Gaming Spotlight 2022

GAMINGSPOTLIGHT2022 REVIEW

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ContentsGAMING SPOTLIGHT 2022•2022 Gaming Trends•US Gamer & Ad Monetization Deep Dive•Key Themes & TakeawaysDATA.AI + IDC | GAMING SPOTLIGHT | 20222

TRENDS IN GAMINGDATA.AI + IDC | GAMING SPOTLIGHT | 20222GAMING SPOTLIGHT 2022

DATA.AI + IDC | GAMING SPOTLIGHT | 20224$0B$30B$60B$90B$120B$150B201420152016201720182019202020212022F Mobile Gaming PC/Mac Gaming Home Consoles Handheld ConsolesWorldwide Consumer Spending on Games by Major Device GroupAmidst Cross-Platform Play, Mobile Gaming is Set to Further Extend Its Global Lead to 3.4x PC/MAC•Gaming is set to reach $222 Billion in 2022. Mobile gaming is now the primary driver of growth for digital games consumption and is set to extend its global lead to 3.3x home game consoles in 2022. As COVID-19 prompted a surge in game console sales, broader availability of the newly released XBOX Series X/S and PlayStation 5 consoles will also spur gaming growth further in 2022+.•The console and mobile experience is also merging; mobile devices are now capable of offering console-like graphics and gameplay experiences along with cross-platform competitive and social gaming features. But mobile also offers an important channel for a large range of gaming subgenres across the full gaming spectrum. On mobile, gaming is truly for everyone. Source: data.ai & IDC. All totals include applicable digital and physical game spending but exclude ad revenue. Mobile gamingincludesall app stores (iOS App Store, Google Play, Windows Phone Store, Amazon, Samsung Galaxy and third-party Android stores). Home game console total includes discs, digital games and gaming-related subscription services (i.e., Xbox Live, Game Pass, PlayStation Plus, PlayStation Now, Nintendo Switch Online); handheld consoles are typified by Nintendo 3DS and Switch Lite.Mobile gaming sustained strong momentum from the pandemic surge —2021 in gaming was as dynamic as any previous year. The time to act is now.$136B$42B$40B$4B

APAC Saw the Biggest Growth in Mobile Games Spending•Chinaled growth for the gain in market share for mobile game spending in APAC from Q1 2021to Q1 2022. North Americaand Western Europe still make up around half of mobile gaming spend in Q1 2022, but its market share has levelled as other regions have caught up. Brazil and Saudi Arabialed growth in rest of world for mobile consumer spend.•Switch Lite continued to resonate in North America and Asia-Pacific (especially in Japan); Steam Deck launched in late February 2022 but had a modest impact on 1Q 2022’s handheld console segment as a result of Switch Lite’smuch larger install base. •APAC spend in PC/Mac gaming gained share year-over-year partly because many internet cafes refilled once the effects of the COVID-19 pandemic waned in several large economies; Rest of World strength mainly resulted from a rise in Average Revenue Per User (ARPU).•Regional share changes in home consoles was more about faster year-over-year spending declines in Asia/Pacific (led by Japan) and the Rest of World region (limited semiconductor supply helped undercut PS5 and XSX/S hardware shipments) rather than spending strength in Europe and North America. 0%25%50%75%100%Q1 2021Q1 2022Q1 2021Q1 2022Q1 2021Q1 2022Q1 2021Q1 2022Source: data.ai & IDCNote: Mobile Gaming across iOS & Google PlayMobile GamingHandheld Game ConsolesHome Game ConsolesPC + Mac GamingWorldwide Consumer Spending Shares on Games by Region Q1 2022vs Q1 2021North AmericaWestern EuropeAsia-PacificRest of WorldDATA.AI + IDC | GAMING SPOTLIGHT | 20225+1.0pts+2.5pts+.5pts+1.1pts+1.1pts+3pts+.8pts

