And that means the value of the vast majority of mobile game developers, especially those without a strong track record, has reduced accordingly. We also get your email address to automatically create an account for you in our website. The following chart shows the proportionof worldwide app revenue that came from each company’s store in the first quarter of 2015. As with any industry, the truly eye-watering deals happen early in a cycle, when there is maximum uncertainty about how large a market could be and which companies will be the winners. And according to these projections, app store gross revenue could hit $77 billion in 2017. Indeed as this simple table demonstrates, since 2015 the valuation of companies versus their sales has been in the range 2.5 to 3.7 times, no matter whether they’re been $100 million deals or $9 billion deals. There are currently more female mobile gamers than male. On that basis, Zynga paid around 20 times NaturalMotion’s annual sales compared to the 9 times EA paid for JAMDAT. 2. It’s no secret that the mobile game market is booming. (NB: Assuming a 25% profit margin, these ratios would roughly translate to a range of company valuations of 10 to 15 times profits.). Want to know how we make it look so effortless? thank you Sean for this amazing study. The data comes from Statista. It is responsible for just under 60% of all revenue. Hence, given that the mobile games market can now be considered mature, especially in the west, any developer demonstrating it has titles that are already profitable and have the potential to scale further is in a very strong position. And how are developers are taking advantage of this opportunity? Yet for the game developers behind these headlines, the winner-takes-all business model behind app store distribution has resulted in an increasingly stark segmentation of have and have-nots. 85+ Mobile Gaming Statistics for 2020 That Will Blow Your Mind. App revenues, which were just $8 billion in 2011, grew to an estimated $45 billion in 2015 — an increase of over 500%. What do Q3 Earnings Tell Us about the East’s Big Online Companies? We researched mobile app industry revenue statistics to answer these questions. By 2017, Statista projects that in-app purchases will make up the largest proportion of app revenue. Since you’re an indie developer, you might also find this article helpful – https://www.blog.udonis.co/mobile-marketing/mobile-games/indie-mobile-game-marketing. – very helpful and your articles are helping me re-define my target niche. Why the IPO market for consumer startups is stronger than ever, and will it continue? But to cut Zynga some slack over NaturalMotion, 2014 was a much more uncertain time for the mobile game industry. We are proud to be among certified marketing consultants & ad agencies. The game Minecraft, which is played by both children and adults, tops the paid-for app charts. And that’s something which has been demonstrated in recent years when considering how the value of mobile game developers has changed, at least as reflected in terms of corporate activity such as acquisitions and IPOs. Why the New Breed of Hyper-casual Games Have Changed Mobile Marketing for the Better. Thank you Sean, glad you find it useful! Which mobile gaming statistic did you found the most surprising? The Mobile Game User Retention Statistics for 2020The Most Popular Mobile Game Genres I am based in Japan so I am in a good position to go after the female – casual gamer niche. Thanks to an explosion in smartphone sales and frictionless distribution from the App Store and Google Play, the sector had just started its hockey stick growth trajectory. We found that while most revenue comes from sales of the apps themselves, in-app purchases and advertising within apps are an increasingly important part of the market. More and more players are using mobile devices to play games. What was true about gamers just a couple of years ago is vastly different now. This has been particularly difficult for smaller companies as can be seen from the performance of Next Games and Mag Interactive. Paying up-front for apps is the largest revenue channel. , valuing the Finnish developer at $700 million. The difference is that while corporate M&A activity sees the buyer and selling negotiating between themselves to make a deal happen – and of course we never hear about the deals that don’t – once a company is floated on a stock exchange, its value is set daily by market forces. The app revenue of the two stores was an estimated $45 billion in 2015. How China is Supporting the Growth of Esports through Education. Indeed, in the mobile game sector, it’s expected US publishers such as Scopely and Jam City are gearing up to IPO in 2019, so it’s worth looking back at some previous experiences. The following chart displays the size of the app stores’ revenues from 2011 to 2015, with projections for 2016 and 2017. Games such as Clash of Clans, Game of War and Puzzle & Dragons were well on their way to becoming billion dollar sellers. How big is this opportunity? site's overall performance. A growing trend in recent years has been for companies, even fairly small ones, to sell their shares publicly on stock exchanges. Judging by these statistics, it is obvious that the mobile game market will continue to grow in 2020 and years to come. Write to us in the comments below! It seems that Apple App Store users are more likely to pay for apps. We’re recognized as a leading mobile marketing consulting agency by 5 major marketing review firms. What do Q3 earnings tell us about the West’s big online companies? Clone and run multiple accounts of the same app on one device. Average games convert just under 0.3% of players (compared to 0.4% in 2018), however the top-performing titles are converting 2-3x more in comparison. Apple’s App Store generates almost double the revenue of the Google Play store. (Source: Newzoo) 74% of mobile gamers in the United States would watch a video advertisement if they got in-app content in return. It’s convenient, simple, and fun. Mobile games. In general, advertising generates the least revenue — just under 10% across the entire market — but streaming media apps like Youtube, Spotify, and Hulu generate a large percentage of their revenue from ads. 2017 was a particularly busy year for such activity with four companies – ranging from the very large to the small – floating. From negligible revenues in 2010, it’s now the largest – actually the majority – sector of the +$130 billion annual global game market, and remains the fastest-growing. Moji Maker is the second most lucrative app. The app revenue of the two stores was an estimated $45 billion in 2015. We’ve just explained how revenue is divided between revenue channels, but how much of this money comes from Apple’s App Store versus Google’s? The mobile game market is constantly changing. We also see that female mobile gamers are more likely to purchase games and in-app content.