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H1 2024 Gaming Spotlight

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Aug, 2024 GamingSpotlightH1 2024 Review

© Sensor Tower Inc. -All Rights Reserved2Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024ContentsGaming trends we’re watchingMobile games that defined H1 2024Mobile ad trends + “Native ads” in User Generated Content (UGC) gamesUnderstanding mobile gamer ad engagement and churn factorsKey themes + takeaways513182629

© Sensor Tower Inc. -All Rights Reserved3Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Gaming Spotlight H1 2024Today’s gaming market & its challengesMobile remains the largest opportunity in gaming; however, the ongoing tech industry contraction, economic uncertainty, and rising competition have added complexity to user acquisition and growth. This has made attracting new users and setting realistic revenue growth expectations more challenging.Mobile game spending projected to grow by around 6% in 2024 compared to the previous year, driven by a series of successful hits and new launches across various genres. To maintain a competitive edge and avoid falling behind, it is crucial for mobile game publishers to stay ahead of emerging trends to understand what is, and may soon be, in demand.While IP certainly plays a role in recent successful hits and mobile adaptations, gamers remain quite varied and demanding. Staying on top of innovative features and revenue-driving live operations updates is essential for increasing daily active users (DAU) and enhancing player retention. Without the right partners, gaining visibility on competitors can be time-consuming and unreliable.

© Sensor Tower Inc. -All Rights Reserved4Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Gaming Spotlight H1 2024Today’s gaming market & its challengesWith rising acquisition costs, creative optimization is more important 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.To maximize revenue potential, it is crucial to adopt a comprehensive approach to monetization. With options like ad revenue, subscriptions, battle-passes, and promotions, understanding what works best for your genre and user base is essential. Staying ahead of the market through monetization insights ensures that you are employing the most effective strategies.For mobile publishers looking to lower cost per install, establishing a captivating first ad impression is vital due to players’ quick installation patterns. Experimenting with special incentives in ads can enhance campaign performance by increasing top-of-funnel conversions and impacting long-term engagement as gamers transition from initial novelty to sustained play.

© Sensor Tower Inc. -All Rights Reserved5Gaming Spotlight H1 2024Gaming trends we’re watching

© Sensor Tower Inc. -All Rights Reserved6Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Mobile spending showing signs of recovery amid tech industry contraction and economic uncertaintySource: Sensor Tower & IDC. All totals include applicable digital and physical game spending but exclude ad revenue. Mobile gaming includesall app stores (iOS App Store, Google Play, excluding 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.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.•The mobile gaming market is set to grow to $83 billion in 2024, a 6% increase from the previous year, driven by the success of recent hit titles likeMONOPOLY GO!, Royal Match,as well as the continued global expansion of games from China such as Honkai: Star Railand Last War:Survival Game.These games have successfully employed live-ops and innovative monetization strategies, combining in-app purchases, ads, and subscriptions to maximize revenue. •Home console game spending should fall 1% in 2024 to $42 billion based on lacklusterfirst party lineups and Switch’s transition year.•PC/Mac spending should rise 1% this year to $38 billion, partly driven by strong paid game/DLC game revenue.•Handheldspending should drop 2% this year to less than $2.5 billion due to flagging interest in Nintendo Switch Lite games, partly offset by rising Steam Deck game purchases.Worldwide consumer spending on games by major device group$0 B$2 0B$4 0B$6 0B$8 0B$1 00 B20 1420 1520 1620 1720 1820 1920 2020 2120 2220 2320 24 F Mo b i l e Gam i n g P C / Mac Ga m in g H o m e C o n s o l es H an d h el d C on s o l es$83B$42B$38B$2B

© Sensor Tower Inc. -All Rights Reserved7Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 20245.4%6.2%9.4%10.1%14.0%15.1%11.7%11.7%53.6%48.0%30.4%34.4%45.7%43.7%11.6%12.0%10.6%11.8%25.9%17.2%19.4%20.1%33.2%32.4%30.4%34.0%34.3%38.3%20.9%21.1%43.4%43.9%0%25 %50 %75 %10 0%Q1 2023Q1 2024Q1 2023Q1 2024Q1 2023Q1 2024Q1 2023Q1 2024North American markets were the main drivers of revenue growth across Mobile, PC, and Mac●Major APAC markets such as China and Japan experienced slight declines in spending, while emerging markets like India and Indonesia drove the gains in market share for mobile spending in the APAC region. Additionally, growth in mobile gaming spending was notably led by Mexico, Saudi Arabia, and Poland in the Rest of the World region. These shifts highlight the dynamic nature of the global mobile gaming market, with emerging economies increasingly contributing to overall growth.●Demand for Switch Lite games held up relatively well in the U.S. and Japan YoY, but not so much in Western Europe, yielding a 4.1% revenue share rise in North America and a 4% rise in Asia-Pacific.●Regional PC and Mac game spending shares were fairly steady YoY, with the ROW region (LatAm+ MEA + CEE) picking up about a percent and Asia-Pacific losing 2% (due to ongoing regulatory pressures in PRC and broader macroeconomic softness).●Home console share changes were also modest but North America led in terms of YoY share gains. As with handhelds, Western European console spending results were relatively weak, which could have been affected by macroeconomic factors (i.e., GDP in the EU in 1Q24 was a meager0.3%).Worldwide consumer spending shares on games by region Q1 2023 vs Q1 2024Source: Sensor Tower & IDCNote: Mobile Gaming across iOS & Google PlayMobile GamingHandheld Game ConsolesHome Game ConsolesPC + Mac Gaming§North America§Western Europe+3.6 pts+4.1 pts+1.1 pts+.5 pts§Asia-Pacific§Rest of World

