Moderate to heavy game commercialization report: 35.5% increase in sales expenses far exceeds revenue growth, customer acquisition and realization of life and death

Recently, Gamma Data and Pangolin jointly released the “2021 Moderate and Severe Game Commercialization Research Report”. The report mainly analyzes the market status, user growth and business model of moderate to severe games. The content of the report provides an in-depth analysis of the development status and prospects of the commercialization of medium and heavy games in China through the analysis of the market and users.

The following is a summary of the “2021 Moderate and Severe Game Commercialization Research Report”. If you are interested, you can click to read the original text to download.

From a market perspective, the commercialization of medium-to-heavy games is currently facing certain challenges. On the one hand, the challenge comes from the user growth level, and on the other hand, it comes from the monetization level. Gamma data has also carried out in-depth investigations around these two levels. and analyse.

The weakening of the home economic dividend affects the market growth rate and continues to supplement users to become the focus of the industry

In terms of user growth, the number of game users in China will exceed 660 million in 2020. At present, the penetration of domestic games into users has been at a high level. With the control of the epidemic, the home economic dividend will also be further weakened. Mobile from January to March 2021 The year-on-year growth rate of the game market is only 6.25%, which is a decline compared to the first quarter of 2020. In order to prevent the decline of Chinese game users and market size, it is still important to continue to replenish users from multiple channels, such as acquiring users from multiple platforms such as social platforms, news information, and reading platforms, so as to maintain the stability of game industry users and market scale .

Data: Gamma data (CNG)

Data: Gamma data (CNG)

Game companies’ sales expenses have risen sharply, looking for better quality user traffic has become the company’s core aspirations

In addition to supplementing users, finding high-quality users has also become the core appeal of moderate to heavy games. According to gamma statistics, the sales expenses of major listed game companies on the stock market in 2020 have increased significantly, reaching 35.5%, and the revenue growth of related companies is only 23%. This comparative data shows that the pressure of corporate user growth continues to increase. In the context of a large number of high-performance advertisements for user growth by game companies, the authenticity and long-term retention of attracted users becomes the key. Finding better user traffic has become the core demand of enterprises, more reliable traffic channels and algorithms that can screen high-quality users are also It has become an important boost for game companies to gain customers.

Data: Gamma data (CNG)

Note 1: Major game companies in the securities market refer to listed and NEEQ companies whose game revenue accounts for more than 30% of total operating revenue.

In order to solve the problem of user growth, game companies have also taken corresponding measures.

Game marketing strategy Diversified advertising platform placement is the key strategy for long-term customer acquisition of top products

In terms of user growth strategy, from the perspective of the marketing strategy layout of new and old mobile game products, the current marketing methods have become diversified, including more than ten methods as a whole. Game companies have built a complete marketing system around various online platforms. , And even take the initiative to innovate the marketing model. From the perspective of overall marketing effects, multiple marketing methods such as operating from the media, official activities, and cross-industry cooperation are more to provide better services for existing users. In terms of user growth, the revenue from advertising platforms is the most intuitive and significant , Including inviting celebrity spokespersons, IP linkage and other strategies are also focused on platform advertising services. Advertising platform advertising is also a long-term key strategy adopted by all new and old head products.

Data: Gamma data (CNG)

Remarks: Head games during stable operation period specifically refer to games launched before 2019.12.31, and the product flow in the first quarter of 2021 can still be ranked TOP20; new head games refer specifically to games launched after 2020.01.01, and the cumulative flow level after launch Ranked TOP20.

Xinyou strengthens the bargaining power of the app store to launch new and old games to cover mainstream applications

With the support of the traffic platform, Xinyou’s dependence on app store channels is also decreasing. There are already six new games in the head that have not been generally available in the Android application market. Games such as “The Original God” and “The Awakening of the Nations” are only in negotiation. A few of the Android channels are online, but the game flow can still be maintained at a high level. In the future, more game products may adopt the method of autonomously importing users on the traffic platform to obtain higher profits. From the perspective of the proportion of head mobile game advertising application types, head games have basically covered mainstream applications, including social platforms, news information, tool applications, etc., in addition to direct placement in vertical applications, new online head games are all Will cooperate with advertising alliances, 90% of old games choose to cooperate with advertising alliances, using advertising alliance resources to cover more traffic scenarios.

Data: Gamma data (CNG)

Remarks: Head games during stable operation period specifically refer to games that were launched before 2019.12.31, and the game flow in the first quarter of 2021 will still be among the TOP20; new head games specifically refer to games launched after 2020.01.01, and the cumulative flow level after being launched Ranked TOP20.

Relevant measures can solve the problems faced by user growth to a certain extent, but the challenges at the product, user, and talent levels still need to be paid attention to. At the product level, it is mainly manifested by the lack of creativity in most products; at the user level, the main It is manifested in the retention of users in old products and the rapid loss of users of new products; at the talent level, it is mainly manifested in the lack of accumulation of professional traffic operation talents. This has also directly led to the rapid growth of industry sales expenses, which in turn will increase the pressure of user growth in the game industry. Based on this, Gamma Data has also put forward relevant recommendations.

