Gaming Spotlight 2023 Review

Aug, 2023 GAMING
SPOTLIGHT
2 0 2 3 R E V I E W

Contents
GAMING SPOTLIGHT 2023
• Gaming Trends We’re Watching
• Mobile Games That Defined H1 2023
• Mobile Ad Monetization + User Preferences
• Key Themes + Takeaways
DATA.AI + IDC | GAMING SPOTLIGHT | 20232

Today’s Gaming Market & Its Challenges
GAMING SPOTLIGHT 2023
DATA.AI + IDC | GAMING SPOTLIGHT | 20233
• Mobile still stands as the largest opportunity in gaming, but ongoing updates to privacy
regulations, macroeconomic instability, and rising competition has
made acquisition and
growth more challenging
. Finding new users and setting expectations for revenue
growth has become tougher.
• New competition is constantly entering the mobile space and
with mobile consumer
spend set to remain about the same in 2023 as the previous year
, it’s more important
than ever to stand out from the market. In order to protect one’s standing and not fall
behind,
staying ahead of trends is critical.
• It’s no longer enough to ride the popular wave; mobile gamers are varied and
demanding. Staying on top of popular features and revenue driving updates
is the key
to better DAU and stickiness.
Without the right partners , getting visibility on competitors
is time consuming and often unreliable.

GAMING SPOTLIGHT 2023
DATA.AI + IDC | GAMING SPOTLIGHT | 20234
Today’s Gaming Market & Its Challenges
•With rising acquisition costs, creative optimization is more impactful than it has been in
the past. Understanding how competitors are effectively converting and what’s driving
their creative strategy can
fuel your own asset and network strategy for growth.
•
There are more options around how to monetize than ever before , but maximizing
revenue potential requires a more comprehensive approach to monetization.
Ad
revenue, subscriptions, battle -passes, promotions and many other options
exist.
Understanding what’s performing in your genre for your users requires staying ahead of
the market through
monetization insights.

GAMING TRENDS
WE’RE WATCHING
DATA.AI + IDC | GAMING SPOTLIGHT | 20235
GAMING SPOTLIGHT 2023

$0B
$30B
$60B
$90B
$120B
$150B
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023F
Mobil e Ga min g P C/Mac Gami ng Home C onsole s Han dhel d C onsole s
6
Worldwide Consumer Spending on Games
by Major Device Group
Mobile Spending Decline Is Leveling
Out, But Privacy & Macroeconomic
Concerns Still Loom
Source: data.ai & IDC.
All totals include applicable digital and physical game spending but exclude ad revenue. Mobile gaming includes

all app stores (iOS App Store, Google Play and third -party Android stores in China combined). Home game
console total includes discs, digital games and gaming -related subscription services (i.e., Xbox Live Gold, Game
Pass, PlayStation Plus, Nintendo Switch Online, EA Play); handheld consoles are typified by Nintendo’s Switch Lite
and Valve’s Steam Deck.
$108B
$43B
$40B
$3B
DATA.AI + IDC | GAMING SPOTLIGHT | 2023
Gaming Trends We’re Watching
Despite the softening in direct consumer gaming spend, mobile is still
the largest market opportunity for games. In this fast
-changing
landscape it’s critical to stay ahead of trends, streamline your
acquisition and optimize your monetization strategy.
• Consumer spend in mobile games is set to reach $108 billion in 2023 .
Such spending has historically been resilient during economic
downturns; However, ATT (App Tracking Transparency) and a
crackdown on fingerprinting
make it more difficult to target spending
“whales”
and therefore monetize through IAP. As a result of this and —
perhaps more importantly — the escalating limitations on adolescent
mobile use in China, we expect a slight 2% decline year -over -year.
•
Home console spending should rise 3% in 2023 to $43 billion based on
rising PS5 and Xbox Series X/S spending (and falling Switch spending).
•
PC/Mac spending should rise 4% this year to $40 billion , mostly
driven by an increase in subscription -based game revenue.
•
Handheld spending should drop 20% this year to less than $3 billion
due to waning interest in Nintendo Switch Lite, partly offset by rising
interest in Steam Deck and other gaming handhelds.

