Mobile Gamers Cost More Than They’re Worth

“Mobile Users Cost More Than They’re Worth” is the slightly pithy interpretation of this piece on Venturebeat titled “Developers, brace for a bloodbath: The cost of getting a new mobile gamer exceeds revenue that user generates“, which is a summary on mobile user acquisition costs versus spend published by Superdata Research.

The short version: the average user costs $2.73 to acquire through paid installs, but the average revenue per user is $1.96 – giving leaving a net loss of $0.77 per user. Obviously the average figures don’t really mean much as revenue per user will vary so much from app to app, but still the figures highlight just how cut-throat the industry is becoming in the race to acquire users and grow. This graph shows the growth rate:

Will this stop the mass of new games being released and new companies entering the market? Probably not, but it certainly looks like there’ll be a lot of disappointed bank balances in a few months time. The growth rate certainly seems unsustainable and, once the crash and the trough of disillusionment has been reached on the other side of the crash, there’ll be some great opportunities out there.

 

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One Comment

  1. Posted July 30, 2016 at 7:45 am | Permalink

    I have an idea for a world-wide game for all coutries in the world (ref: WIPO). For about 20 years I have been a national advicer for the Swe Inventors Association (1986–>). The most famous inventors association in the world. I have myself (beside my teacher work) developed 44 IPR that have get the world between 52800 – 74000 new jobs. I have that method within a game idea. I have tested the algoritm and it will be success. So do You find a way to cooperate.
    I am ‘self-learned’ within the digital area. But I am very interrsted in to use HTMLx, JavaScript and also CSS within my logoritm. My question: Do You find my ideas close to Your ideas ?
    Regards
    Gerth Öhman (original Gert Öman)
    Licentiate of Technology degree, Higher Edu. Pedagog, Teacher Leg / EU, Scientist within innovation development etc etc etc.

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