© Sensor Tower Inc. -All Rights Reserved8Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Growth in simulation games and MOBA leads mobile game surgeSimulators led by volume among the top five subgenres by downloads share, with 1.5 billion downloads in the first half of 2024, capturing 6% of the market, up 0.4 percentage points from the previous period. MOBAgames also surged, reaching 215 million downloads, up from 121 million, driven by releases like Squad Bustersand the global rollout of Honor of Kings.MOBAalso saw substantial growth in revenue share, reaching $2.34 billion, or 5.8% of the market, up from 4.8% previously. This increase was partly driven by recent releases, and Brawl Stars’simpressive comeback, which boosted its revenue through new features and effective live operations.Beat ’emUp (Action Games) also grew significantly, hitting $384 million compared to $45 million in the previous period, driven by the success of Dungeon & Fighter Mobile in China.Top breakout game within genre Manage Supermarket SimulatorDrive Zone: Car Simulator GameWood Nuts & Bolts PuzzleGarenaFree FireSquad BustersTop breakout game within genreLast War:SurvivalGameMONOPOLY GO!Brawl StarsLove and DeepspaceDungeon & Fighter MobileTop 5 game sub genres by growth in downloads shareH2 2023 vs H1 2024Top 5 game sub genres by growth in gross revenue shareH2 2023 vs H1 20241.43B(5.7%)1.13B(4.5%)325.0M(1.3%)280.2M(1.1%)1.50B(6.0%)1.25B(5.0%)444.0M(1.8%)369.2M(1.5%)215.0M(0.9%)+0.4 %pts+0.5 %pts+0.5 %pts+0.4 %pts+0.4 %pts0. 0 0%10 . 00 %20 . 00 %30 . 00 %40 . 00 %50 . 00 %60 . 00 %0%1%2%3%4%5%6%7%Simulator(Simula tion)Dri vi ng / Fl i gh t S i mu l ato r(Simula tion)Physics(Puzzle)Bat tl e Royal e(Shooter )MO BA(Strat egy)$3.40B(8.5%)$2.02B(5.1%)$1.90B(4.8%)$45.5M(0.1%)$3.73B(9.2%)$2.36B(5.9%)$2.34B(5.8%)$450.4M(1.1%)+0.7% pts+0.8% pts+1.0% pts+0.5% pts+0.8% pts00. 20. 40. 60. 811. 20%2%4%6%8%10 %4X S t rat eg y(Str ate g y)Coin Loote rs(Ca sino)MO BA (Str at eg y)Interac tive Story(L ife style )Be at ‘ em U p(Act ion)$384.1M(1%)Source: Sensor Tower Store Insights, iOS & Google Play Combined