Source: data.ai. Note: Downloads and Consumer Spend across iOS, Google Play. iOS Only for China; Spend is gross —inclusive of any percent taken by the app storesWeeklyMobile Games Downloadsby Region 2022 to DateDATA.AI + IDC | GAMING SPOTLIGHT | 20226Analyze Regional Market Movements in data.ai’s Market Sizing Report0M20M40M60M80M100M120M140M0.0B0.2B0.4B0.6B0.8B1.0B1.2 BJan-02Jan-09Jan-16Jan-23Jan-30Feb-06Feb-13Feb-20Feb-27Mar-06Mar-13Mar-20Mar-27Apr-03Apr-10Apr-17Eastern Europe Downloads (Millions)20th 2022Eastern EuropeRest of WorldRussiaRest of Eastern Europe$0M$10M$20M$30M$40M$50M$60M$0.0B$1.0B$2.0BJan-02Jan-09Jan-16Jan-23Jan-30Feb-06Feb-13Feb-20Feb-27Mar-06Mar-13Mar-20Mar-27Apr-03Apr-10Apr-17Eastern Europe Consumer Spend (Millions)20th 2022RussiaRest of Eastern EuropeEastern EuropeRest of WorldWeekly Mobile Game Downloads & Consumer Spend Saw Dip in Eastern Europe Amidst Macro Climate Russia’s Regional Share In Consumer Spend Dropped from 50% to 10% From February 2022 WeeklyMobile Games Consumer Spendingby Region 2022 to Date

RankMobile GamingNintendo Switch Lite Steam (2021)1Genshin Impact miHoYo, ChinaGame IQ Subgenre: Open World RPGPokémon Legends: ArceusPokémon Co. / Nintendo, JapanRPG –Action NARAKA: BLADEPOINTNetEase, ChinaAction –MMO Adventure2ROBLOXRoblox, United StatesCreative SandboxKirby and the Forgotten LandNintendo, JapanPlatformer -ActionBattlefield 2042 Electronic Arts, USFirst Person Shooter –Multiplayer Action3Honour of Kings Tencent, ChinaMOBA -ActionMario Kart 8 DeluxeNintendo, JapanRacing -MultiplayerGrand Theft Auto VRockstar Games, USOpen World Action –Adventure 4Candy Crush Saga King/Activision Blizzard, UKM3-SagaMario Party SuperstarsNintendo, JapanParty -MultiplayerDota 2Valve Corp., USMOBA -Strategy5Game For Peace Tencent, ChinaBattle Royale -ShootingTriangle StrategySquare Enix, JapanRPG -StrategyCounter-Strike: Global OffensiveValve Corp., USFirst Person Shooter –Multiplayer Action6Coin Master Moon Active, IsraelLuck Battle -PartyAnimal Crossing: New Horizons Nintendo, JapanSimulationNew WorldAmazon Games, USMMORPG 7Uma Musume Pretty Derby Cygames/CyberAgent, JapanIdol Training SimSuper Smash Bros. UltimateNintendo, JapanFighting -MultiplayerValheimCoffee Stain Studios, SwedenOpen World Survival -Adventure8Lineage W NCSOFT, South KoreaMMORPGThe Legend of Zelda: Breath of the WildNintendo, JapanAction –Adventure PUBG BattlegroundsKrafton, South KoreaBattle Royale –Shooting 9PUBG MOBILE Tencent, ChinaBattle Royale -ShootingPokémon Brilliant Diamond / Shining PearlPokémon Co. / Nintendo, JapanRPG –Adventure Destiny 2Bungie, USOpen World Action –Multiplayer10Free Fire Garena Online/Sea, SingaporeBattle Royale -ShootingSuper Mario 3D World + Bowser’s FuryNintendo, JapanPlatformer -ActionTom Clancy’s Rainbow Six SiegeUbisoft, FranceTactical Shooting –Multiplayer ActionTop 10 Worldwide Grossing Mobile, Handheld + PC Gamesby Platform Q1 2022•Core Games with real-time online features such as PvP (player-versus-player) among the most popular genre across the gaming spectrum, with Battle Royale and Shooting Games having a high presence on Mobile and PC charts. On Mobile, genre preferences are more varied, with 8 distinct subgenres being represented among the top 10 games —proof of mobile’s increasing acceptance as a primary gaming platform as well as the ability to capture new audiences. •Cross-play features are becoming increasingly prominent in the top games —the ability to access the same game progress across devices (whether on mobile or console, for instance) appears to be on the rise, as is playing against players using different platform versions of the same game.Core Games Still Dominate, But Shifting Player Preferences Gave Way to Emerging Game Genres on MobileDATA.AI + IDC | GAMING SPOTLIGHT | 20227Source: data.ai & IDC. Note: data.ai mobile gaming rankings based on Combined iOS and Google Play; China is iOS only; Market-level rankingsLearn More: Uncover the Most Popular Games By Market and how data.ai’s Game IQtaxonomy transforms how you publish games today.Powered by data.ai Game IQ

