spotting the mobile spenders
Transcription
spotting the mobile spenders
© 2014 NEWZOO | DECEMBER | V1 NEWZOO FREE DATA REPORT SPOTTING THE MOBILE SPENDERS An Analysis of Paying Smartphone and Tablet Gamers GLOBAL WITH A FOCUS ON US AND WESTERN EUROPE © 2014 Newzoo KEY 2014 FACTS This Year Of Them 1.5bn 32% People Will Have Played a Game on a Smartphone or Tablet: 51% of the Global Online Population NORTH AMERICA: 151M (49%) © 2014 Newzoo Will Have Spent Money On or In a Mobile Game: 485 Million Consumers NORTH AMERICA: 42% (64M) KEY 2014 FACTS Paying Mobile Gamers Spend Totaling $4.30 $25bn Per Month On Average This Year For All Mobile Gamers Worldwide Combined NORTH AMERICA: $7.68 © 2014 Newzoo In Revenue Generated by Tablets and (Smart)Phone Games WorldWide NORTH AMERICA: $5.9bn KEY TAKE-AWAYS Share Mobile Spenders Close To That Of Console/PC Mobile games, dominated by the free-to-play business model, are not as different from console or PC gaming as one might think in terms of paying players. In two years time, the share of spenders on a global scale has risen from 36% to 46% in Western Europe and the US combined. This share is 67% for console gaming and 59% for gamers that play MMO type games. This increase in paying mobile gamers is one of the main drivers of revenue growth in mature markets. Monthly single digit conversion rates of individual games are often misinterpreted as share of mobile gamers that spends money. © 2014 Newzoo Of all US & W-EU Mobile Gamers This Year 46% Spends Money, Compared to 36% 2 Years Ago. KEY TAKE-AWAYS Amazon Best in Reaching (Big) Spenders Analysts and press focus predominantly on the iPhone, iPad and Google Play app stores. The Amazon Appstore on Fire devices, Android, and preloaded on BlackBerry is often overlooked. A closer look not only reveals large absolute gamer numbers in the US and Western Europe but, more importantly, shows that gamers using the Amazon Appstore are the most likely to spend money. In addition, it boasts a relative high reach amongst the valuable family-oriented demographic. Developing and marketing games for the Amazon Appstore could prove most effective compared to other app stores and is certainly undervalued at the moment. © 2014 Newzoo Of all Mobile Gamers that use the Amazon Appstore, 64% Spends Money on Mobile Games vs 41% on Average and 37% for Google Play. KEY TAKE-AWAYS Screen Segmentation: Mobile Can Take 50% When slicing gamer revenue data across the four typical screens used by a consumer, it comes as less of a surprise that the share of mobile games has grown so explosively towards the 29% it will take this year. According to our Screen Segmentation ModelTM, it could grow to 50%. COMPUTER © 2014 Newzoo ENTERTAINMENT FLOATING PERSONAL In 2017, Mobile Games Are Anticipated To Take 37% Of Global Games Market Revenues. 29% This Year. KEY TAKE-AWAYS Growth Will Continue, Driven by Multiple KPIs The mobile games market in mature markets is not saturated as some analysts claim. Investigating app store revenues and single-game metrics does not reveal the dynamics behind growth. Understanding growth potential requires looking at KPIs in a broader manner, revealing key local differences. POPULATION © 2014 Newzoo CONNECTIVITY GAMERS SPENDERS AVG. SPEND/MONTH REVENUES Of the $7.4Bn Year-on-Year Growth of Mobile Revenues, 58% Was Generated by Mature Markets (NAM/W-EU, JP/KOR). KEY TAKE-AWAYS The Big Spender Is a Family Man With A Full-Time Job The majority of (big) spenders on mobile are male and have kids. For men the share of spenders rises with age, for women it drops. On average one in five mobile spenders is a man older than 35. Spenders are also most likely to have a full-time job and a large income. More than a third of mobile spenders play together with their children regularly and spend a large share of their game budget on their kids. Mobile spenders do a lot more shopping, are more active on Twitter and Google+ and have a distinct preference for certain mobile service providers. In-depth profiling of spenders illustrates that this is a valuable target audience also outside of their game spending behaviour. © 2014 Newzoo Of All Mobile Spenders on iPad & Amazon Fire Devices, 51% Have Children at Home versus 34% for All Non-Spenders. INTRODUCTION This year, games played on phones and tablets will gross $25Bn in revenues worldwide. With 1.5 billion mobile gamers, it is easily the most popular games market segment on the planet. This immense audience will ensure the market share of mobile will continue to rise. Depending on region, a specific “stack” of growth KPIs is at work, including rising connected population, share of paying gamers and average spend. Analysis of data on these KPIs, confirms that there still is enough room for growth, also in mature markets such as the US and Japan. Mobile gaming has tapped