Mumbai: Moloco, an operational machine learning (ML) and performance advertising platform, has unveiled the findings of a new research study, Beyond Borders: Mobile Gaming Insights for Global Growth. The research highlights that mobile gaming app marketers may be overlooking significant opportunities to expand their reach and acquire high-value users in untapped global markets. The study reveals that 71% of mobile gaming app marketing spend is focused on just 10 countries, indicating a limited focus that could be hindering growth.
According to the research, the hyper-concentration of marketing budgets in a few select regions, particularly in Europe and North America, is creating an opportunity gap for marketers. “This research intends to inspire marketers to think outside of their comfort zone. The hyper concentration of advertising spend in a few countries creates a huge opportunity to uncover high-value users in new global markets that can be unlocked through targeted user acquisition strategies,” said Tom Shadbolt, Senior Insights Manager at Moloco.
The research specifically highlights the increasing trend of Indian IAP (in-app purchase) gaming app marketers focusing their budgets outside of the Asia Pacific region, with notable shifts towards Europe (33%) and North America (35%). This trend indicates that Indian marketers are expanding their global footprint and investing in emerging markets such as Latin America (LATAM), the Middle East and North Africa (MENA), and Sub-Saharan Africa. These regions receive 16% of marketing budgets, compared to the global average of 13%. Interestingly, despite this international investment, India’s Average Revenue Per Paying User (ARPPU) stands at $5.44, well below the global average of $11, opening up new opportunities for global mobile gaming marketers to acquire users at a lower cost.
“This research highlights the immense potential for Indian mobile gaming apps, especially IAP gaming app marketers, to capture new audiences across emerging and established global markets,” said Siddharth Jhawar, GM at Moloco India. “As the global landscape evolves, constant experimentation and expansion into diverse markets will be key to sustainable growth. Additionally, for advertisers outside of India, there are untapped opportunities for growth in India, where the low cost of user acquisition presents a significant advantage.”
Key findings from the study include:
71% of mobile gaming app marketing spend is highly concentrated in just 10 countries. A significant portion, 40%, is directed towards ads in the U.S. alone, followed by the U.K. (6%), Germany (5%), and Japan (4%).
U.S.-based marketers allocate 60% of their user acquisition spend to North America (U.S., Canada, and Mexico), with 82% of the spend directed toward North America and Europe combined. This suggests opportunities for marketers to explore other regions, particularly Asia Pacific.
Chinese marketers lead the way in diversifying their global marketing spend, with only 36% directed towards the U.S., Canada, and Mexico, and greater focus on markets in Europe, Asia Pacific, and other global regions.
High-value users, who make up 70-85% of in-app purchase revenue, are distributed consistently across markets, showing that targeted user acquisition strategies can unlock growth in previously untapped regions.
There are significant paid user acquisition opportunities in countries like Brazil, Greece, Iceland, the Netherlands, the United Arab Emirates, and South Africa, where competition is lower and the potential for high-value users is rising.
“It’s tempting to focus on large markets because they’re familiar and marketers are used to advertising there,” said Sarah Yamanouchi, Head of Growth Marketing at Rec Room. “However, there is significant opportunity beyond these traditional markets where the competition is lower and hitting your KPIs can be much more efficient.”
Moloco’s study, which analyzed performance outcomes from over 4,000 mobile gaming apps across key genres and regions, provides new insights on how marketers can diversify their strategies and capitalize on emerging opportunities worldwide. To access the full research and methodology, visit Beyond Borders: Mobile Gaming Insights for Global Growth.
This research calls on mobile gaming marketers to think beyond traditional advertising boundaries and seize untapped growth potential in global markets, while leveraging cost-effective user acquisition opportunities in regions like India.