© Sensor Tower Inc. -All Rights Reserved9Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Core games didn’t dominate mobile consumer spending: Emerging genres gained popularity●The top 10 mobile games in 2024 are led by MONOPOLY GO! and include a mix of genres such as strategy, puzzle, and simulation, with notable titles like Honor of Kings, Royal Match, and Roblox,reflecting a diverse gaming landscape dominated by popular and engaging games across various categories.●On Steam, three free-to-play games made the top 10 (CS2, PUBG, and Apex Legends) and the rest were paid games. Note: Call of Duty aggregates results from MWIII, MWII, and Warzone(the last of which is F2P). Core shooters and RPGs dominated the top 10.●Only four of the paid Steam games launched in H1 2024 (HELLDIVERS™2, Palworld, Dragon’s Dogma 2, and Last Epoch). ELDEN RING’s Shadow of the ErdtreeDLC appeared to boost base game sales (the game debuted in Q1 2022 & this DLC pack sold 5M copies across Steam and consoles in late 2Q 2024).●Perhaps it’s time to pump the brakes on “IP convergence” narrative between mobile and PC…but the popularity of online multiplayer games remained common.Top 10 worldwide grossing mobile & Steam Gamesby platform H1 2024 Source: Sensor Tower & IDC, 2024.Note: Sensor Tower mobile gaming rankings based on H1 2024, Combined iOS and Google Play; China is iOS only; IDC Market-level Steam rankings for H1 2024 contain a significant margin of error (up to 15% per title) and should be considered directional.RankMobile GamingRankSteam (Windows PC)1MONOPOLY GO! ScopelyCoin Looters(Casino)1Counter-Strike 2ValveTeam-based FPS2Honor of Kings Tencent MOBA(Strategy)2HELLDIVERS™2Arrowhead Game Studios / PlayStationThird-person co-op shooter3Royal Match Dream Games Swap(Puzzle)3PalworldPocketpairOpen world survival and crafting4ROBLOX Roblox Sandbox(Simulation)4PUBG: BATTLEGROUNDSKRAFTONBattle royale shooter5Candy Crush Saga Activision Blizzard Swap(Puzzle)5Dragon’s Dogma 2CAPCOMAction RPG6Coin Master Moon Active Coin Looters(Casino)6ELDEN RINGBandai Namco / FromSoftwareOpen world fantasy RPG7Game For Peace Tencent Battle Royale(Shooter)7Call of Duty®ActivisionFPS8Last War:SurvivalGame FirstFun4X Strategy(Strategy)8Last EpochEleventh Hour GamesHack and slash action RPG9Whiteout Survival Century Games4X Strategy(Strategy)9Baldur’s Gate 3LarianStudiosRPG10Brawl StarsSupercellMOBA(Strategy)10Apex Legends™Electronic ArtsBattle royale FPS

© Sensor Tower Inc. -All Rights Reserved10Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Western Europe’s top grossing games for Q1 2024 highlight mobile casino dominance while Steam spending remained coreTop 10 grossing mobile & Steam GamesWestern Europe, Q1 2024 Source: Sensor Tower & IDC, 2024.Note: Sensor Tower mobile gaming rankings based on Q1 2024, Combined iOS and Google Play.IDC Market-level Steam rankings for Q1 2024 contain a significant margin of error (up to 20% per title) and should be considered directional.•Coin Masterand MONOPOLY GO!top the mobile gaming charts in Western Europe, both belonging to the Coin Looters (Casino) subgenre. This highlights the significant revenue-generating potential of casino-style games on mobile platforms.•Apart from casino games, mobile titles like Brawl Stars(MOBA) and Candy Crush Saga(Puzzle) indicate a strong preference for strategy and puzzle genres among mobile gamers in Western Europe.•On Steam, two of the top 10 were F2P (CS2and War Thunder) and the rest were paid, although the Call of Duty entry includes Warzone.•If the two HELLDIVERS™2 entries are combined, the new #10 was Dragon’s Dogma 2. Cyberpunk 2077’s Phantom LibertyDLC (from 3Q 2023) appeared to boost base game sales.•Compared to Steam’s global top 10, the “new” entries were Enshroudedand War Thunder. We didn’t include it, but if Steam Deck was a game, it would have made the top three. Western Europe (United Kingdom, France, and Germany)RankMobile GamingRankSteam Games1Coin MasterMoon Active Coin Looters(Casino)1Counter-Strike 2ValveTeam-based FPS2MONOPOLY GO! ScopelyCoin Looters(Casino)2HELLDIVERS™2Arrowhead Game Studios / PlayStationThird-person co-op shooter3Royal Match Dream Games Swap(Puzzle)3Baldur’s Gate 3LarianStudiosRPG4Candy Crush Saga Activision BlizzardSwap(Puzzle)4EnshroudedKeen GamesCo-op survival action RPG5Brawl Stars SupercellMOBA(Strategy)5PalworldPocketpairOpen world survival and crafting6ROBLOX Roblox Sandbox(Simulation)6Last EpochEleventh Hour GamesHack and slash action RPG7Gardenscapesby PlayrixPlayrixSwap(Puzzle)7War ThunderGaijinVehicular combat8Clash of Clans SupercellBuild & Battle(Strategy)8HELLDIVERS™2 Super Citizen EditionArrowhead Game Studios / PlayStationThird-person co-op shooter9Whiteout Survival Century Games4X Strategy(Strategy)9Cyberpunk 2077CD PROJEKT REDOpen world action-adventure RPG10HomescapesPlayrixMatch Swap (Puzzle)10Call of Duty®ActivisionFPS

