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MOBILE GAMING ATTRACTS ADVERTISERS

 * By Sam Terrasson
 * September 19, 2022



The gaming marketplace is continuing to gain popularity at an accelerated clip,
and within that sector hyper-casual gaming amounts for a large portion of
growth. Often called the “TikTok version of gaming,” it refers to mainly mobile
games that are easy to learn, fun to play, can be completed in moments as
opposed to hours (or days) and are often inspired by current social-media trends
due to their snackable content and low-key commitment requirements. Hyper-gaming
audiences tend to be highly diverse, which is a highly sought after attribute
for many brand marketers, and players are sometimes known as “hyper-engagers”
due to their steady dedication. Here’s what else you need to know.

Perks of Playing
Research from eMarketer indicates that ad revenues for US mobile gaming will hit
$6.26 billion this year, with hyper-casual gaming ranking as an easy way for
marketers to reach both traditional audiences and those consumers who fall
outside the typical gaming definition. In part, that’s because hyper-gaming is
so easy. Programs tend to be minimalistic or reminiscent of old-school arcade
games, which can strike the right nostalgia chord for certain demographics.
“It’s snacky content; you have two to five minutes on a metro, or in between
meetings, or wherever,” said Vaibhav Odhekar, COO of mobile gaming ad tech
company POKKT. “It’s a form of unwinding—you don’t have a longish play time, but
you get in, play and get out as quickly as you can.” Candy Crush is a perfect
example of this type of offering, but both app stores and big-name toy brands
like Hasbro are churning out new options on a near-daily basis. “We are able to
test roughly 800 different prototypes per month on the App Store with real
users, and very quickly we can see whether a game has potential,” said Alexandre
Yazdi, chief executive of Voodoo SAS, a publisher of hyper-casual games. “On
average, two become hit games.” Case in point, a game called “Fill the Fridge”
from Gybe Games, which quickly grabbed attention as the summer’s must-play
option. Challenges are low-stakes and repetitive, graphics are basic, the play
itself is simple to grasp (users can master the premise in a matter of seconds,
usually without instructions). This business model relies heavily on
advertising.

Currently, 70% of gamers say they prefer playing on a smartphone as opposed to
tablets or computers, according to a recent Entertainment Software Association
report, which is the ideal platform for a hyper-casual gaming session. For
mobile advertisers, quick gaming presents a growing ecosystem of potential
consumers who are engaged and receptive to marketing messaging. “These are
high-quality users with disposable income that are spending a substantial amount
of time within these types of apps,” said Meagan Martino, AppLovin head of
demand for EMEA and Americas. And popularity is booming, with the number of
hyper-casual downloads rising from 7.51 billion in 2019 to 15.6 billion in 2021.

Global Sport
In terms of reach, hyper-casual games typically command a larger global audience
than their console and PC counterparts. That’s due in part to households around
the world being less able, or willing, to spend sums of money on dedicated
gaming systems and devices—and it translates to a valuable opportunity for
marketers. Roughly 60 percent of gamers in Europe and North America regularly
play on mobile phones, but in Southeast Asia that figure soars to 87%. “The
market is only going to get way more competitive, both in mobile gaming and
mobile esports,” said Carlos Alimurung, CEO of Asian-based esports company ONE
Esports. Further adding to this trend is the declining typical age at which most
consumers acquire their first mobile phone. “People have recognized that the age
for someone in America, in terms of owning their first phone, is only getting
younger,” said Alimurung. “That trend is only exacerbated in Asia.” In fact, the
Chinese government recently issued a weekly three-hour gaming limit for players
under 18, due to the country’s skyrocketing rise of hyper-casual gaming among
young players.

Meanwhile, Turkey is fast-becoming known as the Silicon Valley of mobile gaming,
which is helping counteract the severe economic crisis that’s plagued the Middle
Eastern country for the last few years. “Casual and hyper-casual gaming is a
field that generates $20 billion out of an estimated $100 billion annually
generated by the mobile gaming industry,” said Noga Halperin, CRO at gaming
group SciPlay. “Just to be clear, social casinos are an $8 billion industry.
Today there are almost 3,000 game makers in Turkey; about 20% of the games that
reached the top of the charts in recent years were Turkish games because the
hyper-casual field is booming. Not every country that has the desire to expand
globally can achieve that.” Since 2017, Turkish-based developers of mobile games
have brought billions of dollars and investments to the country, thanks to deals
like Zynga’s $1.8 billion acquisition of mobile game-maker Peak in 2020. Due to
the success of such ventures, Turkish firms like Ludus Ventures are now funding
game developments in other countries, including Singapore, Finland, and the U.S.
 

Women in Control
In 2020, the mobile gaming market was comprised of 63 percent women, 60 percent
of whom played on a daily basis. Those numbers have steadily risen in the last
two years. “Women [now] account for a higher level on mobile than they do on
console,” said Stanley Pierre-Louis, president and CEO of Entertainment Software
Association (ESA). Noting the fact that gaming audiences have evolved beyond
teenage boys, makers like Appnile are currently focused on developing games for
women, such as Nails Done, a simple concept based on painting and decorating
fingernails that’s been downloaded around the world. In a similar vein, High
Heels! from Rollic challenges players to walk down runways in mile-high
stilettos while collecting prizes and dodging obstacles. Brands are likewise
jumping on the bandwagon and finding success with mobile-app games. At-home hair
dye company Holly Hair recently launched its Gamer Girl semi-permanent dye line
through a Roblox partnership that included virtual hairstyles for gaming avatars
plus a collaboration with MeganPlays, a female Roblox gamer who boasts 3.5
million YouTube followers. In early July, Elf Cosmetics got in on the fun by
debuting Game Up, a skincare and makeup line focused on gaming with products
sporting names like “Bonus Points” and “Rez-Me.”

Though video games have been around for decades, the Covid-19 pandemic caused a
further explosion in popularity as millions of users turned to hyper-casual
games that were simple to play while working from home during long lockdown
months. By some accounts, mobile is now gaming’s fastest-growing game platform,
generating revenues of $93.2 billion in 2021, which represents a 7.3 percent
increase year-over-year, according to Newzoo’s 2021 Global Mobile Gamers
Whitepaper. From 2019 to 2024, experts believe mobile gaming profits will grow
at an annual rate of 11.2 percent, making this market an important one to watch.
Game on!

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