DATA.AI + IDC | GAMING SPOTLIGHT | 20228Genshin Impact Open World (RPG)months in Q1 2022). #2 game by worldwide consumer spend in 2021.•Launched in September 2020, available in over 174 markets around the world. •118 million downloads globally to date, $2.8 billion consumer spend globally to date. Top markets by downloads: United States, China, Brazil, Russia and Japan. Top markets by consumer Spend: China, the US, Japan, South Korea and Germany.•Genshin Impact skews towards female gamers in Western markets like the US, UK, France, Brazil, Canada and Germany but towards males in APAC markets like Japan, South Korea and Taiwan. Roblox Creative Sandbox (Simulation)titles that has attained a leadership position of #1 by global game consumer spend in 2021, up from #16 in 2019. 2019 was also the first year the game managed to enter the top 20 global annual spend rank during its 10 years of existence. •In fact, over 77% of Roblox’s consumer spend to date was generated in the last 2 years (out of the 10 years it’s been around).Uma Musume Pretty DerbyIdol Training (Simulation)available in Japan. As of March 2022, it was the #6 Game by worldwide consumer spend.•7.9 million downloads to date, and $1.5 Billion consumer spend to date.•In 2021, Idol Training Sim (Simulation) was #11 subgenre by consumer spend, at around $2.0 Billion or 2.4% of the Market in 2021, up 100% from $1.0 Billion the year prior.•Other top games in this subgenre include Ensemble Stars Music ,Project Sekai Colorful Stage! feat. Hatsune Mikuand BanG Dream.Free Fire Battle Royale (Shooting)•#1 game by worldwide downloads in 2021 and Q1 2022.•#10 Game by worldwide consumer spend in Q1 2022.•Launched in October 2017, available in over 169 markets around the world.•1.05 billion downloads globally to date, and $2.1 billion consumer spend globally to date. Top markets by downloads: India, Brazil, Indonesia, Vietnam and Mexico. The top markets by consumer Spend: the US, Thailand, Brazil, Indonesia and Mexico.Mobile Games That Defined 2021Source: data.ai Note: iOS, Google Play Combined. China is iOS only. Genre breakdown based on data.ai Game IQ Taxonomy as of May 25th, 2022; Lifetime to date as of May 9, 2022.Learn More: Uncover the Top Mobile Gamesby MarketPowered by data.ai Game IQ

Top 5 Game Genres By Growth in Downloads Share2021 vs 2020Top 5 Game Genres By Growth in Consumer Spend Share 2021 vs 2020+2.7pts+0.7pts+1.4pts+0.5pts+0.3pts00.511.522.530%5%10 %Action(Hypercasual)(Hypercasual)(Hypercasual)(Hypercasual)Game Within Genre Hair ChallengeWater Sort PuzzlePhone Case DIYToca Life: WorldRace MasterRise of KingdomsHomescapesROBLOXUma Musume Pretty DerbyGenshin ImpactDATA.AI + IDC | GAMING SPOTLIGHT | 2022+1.1pts+0.4pts+0.6pts+1.1pts+1.2pts – 0 . 20 0 . 40 0 . 60 0 . 80 1 .0 0 1 .20 1 .4 00%5%10 %15%4X March-Battle(Strategy)(Simulation)(Simulation)(RPG)-to-Play Hypercasual & Simulation Games Surged in 2021Source: data.ai. Note: Downloads and Consumer Spend across iOS, Google Play. iOS Only for China Analyze More Genres in data.ai’s Game IQ Market Sizing Report4x March-Battle Strategy Games Emerged as the Most Monetizable Genre for Mobile Games, While Open World RPG Saw the Biggest Rise in Consumer Spend Market SharePowered by data.ai Game IQPowered by data.ai Game IQ

•Looking deeper into the demographic tendencies across top Games by consumer spend in select markets revealed the growing prominence of games that lean towards female audiences. For example, among the top 1000 Games in the United States in 2021, 47% of them skew towards female audiences, meaning females are more likely than males to play these games. This was up from 37% two years prior (10 percentage points or +50%).•Looking at some of the top female-skewing games by consumer spend, ROBLOXusers were 30% more likely to be females than males in the US, whereas users of Ensemble Stars Music in Japan were as high as 80% more likely to be female.Growing Inclusivity: Nearly 50% of Top Games by Consumer Spend in the US Skew FemaleDATA.AI + IDC | GAMING SPOTLIGHT | 20221037%27%24%21%26%21%45%37%35%33%29%26%47%44%38%38%30%28%0%10%20%30%40%50%Uni ted S tatesUni ted Ki ngdomGermanyFr a nceJapanSo uth Ko rea201920202021Share of Female-Skewing Games Among Top 1,000 Games by Consumer Spend iOS & Google Play Combined2021 Top Female Skewing Game by Consumer SpendROBLOXROBLOXCoin MasterCoin MasterEnsemble Stars MusicCookie Run: KingdomLikelihood of Usage by Female Gamers vs Population1.3×1.1×1.1×1.2×1.8×1.1xdata.ai’s audience index can further show you where the specific demographic group is engaging on mobile. Dive Deeper into Genre Demographicsin the Genre Summary Report.Source: data.ai. Note: Consumer Spend across iOS, Google Play. iOS Only for China, inclusive of app store fees; Gender skew determined by average demographic usage across iPhones and Android phones; Analysis is limited to males and females only and is not representative of all gender identities.

