AppsFlyer Report Shows Major Growth For Mobile Gaming Sector as Demand for Gaming Apps Soars 45% in 2020

AppsFlyer, the global attribution leader, today released The State of Gaming App Marketing - 2020 Edition, a report examining the growth of the mobile gaming industry during the first three quarters of 2020. The report analyzed 9.2 billion app installs to provide marketers an in-depth analysis of global data-driven insights, industry trends, and growth opportunities, as well as performance benchmarks in 16 key markets.

Games have long been the driving force of the mobile app economy, yet, the global pandemic helped mobile gaming reach an entirely new level with a 45% jump in installs compared to 2019 — 40% higher than last year’s growth rate.

“It’s not a surprise that we saw a massive increase in new players trying games for the first time; in particular, Hyper Casual installs surged 90%, including a staggering 250% in the number of marketing-driven non-organic installs,” said Shani Rosenfelder, Head of Content & Mobile Insights, AppsFlyer. “What’s significant is that gaming apps realized the opportunity to accelerate their user acquisition efforts and took full advantage of this trend while in the moment. The brands that made the reactive, nimble moves to meet heightened demand dominated the stay at home peaks in gaming app engagement.”

Gaming apps were able to maintain impressive revenue figures in the months that followed lockdown by continuing to engage a large number of users who installed new games at the start of the pandemic. While in-app spending started to increase in March, it peaked in May with a 25% increase over February 2020, and later again in July.

Key Findings:

• 25% increase in in-app purchase (IAP) revenue during COVID-19 lockdowns. The rise was driven largely by Casual games, which jumped 55% and maintained high levels of revenue through August. As mobile advertising faces challenges marketers can look more toward purchases, since there’s evidence that consumers are becoming less tolerant of in-app advertising and willing to spend more in-app.
• IAP (In-App Purchase) revenue climbed 67% between February to August. In contrast, IAA (In-App Advertising) decreased by 16% in the same timeframe.
• Hyper Casual games saw an increase of 250% for non-organic installs. The growth is attributed to marketers understanding that many new players were trying mobile gaming for the first time during the pandemic.
• Media costs rose across genres and geographies as the pandemic continued, increasing 35% in the US. Marketing fell 42% by September, causing non-organic installs to fall to 8.3% (from 14.2% in April).
• The most significant growth factor was aggressive user acquisition (UA) early on. Large numbers of UA at the beginning of the pandemic fueled ongoing success after install decline.

“While there was robust growth in gaming app installs over the first few quarters of the year, it’s clear that there are still areas for major growth,” said Brian Murphy, Head of Gaming, AppsFlyer. “Install growth and the return of big brands beyond gaming created a surge in media costs, demonstrating the need for marketers to implement less-expensive strategies. The most overlooked tactic in mobile gaming apps is remarketing, as re-engaging users has been a key driver of revenue in 2020.”

It’s possible that this explosive success is the “new normal” in gaming, as revenue has remained strong in 2020 while it dropped throughout 2019. However, with much uncertainty on the horizon – from the far-reaching economic effects of the pandemic, and other factors like iOS14’s changes to the App Tracking Transparency framework – it’s hard to say for certain what’s around the corner.

The State of Gaming App Marketing Report, 2020 Edition is available at https://www.appsflyer.com/resources/gaming/state-of-gaming/

Methodology

The State of Gaming App Marketing Report, 2020 Edition from AppsFlyer is an anonymous aggregate of proprietary global data from 9.2 billion non-organic installs across 13,000 apps with over 3,000 non-organic installs per month in 2020. Genre groupings were comprised of the following app store categories: Hyper Casual, Casual, Midcore, Hardcore and Social Casino.

About AppsFlyer

AppsFlyer, the global attribution leader, empowers marketers to grow their business and innovate with a suite of comprehensive measurement and analytics solutions. Built around privacy by design, AppsFlyer takes a customer-centric approach to help 12,000+ brands and 7,000+ technology partners make better business decisions every day. To learn more, visit www.appsflyer.com.

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