Mobile Gaming To Grow Faster Than Social, Online Gaming

US Mobile, Social, Online Gaming Audience via eMarketerMobile gaming is growing more rapidly in the US than either social or online casual gaming, according to an eMarketer report.  With its rapidly expanding audience, mobile gaming will also lead in advertising growth.

The top sources of revenue for mobile gaming are:

  • paid downloads
  • in-game purchases of virtual goods (this will become the top-generating revenue in 2013 and beyond)
  • in-game advertising

The eMarketer data is supported by a recent study from Flurry, which reveals that mobile gaming is responsible for 43% of time spent on mobile apps worldwide.  And according to another report from Flurry, mobile games are responsible for 80% of the $10 billion of revenue from apps.

Social gaming revenues will still grow -although at a more modest rate – from a combination of virtual goods monetization (which is the largest contributor to revenue) and advertising.

Overall, eMarketer notes that “the video game industry is continuing to evolve toward free, platform-agnostic games supported by a combination of advertising and virtual goods revenue.”  Flurry’s report supports this, concluding that free-to-play (or ‘freemium’) games – where consumers start the game for free but then spend for virtual goods or currency – is “the most prolific business model in the new era of digital distribution.”

What are the options for advertisers looking to use gaming platforms? The report lists a multitude of ways brands can participate, including: branded virtual goods, opt-in videos, activity-based ads, product placements, sponsorships, custom games, advergames, interstitials and traditional in-game ads.

Is your brand moving into gaming – especially on mobile?