© Sensor Tower Inc. -All Rights Reserved11Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Asia Pacific’s gaming titans: Strategy and RPGs reign on mobile, while Steam thrived on RPGs and shootersTop 10 grossing mobile & Steam GamesAsia Pacific, Q1 2024 Source: Sensor Tower & IDC, 2024.Note: Sensor Tower mobile gaming rankings based on Q1 2024, Combined iOS and Google Play. China is iOS only; IDC Market-level Steam rankings for Q1 2024 contain a significant margin of error (up to 20% per title) and should be considered directional.•Games like Honor of Kings (MOBA) and Honkai: Star Rail (Turn-based RPG) lead the mobile gaming charts, highlighting the popularity of strategy and RPG genres in the Asia Pacific region.•Tencent’s titles, including Honor of Kings, Game For Peace, and League of Legends: Wild Riftdominate the mobile gaming list, showcasing the company’s significant influence in the region’s mobile gaming market.•On Steam, four of the top 10 were F2P (CS2, PUBG, Apex Legends, and NARAKA: BLADEPOINT).•If the two HELLDIVERS™2 entries are combined, the new #10 was Monster Hunter: World. Compared to Steam’s top 10 in Western Europe, the “new” entries were GranblueFantasy: Relink and NARAKA: BLADEPOINT, which were both published by publishers based in Asia-Pacific. Between mobile and PCs, RPGs and Shooters heavily overlapped.•Steam Deck didn’t show up, but it also can’t be bought on Steam.Asia Pacific (China, Japan, South Korea, Taiwan, and Australia)RankMobile GamingRankSteam Games1Honor of Kings Tencent MOBA(Strategy)1HELLDIVERS™2Arrowhead Game Studios / PlayStationThird-person co-op shooter2Game For Peace Tencent Battle Royale(Shooter)2Counter-Strike 2ValveTeam-based FPS3Honkai: Star Rail mi HoYoTurn-based RPG(RPG)3PUBG: BATTLEGROUNDSKRAFTONBattle royale shooter4TeamfightTactics TencentReal-Time Strategy(Strategy)4PalworldPocketpairOpen world survival and crafting5Genshin Impact mi HoYoOpen World Adventure(RPG)5Apex Legends™Electronic ArtsBattle royale FPS 6Monster Strike mi xiPuzzle RPG(RPG)6Cyberpunk 2077CD PROJEKT REDOpen world action-adventure RPG7CrossFireTencentFPS / 3PS (Shooter)7GranblueFantasy: RelinkCygamesCo-op action JRPG8Legend of Mushroom Joy Net Games Idle RPG(RPG)8Baldur’s Gate 3LarianStudiosRPG9Justice OnlineNetease MMORPG (RPG)9NARAKA: BLADEPOINTNetEase GamesMartial arts battle royale10League of Legends: Wild Rift Tencent MOBA(Strategy)10HELLDIVERS™2 Super Citizen EditionArrowhead Game Studios / PlayStationThird-person co-op shooter

© Sensor Tower Inc. -All Rights Reserved12Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Handheld game console shipments may decline this yearWorldwide handheld game console bundle shipments in two segments, 2022-2024FSource: IDC, 2024.Thousands●After rising 28% in 2023, IDC research suggests that combined Nintendo Switch Lite and Windows-and Linux-based gaming handheld bundle shipments are on track to fall 36% this year, to about 3.3 million. The latter category is currently typified by Valve’s Steam Deck and Asus’ ROG Ally.●These estimates exclude Android-based gaming handhelds, which tend to focus on local or cloud-based game streaming. This segment is currently typified by Sony’s PlayStation Portal and Logitech’s G Cloud.●It may be time to pump the brakes on how large a growth opportunity these devices represent for game developers.●“Steam Deck 2” is rumoredto be in the works for 2025 or 2026, and “Switch 2” may ship its own Switch Lite variant in the 2027 timeframe, so it’s plausible shipments will reach a new high circa 2027, especially if the Android segment finds an audience.050 01, 00 01, 50 02, 00 02, 50 03, 00 020 2220 2320 24FNintendo Switch LiteWindows- and Linux-based handheld consoles

© Sensor Tower Inc. -All Rights Reserved13Gaming Spotlight H1 2024Mobile games that defined H1 2024