•Across the markets analyzed, apart from the United States, more than half of the top 1000 games by consumer spend leaned towards Gen Z users, and the share has been growing over the past two years as high as 29 percentage points (+94%). •Not only is ROBLOXa clear favorite among Gen Z, it also has higher tendency to be played by female audiences. Cookie Run: Kingdom has enjoyed widespread popularity in South Korea, and it is 130% more likely to be used by Gen Z.Gen Z is Rapidly Gaining Ground as the Most Monetizable Audience Group for GamingDATA.AI + IDC | GAMING SPOTLIGHT | 20221153%31%46%35%35%41%60%51%54%48%45%45%60%60%55%54%54%47%0%10%20%30%40%50%60%70%JapanFr a nceSo uth Ko reaUni ted Ki ngdomGermanyUni ted S tates201920202021Share of Gen Z-Skewing Games among Top 1,000 Games by Consumer Spend iOS & Google Play Combined2021 Top Gen Z Skewing Game by Consumer SpendUma Musume Pretty DerbyBrawl StarsCookie Run: KingdomROBLOXState of SurvivalROBLOXLikelihood of Usage by Gen Z Gamers vs Population2.2×2.3×2.3×1.7×1.3×1.9xUnderstanding demographics segmentationcan help you build out marketing campaigns and partnerships for games with demographics that match your target audience. View the most used games by age group in data.ai over time, by device and in different markets. Source: data.ai. Note: Consumer Spend across iOS, Google Play. iOS Only for China, inclusive of app store fees; Demographic skew determined by average demographic usage across iPhones and Android phones; Gen Z represents aged 16-24

•The US represents a unique market compared to other top mobile gaming markets: games that skew towards Gen X / Baby Boomers (aged 45+) represent nearly 25% of the top grossing games and growing each year, up 6 percentage points from 2019 (+30%) —the fastest growing cohort in the US. •Gaming is not just for young mobile-savvy Gen Z. Mobile has enabled gaming to go mainstream and permeate every age cohort—with engagement and spend up among older gamers, which tend to have more available disposable income, and possibly more time if in retirement. In fact, Baby Boomers & Gen X are the wealthiest age groups in the US —controlling 80% of wealth. Growth in Older Gamers: Gen X & Baby Boomers Have Also Seen Steady Growth in Mobile Game SpendingDATA.AI + IDC | GAMING SPOTLIGHT | 20221219%11%8%10%8%6%21%14%13%11%8%6%25%19%18%13%12%10%0%10%20%30%Uni ted S tatesUni ted Ki ngdomFr a nceJapanSo uth Ko reaGermany201920202021Share of Gen X/ Baby Boomers-Skewing Games Among Top 1,000 Games by Consumer Spend iOS & Google Play Combined2021 Top Boomers Skewing Game by Consumer SpendCandy Crush SagaCandy Crush Soda SagaCandy Crush Soda SagaToon BlastLineage 2MFishdom: Deep DiveLikelihood of Usage by Boomers Gamer vs Populations1.9×1.7×2.3×2.2×2.3×1.3xUnderstanding demographics segmentationcan help you identify underserved markets and cater to growing segments. View the most used games by age group in data.ai over time, by device and in different markets. Source: data.ai. Note: Consumer Spend across iOS, Google Play. iOS Only for China, inclusive of app store fees; Demographic skew determined by average demographic usage across iPhones and Android phones; Gen X/ Baby Boomers represents aged 45+

