Mobile Gaming App Revenue Statistics And Factors Involved | MobileAppDaily
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Mobile Gaming App Revenue: Present Market Share And Factors Impacting It

In 2018, the mobile gaming revenue is expected to touch the $70 billion mark

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With games like PUBG and Fortnite locking horns in the market, the spurt in mobile game users has taken an unprecedented jump. And the growth in mobile gamers is directly proportional to the mobile gaming revenue.

If we take the stats from a recent report from Newzoo into account, gaming is expected to take away a 76 percent share of the $92.1 billion mobile app revenue in 2018. With this lion’s share, gaming will heavily dominate the mobile industry landscape.

Revenue

By this account, worldwide mobile gaming revenue will probably hit the $70 billion mark this year which will be fueled by three billion smartphone users. Furthermore, Newzoo estimates the number of smartphone users to reach 3.8 billion mark by 2021, and it will be well complemented by low-cost hardware and data plans. China remains the leader in the total number of smartphone devices with 783 million units, which is roughly 26.1% of global users.

So, with these stats, by 2021, the app revenue will take a jump of around $40 billion to reach $139 billion.

Active Smart phone users

If we talk about the game revenue, from the current $42.5 billion, it may reach $106.4 billion in 2021. 

China alone with 573 million mobile gamers will be generating more than $23 billion in revenue in 2018, which accounts for around 60 percent of China's total gaming revenue for 2018.

Moreover, the Newzoo report also states that about 13.7% of all Chinese mobile players are willing to shift on new hardware to give a boost to their gaming experience, which is about 7.6% in the US, and 2.9% in Europe.

Factors Impacting Mobile Game Revenue

The success of a game app is not limited to one or two factors; there are many things attached to the overall performance and retention of the app, especially when the total number of apps are hitting around 5 million.

Following are the factors that impact the app credibility and revenue generation in the market:

1. Monetization Models

The game app monetization is the primary revenue source and has six fundamental models that offer a wide range of options to app monetization.

  • Freemium apps: The apps which let the user play the game for a certain period and then ask for a financial commitment are the freemium apps. However, the rate of withdrawal from such apps are quite high, and the app developer should smartly limit the app use.
  • Paid apps: The apps which ask the user to pay before use are the paid apps and such apps generated around two billion dollars in revenue in 2017. Usually, this app monetization model works with those apps which are launched under a brand name because users don’t shell out money with ease. They need trust and good app reviews before investing in that.
  • Sponsorship: There are some apps which are designed with the sole purpose of branding and then there are apps which are backed financially by a third party company. In both the cases, the monetary source is sponsored from outside and helps the app to be free for the users.
  • Free with ads: Currently, there are many apps which are free to use, but are accompanied by ads, which are made compulsory to watch while using the app. The biggest drawback of such apps is that users find them annoying and it also leads to app uninstallation.
  • In-app purchases: The concept behind in-app purchases is that it offers an opportunity for app users to purchase additional items, and unlock additional playing time, characters, and levels. Though this app monetization model is not that successful because a regular app user takes more than 16 days to make their first in-app purchase. The popular gaming apps with in-app purchases are Clash of Clans, Candy Crush Saga, Clash Royale, Pokemon Go, and more.
  • Subscriptions: with Netflix and Spotify in action, the trend of SaaS services are on the go. It let the app publishers charge a monthly or yearly fee from the users.

App Monetization

2. Tracking LTV

LTV or Lifetime Value is the total revenue that an app can generate from each player. When an app goes viral, there are thousands and millions of users, and thus, it makes sense to track the revenue expectation from each user.

This revenue generation happens over in-app purchases or through paid apps. All in all, with all the revenue models, a particular user can be tracked of his total investment into the app.

3. Game Appeal

There should always be an element that should keep the user hooked to the app. In general, there are five reasons for a game app user to use it:

  • Accomplishment
  • Imagination
  • Socialization
  • Recreation
  • Subversion

And if the game app is crafted on the basis of these factors, the chances are high that the app will excel. For instance, in a racing game app, the user tries to beat the opponent and hence the feel of accomplishment crops in.

4. User Experience

The user experience of an app is another significant aspect that drives the mobile app monetization. If a user is impressed by an app, the chances are high that he will rate the app with positive reviews and in turn, these reviews can help many other users trust that gaming app and download it at first place, rather than jumping to some other app.

As per a study, an average mobile gamer spends about 24 minutes a day playing the game on his device and during this while, you can offer a rich experience to the user, and it will further help you with long-term revenue gain.

Final Thought

A game app is very much influenced by its genre, and that molds the final user acquisition. The more user base an app has, the better is the mobile app revenue. However, with the present market share of app revenue, the day is not far off when mobile apps will completely dominate the gaming industry.

For more information on the mobile apps or mobile app game development, you can comment below, and we will be pleased to help you out.

Vikram Khajuria
Written By
Vikram Khajuria

Jack of all trades. Covering the journalism field, Vikram writes at MobileAppDaily and keeps surfing the trends to understand tech and inventions better. Don’t forget his driving skills, he is a professional car rallyist. Life has just got better. Breathe it!!

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