© Sensor Tower Inc. -All Rights Reserved14Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Mobile games that defined H1 2024•Scopely’sMONOPOLY GO!, the made-for-mobile reimagining of Hasbro’s beloved board game, has reached an extraordinary milestone, crossing $3 billion in gross revenue in July 2024. This achievement makes it the fastest mobile game ever to reach this mark. Since its debut in April 2023, MONOPOLY GO! has become a mobile sensation, captivating players worldwide and uniting a global community of MONOPOLY fans.•MONOPOLY GO! distinguishes itself from other games with its incorporation of team events (co-operative), Coin Looters mechanics, vibrant 3D art, universal tabletop-themed gameplay presented from a top-down view, and more. Designed to captivate adult audiences of all ages, it emphasizes social and community interaction and regular updates, ensuring a consistently fresh and engaging experience for players. •The game typically attracts a millennial and above demographic, with only one fifth of players under the age of 25. In fact, theaverage player age is estimated to be 35 years old. This unique blend of gameplay elements, frequent content updates, and enhanced social featuresattracts a broad audience, making it a standout in the mobile gaming world.MONOPOLY GO!Scopely, Inc (United States) Class:CasinoGenre:CasinoSub-Genre:Coin LootersProduct Model:CasualTheme:TabletopArt Style:3D CartoonCamera POV:Top-DownMonetization:Free to Play, Live Ops, Currency Bundles, Starter Pack,LootBoxGame Tags:Character Collection, Co-op, Decoration / Renovation, Levels, PvP,SocialGamblingLicensed IP:MonopolyIP Type:Board GameIP Operator:HasbroCorporate Parent:HasbroGame Taxonomy47.1 M( 34.1%)7.8 M( 5.6%)7.6 M( 5.5%)5.4 M( 3.9%)4.9 M( 3.5%)0%10%20%30%40%Uni ted StatesFranceUni tedKi ng d omGermanyItalyGross Revenue Breakdown$ 2.33 B( 77.3%)$ 120.6 M( 4.0%)$ 114.3 M( 3.8%)$ 66.9 M( 2.2%)$ 58.3 M( 1.9%)0%25%50%75%100%Uni ted StatesUni tedKi ng d omFranceCa n a daGermany36%64%MaleFe ma l eGender19.4%27.9%28.5%15.9%8.3%0%10 %20 %30 %18 -2425 -3435 -4445 -5555 +Age Distribution411%411%372%327%Pe e r – t o- Pe e r Pa y e r sCa s ua l Ga m e r sFlex ibl e PayersHyp ercas ual GamersLikelihood to Fall into Persona (vs. General Population % Difference) Downloads BreakdownSource: Sensor Tower Store InsightsDemographics Breakdown –United States –iPhoneSource: Sensor Tower Audience Insights, Q1 2024

© Sensor Tower Inc. -All Rights Reserved15Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Class:Lifestyle & PuzzleGenre:PuzzleSub-Genre:SwapProduct Model:CasualSetting:HistoricalTheme:Bubbles / Tiles / ColorsArt Style:2D CartoonCamera POV:SideMonetization:Free to Play, Live Ops, Season Pass, Currency Bundles, Starter Pack, Loot BoxGame Tags:Decoration / Renovation, Levels, Match, Social ClansMobile games that defined H1 2024•Dream Games’ 2021 swap (puzzle) game, Royal Match, has reached an incredible milestone, surpassing $3.3 billion in gross revenue to date. This achievement underscores the game’s widespread popularity and financial success, particularly in the United States, which alone has contributed 57% of the revenue, amounting to $1.87 billion.•Royal Match is set against a captivating historical backdrop and features a vibrant bubbles/tiles/colorstheme presented in a charming 2D cartoon art style. The game is designed to appeal to fans of lifestyle and puzzle games, offering a rich and engaging experience that keeps players coming back for more.•Royal Match has resonated particularly well with a predominantly female audience, who make up 63% of the player base. The game also sees significant engagement from mid-aged adults, with the 35-44 and 45-55 age groups each comprising 28% of players. This demographic insight indicates that the game’s design and mechanics appeal strongly to mid-aged adults, providing a satisfying and entertaining pastime.Royal MatchDream Games (Turkey) Game Taxonomy44.3 M( 14.9%)40.3 M( 13.6%)17.0 M( 5.7%)16.6 M( 5.6%)10.4 M( 3.5%)0%10%20%Uni ted StatesIndiaRu ss iaBrazilIndonesiaGross Revenue Breakdown$ 1.87 B( 57.1%)$ 232.5 M( 7.1%)$ 159.0 M( 4.9%)$ 135.8 M( 4.1%)$ 117.0 M( 3.6%)0%25%50%75%Uni ted StatesJapanGermanyUni tedKi ng d omSou th K orea37%63%MaleFe ma l eGender7.3%16.9%28.4%28.4%19.0%0%10 %20 %30 %18 -2425 -3435 -4445 -5555 +Age Distribution698%553%325%180%Ca s ua l Ga m e r sHyp ercas ual GamersFlex ibl e PayersFast Foo diesLikelihood to Fall into Persona (vs. General Population % Difference) Downloads BreakdownSource: Sensor Tower Store InsightsDemographics Breakdown –United States –iPhoneSource: Sensor Tower Audience Insights, Q1 2024

