UNIT 2016 presentation: http://www.unit-festival.com/

1. Mobile Games:
Driving New Trends
in Advertising

2. Proxima Nova - Bold - 64pt - or #3C3C3C
Proxima Nova - Regular - 36pt - r60g60b60 or #3C3C3C
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Our Topics
What do we all have
in common?
Moving ForwardAdvertising within
Mobile Games

5. What do we all have in common?
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6. 6

7. Games: Part of Life
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Power
Curiosity
Acceptance
Order
Saving
Honour
Idealism
Social Contact
+ 55%
Family
Status
Vengeance
Romance
Eating
Physical Activity
Tranquility
Independence
Games activate 16 different human motivators
http://www.economist.com/blogs/babbage/
2014/02/electronic-entertainment

8. Mobile Games
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Male Focus
Computer games
industry has historically
been male-oriented, with
males producing games
for other males.
Upfront Investment
Games needed hefty
investments in PC and/or
console hardware.
Eschewed Audience
Most titles targeted 15 to
35 year old males, who
were more likely to
invest in hardware and
titles.
PC/Console Gaming
Before the Internet and Mobile, computer games were targeted at few

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Democratisation of Computer Games
Internet and mobile development turned the gaming industry upside-down
Games for Everyone
Facebook games
opened the way for
titles in untested
segments, with hits
such as Farmville and
Candy Crush Saga.
Lower Costs
Mobile games can be
developed and
maintained at nearly
zero cost. The only
device required is your
smartphone.
Faster Cycles
Development of PC/
Console games took
up to 3 years time;
today production of
mobile titles takes 1
year or less.

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Apple AppStore
One of the world’s first and largest digital content marketplace
10,000+ New Games Every Week
Global Marketplace
Zero Entry Costs
Billions of Consumers
Discoverability is a Challenge
Curated Content
Opportunity for 3rd Party Providers
Advertising Can Be Barrier for Entry

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*PocketGamer, March 31st, 2016.
Free-to-Play Mechanics
Online games pioneered F2P, but mobile games made it a science
Zero is the new price point
Open up revenue streams (e.g. ads)
Easier to iterate than paid-for games
Track & stimulate gamer behaviour
Gamer’s mindset has changed
Mobile games was 80% of consumer
app spend in 2015*

13. Advertising Within Mobile Games
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*MarketingLand (retale.com), February 4th, 2016
Not All Advertising is Created Equal
Advertising is a transaction between the marketer, the publisher, and the consumer
TV: 1 hour of
programming in
exchange for 12
minutes of ads
Mobile Web Banners:
Fat Finger problem: 60% of clicks
are accidental*
Inadequate formats: intrusive and
disruptive content. Not engaging
and interactive
48m
12m
Mobile: free game in exchange for
time and/or screen real estate

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New Format: Video
Mobile ads come in many shapes and forms, but one format is king
For Gamers:
Better user experience through
buffer-free HD graphics, and
rewards
For Marketers:
3x more effective than other media
For Publishers & Developers:
Monetisation 4.8x more effective
than social, 2.7x than benchmark

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High User Acceptance
Mobile players prefer rewarded video for ads over any other type

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Benefits for Game Developers
Video ads have become a reliable and substantial source of income
1x 2x 4x
2013 2014 2015
Pubs Earning $1M+ a Year
+ 55%

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Benefits for Marketers
Marketers can focus on where users spend most of their time on mobile

19. Moving Forward
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More Time Spent on Mobile
Mobile is enjoying a 17.6% CAGR, while television is declining with a -3.1% CAGR

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Mobile Meets Television
2020: ad spend on mobile surpasses television

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Three Take-Aways
People love games
and more and more
people are playing
(and paying)
Mobile games
have influenced
where and how
ads are consumed
on mobile
Mobile games
experimented new
mechanics and
formats

23. Fernando Pernica
fernando.pernica@adcolony.com
@fdo_pernica
Questions