▍Product level

The ability to innovate gameplay has become a key theme for attracting users and should be subject to professional research

According to the survey of gamma data, the game content is dull and the loss of freshness is the most important reason for users to abandon the game, which also means that users value the innovation of game content the most. The innovation of game content at this stage is mainly reflected in the gameplay and themes. At the gameplay level, emerging gameplay has the characteristics of quickly gathering users. The innovation at the gameplay level can undoubtedly solve the problem of user growth at the product level to a certain extent, but innovative gameplay innovations It is very difficult for companies. Most companies choose to conduct micro-innovation on the gameplay system they are good at, and use innovation as an important material for products to attract users. This also has certain advantages in attracting users. In terms of theme innovation, it is difficult for game companies to achieve the fundamental original theme of the theme. They mostly absorb elements from other cultural fields or create products based on emerging themes. However, they also need to carry out a full range of theme research to gain in-depth understanding of market themes and users. Subject content preference, product creativity and subject adaptation, etc., and carry out suction test on the distribution channels, and then screen out subjects that are good at and have greater user growth advantages to ensure that the subject matter is competitive at the project establishment stage.

Data: Gamma data (CNG)

Remarks: This survey is conducted during the gamma data survey of user behaviors, and the effective sample size for users is 1677.

▍User level

Attract users through more vertical applications combined with platform attributes to better acquire target users

With the development of various network platforms, medium and heavy mobile games have also spent a lot of time on various platforms, and related platforms have become an important source of users for medium and heavy games. In addition to attracting users directly, judging from the preferences of users of different age groups on various platforms for new travel advertisements, various platform advertisements have differentiated attractive effects for users of different age groups. For example, advertising on social platforms is more popular. The attention of 29-year-old users, advertising on reading platforms is more concerned by users aged 30-39. Game companies need to customize channel delivery strategies according to their own product attributes, or optimize delivery plans based on the delivery effects of different channels, so as to better acquire target user groups on each platform.

Data: Gamma data (CNG)

Data: Gamma data (CNG)

Remarks: “Preferences” only proves the preferences of users of different age groups on each platform for new travel advertisements, and cannot be used for horizontal comparison between channels. This data is obtained after in-depth processing of user research.

Pay attention to mining high intention users can optimize the acquisition method through algorithms

In the process of user acquisition, mining intended users through various platforms has become an important appeal of game companies, thereby increasing the input-output ratio. Game companies have high willingness to acquire users (high intention users) mainly around two levels, namely high payment and long-term retention, high payment is the user group with stronger spending power and willingness, among which the MMORPG/ARPG and SLG categories are suitable for this. The competition among users in this category is the most intense. Due to the in-depth numerical setting, users with high paying ability are an important source of revenue for this category of games. Long-term retention means long-term retention of users in the game. According to gamma data, more than 60% of moderate to heavy game users have retained their favorite products for more than 1 year, and long-term retention users have also become a number of head games. The flow of games remains stable. The most important reason is that 70% of the TOP50 mobile games in 2021Q1 have been online for more than 1 year. In the process of user growth in future game products, it is also necessary to pay attention to the ways in which high-intention users are acquired. For example, the user growth process can be continuously optimized through a more accurate user recommendation mechanism, and more high-intention users can be screened out.

Data: Gamma data (CNG)

Data: Gamma data (CNG)

▍Talent level

Use more external platform resources to make up for the lack of corporate talents

Talent is an important challenge for the growth of game enterprise users, but this field may be difficult to make up in the short term. The cultivation and supply of talents requires long-term precipitation in the industry. However, at the level of traffic acquisition, game companies have more external resources that can be used. For example, they can use external platform resources to improve the ability to acquire traffic, thereby ensuring the growth of product users. At this stage, the traffic acquisition service system for game companies has been relatively complete. The relevant platforms can help game products better attract users by focusing on their own creative tools, advertising tools, and integrated advertising channels, thereby making up for the lack of professional talents caused by game companies. Facing the dilemma of traffic acquisition.

In addition to user growth, medium and heavy game products also face certain challenges in the field of commercialization.

More business models such as advertising monetization and IP expansion monetization need to be explored

In 2020, the scale of the medium-to-severe mobile game market will reach 196.94 billion yuan. The high maturity of the in-app purchase business model has become the key to the increase in the scale of the medium-to-heavy game market. At the same time, the in-app purchase model also faces some challenges. Behavioral boredom, zero-krypton users always occupy a high proportion, etc. Based on this, the game industry also needs some business model innovations at this stage, such as further exploration in advertising models, and tapping more potential and value for non-paying or low users. The derivation of the industrial chain is based on IP, and the value of traffic is tapped twice.