© Sensor Tower Inc. -All Rights Reserved16Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Class:Action & StrategyGenre:StrategySub-Genre:4X StrategyProduct Model:HybridcasualSetting:Sci-FiTheme:ZombieArt Style:HypercasualCamera POV:Third PersonMonetization:Free to Play, Gacha, Subscription, Currency Bundles, Starter Pack, Loot BoxGame Tags:Character Collection, Decoration / Renovation, Levels, Resource ManagementMobile games that defined H1 2024•Last War: Survival Game, developed by FirstFun, has become a standout in mobile gaming, surpassing $710 Million in gross revenue as of July 2024. The U.S. contributes 31% ($216 million) to total revenue, with South Korea following at 24% ($169.7 million). The game boasts50million downloads, notably from the U.S. and Japan.•Set in a sci-fi zombie environment, Last War: Survival Game combines hypercasualart with third-person perspective, appealing to action and strategy fans. The hybridcasualmodel caters to casual and avid gamers, supported by diverse monetization strategies like free-to-play, gacha, and loot boxes that enhance gameplay and revenue.•The game primarily attracts male players (75%), with significant engagement from those aged 25-44, especially the 25-34 and 35-44 age groups, reflecting its appeal to adults who enjoy strategic depth and action. Last War: Survival Game exemplifies the potential of mobile games to engage a global audience and achieve substantial financial success in the 4X Strategy genre.Last War: Survival GameFirstFun(China) Game Taxonomy8.4 M( 16.8%)4.5 M( 8.9%)3.6 M( 7.1%)2.8 M( 5.5%)2.1 M( 4.1%)0%10%20%Uni ted StatesJapanSou th K oreaBrazilGermanyGross Revenue Breakdown$ 215.9 M( 30.6%)$ 169.7 M( 24.1%)$ 77.8 M( 11.0%)$ 39.8 M( 5.6%)$ 20.1 M( 2.8%)0%25%50%Uni ted StatesSou th K oreaJapanTai wanGermany75%25%MaleFe ma l eGender12%31%33%18%7%0%10 %20 %30 %40 %18 -2425 -3435 -4445 -5555 +Age Distribution249%226%214%202%Gig WorkersFrequent C ar RentersWorld TravelersDelivery DinersLikelihood to Fall into Persona (vs. General Population % Difference) Downloads BreakdownSource: Sensor Tower Store InsightsDemographics Breakdown –United States –iPhoneSource: Sensor Tower Audience Insights, Q1 2024

© Sensor Tower Inc. -All Rights Reserved17Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Class:Action & StrategyGenre:StrategySub-Genre:4X StrategyProduct Model:Mid-coreSetting:Sci-FiTheme:Post-ApocalypseArt Style:3D CartoonCamera POV:Top-DownMonetization:Free to Play, Live Ops, Season Pass, Gacha, Subscription, Currency Bundles, Loot BoxGame Tags:Character Collection, Co-op, Idle, Narrative Stories, PvP, Resource Management, Social ClansMobile games that defined H1 2024•Century Games’ 2023 release Whiteout Survival has reached an impressive milestone, surpassing $1 billion in gross revenue by July 2024. This post-apocalyptic, sci-fi game captivates players with its 3D cartoon art style and top-down perspective, appealing to both action andstrategy enthusiasts. The success of Whiteout Survival is driven by its robust monetization model, which includes free-to-play elements, live operations, season passes, gachamechanics, subscriptions, and in-game purchases. These diverse revenue streams ensure financial sustainability while offering players various ways to enhance their experience. The game has seen 56 million downloads globally, with the United States leading at 20% (11 million), followed by significant player bases in Saudi Arabia, Japan, Turkey, and Germany.•Revenue generation is highest in the United States, contributing 35% ($349.2 million) of the total, with South Korea following at 16% ($155.8 million). In the U.S., the player base is predominantly male (55%) with a significant female audience (45%), primarily aged 25-34. Whiteout Survival attracts a diverse range of gamers, including core, hypercasual, and console gamers, highlighting its broad market appeal and strong financial performance.Game TaxonomyWhiteout SurvivalCentury Games (China) Downloads BreakdownSource: Sensor Tower Store InsightsDemographics Breakdown –United States –iPhoneSource: Sensor Tower Audience Insights, Q1 202411.1 M( 19.9%)3.2 M( 5.7%)3.0 M( 5.5%)2.9 M( 5.2%)2.4 M( 4.3%)0%10%20%30%Uni ted StatesSaud i Arabi aJapanTur keyGermanyGross Revenue Breakdown$ 349.2 M( 35.0%)$ 155.8 M( 15.6%)$ 75.3 M( 7.5%)$ 46.6 M( 4.7%)$ 39.8 M( 4.0%)0%25%50%Uni ted StatesSou th K oreaJapanTai wanGermany55%45%MaleFe ma l eGender18%45%21%7%9%0%10 %20 %30 %40 %50 %18 -2425 -3435 -4445 -5555 +Age Distribution318%299%280%223%Core Gamer sHy pe rca su al Gam er sConsole G amersE-ReadersLikelihood to Fall into Persona (vs. General Population % Difference)