into new game time and wallets but cannibalization of other market segments is increasing. This does not imply that console and PC gaming are going to disappear or be decimated by these portable screens. After all, from a consumer perspective, these are different screens with their own characteristics and role in a persons’ life. We aim to provide our clients insights that go further than app store data and in-game metrics, ultimately to outsmart competition. To do this, we combine financial market analysis, primary consumer research in 25 countries, app store / transactional data and census KPIs for the top 120 countries by game revenues. This report provides a glimpse of what we do. It also aims to take away a number of common misperceptions, including: The US mobile games market is saturated The share of spenders for mobile is significantly lower than for PC and console Overestimation of mobile games revenues in Latin America Underestimation of the Asian market in general and Japan specifically Undervaluation of revenues generated outside of iOS and Google Play 2014 GLOBAL MOBILE GAMES MARKET | GAMERS & REVENUES © 2014 Newzoo | Source: Global Games Market Report Premium 150M MOBILE GAMERS NAM MOBILE REVENUES © 2014 Newzoo Peter Warman CEO Newzoo MOBILE GAMERS EMEA MOBILE REVENUES $5.9Bn $5.0Bn $0.5Bn $13.5Bn MOBILE REVENUES LATAM MOBILE GAMERS Enjoy our latest report. Feedback is more than welcome! 450M 160M MOBILE REVENUES APAC MOBILE GAMERS 740M MOBILE SPENDERS ON THE RISE SHARE OF SPENDERS PER MARKET SEGMENT FOR US, UK, GER, FR | 2012 VS 2014 © 2014 Newzoo | Source: Global Games Market Report Premium Mobile Console MMO Free-to-play smartphone and tablet gaming evolve and show a similar share of spenders as console and PC gaming. A common misunderstanding is that a pay-upfront business models give a 100% player/spender ratio. In the case of console gamers in the US, UK, Germany and France for instance, 33% of console gamers never spend any money. The share of paying players used to be even lower (59% in 2012) but digital distribution and DLC has helped to match smaller budgets. For mobile games, the ratio has gone up from 36% to 46% in two years time, a key driver of revenue growth in mature markets. Monthly single digit conversion rates of individual games are often misinterpreted as share of mobile gamers that spends money. AGGREGATE OF US, UK, FR, GER © 2014 Newzoo SPENDERS DIFFER PER COUNTRY SHARE OF MOBILE GAME SPENDERS PER COUNTRY | 2014 AVG Behind the size of a market in total revenues, gamer behavior differs enormously per country. Understanding these complex dynamics can result in smart international and marketing strategies. Surprisingly, Spain has the second highest share of big spenders after the US, with 7.1% of Spanish paying gamers classed as whales. Fellow European countries, Germany & The Netherlands, have the smallest share of whales with less than 4% each – lower than both Poland and Turkey. MOBILE GAMERS BIG SPENDERS 260M 6.8M IN THESE 10 COUNTRIES COMBINED © 2014 Newzoo | Source: Global Games Market Report Premium © 2014 Newzoo © 2014 Newzoo HOW APPSTORES COMPARE AMAZON REACHES (BIG) SPENDERS BEST SHARE OF MOBILE GAME SPENDERS PER APPSTORE | US, UK, GER, FR | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer iPhone 47.7% iPad 57.1% Google Play 36.5% Amazon 64.2% LEVEL OF SPENDING AMONGST ALL MOBILE GAME SPENDERS PER APPSTORE | US, UK, GER, FR | 2014 While the world focuses on the battle between iOS and Google Play, it is Amazon that reaches the most valuable crowd. A closer look at spending behaviour per app store not only reveals large absolute gamer numbers but, more importantly, shows that gamers using the Amazon Appstore are the most likely to spend money. These gamers also have a high share of big spenders characteristic for tablets such as Amazon’s most popular devices: the Fire Tablets. Combined with it’s more family-oriented demographics, the opportunity might be largely underestimated, suggesting developers should shift marketing resources towards the Amazon Appstore. AGGREGATE OF US, UK, FR, GER © 2014 Newzoo SURFACE, FIRE TABLET, IPAD GAMERS EARN MOST SHARE OF HIGH EARNERS AMONGST MOBILE GAMERS PER APP STORE | US, UK, GER, FR | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer The app stores on iPad, Surface and Fire tablets reach mobile gamers with a relatively high income. On average, 19% of the online population in the US, Germany and France has a high income. Google Play with its large and broad user base equals the average score. The stores that are used on tablets have a share of mobile gamers with a high income that is twice the average. The Windows Surface scores best, just ahead of the iPad and Amazon’s Fire tablets AGGREGATE OF US, UK, FR, GER © 2014 Newzoo JAPAN, WORLD’S LARGEST MOBILE MARKET IPHONE, IPAD, Google Play STORE USE