0%25%50%75%100%Q1 2022Q1 2023Q1 2022Q1 2023Q1 2022Q1 2023Q1 2022Q1 2023Source: data.ai & IDCNote: Mobile Gaming across iOS & Google PlayMobile GamingHandheld Game ConsolesHome Game ConsolesPC + Mac GamingWorldwide Consumer Spending Shares on Games by Region Q1 2023 vs Q1 2022North AmericaWestern EuropeAsia-PacificRest of World7+1.7 pts+.6 pts-1.9 pts+2.2 pts-1.8 pts-.6 pts+.8 ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2023Gaming Trends We’re WatchingAPAC Markets Are the Main Drivers of Revenue Growth Across Mobile, PC and Mac •South Korea recently accounted for the gains in market share for mobile spending in APAC. Brazil, Turkey and Mexico led growth in Rest of World.•Interest in Switch Lite declined significantly in Japan, largely due to the Nintendo Switch OLED version, which continues to account for a larger share of total Switch spending. Handheld console game revenue fell in all regions.•PC and Mac gaming gained share YoY, partly because of an increase in subscription-based game spending. This rise also benefited from poor Rest of World results stemming from global conflict and inflation.•Home console share changes were driven by stepped-up PS5 and Xbox Series X/S spending in North America and sub-par Rest of World results due to the war in Ukraine, inflation-related issues in some key markets, and related concerns.

Top 5 Game Genres By Growth in Downloads ShareH1 2022 vs H1 2023 Top 5 Game Genres By Growth in Consumer Spend Share
H1 2022 vs H1 2023
+0.3pts
+0.2pts
+0.3pts
+0.3pts
+0.3pts
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0%
1%
2%
3%
4%
5%
6%
Driving (Simulation) Simulation Sports
(Sports)
Arcade Racing
(Racing)
Team Battle (RPG) Idle RPG (RPG)
8
Top Breakout
Game Within
Genre
Indian Bikes Driving 3D FIFA Soccer
Hill Climb Racing Honkai: Star Rail Legend of Slime: Idle
RPG
Top Breakout
Game Within
Genre

Honkai: Star Rail Royal MatchHonor of Kings Coin MasterEggy Party
+0.7pts
+0.9pts
+0.7pts
+0.7pts
+0.7pts
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10 %
Team Battle (RPG) M3 -M eta (Match) MOBA (Actio n) Luck Battle (Party) Party Royale (Party)
Interest in Simulation Titles Surged in the First Half,
While Team Battle RPGs Grew Their Share of Spending
Source: data.ai. Note: Downloads and Consumer Spend across iOS, Google Play. iOS Only for China
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DATA.AI + IDC | GAMING SPOTLIGHT | 2023 Gaming Trends We’re Watching
Shifts in market share highlight which games are relatively more popular in
the current environment
. Taking over market share may not necessarily
indicate an absolute growth in downloads or consumer spend if the market
contracted overall. Rather, it shows their share of the market is larger.
This helps publishers understand pockets of growth or strongholds
relative to peers
that may otherwise go unnoticed — highlighting potential
partnerships or competitors encroaching on mindshare.

