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cost of getting a new mobile gamer exceeds revenue user generates

11-25-2013, 08:26 PM
#1
Joined: Feb 2012
Location: Manila
Posts: 104
cost of getting a new mobile gamer exceeds revenue user generates

Thoughts on this gamesbeat article?

SuperData estimates that the cost per install (CPI, which is the measure of what it costs in advertising to get a user) was $2.73 for mobile games, compared to an average revenue per user of $1.96. And in the coming holiday season, SuperData estimates that the CPI will be more than double the average revenue per user. SuperData says that for 99 percent of game makers, thatís a problem. It means the game developers will have to keep players engaged for two months or more before they can start making real profits.

Play Elevator Joe!
11-26-2013, 04:03 AM
#2
Joined: Nov 2013
Posts: 9
The problem is that the CPI is driven up by Supercell, GREE etc, though very few games has cLTV like games from these companies. Yet all have the same CPI. It's crazy. And I don't even think the average revenue per user is 2$. I'd say it's more close to 1$. Fortunately you don't have to pay for every single player. There is a virality, organic downloads from chart position, etc.

But yes, it's a problem and I think it's only going to be worse. So smaller devs must find new clever ways how to promote games.. Or make a game which has average revenue per user 3$

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