As we’ve stated time and again, everyone seems to be betting on China to be the promised land for selling and cashing in on games. On the mobile gaming front, that seems to be true.
Research firm Superdata has predicted that Chinese gamers will spend US$3 billion this year on the hobby, be it microtransactions or, well, that’s about it really (free-to-play is big in Asia, remember?). According to its firm’s new report, the country’s spending rate will even surpass that of the US in 2015. “The US mobile game market is showing signs of saturation. China’s average revenue per paying user (ARPPU) and conversion rate both grew more than 20 per cent since last year.”
For comparison, the US has 242 million players who have spent US$3.2 billion a year, while China has 266 million players who have spent US$3 billion a year based on current revenue run rates. While the US’s ARPPU rate went up 11 per cent to US$21.60 in the first quarter of 2014, China’s numbers went up 21 per cent to US$32.46. In terms of spending power, the US has not risen to the demand of a growing Cost Per Install (CPI) number as you can see in the chart below.
China’s spending, on the other hand, has its CPI level going down while its ARPPU goes up. This means that game developers in China can spend less and earn more of a profit easily in the region. The report itself is a collaboration between Superdata and Talking Data, where it gathered information from about 20,450 apps and 400 million mobile users.
Previously, Smaato mentioned in its report that mobile advertising real-time bidding has increased by 459 per cent in the first quarter of 2014. The two categories ad companies spend the most money in China are on entertainment and games. On another aside, Candy Crush Saga makers King teamed up with Tencent to release its game officially in the region.