Game Audiences Tend to Over-Index on Gaming-Focused Social Media Platforms such as Discord, Discussion and Video Streaming Apps like TikTok and Twitch, More than the General Population DATA.AI + IDC | GAMING SPOTLIGHT | 20221362%54%44%39%38%30%29%27%21%17%41%39%41%64%57%15%28%24%23%8%0%40%80%Ti kT okSn apch atInstagramFa c ebo okFa c ebo ok Me ssen gerDiscordPin ter estTw it terWhatsApp MessengerTw it chAverage Cross Mobile Usage A mong Top GamesUsage Penetration By General PopulationTop Social Media and Video Streaming Apps by Average Cross Usage Among Top 10 Games by MAU 2021, United States, iPhone1.49×1.41×1.08×0.60×0.66×1.96×1.04×1.13×0.90×2.09xGamer Likelihood to Use Social App vs Avg PopulationPowered by App IQ

DATA.AI + IDC | GAMING SPOTLIGHT | 2022140.0B0.5B1. 0B1. 5B2.0B2019Q12019Q22019Q32019Q42020Q12020Q22020Q32020Q42021Q12021Q22021Q32021Q42022Q1OthersBOOYAH LiveTango LiveOmlet ArcadeV –Live BroadcastingBIGO LIVETwitchStreaming: Gaming-Focused Twitch Made Up Almost Half of Global Live-Streaming Time Spent on Mobile•Gaming is set to underpin the future landscape of video streaming apps. Since the pandemic, gaming-focused platforms such as Twitch, Omlet Arcadeand BOOYAH Live saw accelerated growth in engagement by prioritizing community building features that encourage real-time connection and interactions between game streamers and audience.•While Twitchinitially rose to popularity for gaming content, more consumers than ever are turning to Twitchfor connection outside of game streams, with non-gaming category ‘Just Chatting’ on the platform seeing more viewers than any other game title.Worldwide Time Spent on Live Streaming AppsAndroid PhonesSource data.ai;Total Time Spent on Live-Streaming (Entertainment) apps according to data.ai App IQ Primary Taxonomy as of 30thApril 2022. Worldwide, Android Phone, excluding China.Keep track of subgenre movement and top players by subgenre in data.ai’s App IQ. Powered by data.ai App IQ

DATA.AI + IDC | GAMING SPOTLIGHT | 20221539.4%34.7%32.9%27.4%24.4%24.1%23.5%21.8%14.9%15.8%13.2%10.8%7.8%15.2%13.6%14.4%14.6%11.6%11.2%11.3%11.7%8.0%6.6%7.6%4.1%3.9%0%10%20%30%40%50%60%HypercasualCasinoMatchPuzzleTabletopSt rat eg ySimulationRPGSpo rtsActionSh oo tin gRacingPartyPaid Ad DownloadsPaid Search DownloadsPaid User Acquisition: Hypercasual, Casino & Match Games Generate the Largest Share of Their Downloads from Paid Channels•The market benchmarks for paid downloads vary by both game genre and country. Some genres are more likely to require paid promotion than others. Overall, Paid App Install Ads (vs Paid App Store Search) tends to contribute more of the share of paid downloads.•Paid downloads indicate the both the level of UA activity and when competitors are running burst campaigns.Share of Game Downloads From Paid SourcesAverage of Top 100 Games Per Genre in Q1 2022, United StatesSource: data.aiNote: Downloads across iOS, Google Play. Uncover the right user acquisition channels for your game: those that will bring in the most revenue and capture growing, engaged mobile markets.Powered by data.ai Game IQ

DATA.AI + IDC | GAMING SPOTLIGHT | 202216Mobile UA Ad Formats: Match and Action Games Lead in Share of Impressions By Playable Ads•In terms of user acquisition ad formats,Video Ads dominate most game subgenres,apart from Action Games —where banner ads represented nearly 55% of Share of Voice (SOV) for the advertiser, indicating a successful ad type for that subgenre. •Match Games also bucked the trend with the highest share of Playable Ads represented 31% of all SOV —indicating they tend to perform well with viewers and lead to game downloads. This could be due to the simple gameplay mechanics. Viewers can achieve the satisfaction of a ‘match’ in a playable ad to quickly get a sense of the game and subsequently download the game quickly (the main metric of a successful ad). Share of Advertising SOV by Format Among Top 20 Games By Downloads per Genre United States, iPhone, March 2022Source: data.aiNote: Downloads across iOS, Google Play 0%10%20%30%40%50%60%70%80%90%100%SportsPuzzleShootingCa sinoRPGSimulationRacingTableto pHypercasualMatchPartyStrategyAct ionBannerInterstitialPlayableVideoDiscover which creatives and ad formats perform best across varying ad networks and markets. Powered by data.ai Game IQ

