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Whether you’re in the casual gaming space or not, it’s no secret that casual gaming grew significantly during the course of the pandemic in 2020. The numbers speak for themselves: App installs for mobile games rose 45 percent in 2020, compared to 32 percent in 2019. In-app purchases also increased by 25% during lockdown. This was due to a greater demand for casual gaming (upwards 55%)
Casual gaming companies realized that the game was very popular and acted quickly to increase user acquisition in order to keep up with the market. Casual games ended up experiencing an uplift of 30 percent, and remarketing efforts also bore fruits with a 95 percent lift in average revenues from paying users from remarketing campaigns.
It is far from a bubble
Is this bubble or real? It is not. It is growing at an extremely rapid pace, already with a projected billion-dollar industry. It was actually a growing segment of mobile gaming before the epidemic. Projections by Statista indicate that casual gaming, which is currently valued at $85.5B, will be valued at $98.8B by 2024.
Companies that fail to capitalize on the rising demand for casual gaming by continually engaging in user acquisition campaigns run the chance of losing out on those who enjoy using non-gaming-specific devices such as tablets and smartphones.
How to sustainably grow casual gaming
Google has been on top of the urgency gaming companies to continuously grow an active user base. Google introduced app campaigns for engagement in Google Ads last year to help gaming companies re-engage existing players. That will soon allow brands to use target return on ad spend (ROAS) bidding for the campaigns on Android. What’s the upside? The upside? Maximized profit while keeping players active and loyal. There are some downsides. The downside? It’s only open beta. According to a recent post, Google also has a few other features in the works.
Google also helps gaming companies make more money through Open Bidding. This is an open-source bidding system from AdMob that hosts “a fair and instant auction for demand sources to compete to win every impression.” Game developers have to be able to navigate the policy set up.
Then there is also the Facebook ad network, which is a popular go-to for the user acquisition campaigns of casual gaming companies due to the positive ROAS. Running campaigns on the Facebook ad network allows companies to target users using both their demographics and psychographic profiles. Growth marketers can target the most money-hungry users by using this method.
There are two problems with the Facebook advertising network. First, the competition is intense and second, the conversion window lasts only 1-7 days. This is not enough time to reach a long-term audience. As mentioned in Voyantis, most gamers need time to learn the game mechanics and reach a point where they want to accelerate their experience with a purchase. This can take more than one week in most cases. The 7-day optimization window is not effective for identifying the desired audience.
How to increase user acquisition
Optimizing for LTV is the best way to increase ROAS in user acquisition campaigns.
It is gone a time when you can only take what fits within narrow parameters and in short conversion windows. LTV-focused signal optimization will ensure that only the best of the crop is targeted. This makes casual gaming more profitable.
Publited Sat, 11 Sep 2021 at 15:12:33 +0000