don’t focus on hitting theright audience. Follow the numbers
to ensure you are both netting andconverting high quality users. Researchshows rewarded video is the adformat that can attract highly engaged
users from the get-go, so check yourmetrics (monetization, retention andengagement) to make sure theymeasure up. If a source delivers lower
quality users, then pay less for them, orelse you’ll find yourself acquiring lower
quality users at a lousy price point.

The bottom line: If you think you can buy low CPIs and bet on high engagement
rates, then think again. Rewarded videos may not be a bargain, but the payoff isworth it. Get it right, and you can even foster lasting loyalty to your game.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 39

Conclusion
COSTS & CONVERSION RATES:
Lower costs and higher engagement
rates signal a positive and promisingdevelopment that bodes well formarketers determined to inspire andinfluence users at intent-rich moments(Registration and IAP) after the install.
Significantly, the install-to-purchaserate of 13.4% represents a massive 67%
increase over the previous year. At$28.05, the cost to acquire a user who
completes an IAP is almost a bargain
compared to the $50.69 price tag in2017.

PLATFORM: Overall, iOS users comeat a higher price. But high engagement
rates suggest iOS users also offer
app marketers better value for money.
While iOS users are not rushing toregister, they are eager to purchase.
At 21%, IAP conversion rates are nearly
double that of Android users (10.8%).
There’s no denying that when it comesto driving deep-funnel engagement,
Android users are not easy to convince.
However, the massive growth ofAndroid as a platform offers marketers agood reason to try.

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 40

The more involved the gameplay (forexample, Strategy), the more effort (andexpense) needed to acquire users whowill take action deeper in the funnel.
GENDER: At first glance, marginal
differences in install costs ($3.66 formales and $3.84 for females) would
indicate males are the bargain. But a
more in-depth examination of conversion
rates reveals quite the opposite. At 16.7%,
the install-to-purchase rate for females is
an incredible 79% higher than for males.
REGION: At $21.42, the cost to acquire
a user in North American who makes anin-app purchase is moderately higher
than the cost in EMEA ($16.53). But it’s anoutright steal compared to the massive$71.02 price tag attached to users in
APAC. Overall, a review of costs andconversion rates suggests the action isconcentrated in North America, but the
future opportunity is in APAC. EMEA is amarket on the move and app marketers
would be wise to move out of their
comfort zone to explore opportunities in
the region before the competition heats
up.

MONTHLY TRENDS: Seasonality is afactor that continues to impact acquisition
costs and cost-per-action. However,the data reveals important windows ofopportunity when app marketers candrive positive results without draining
budget. One such month is July, when
the cost to acquire a user who completesa registration hits a low of $6.09, and theinstall-to-register rate soars to a high of
56.7%. Another month worth noting is
October, when app marketers can buy
low ($20.32 IAP) and engage high (17.0%).
GAMES BY SUBCATEGORY: A
breakdown of data by acquisition costs
and engagement rates shows these
metrics are inextricably linked with thedefining characteristics of gameplay. In anutshell, the more involved the gameplay(for example, Strategy), the more effort(and expense) needed to acquire users
who will take action deeper in the funnel.
However, the opposite is also true. The

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 201841

less demanding the gameplay (forexample, Casual), the less the cost—but
the greater the competition for user
attention and loyalty.
AD FORMAT: A data snapshot basedon the last 30 days of Liftoff data showsthat app marketers focus the majorityof their spend on static formats (bannerand interstitial). This combinationaccounts for 56% of ad spend on
Android, and 61% of ad spend on iOS.
Rewarded video accounts for just under
17% of total ad spend. More importantly,
conversion rates for rewarded video(9.45%) are double the rates for nonrewarded video (4.84%) and the cost toacquire users who will take action after
viewing a rewarded video is significantly
less.

* GAME OVER *Liftoff is a full-service mobile app marketing andretargeting platform which uses post-install data
to run true CPA-optimized mobile user acquisition
and retention campaigns. With Liftoff, campaigns
are optimized to drive specific actions beyond
the install, to acquire users who engage in more
profitable post-install events like booking a hotel,
subscribing to a service or making a purchase.

Fuel your Mobile Growth!

www.liftoff.io
info@liftoff.io

info@liftoff.io@liftoffmobile@liftoffmobile

Mobile Gaming Apps Report: User Acquisition Trends and Benchmarks 2018 42