© Sensor Tower Inc. -All Rights Reserved18Gaming Spotlight H1 2024Mobile ad trends + “Native ads” in UGC games

© Sensor Tower Inc. -All Rights Reserved19Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Paid user acquisition: Puzzle, Tabletop and Strategy lead in paid installs●The market benchmarks for paid downloads vary by game genre and country. Casual genres, such as Puzzle, Tabletop, and Arcade, require more paid promotion due to crowded markets and low entry barriers. These genres also have shorter engagement periods and quicker monetization, necessitating continuous paid acquisition to attract new players and sustain revenue streams.●Casual games often feature quicker monetization models, like ads and in-app purchases. Investing in paid acquisition can lead to immediate returns, making it an effective strategy for rapidly generating revenue.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.Share of game downloads from paid sourcesAverage of top 100 games per genre in Q1 2024, United StatesSource: Sensor TowerNote: Downloads across iOS, Google Play. 49.7%42.1%41.3%39.4%38.7%38.0%37.3%35.0%33.9%32.4%31.3%30.7%26.7%0%10 %20 %30 %40 %50 %60 %PuzzleTabletopStrategyArcadeLi f e s tyl eRa cingSimulationActionCa sinoRPGGe o l oc at io nShoot erSportsPaid Ad Downloads

© Sensor Tower Inc. -All Rights Reserved20Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024U.S. mobile gamer ad sentiment:Sentiment towards in-game ads improved in 3Q 2023 but the broader pattern remained•Rewarded video (RV) ads remained the most popular overall format among the U.S. mobile gamers IDC surveyed in Q3 2023. Video ads were least popular. We recommend leaning into RV opportunities.•At right, the share of respondents who indicated they “do not like” an ad format was subtracted from the share that said they “like” it. Neutral and N/A responses were excluded.•RV ads were defined as ads that “I get virtual currency or items for watching,” and they’re nearly always interstitial.•Playable ads were defined as ads that “that allow me to demo or trial another game,” and they’re nearly always interstitial.•Native ads were defined as ads that “that are integrated right into the game itself.” We didn’t ask about this format prior to 3Q 2023.•Banner/Display ads were defined as “picture or text” ads, and they nearly always take up a small portion of the screen.•Video ads are almost always interstitial, and they may or may not be skippable.Q3 2023 N=3,580Source: IDC’s Q3 2019 –Q3 2023 US Gamer SurveysU.S. mobile gamer net sentiment towards five Ad formats, Q3 2023, and 3Q 2019 to Q3 2023 AveragesShare of Respondents11%5%3%-5%-7%-9%-19%-11%-24%-3 0%-2 0%-1 0%0%10 %20 %Q3 2023 “like minus dislike” shareQ3 2019 to Q3 2023 “like minusdislik e” sha re av era g esRewa rde d vide o adsPlay able adsNative adsBa nne r / Di spl ayVideo ads

© Sensor Tower Inc. -All Rights Reserved21Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024U.S. mobile gamer ad viewing rates:Video ads remained the most common format experienced, native ads were lowestQ3 2023 N=3,580Sources: IDC’s Q3 2019 –Q3 2023 US Gamer Surveys.Unity data leveraged Unity Levelplayand Unity Analytics data (data analyzed>200 games using Unity Ads, IAP, and analytics solutions).U.S. mobile gamer net sentiment towards five Ad formats, Q3 2023, and 3Q 2019 to Q3 2023 Averages•According to the same U.S. survey, the three relatively popular ad formats were the least commonly used. We recommend leaning into these three formats.•IDC didn’t ask about native ads prior to 3Q 2023, so that format is missing in the righthand set of columns.•The “2024 Unity Gaming Report,” which was released in March, found that worldwide IAA ARPDAU rose from $0.03 in 2022 to $0.038 in 2023 and worldwide IAP ARPDAU slid from $0.018 to $0.015. These results varied significantly by genre, however: the year-over-year shift toward IAA was far more pronounced in the Simulation, Puzzle, and “Other casual” genres, for example, than in the Shooter, RPG, and Hypercasualgenres.•We suspect more studios leaned into the IAA business model in 2024 and that their success was partly a function of how well they aligned genre, formats, placements, and creatives.86%86%82%79%81%78%78%77%71%0%20 %40 %60 %80 %10 0%Q3 2023 share that saw ads in thisforma tQ3 2019 to Q3 2023 avg. shares thatsa w ads in this forma tVideo adsBa nne r / Di spl ayPlay able adsRewa rde d vide o adsNative adsShare of Respondents