Rank Mobile GamingNintendo Switch Lite Steam (2022)
1
Honour of Kings
Tencent, China
MOBA – Action
Pokémon Scarlet / Pokémon Violet
Pokémon Co. and Nintendo, Japan
RPG – Adventure
Counter -Strike: Global Offensive
Valve Corp., US
Team -based tactical shooter
2
Candy Crush Saga
King (Activision Blizzard), UK
M3 -Saga
Mario Kart 8 Deluxe
Nintendo, Japan
Racing – Multiplayer
Elden Ring
Bandai Namco Ent., Japan
Action RPG
3
ROBLOX
Roblox, United States
Simulation – Creative Sandbox
Fire Emblem Engage
Nintendo, Japan
RPG – Strategy
Call Of Duty Modern Warfare II
(2022)
Activision, US
First -person shooter
4
Coin Master
Moon Active, Israel
Luck Battle – Party
Kirby’s Return to Dream Land Deluxe
Nintendo, Japan
Action – Platformer
Dying Light 2: Stay Human
Techland., Poland
Action – Survival RPG
5
Genshin Impact
miHoYo, China
RPG – Open World
Metroid Prime Remastered
Nintendo, Japan
Adventure – Action – Platformer
Dota 2
Valve Corp., US
MOBA
6
Game For Peace
Tencent, China
Battle Royale – Shooting
Nintendo Switch Sports
Nintendo, Japan
Sports – Party
PUBG: Battlegrounds
KRAFTON, South Korea
Battle Royale
7
Royal Match
Dream Games ,Turkey
Match – M3 -Meta
The Legend of Zelda: Breath of the Wild
Nintendo, Japan
Adventure – Action – RPG
Apex Legends
Electronic Arts, US
Battle Royale – Shooter
8
Gardenscapes – New Acres
Playrix ,Ireland
Match – M3 -Meta
Mario Party Superstars
Nintendo, Japan
Party
Destiny 2
Bungie, US
First -person shooter
9
Pokémon GO
Niantic ,United States
RPG – Location RPG
New Super Mario Bros. U Deluxe
Nintendo, Japan
Platformer – Action
Monster Hunter Rise
Capcom, Japan
Action RPG
10
Monster Strike
XFLAG (Mixi), Japan
RPG – Puzzle RPG
Super Smash Bros. Ultimate
Nintendo, Japan
Fighting – Multiplayer Action
Lost Ark
Amazon Games, US
MMORPG
Top 10 Worldwide Grossing Mobile, Handheld + PC Games
by Platform H1 2023
9
Source: data.ai & IDC.
Note: data.ai mobile gaming rankings based on H1 2023, Combined iOS and Google Play; China is iOS only; IDC Market-level rankings for Q1 2023.
Learn More: Uncover the Most Popular Games By Market and how
data.ai’s Game IQ
taxonomy transforms how you publish games today.
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DATA.AI + IDC | GAMING SPOTLIGHT | 2023 Gaming Trends We’re Watching
Core Games Still Dominate, But
Shifting Tastes Make Way for
Emerging Genres
• Core Games with real -time online multiplayer features such as PvP
(player -versus -player)
are among the most popular across the
spectrum, with
Battle Royale and Shooting Games remaining among
the top on mobile and PC/Mac.
• On Nintendo Switch Lite
, first -party ($60) games dominated. The
highest- grossing third -party game in Q1 2023 was Sega’s
Sonic
Frontiers
at #15. Evergreen titles made a comeback: Mario Kart 8
Deluxe
debuted in Q2 2017.
• On Steam, two first- party free -to -play games made the top five ,
CS:GO and Dota 2. Elden Ring and Dying Light 2: Stay Human sold
very well in H1 2022, while
Call Of Duty Modern Warfare 2 (2022)
returned to Steam and performed solidly in Q4 2022. Battle/season
passes also generally performed well.

$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
0.0
2.0
4.0
6. 0
8. 0
10.0
12. 0
14. 0
16.0
2019 2020 2021 2022 2023E
P C/Mac an d TV -based gam epl ay hour s Mobil e gamepl ay hour s Reve nue (al l platf or ms)
Worldwide Cloud-Streamed Gaming Hours of Use and Spending
Source: IDC’s “Worldwide Cloud -Streamed Gaming Forecast, 2022 -2026: Mobile Gathers Momentum” study, Sept. 2022.
Spending $B
Gameplay hours
(B)
10
DATA.AI + IDC | GAMING SPOTLIGHT | 2023
Gaming Trends We’re Watching
Picking Up Stream:
Gaming In the Cloud
Makes Inroads on Mobile
• As a share of global hours, cloud
-streamed gaming (CSG)
on smartphones and tablets should represent 26% this
year
, up from 16% in 2019.
•
Across all platforms, global consumer spending on CSG
services should reach $3.8 billion in 2023.
This year’s total
revenue should be more than 50% higher than 2022’s.
•
The worldwide MAU base should be over 60 million this
year
and almost half this base this base should use mobile
devices to access CSG
at least part of the time, up from
21% in 2019.
•
A partial list of B2C providers includes: Amazon Luna,
Blacknut, Boosteroid , Microsoft Game Pass Ultimate,
NVIDIA GeForce Now, Sony PlayStation Plus Premium,
various telcos’ offerings, Tencent Pioneer and START,
Utomik Cloud.

