Apple’s Take Rate, Gen X Loves Mobile Gaming, and Mobile is Breaking Records
Every week, Digital Turbine, AdColony, and Fyber are teaming up to give you the latest news and insights in the mobile world. In this edition of Mobile Monday, Digital Turbine explains the publisher push to reduce Apple’s take from App Store purchases and the ramifications if this were to happen, AdColony discusses Gen X’s affinity for mobile gaming, and Fyber shares record revenues for mobile games this year. Learn all about these stories in this week’s Mobile Monday!
Keeping Up With the Apple’s
It’s not often that we look for Mobile Monday content on investor websites, but a recent story and video by Motley Fool highlighting Epic Games’ lawsuit with Apple had us paying attention. The story in brief: Epic Games is trying to get Apple to reduce its App Store take rate. The story highlights that the current take rate is 30% from purchases in the App Store — a sizable chunk of potential revenue for publishers.
While the analysts do make multiple comments of how this is very unlikely to happen, they do take some time to consider what might be the end result if it did — a massive boom for mobile advertising: “If there’s a revenue jump per user, all of a sudden those users are way more valuable to the mobile-gaming company. They’re going to spend more money on advertising in order to acquire them. Because they’re going to gain more revenue for each one.”
The problem, of course, is that this is a massive revenue stream that Apple is likely unwilling to let go of easily — even if they might end up with a net benefit afterwards. But it does highlight the need for other options outside of stores for apps to get on phones (like on-device solutions) and also why we are seeing so much consolidation in the industry. By reducing the “ad tax” in mobile advertising, the entire market could see an influx of dollars — dollars that would ultimately benefit the entire industry.
Gen X Rank Mobile Games as Their Favorite Mobile Activity
Who are mobile gamers? As our research has established, mobile gaming is no longer just an activity enjoyed by younger, jobless generations. Consumers from every demographic, young and old, male and female, with ranging income and education levels enjoy playing mobile games. What’s more, according to Tapjoy’s latest research, 81% of Gen X users rank mobile games as their favorite mobile activity, as noted in Business of Apps.
Gen X users are upping their time on mobile devices by 66% this year compared to last year. On those devices, consumers are playing games to relax and unwind in addition to shopping on mobile. Also, 61% of Gen X users are planning on spending more when shopping on mobile this year. While spending time on mobile, users are accustomed to seeing mobile ads, and 59% prefer rewarded mobile game ads. In addition to rewarded ads, Gen X consumers like to see funny and succinct ads. 40% of Gen Xers have completed rewards ads with 28% completing them once or twice a week.
While these users may not have grown up in the world of gaming, social media, or with technology at their fingertips, they have quickly adjusted to a mobile-focused world and become as tech-savvy as their younger counterparts. What’s more, these consumers are settled into their careers and ready with higher disposable incomes to spend while shopping on mobile.
Another Year, Another Record for Mobile Gaming!
As the world inches out of lockdowns, mobile devices are still embraced as a permanent accessory in consumers’ hands. According to App Annie, the proof is in the numbers. Global spend across iOS and Google Play Stores are set to reach $135 billion in 2021, up from 2020’s $112 billion.
iOS spending dominates with 65 cents in every app economy dollar spent with gamers spending the most! Gamers contribute around 60% of iOS revenue and nearly 80% of dollars spent in Google Play. On the App Store, mobile gamers are projected to spend $52.3 billion globally by the end of the year. The large increase in mobile game revenues is also making waves across the broader gaming industry. This is driving more investment in mobile content and attracting brands to grab a piece of the pie.
With mobile gaming raking in the big numbers, new sub-genres are emerging and shaping new gameplay habits. The top-performing genres, according to App Annie, are Strategy, RPG, and Simulation. Also spotted on the breakout games by average MAU is ROBLOX. Although it’s more of a platform than a game, it’s a sneak peek into the metaverse trend that has been a popular topic of late. As records continue to break, the holiday season has only just begun…
About Mobile Mondays
Mobile Monday examines the latest news, trends, and developments in mobile apps, tech, and advertising. Do you have a story to share for the next Mobile Monday?
Fyber, part of Digital Turbine’s independent Mobile Growth Platform, develops innovative ad monetization solutions trusted by top mobile game and app publishers. Fyber’s product suite offers publishers a trusted, unconflicted alternative that drives superior results by creating an optimal connection between mobile audiences, top global brands, and mobile-first advertisers across over 40Bn daily ad opportunities. Fyber’s FairBid mediation, Fyber Marketplace, and Offer Wall Edge are all built with performance, scale, and transparency in mind. To dive deeper into how their monetization solutions put app developers first, check out their blog.
AdColony, part of Digital Turbine’s leading independent mobile growth and monetization platform, helps brands, agencies, and apps expand their reach and results with the power of mobile. AdColony is known globally for its award-winning video advertising marketplace, with ad engagement innovations like Instant-Play™, Aurora™ HD Video, Playables, and more. Looking for more insights on apps and mobile games? Find out more on their blog!
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