AD MONETIZATION + USER PREFERENCES IN MOBILE GAMESDATA.AI + IDC | GAMING SPOTLIGHT | 202217GAMING SPOTLIGHT 2022

DATA.AI + IDC | GAMING SPOTLIGHT | 202218387385380348347310215192419418403379378314239204050100150200250300350400450Uni ted S tatesUni tedKin gdomIndiaFr a nceGermanyIndonesiaSo uth Ko reaJapan20192021Go Beyond In-App Purchases: Hybrid Ad Monetization is a Growing Trend Among Top Grossing Games •Among top games by app store consumer spend (those that monetize through in-app purchases) in United States, games also monetizing through ads has increased from 39% in 2019 to 42% in 2021.•Compared to other markets, game publishers in APAC markets such as Japan and South Korea prioritized the in-app purchase model (IAP) over the in-app advertising model. Number of Games with Hybrid IAP+ Ad MonetizationAmong Top 1,000 Grossing Games in Select MarketsSource data.ai. Top 1000 Games by Consumer Spend across iOS, Google Play; inclusive of app store fees There are opportunities for game publishers to diversify income sources without interfering with the players’ gaming experiences. Hybrid models are particularly popular in Western markets. Dive deeper with data.ai Game IQ feature tags.Powered by data.ai Game IQ

Most Mobile Device Users Were Willing to Accept Advertising in Return for Free Content & Services6%7%6%7%15%35%34%31%31%28%22%27%28%39%31%36%32%35%24%25%0%25%50%75%100%USAUKGermanyJapanBr azilShare of Mobile Users Willing To Pay For Apps Versus Seeing Ads For “Free” Apps Pay for apps & see no adsIt depends on the appAccept advertising in exchange for free content/servicesUnsuren = 1,052 for the U.S., 1,146 for the UK, 1,189 for Germany, 1,375 for Brazil, and 232 for Japan (base is smartphone users).Source: November 2021 IDC/LoopMe Survey On Mobile Advertising Perceptions.DATA.AI + IDC | GAMING SPOTLIGHT | 202219By >3:1 margin, on average, consumers indicated they’d rather see ads in exchange for free content/services than to pay for appsand avoid all ads indicated by “Accept Ads” vs “Pay for apps & see no ads” responses. Those that responded with “It depends” or “ept ads” —signaling full or partial acceptance of ads in exchange for services. Q: Many apps run advertising to earn money so they can offer content or services for free. If you could choose, which would you rather do?

Most Users Felt Tracking for Ad Targeting Was Unfair Even if Targeting Helped to Keep Apps Freen = 1,052 for the U.S., 1,146 for the UK, 1,189 for Germany, 1,375 for Brazil, and 232 for Japan (base is smartphone users).Source: November 2021 IDC/LoopMe Survey On Mobile Advertising Perceptions.DATA.AI + IDC | GAMING SPOTLIGHT | 202219The exception was Japan; most respondents there felt tracking was “fair” or they were neutral towards it. Coupled with the results of the previous question, this puts app developers in a tough spot and implies Apple’s IDFA deprecation was pragmatic: most mobile users don’t want to be tracked individually and they want “free” apps. This underscores the importance of having trustworthy third-party contextual market datato inform successful mobile strategies in a post-IDFA world. 50%58%48%11%52%16%16%11%33%13%18%8%23%27%19%13%17%18%22%9%3%2%7%7%0%25%50%75%100%USAUKGermanyJapanBrazilShare of Mobile Users’ Perception Of Ad Targeting TrackingNot fair at allProbably unfairUnsureProbably fairVery fairQ: Keeping in mind it allows most apps to be free, how fair do you think it is for app publishers to track you?

On Average, 45% of Respondents Supported Tougher Ad Tracking Measuresn = 1,052 for the U.S., 1,146 for the UK, 1,189 for Germany, 1,375 for Brazil, and 232 for Japan (base is smartphone users).Source: November 2021 IDC/LoopMe Survey On Mobile Advertising Perceptions.DATA.AI + IDC | GAMING SPOTLIGHT | 202219This could be private or public policy changes; 29% didn’t support such measures, which implies probabilistic ad tracking will become the “new normal”. Marketers and product managers will need to unify contextual third-party data with first-party metrics to future-proof their ad strategy.32%34%22%14%20%20%16%13%43%12%24%17%31%24%34%4%8%6%11%7%18%25%28%8%27%0%25%50%75%100%USAUKGermanyJapanBrazilShare of Mobile Users’ Support for Privacy Regulations or PoliciesVery supportiveSomewhat supportiveUnsureSomewhat unsupportiveNot at all supportiveQ: Even if it means you’ll see more ads that are less relevant to you, how much do you support the steps tech companies and governments have taken to make tracking harder?