AMONGST MOBILE GAME SPENDERS AND NON-SPENDERS | JAPAN | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer 44% of all spenders (aged 10 to 50, Japan) use the iPhone App Store to download games Japan’s feature phone gaming heritage evolves into smartphone and tablet gaming and results in an epic battle between Google Play and iOS for the market that will reach $6Bn this year. As it currently stands, the Google Play Store has a higher reach amongst Japanese gamers than both of Apple’s stores. Over 50% of (non)paying gamers are using the Playstore store to download games. Paying gamers are much more likely to use the Apple App store for iPad store than nonpaying gamers. SINGLE COUNTRY SCOPE: JAPAN © 2014 Newzoo PROFILING THE MOBILE GAME SPENDER © 2014 Newzoo MA JORITY OF SPENDERS ARE MALE AGE / GENDER SPLIT FOR PAYING MOBILE GAMERS PER APPSTORE | US, UK, GER, FR | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer 39% 61% 39% 61% 35% 65% 36% 64% Mobile games equally attract male and female players but when it comes to spending money, the demographic skews male. Across the app stores, males make up between 61%-65% of the paying gamers depending on app store. The Amazon Appstore has the highest share of older paying gamers, with 24% male between the age of 36-50. Paying gamers using the Apple App Store for iPhone skew the youngest. AGGREGATE OF US, UK, FR, GER © 2014 Newzoo TABLETS FIND A FAMILY HOME HOME SITUATION FOR PAYING MOBILE GAMERS PER APPSTORE | US, UK, GER, FR | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer Half of mobile game spenders has kids at home. Tablet spenders are more likely to have kids at home. A slight majority (51%) of both iPad and Fire Tablet mobile game spenders lives with children at home. More than one third of parents play games with their kids regularly and more than half of mobile game spending Dads state that the majority of their money is spent on games for their kids. AGGREGATE OF US, UK, FR, GER © 2014 Newzoo US SPENDERS ARE TWEETERS SOCIAL NETWORKS / APPS USED BY (NON-)SPENDING MOBILE GAMERS | US | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer Mobile game spenders are huge digital media consumers and more active on social networks than nonspenders. American mobile game spenders are more active users of social networks and apps, particularly Twitter, Google+, Flickr and WhatsApp. 54% is an active user of Twitter versus 40% of non-spenders. Facebook use is close to equal for non-spenders and people that pay. SINGLE COUNTRY SCOPE: US © 2014 Newzoo US SPENDERS PREFER AT&T MOBILE SERVICE PROVIDER USED BY (NON-)SPENDING MOBILE GAMERS | US | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer American mobile game spenders prefer the bigger brands when choosing a mobile service provider: AT&T and Verizon. A surprising 24% of nonspenders in the US does not go for one of the four biggest telecom providers but selects a smaller player, most probably in a quest to get a better deal. AT&T beats Verizon in terms of popularity amongst paying mobile gamers. SINGLE COUNTRY SCOPE: US © 2014 Newzoo US SPENDERS ARE SHOPPERS AND LIKE TECH RETAIL STORE POPULARITY AMONGST (NON-)SPENDING MOBILE GAMERS | US | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer There is a strong correlation between mobile game spending behaviour and spending outside of entertainment and digital media. In general, mobile spenders visit more different stores in a month period than non-spenders. BestBuy, Gamestop, Macy’s, Sears and Gap are far more popular amongst paying mobile gamers than the non-spenders. This shows this is a valuable target audience not only when it comes to digital content. SINGLE COUNTRY SCOPE: US © 2014 Newzoo WHAT MAKES A CONSUMER START P(L)AYING? © 2014 Newzoo OPINION GETS GET PEOPLE PLAYING WHAT DRIVES A CONSUMER TO START PLAYING (OR DOWNLOAD) A MOBILE GAME | US, UK, GER, FR | AGE 10-50 | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer The consumer’s voice is clearly the most important in selecting a game to play. A recommendation from family & friends is a universal motivator for people to start playing a particular game. Good reviews are another key driver, highlighting the importance that gamers place on & their trust in the opinions of their peers. AGGREGATE OF US, UK, FR, GER © 2014 Newzoo BIG SPENDERS ARE MORE COMPETITIVE REASONS WHY A (MINOR/BIG SPENDING ) MOBILE GAMER STARTS SPENDING | US, UK, GER, FR | AGE 10-50 | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer The big spenders want to feel they are special and hope to get a competitive advantage compared to others. Minor spenders are in it for the (extra) fun. Large spenders are far more motivated to pay by getting a premium account & being able to compete than minor spenders. Alternatively, making the game more fun is a more important reason to pay for the minor