Data: Gamma data (CNG)

Medium-to-severe mobile game market size: refers to the amount of user top-up turnover obtained by medium-to-severe mobile game products

The potential of half of the users who do not pay or have low willingness to pay needs to be further tapped

At this stage, under the dominance of the in-app purchase model, most of the revenue of the game industry is brought by middle and high-spending users. In the mobile market, more than half of the medium-to-heavy game users are still non-paying or low-paying users. How to further stimulate the interest of users with low willingness to pay is an urgent problem to be solved in the future development of the game industry.

Data: Gamma data (CNG)

Remarks: Zero yuan is for non-paying groups, less than 30 yuan is for users with low willingness to pay, 30-100 yuan is for user groups with low and medium willingness to pay, 100-500 yuan is for medium to high paying user groups, and more than 500 yuan For the high paying user group

Paid user preferences at different levels are differentiated, and mixed realization becomes an explorable model

Based on related challenges, Gamma Data conducted in-depth research on users and found that the preferences of paying users at different levels are different, and users who do not pay or have low willingness to pay are the most willing to watch advertisements. As for the middle and high paying user groups, these users are more willing to pay to support their favorite games. Therefore, mixed monetization has become a model that can be explored for game products to meet the differentiated needs of medium-to-heavy game users. According to relevant surveys, more than half of moderate to heavy game users also clearly expressed their desire to join the option of watching ads to get rewards.

Data: Gamma data (CNG)

According to source: gamma data (CNG)

Watching ads may help increase user payment. Multiple product cases have been confirmed

According to the survey results of gamma data, after the number of advertisements is used up, most users will choose to do more tasks or wait for tomorrow to continue to receive advertising incentives. They tend to continue to receive rewards for free, but some users choose to pay in small amounts. Obtained, users with more mature consumption habits are more willing to pay, which also shows that advertising may help users to pay. In the actual monetization case of moderate to heavy games, multiple products have also been confirmed. After the introduction of advertising monetization, game products not only increase the overall revenue, but also form a certain promotion for the payment of existing users.

Data: Gamma data (CNG)

Incentive videos are the most popular among users. Native ads and demo ads have room for further expansion

In terms of specific advertising monetization, medium and heavy game users value incentive videos most, mainly because obtaining certain rewards is the core motivation for users to watch advertisements. Incentive videos are also one of the most common forms of game advertising. In addition to rewarded videos, users have also shown a certain demand for native ads and trial-play ads. Native ads can combine existing game scenes with game content to realize the implantation of ads, which is among the reasons that support users to watch ads. , Relevance to existing game content is also an important viewing motivation for users. Trial-playable advertisements can attract users to participate through fun content, and award rewards based on the results of the game played by users, thereby attracting users to participate. In the medium-to-severe game field, relying on rich game scenes, the advertising model also has ample space for exploration.

Data: Gamma data (CNG)

Data: Gamma data (CNG)

Users have a wide range of preferences for traffic value secondary mining becomes key

In addition to in-app purchase monetization and advertising models, the use of IP to implement monetization in multiple areas has become the expansion direction of game companies, and users also show a wide range of preferences for out-of-game content. In this realization process, the secondary mining of IP value becomes the key. While value mining, IP can also realize the expansion of influence, and ultimately feed back to the game industry. But at present, only some head game companies are trying in this field, and there are still more problems to be solved in the exploration of pan-entertainment of game IP.

Data: Gamma data (CNG)

Remarks: This survey is a special survey conducted when Gamma Data is studying the behavior of IP users. The effective sample size for users is 1144.

There are challenges and opportunities for user “acquisition + monetization”. The traffic platform provides commercial optimization strategies.

Based on an in-depth analysis of the medium-to-heavy game market and users, it can be seen that the challenges of the game industry are mainly user-centric, and related challenges are centered on user growth and monetization, which has led to a rapid increase in the purchase cost of game companies. , And the benefit was less than expected. In the future, the game industry needs to further solve user challenges and seize corresponding market opportunities. In this process, in addition to the company’s own efforts, it is also necessary to use external platforms and resources to optimize the commercialization model. For example, relying on the mature commercialization experience of the traffic platform to better grow and monetize users, and the relevant traffic platform also has Provide the basis for commercial optimization strategies, and develop a targeted layout around the game field. The report also selected a representative traffic platform pangolin for in-depth analysis, focusing on its optimization plan for the commercialization of moderate to heavy games.

Product solutions throughout the entire life cycle provide one-stop service for user growth and traffic monetization

Based on the platform’s mature technical strength and diversified resource linking capabilities, Pangshan Methyl can provide game developers with full life cycle product solutions. In terms of the growth of game users, pangolins rely on user resources, user screening mechanisms, and the accumulation and innovation of advertising scenarios to provide targeted solutions and solutions with products, and related service systems throughout the product life cycle. In terms of traffic monetization, pangolins are based on advertising monetization, relying on rich advertising needs, product monetization support systems, incentive videos and other driving forces to help medium-to-heavy game products deeply tap the potential of users. Pangolin provides game products with a one-stop growth service system covering user growth and traffic monetization, thereby helping companies optimize commercialization strategies and solve pain points related to product users.

Source: Game Industry Report


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