US Gamer Sentiment Towards In-Game Banner Ads Has Grown More Positive, Although the Unfavorable Share Remains Elevated•About 18% more US gamers said they “can’t stand” banner/display ads than said they “liked” them in Q3 2021, but the gap between these sentiments closed (improved) 1.4% between Q3 2020 and Q3 2021.•Why this sentiment change occurred is open to interpretation: did the COVID-19 pandemic make more gamers receptive to such ads, did game developers and their ad network partners improve the ad experience (more relevant, less faulty), or have the messages gotten better?•Roughly 77% of respondents reported seeing an in-game banner/display ad in Q3 2021.0%10%20%30%40% I like them I can’t stand them They’re okayN/A –I haven’t seen ads of this typeShare of Respondents22Q3 2021 n=3,988Source: IDC’s Q3 2019, 3Q 2020 and 3Q 2021 US Gamer SurveysQ: If you’ve seen in-game ads in the mobile games you’ve played in the past three months, can you indicate what type you’ve seen and your attitude towards them?[Option selected:] I’ve seen static banner (picture or text) ads and…Q3 2019 to Q3 2021-25 pts-17.9ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2022Q3 2019Q3 2021Q3 2020Banner/ Display Ads

In-Game Video Ads Remained the Most Divisive Format but US Gamer Sentiment Toward Them Improved Marginally•About 23% more US gamers said they “can’t stand” video ads than said they “liked” them in Q3 2021. However, the gap between these sentiments also closed (improved) 1.6% between Q3 2020 and Q3 2021.•Video ads had the highest presence of all formats: about 84% of mobile gamers reported seeing an ad of this type in a game they played in Q3 2021.•Video ads had the highest negative sentiment among the four in-game ad formats considered; their sheer prevalence (as seen in slide 17) probably partly explains this outcome.0%10%20%30%40% I like them I can’t stand them They’re okayN/A –I haven’t seen ads of this typeShare of Respondents23Q: If you’ve seen in-game ads in the mobile games you’ve played in the past three months, can you indicate what type you’ve seen and your attitude towards them?[Option selected:] I’ve seen video ads and…US Mobile Gamer Sentiment Towards Video Ads,Q3 2019-Q3 2021-29.1pts-23.4ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2022Q3 2021 n=3,988Source: IDC’s Q3 2019, 3Q 2020 and 3Q 2021 US Gamer SurveysQ3 2019Q3 2021Q3 2020Video Ads

US Gamers Reversed Course: Sentiment Dipped Year-on-Year Toward Rewarded Video Ads But They Still Leaned Positive Overall•3% more US gamers said they “liked” rewarded video ads than said they “can’t stand” them in Q3 2021, indicating users are willing to part with their attention if it benefits their gameplay.•76% of gamers reported seeing at least one ad of this type in a mobile game they played in 2Q 2021.•Rewarded video ads had the highest positive sentiment among all ad typeswith 23% of gamers reporting that they “like them”, although year-on-year this share fell 8%; the value exchange remains direct and immediate for rewarded video ads.0%10%20%30%40% I like them I can’t stand them They’re okayN/A –I haven’t seen ads of this typeShare of Respondents24Q: If you’ve seen in-game ads in the mobile games you’ve played in the past three months, can you indicate what type you’ve seen and your attitude towards them?[Option selected:] I’ve seen rewarded video ads (that I get virtual currency or items for watching) and…Video Ads, Q3 2019-Q3 2021+6.9 pts+3ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2022Q3 2021 n=3,988Source: IDC’s Q3 2019, 3Q 2020 and 3Q 2021 US Gamer SurveysQ3 2019Q3 2021Q3 2020Rewarded Video Ads

Playable Ads Were Close To Neutral, but US Gamer Sentiment Toward Them Dipped Year-on-Year•About 6% more US gamers said they “can’t stand” playable ads (which are typically designed to let a user test a game before a potential download) than said they “liked” them in Q3 2021, and the negative sentiment toward them rose 4.3% year-on-year.•Playable ads had the second highest “like” share at 18%.•This was the least common ad type, with 74% of respondents claiming to have seen at least one such ad in 3Q 2021.0%10%20%30%40% I like them I can’t stand them They’re okayN/A –I haven’t seen ads of this typeShare of Respondents25Q: If you’ve seen in-game ads in the mobile games you’ve played in the past three months, can you indicate what type you’ve seen and your attitude towards them?[Option selected:] I’ve seen playable ads (that allow me to demo another game or app) and…Q3 2019-Q3 2021-4.4 pts-6.3ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2022Q3 2021 n=3,988Source: IDC’s Q3 2019, 3Q 2020 and 3Q 2021 US Gamer SurveysQ3 2019Q3 2021Q3 2020Playable Ads