11
Handheld Game Console Hardware Comparison, Q2 2023
Source: IDC’s analysis of public materials and IDC’s “Worldwide Mobile and Handheld Gaming Forecast, 2023–2027: Mobile Gaming
Adjusts to Its First -Ever Spending Drop” study, March 2023.
DATA.AI + IDC | GAMING SPOTLIGHT | 2023
Launch
Quarter Device Operating System (OS) and Device
Specs
Entry hardware price ($) and notes
3Q 2019
Nintendo
Switch Lite
Proprietary
5.5 in. LCD
HD (720p) touchscreen
Max 60Hz refresh rate
$200
Supports almost all Switch game cards
and digital downloads
Average battery life
1Q 2022
Valve
Steam Deck
Linux (SteamOS)
7 in. LCD
WXGA (800p) touchscreen
Max 60Hz refresh rate
$400
Digital downloads supported, can play
thousands of Windows PC games (via
Proton compatibility)
Average battery life
4Q 2022
Logitech
G Cloud
Android (with custom launcher)
7 in. LCD
Full HD (1080p) touchscreen
Max 60Hz refresh rate
$350
Supports Google Play games/apps and
CSG services over WiFi
Good battery life
1Q 2023
Razer
Edge
Android
6.8 in OLED
Full HD+ (2040p) touchscreen
Max 144Hz refresh rate
$400
Supports Google Play games/apps and
CSG services over WiFi (or 5G for
$600)
Good battery life
2Q 2023
Asus
ROG Ally Windows 11
7 in. LCD Fill HD (1080p) touchscreen
Max 120Hz refresh rate
$700
Full Windows PC gaming options
available, CSG services over WiFi
Poor battery life
4Q 2023?
Sony
Project Q
Proprietary
8 in. LCD
Full HD (1080p) touchscreen
Max 60Hz refresh rate
$300?
PS5 required, streams PS5 games over
WiFi
via Sony’s Remote Play app
Good battery life?
Handheld consoles compete directly with one of mobile gaming’s core
strengths: portability. While they provide an added benefit of tactile
controllers, the additional price points create a barrier to entry unlikely
to make significant inroads on the mobile gaming market.
Gaming Trends We’re Watching
Handheld Gaming Is Back,
But Fragmentation Raises
Concerns
• Historical Nintendo domination : Switch Lite shipments
exceeded 21 million globally through Q1 2023.
•
Nearly two million Steam Deck bundles appear to have
shipped through Q1 2023.
•
Geographic interest and availability varies : IDC’s Q1 2023
Consumer Pulse: Home and Entertainment survey found that,
considering Switch Lite and Steam Deck gamers only, 8 to 11% of
respondents in the US, UK, and Germany had a Steam Deck
while in Japan 98% had Switch Lite (4 -country N = 1,770).
•
Demographic Differences: IDC’s Q3 2022 US Gamer Survey
found
55% of Switch Lite gamers were female but only 27% of
Steam Deck owners were female
, and 52% of Switch Lite
gamers were less than 35 years old and 83% of Steam Deck
gamers were over 35 (Switch Lite N = 171; Steam Deck N = 12).

MOBILE GAMES THAT
DEFINED H1 2023
DATA.AI + IDC | GAMING SPOTLIGHT | 202312
GAMING SPOTLIGHT 2023

•Published by Scopely, Monopoly GO has surpassed 45 million downloads and has been #1 by daily downloads 54 out
of the first 60 days since launch in Italy and the UK , and 37 out of 60 in the US, Germany and Australia .
• Free- to-play with in -app purchases (IAP), it has generated more than $232 million in consumer spend glo
bally .
• The title combines the classic board game with innovative social features (play with family & friends) and frequent
touchpoints for engagements (events, minigames, offers) that have elevated its stickiness with players.
• Among markets analyzed (Japan, South Korea, Canada, US, Germany and UK), on average, the game is 10% more
likely to be played by female players and leans toward the 25 to 34 age group.
0
50
10 0
150
United
Kingdom
Germa ny Canada Japan United States
18 – 24 25- 34 35 – 44 45+
13
Mobile Games That Defined H1 2023
Source: data.ai Note: iOS, Google Play Combined.
Lifetime Downloads & Consumer Spend as of August 6
th, 2023.
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DATA.AI + IDC | GAMING SPOTLIGHT | 2023
Monopoly GO:
Family Board Game
Party | Luck Battle
Scopely (United States)
Mobile Performance
Score
Based on the Worldwide performance of iOS and Android (Unified) apps in
Party genre from May 28toJun 3
99
Gender Breakdown
Age Breakdown
0
20
40
60
80
10 0
120
Germa ny United
Kingdom
Canada United States Japan
Ma le Female
Number of Days Among Top 10 Games by Downloads
First 60 Days (April 11th 2023 to June 9th 2023 )
iOS & Google Play Combined, Select Top Markets
54 54 53
44
37 37 37 35
0
10
20
30
40
50
60
70
Italy United
Kingdom
Spain France United
States
Germa ny Australia Canada
#1 By Do wnloads #2 to #10 by Download s
Demographic breakdown determined by average demographic usage across Android phones.
Index values above 100 indicate proportionally more users for the app relative to the average
See how our Mobile Performance Score works now! Schedule a Demo

