The Green Sheet Online Edition
July 14, 2014 • Issue 14:07:01
The Mobile Buzz:
How mobile gaming strategies drive revenue
Mobile payment providers might take a page from the digital gaming industry and create richer customer experiences, because that is the secret to success in the hyper competitive gaming market, according to SuperData Research LLC. In Gaming analytics ABCs, a webinar sponsored by Treasure Data LLC, SuperData analyzed two mobile game platforms: Supercell's Clash of Clans and Riot's League of Legends.
SuperData said Clash of Clans has been the top grossing app in the leading app stores since February 2014 and makes over $100 million a month from over 100 million monthly active users. Clash of Clans operates on a core loop of game play, where players collect resources in the form of Elixir Coins and points that are used to build and train troops. These clans then engage in battles, where more coins and points are up for grabs. When players complete levels, or spend money toward that goal, they receive Gems.
The interactive and highly addictive game play leads to monetization, as players are willing to pay more to progress faster in the game. Additionally, the deeper players progress in the game, the more they have to pay to sustain it. SuperCell also employs analytics to break down its users into groups, called cohorts, to understand how they spend in the game and when they stop playing. This information is then used to engage cohorts to get them to play longer and spend more money.
A league of their own
Meanwhile, League of Legends is the most played game in the world, according to SuperData. Game play involves teams of five that play 35 to 45 minute matches in real time via smartphones.
Unlike Clash of Clans, League of Legends relies not on high spending to drive revenue, but on a low barrier to entry for gamers, which creates a lot of gamers who spend a little money apiece. League of Legends uses high engagement and social interaction among players to retain them. In both instances, revenue is driven by game publishers being able to build social communities among players and embed the games into users' lifestyles.
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