There’s a deluge of new data and research to wade through in the mobile games business. Our weekly data digest column breaks it all down into digestible chunks.
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Liftoff estimates ROAS and CPI by ad format
There are two key graphs in Liftoff’s new ad creative report – the first breaks down CPIs on iOS and Android by ad format:
Liftoff notes here that native ads are the most cost-effective option on iOS by far, while playables are the best cost option on Android ($0.60), and run at less than half the cost of native ads ($1.22). Plus, of course, the higher costs on iOS reflect that Apple users are the more valuable spenders.
Next, a look at day 7 ROAS by ad format – thought Liftoff notes these are general benchmarks across all of gaming:
Native and banner ads come out on top here, and Liftoff notes that while video and playable ads had lower costs per install on Android, they also posted lower ROAS by day 7.
The research was based on Liftoff’s own 2023 data, which takes in 602bn ad impressions, 49.4bn clicks and 144m installs.
NetEase user spending hits $30bn
Chinese games giant Netease has raked in $30bn from user spending to date, says a new Appmagic report.
Six of the company’s games have generated over $1bn in net revenue so far, while three games have made more than $1.5bn. Fantasy Westward Journey is responsible for 25% of that $30bn, while Knives Out and Onmyoji account for 10% and 8% respectively.
Eggy Party boosts NetEase financials
NetEase’s games business brought in RMB 81.6bn ($11.5bn) in revenue for 2023, according to its latest financial report.
That’s a 9.2% increase year-on-year, with mobile accounting for 75.2% of its earnings – an increase on 2022’s 67%. The company says that this performance is thanks to social platformer Eggy Party and MMO Justice Mobile.
Overall, the firm reported a 7.2% increase in revenue for 2023. The company brought in RMB 103.5bn ($14.6bn) for the period, while profit shot up 19.5% to RMB 63.1bn ($8.9bn). The company’s shares dropped 4% the morning after its 2023 report came out, though.
iPhone sales take a dive in China
Sales of iPhones have fallen by a massive 24% in China during the first six weeks of 2024, according to data from Counterpoint Research reported by Bloomberg. the data also shows that Apple now has the fourth largest share of the Chinese smartphone market, behind Vivo, Huawei and Honor. Overall, the Chinese mobile market has seen a 7% contraction in early 2024.
Apple’s record-breaking €1.8bn fine
Apple has been slapped with a €1.8bn ($1.96bn) fine for allegedly “abusing its dominant position” in music streaming. Apple is appealing this decision.
The ruling comes just days before the EU’s Digital Markets Act comes into force on March 7th – legislation designed to break the dominance companies like Apple have in the tech space.
Wildlife Studios axes 21% of staff
Tennis Clash maker Wildlife Studios is making its third round of layoffs in three years, reports Game Developer.
The Brazilian company is cutting 21% of its workforce around the world, meaning around 133 people are to lose their jobs. In a statement, Wildlife says it is aiming to be a “small and more agile” company, emphasising that it is still investing in new game projects.
Flexion predicts record $30.9m in revenue for Q4
Marketing firm Flexion put out a trading update estimating £24.3m ($30.9m) in revenue for Q4 2023, a record for the company.
That’s a 12% increase year-on-year and on the lower end of its £22m-£29m ($27.9m-$36.8m) guidance for the period. Meanwhile, the company predicts gross profit £4.9m ($6.2m), a 35% rise on Q4 2022.