Mobile Games That Defined H1 2023
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DATA.AI + IDC | GAMING SPOTLIGHT | 2023
Honkai :
Star Rail
RPG | Team Battle
Mihoyo (China)
Mobile Performance Score
93
Source: data.ai Note: In App Purchase Items for iOS App Store. China is iOS only. Lifetime Downloads & Consumer Spend as of August 6
th, 2023.
• Honkai: Star Rail is Mihoyo’s second global success after Genshin Impact . Also a cross- platform title, it features high
production values, story -driven gameplay, anime style art, team- battle RPG mechanics and free-to -play IAP monetization.
• It has generated nearly 62 millio n downloads and over $457 million in spend, led by Japan, China and the United States .
• In the US, one in every seven sales was for “6480 Oneiric Shard IAP item” , which costs $99.99. This bundle of in -game
currency players can use to jump -start their experience contributed 61% of the title’s total revenue in May 2023.
• On average, the game is 10% more likely to be played by males (except in Germany and the UK where females saw a higher
likelihood of use) and 110% more likely to be played by Gen Z gamers in the 18 to 24 age group.
14
Gender Breakdown
Age Breakdown
Demographic breakdown determined by average demographic usage across Android phones.
Index values above 100 indicate proportionally more users for the app relative to the average
See how our Mobile Performance Score works now! Schedule a Demo
Based on the Worldwide performance of iOS and Android (Unified) apps in
RPG genre from May 28toJun 3

15
Mobile Games That Defined H1 2023
Source: data.ai Note: iOS, Google Play Combined. China is iOS only. Lifetime Downloads & Consumer Spend as of August 6
th, 2023.
Genre breakdown based on data.ai Game IQ Taxonomy as of July 18
th, 2023.
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DATA.AI + IDC | GAMING SPOTLIGHT | 2023
Royal Match
Match | M3 – Meta
Dream Games (Turkey)
Mobile Performance Score
95
Top 10 Match Games by Global Consumer Spend2021 – H1 2023
• Royal Match from Turkey’s Dream Games is currently available in more than 174 markets around the world and has
secured wide global appeal across varied markets through its theme’s universal appeal.

• Offering a familiar but fresh take on popular Match -3 mechanics, the title has been downloaded nearly 149 million times.
• The game has also done well monetizing; IAP Premium Coins have generated $1.7 billion in consumer spend to date.
• It was the #2 match game by consumer spend globally in H1 2023, trailing just behind
Candy Crush Saga , up from #8 two
years prior and #3 in 2022 — showing a steady upward trajectory.
• The title is 20% more likely to be played by females and 40% more likely to be played by gamers in the 45+ age group.
0
50
10 0
150
200
Japan Germa ny United
Kingdom
United
States
Canada South Korea
18 – 24 25- 34 35 – 44 45+
Gender Breakdown
Age Breakdown
0
50
10 0
150
Germa ny United
Kingdom
Japan South Korea Canada United
States
Ma le Female
Demographic breakdown determined by average demographic usage across Android phones.
Index values above 100 indicate proportionally more users for the app relative to the average
See how our Mobile Performance Score works now! Schedule a Demo
Based on the Worldwide performance of iOS and Android (Unified) apps in
Match genre from May 28toJun 3