Gen Z & Female US Gamers Fueling Negative Sentiment Around In-Game Video Ads•When ad sentiments were further broken down by age and gender, significant differences emerged.•Shown at right are video ads and rewarded video ads, which had the largest sentiment gap among the four types of ads considered in 3Q 2021. •The negative perception of video ads was much less pronounced among males aged 25-44 while the reverse was true for females aged 13-24; both these results have implications for marketers.•For rewarded videos, there appeared to be an inverse correlation between age and favorability. Males aged 13-24 appeared to have the highest “like” rate of all for rewarded video ads, which implies that games that appeal to this demographic group should especially adopt this ad type. 26Q: If you’ve seen in-game ads in the mobile games you’ve played in the past three months, can you indicate what type you’ve seen and your attitude towards them?[Option selected:] Video ads or Rewarded video ads –net difference between “like” and “can’t stand them” results shown above* Results warrant caution due to low n value (this includes LGBTQ respondents and a small number of respondents who declined to specify a gender)-Game Video Ad & Age Bracket, 3Q 2021DATA.AI + IDC | GAMING SPOTLIGHT | 2022TotalAged 13-24Aged 25-44Aged 45+Video ads-23.4-32.4-10.9-26.5Rew. Video ads314.210-5N value3,9897681,1012,102TotalFemaleMaleNon-binary*Video ads-23.4-27-17.8-38.5Rew. Video ads314.524.4N value3,9892,2311,68078US Mobile Gamer Net Sentiment by Type of In-Game Video Ad & Gender, 3Q 2021Q3 2021 n=3,988Source: IDC’s Q3 2019, 3Q 2020 and 3Q 2021 US Gamer SurveysVideo & Rewarded Video Ads

KEY THEMES+ TAKEAWAYSDATA.AI + IDC | GAMING SPOTLIGHT | 202227GAMING SPOTLIGHT 2022

Key Themes+TakeawaysGAMING SPOTLIGHT 2022DATA.AI + IDC | GAMING SPOTLIGHT | 202228•Mobile is now the primary driver of growth for digital games consumption, increasingly becoming the world’s preferred form of gaming, and central to a robust cross-platform experience. •Mobile has enabled the democratization of gaming —allowing for every type of gamer to gain access to “their” niche, whether it’s a specific subgenre from hypercasual to match-3 to core games like open world adventure titles. Mobile gaming appear to be setting the stage for the “new gamer”, which is the most inclusive cohort yet. •Consumers havespentmore time at home since early 2020 and have sought out new ways to connect with others; we expect cross-platform games to continue gain ground relative compared tomobile-only games—a trend that should put more console-and PC-quality experiences in the pocket of all smartphone owners.•Sentiment towards in-game mobile ads generally improved in Q3 2021 especially compared to Q3 2019, according to US mobile gamer surveys. Not all ad formats were equally regarded. Rewarded video and playable ads were gamers’ preferred ad types in the US. •Oversaturation may be a problem for games that primarily monetize through ads. In the US, consumer opinion of in-game ads tended to fall as the prevalence of different types of ads rose, so we recommend diversifying the types/formats of ads shown in-game.•We recommend using demographics to assess the type and format of ad that has the most favorable sentiment among a given game’s user base to help combat “ad fatigue” –a challenge that’s grown tougher since Apple’s ATT Framework was rolled out (and we expect Google’s comparable “Privacy Sandbox” will arrive in early 2024). Contextual market data is important for advertisers to succeed in this environment.

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International Data Corporation () is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC’s Gaming and eSports serviceadvises video game development studios, publishers, distributors, retailers, hardware system and peripheral manufacturers, and related brands and advertisers about the video game industry from a global and regional perspective.IDC Offers Unmatched Global & Local Expertise DATA.AI + IDC | GAMING SPOTLIGHT | 202230More than 1100 analystsin over 50 countrieswith 49% in emerging marketsSignificant primary demand-side research with over 350,000 end users surveyed annuallyGlobal, regional and local expertise on technology + industry trends in 110 countries

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