spenders. AGGREGATE OF US, UK, FR, GER © 2014 Newzoo BIG SPENDERS TRY MORE GAMES MAIN REASONS TO STOP PLAYING A MOBILE GAME AMONGST MINOR/BIG SPENDERS | US, UK, GER, FR | AGE 10-50 | 2014 © 2014 Newzoo | Source: Newzoo Data Explorer Big spenders are more pressed for time and always on the lookout for a new (and better) game. Minor spenders leave when they are bored with the game. Boredom is the key reason for minor spenders to leave a game (43%) though this is far less important for the big spenders (23%) who are most likely to quit once they have completed all levels of a game. AGGREGATE OF US, UK, FR, GER © 2014 Newzoo WHY GROWTH WILL CONTINUE © 2014 Newzoo GLOBAL GROWTH CONTINUES EARLY 2014 AND FRESH GLOBAL REVENUE ESTIMATES FOR (SMART)PHONE AND TABLET GAMES | 2013-2017 © 2014 Newzoo | Source: Global Games Market Report Premium Note: As part of the premium subscription to its Global Games Market Report, Newzoo updates clients on segments and regions every quarter based on continuous industry and market analysis. Results for the first nine months of 2014 have led Newzoo to adjust its 2014 full year forecasts, as well as the projections towards 2017. The figures below provide a summary of the revisions relating to mobile games. Fuelled by simultaneous growth in emerging as well as mature markets, mobile gaming will surpass $25Bn this year. Both “mature” Western & emerging markets will show strong growth this year. The North American market is expected to grow 51% y-o-y and Western Europe by 47%. The fastest growth can be found in emerging Southeast Asian markets and China (+86%). Mobile is now expected to become the largest game segment by revenues in 2015, GLOBAL DATA GROWTH DYNAMICS DIFFER PER REGION KEY KPI’S BEHIND MOBILE GAMES REVENUE GROWTH | NORTH AMERICA, GLOBAL | 2014 © 2014 Newzoo | Source: Global Games Market Report Premium POPULATION 358M CONNECTIVITY 86% MOBILE GAMERS 151M MOBILE SPENDERS 43% MOBILE AVG. SPEND/MONTH $7.68 MOBILE REVENUES $5.9Bn As growth occurs on multiple levels, the ultimate end result is that market revenues soar. For each country in the world, the dynamics are different. For mature markets such as North America, growth will be primarily driven by an increase in paying gamers & average monthly spend. Developing markets will flourish as online connectivity and the number of mobile gamers continues to rise. GLOBAL AND NAM DATA 7.2Bn © 2014 Newzoo 41% 1.5Bn 32% $4.30 $25.0Bn WHY MOBILE CAN TAKE HALF OF THE MARKET SHARE OF 2014 TOTAL GAME REVENUES PER SCREENS | GLOBAL & NAM © 2014 Newzoo | Source: Global Games Market Report Premium GLOBAL 27.7% NAM 44.0% GLOBAL 13.1% NAM 15.2% © 2014 Newzoo GLOBAL 38.7% NAM 25.6% GLOBAL 20.4% NAM 15.1% Divide in game revenues is slowly moving towards an equal split across the four typical screens a consumer has to access his or her digital content. Global figures are easily interpreted within the reference of one’s own country, especially in the US. The Personal Screen, or (smart)phone currently takes 20.4% of all game revenues globally and 15.1% in NAM. We expect NAM to move closer to the global average before 2017, and for the Floating Screen to take an increasingly wider share of revenues across the globe. GLOBAL AND NAM DATA ABOUT NEWZOO Company Newzoo is an innovative global market research firm with a primary focus on games. We provide our clients with a mix of consumer research, transactional data and financial analysis across all continents, screens and business models. We aim to be ahead the curve when it comes to global and local trends and always put hard data into a broader perspective. We work for the majority of top 25 public companies by game revenue, many independent game developers as well as a variety of global hardware and media companies. The majority of our clients are based in the US, Japan and China. Our company has its headquarters in the center of Amsterdam. We recently kicked-off our international expansion with an office in Shanghai, China. WWW.NEWZOO.COM © 2014 Newzoo Services The data in this report is derived mainly from two of our products: Global Games Market Report Premium (12 months subscription) Global, Regional, Top 100 Countries Annual PDF Report on Trends, Revenue/Gamer Data, Future Projections Granular Datasets (Updated Quarterly): 2013-2017 Gamer/Revenue Data Quarterly Updates with Trends, Mobile, Company Performance, M&A www.newzoo.com/globalreportpremium In-Depth Consumer Insights (12 months subscription) Available for 25 countries Cross-Analyze over 200 variables in the Newzoo Data Explorer Continuous custom analysis support by our analysts www.newzoo.com/newzoo-data-explorer [email protected] © 2014 NEWZOO | NOVEMBER NEWZOO FREE DATA REPORT SPOTTING THE MOBILE SPENDERS An Analysis of Paying Smartphone and Tablet Gamers GLOBAL WITH A FOCUS ON US AND WESTERN EUROPE © 2014 Newzoo