Year-over -Year Downloads For FIFA SOCCER
2016 – 2023
16
Mobile Games That Defined H1 2023
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DATA.AI + IDC | GAMING SPOTLIGHT | 2023
FIFA Soccer
Sports | Simulation Sports
Electronic Arts (US)
Mobile Performance
Score
96
Lifetime Downloads For FIFA SOCCER2016 – 2023
0M
10 0M
200M
300M
400M
500M
600M
2016 2017 2018 2019 2020 2021 2022 H1 2023
+ 34%
+ 74%
0M
50M
10 0M
150 M
2016 2017 2018 2019 2020 2021 2022 H1 2023
Millions
+ 135%
+ 15%
• FIFA Soccer was first released 2016 and is currently available in over 174 markets . The game has seen multiple
revisions throughout the years , with the FIFA World Cup serving as an anchor for major updates and promotions.
• During the 2022 World Cup in Qatar, it saw 135% more downloads compared to the year prior . In H1 2023, it was the
#8 game by worldwide downloads and #12 by breakout consumer spend — showing strong growth.
• It has generated $1 billion in consumer spend globally since launch . IAP are structured around unlocking premium
players for gamers to build their Dream Soccer Team, as well as access to exclusive content, events and leagues.
Source: data.ai Note: iOS, Google Play Combined. China is iOS only. Lifetime Downloads & Consumer Spend as of August 6
th, 2023.
See how our Mobile Performance Score works now! Schedule a Demo
0
50
10 0
150
200
250
Canada South Korea Germa ny United States United
Kingdom
18 – 24 25- 34 35 – 44 45+
Gender Breakdown
Age Breakdown
0
50
10 0
150
200
United
Kingdom
United States Germa ny South Korea Canada
Ma le Female
Demographic breakdown determined by average demographic usage across Android phones.
Index values above 100 indicate proportionally more users for the app relative to the average
Based on the Worldwide performance of iOS and Android
(Unified) apps in
Sports genre from May 28toJun 3

MOBILE AD
MONETIZATION
+ USER PREFERENCES
DATA.AI + IDC | GAMING SPOTLIGHT | 202217
GAMING SPOTLIGHT 2023

18
44.7% 44.3%
37.9% 39.5%
32.9%
29.1%
25.1%
21.2% 22.1% 19.3%
15.0% 17.8%
12.1%
22.0% 22.3%
23.3% 21.6%
24.3%
23.3%
23.1%
23.7% 19.8%
20.1%
19.5% 14.1%
12.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Match Casino
Tabletop
Hypercasual
Puzzle
Strategy Shooting
RPG
Simulation
Sports Party Action Racing
Paid Ad Down loads Paid Search Downloads
Share of Game Downloads From Paid Sources
Average of Top 100 Games Per Genre in Q1 2023, United States
Source: data.ai
Note: Downloads across iOS, Google Play.
To make sure you’re not missing out on valuable new users you
need to uncover the right user acquisition channels for your
game: those that will bring in the most revenue and capture
growing, engaged mobile markets.
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DATA.AI + IDC | GAMING SPOTLIGHT | 2023
Mobile Ad Monetization + User Preferences
Paid User Acquisition:
Match, Casino and Tabletop
Games Lead in Paid Installs
•
The market benchmarks for paid downloads vary both by
game genre and country
.
• In addition, some genres are more likely to require paid
promotion than others. Overall,
Paid App Install Ads (vs
Paid App Store Search) tends to contribute a larger
portion of paid game downloads
.
• Paid downloads indicate both the
benchmark level of UA
activity for a subgenre and channel
and can illustrate
when competitors are running burst campaigns.

19
Share of Advertising SOV by Format Among Top 20 Games By Downloads per Genre
United States, iPhone, May 2023
Source: data.ai
Note: Downloads across iOS, Google Play
5%
4%
8%
16%
79%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Racing
Shooting
Match
Simulation
Kids
Ca sino
Sports
Party
Strategy
Puzzle
Hypercasual
Tableto p
Act ion
RPG
Banner In terstitial Playable Video
Discover which creatives and ad formats perform best across
varying ad networks and markets in order to drive down
acquisition costs and maximize your daily average users.
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DATA.AI + IDC | GAMING SPOTLIGHT | 2023
Mobile Ad Monetization + User Preferences
Mobile UA Ad Formats:
Action and Tabletop Games
Lead Playable Ad Impressions
•
In terms of user acquisition ad formats, Video Ads
dominate most game subgenres apart from
RPG and
Action games
. Playable ads have nearly 80% of Share of
Voice (SOV) for advertisers of Action games, indicating a
successful ad type for that subgenre.
• Tabletop games also bucked the trend with the second
highest share of Playable Ads representing 16% of all SOV
— indicating they tend to perform well with viewers and
lead to game downloads, likely due to their simple
gameplay mechanics.
Viewers can achieve the
satisfaction of a tabletop title in a playable ad
to quickly
get a sense of the game, then subsequently download it
quickly (the main metric of a successful ad).

US Gamer Sentiment Towards In-Game Banner Ads Has FallenBanner/ Display Ads0%10%20%30%40% I like them I don’t like them* They’re okayN/A – I haven’t seen ads of this type20Q3 2022 n=3,414Source: IDC’s Q3 2019 – Q3 2022 US Gamer Surveys* Response option in Q3 2019 – Q3 2021 was “I can’t stand them”.Q: 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…US Mobile Gamer Sentiment Towards Banner/Display AdsQ3 2019 to Q3 2022-25 pts-24 ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2023Q3 2019Q3 2021Q3 2020Q3 2022Share of RespondentsMobile Ad Monetization + User PreferencesBad performing ads waste money and drive up the cost of new users. Stay informed on top performing ad types and see how changing your creative mix can improve your cost-per-click and accelerate your conversion to download.•About 24% more US gamers said they “don’t like” banner/display ads than those who said they “liked” them in Q3 2022.•The gap between these two sentiments rose 6.1% between Q3 2021 and Q3 2022.•Roughly 81% of respondents reported seeing in-game banner/display ads in Q3 2022.

In-Game Video Ads Remained the Furthest Underwater In the US0%10%20%30%40%50% I like them I don’t like them* They’re okayN/A – I haven’t seen ads of this type21US Mobile Gamer Sentiment Towards Video AdsQ3 2019 to Q3 2022-29.1 pts-31.8 ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2023Video AdsQ3 2022 n=3,414Source: IDC’s Q3 2019 – Q3 2022 US Gamer Surveys* Response option in Q3 2019 – Q3 2021 was “I can’t stand them”.Q: 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…Q3 2019Q3 2021Q3 2020Share of RespondentsMobile Ad Monetization + User Preferences•About 32% more US gamers said they “don’t like” video ads than said they “liked” them in Q3 2022; this gap also increased 8.5% year-over-year.•Video ads have the highest presence of all formats: about 85% of mobile gamers reported seeing an ad of this type in a game during Q3 2022.•Video ads had the highest negative sentiment among the in-game ad formats considered; their sheer prevalence (as seen on slide 19) partly explains this outcome.User preference is constantly evolving and metrics like click-through-rates and install conversion can change day by day. Stay informed on how different creative content is driving growth in the market.Q3 2022

Rewarded Video Ads Still the Most Popular with Gamers, But US Sentiment Dipped0%10%20%30%40% I like them I don’t like them* They’re okayN/A – I haven’t seen ads of this type22US Mobile Gamer Sentiment Towards Rewarded Video AdsQ3 2019 to Q3 2022+6.9 pts-5.9 ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2023Rewarded Video AdsQ3 2022 n=3,414Source: IDC’s Q3 2019 – Q3 2022 US Gamer Surveys* Response option in Q3 2019 – Q3 2021 was “I can’t stand them”.Q: 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) ads and…Q3 2019Q3 2021Q3 2020Share of RespondentsMobile Ad Monetization + User Preferences•About 6% more US gamers said they “don’t like” rewarded video ads than said they “like” them in Q3 2023, indicating users remain willing to part with their attention if it benefits their gameplay, but sentiment toward these ads also declined 8.9% year-over-year.•77% of gamers reported seeing at least one ad of this type in a mobile game in 2Q 2022.•Rewarded Video Ads had the highest positive sentiment among all ad types with 20% of all gamers reporting that they “like them”; the value exchange remains direct and immediate for rewarded video ads.Staying on top of high performing creative types is key to an efficient user acquisition strategy. Save money on impressions, clicks and installs by optimizing your creative mix based on trending formats.Q3 2022

Share of RespondentsPlayable Ads Are #2 Among US Gamers, With Waning Popularity0%10%20%30%40% I like them I don’t like them* They’re okayN/A – I haven’t seen ads of this type23-4.4 pts-14.9 ptsDATA.AI + IDC | GAMING SPOTLIGHT | 2023Playable AdsQ3 2019Q3 2021Q3 2020See how to analyze and find the top performing creatives in your market and refine your creative strategy for efficiency. Schedule a demo now!Mobile Ad Monetization + User Preferences•About 15% more US gamers said they “can’t stand” Playable Ads (which are designed to let users “test drive” game levels before a potential download) than said they “liked” them in Q3 2022.•The negative sentiment toward these ads rose 8.6% year-over-year, similar to Video Ads.•Playable ads had the second highest “like” share at 16% of all gamers.Q3 2022US Mobile Gamer Sentiment Towards Playable AdsQ3 2019 to Q3 2022Q3 2022 n=3,414Source: IDC’s Q3 2019 – Q3 2022 US Gamer Surveys* Response option in Q3 2019 – Q3 2021 was “I can’t stand them”.Q: 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 or trial another game) and…

There’s No Clear Evidence ATT Negatively Impacted iOS Ad Sentiment in the US0%10%20%30%40%50% iOS video ad “like” share iOS video ad “don’t like” share Android video ad “like” share Android video ad “don’t like” shareATT rolled out in Q2 2021US Mobile Gamer Sentiment Towards Video AdsQ3 2020 to Q3 2022* Response option in Q3 2019 – Q3 2021 was “I can’t stand them”.Q: 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…Q3 2021Q3 2020Q3 2022Share of Respondents24DATA.AI + IDC | GAMING SPOTLIGHT | 2023Video and Rewarded Video AdsQ3 2022 n=3,252Source: IDC’s Q3 2020 – Q3 2022 US Gamer Surveys0%10%20%30% iOS rewarded video ad “like” share iOS rewarded video ad “don’t like” share Android rewarded video ad “like” share Android rewarded video ad “don’t like” shareATT rolled out in Q2 2021Q3 2021Q3 2020Q3 2022US Mobile Gamer Sentiment Towards Rewarded Video AdsQ3 2020 to Q3 2022* Response option in Q3 2019 – Q3 2021 was “I can’t stand them”.Q: 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) ads and…Mobile Ad Monetization + User Preferences

KEY THEMES
+
TAKEAWAYS
DATA.AI + IDC | GAMING SPOTLIGHT | 202325
GAMING SPOTLIGHT 2023

Key Takeaways To Drive Growth In 2023
GAMING SPOTLIGHT 2023
DATA.AI + IDC | GAMING SPOTLIGHT | 202326
• Mobile is still the primary driver of growth for digital games consumption despite a softening
in 2022 , cementing its role as the world’s preferred form of gaming, and central to a robust
cross- platform experience, making it more critical and challenging to stand out.
• Mobile has enabled the
democratization of gaming — allowing for every type of gamer to gain
access to their own niche, whether it’s a specific subgenre from hypercasual to match-3 to core
games like open world adventure titles.
Mobile gaming appears to be setting the stage for the
“new gamer”, which is the most inclusive cohort yet.
• Games that have performed well in H1 2023 are varied, including the launch of a board game
turned on -the -go mobile experience,
a highly anticipated RPG release building on the
popularity of genre -defining
Genshin Impact , a savvy title disrupting a stable Match -3 market
in under three years , and a cross- platform IP franchise based on the world’s most popular
sport
seeing renewed fervor from tentpole live sporting events. Strong IP, capitalizing on
market momentum and leveraging events are common themes for success.

GAMING SPOTLIGHT 2023
DATA.AI + IDC | GAMING SPOTLIGHT | 202327
•Sentiment towards in -game mobile ads generally deteriorated in Q3 2022, especially compared
to Q3 2021, according to US mobile gamer surveys. To find new users, it’s important to stay
informed on top performing ad networks and formats.
Rewarded video and playable ads
were gamers’ preferred ad types in the US.
Capitalizing on creative trends is challenging
without the right partner.
• 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 has
risen, so
we recommend diversifying the types/formats of ads shown in -game.
• We further 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 creates expensive installs, lower retention for new users and has 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 dynamic environment.
Key Takeaways To Drive Growth In 2023

DATA.AI + IDC | GAMING SPOTLIGHT | 2023
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