© Sensor Tower Inc. -All Rights Reserved22Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024U.S. mobile gamer satisfaction among RV and non-RV ad viewers:RV ads didn’t seem to boost overall mobile gamer sat scores vs. other ad formatsQ3 2023 N=1,251 (left group) and N=241 (right group)Sources: IDC’s Q3 2023 US Gamer Survey.Unity data leveraged Unity Analytics BigQueryand TapJoyBigQuery(data analyzedgames with >5,000 DAU in H2 2023).U.S. mobile gamer RV and non-RV viewing rates and overall satisfaction scores in three genres, Q3 2023Share of RespondentsGrouped mean satisfaction:8.32Grouped mean satisfaction:8.47•We tested whether RV ads were associated with higher overall mobile gamer satisfaction scores compared to gamers that experienced other ad formats, but we didn’t find this was the case in 3Q 2023.•Satisfaction here was measured on a scale of 0 to 10, where 0 was “Not at all satisfied” and 10 was “Completely satisfied” with the respondent’s “overall [mobile] gaming experience.”•RV ads may boost retention rates, however: March’s “2024 Unity Gaming Report” found that games that used both RVs and offerwallshad a 12% average D7 retention rate while games that showed neither (but included other ad formats) had an 8% average D7 retention rate. The comparable D30 retention rates were 5% and 3%.•These results must be taken with a grain of salt, but they imply RV ads can deliver material upsides, so lean into this format especially.76%71%75%61%74%70%0%20%40%60%80%100%Shar e t hat saw R V adsShar e t hat saw n on- RV ad sPl a y i ng c a rd & s oc ia l ca s in o (sl ot s, d ic e , p ok e r & ot he r ca r d g a me s)Wor d & t rivia (i. e. , Triv ia Cr ac k, Wor dSc apes, W ord s With Friend s 2)Puzzle –match 3 & tile-matching (i.e., Candy Crush Saga, Tetris)

© Sensor Tower Inc. -All Rights Reserved23Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Speaking of “native ads”… They made inroads on UEFN (Unreal Editor for Fortnite) in H1 2024Top 10 worldwide UEFN games by current playersLate June –Early July 2024 Source: Fortnite.gg, 2024.•A top ten PC and console game by worldwide MAU in 2H 2023 and 1H 2024, “Fortnite” has splintered into 6+ variants. •LEGO Fortnite launched in December 2023. This co-branded island (highlighted yellow at right) was consistently on UEFN’s top 10 list by current players in 1H 2024, according to Fortnite.gg.•Three other LEGO-branded islands launched in March: LEGO Prop Hunt, LEGO Battle Arena, and LEGO Cat Island Adventure. They’re currently ranked between 1,400 and 1,750 (and are much less successful by the same measure).•How long before we see Star Wars, Marvel, and Pixar islands based on Disney’s $1.5B investment in Epic in February?•In March, Epic announced that non-first party UEFN creators had collected $320 million over the preceding 12 months.•The top 3 UGC creators (highlighted blue at right) were 7% of top 10 current players in late June and early July –a higher share than Ranked Battle Royale. That appears to be many $M each for these creators.•We believe the combination of UGC and “native ads” on UEFN represents a significant opportunity for game studios in 2024+.RankGame Title, Creator, and SubgenreNotes1ReloadEpic Games Fast-paced 40-player Battle RoyaleUGC: No (first party)Uses licensed nonendemic brand: No2Battle RoyaleEpic Games Classic 100-player Battle RoyaleUGC: No (first party)Uses licensed nonendemic brand: No3Zero Build -Battle RoyaleEpic Games 100-player Battle Royale without BuildingUGC: No (first party)Uses licensed nonendemic brand: No4Reload -Zero BuildEpic Games 40-player Battle Royale without BuildingUGC: No (first party)Uses licensed nonendemic brand: No5Ranked Battle Royale Epic Games 100-player Battle Royale against like playersUGC: No (first party)Uses licensed nonendemic brand: No6LEGO FortniteEpic Games Open world survival and sandboxUGC: No (first + third party)Uses licensed nonendemic brand: Yes7GO GOATED! Zone Warstheboydilly4-team zone warsUGC: YesUses licensed nonendemic brand: No8The Pit -Free For AllgeerzyPractice PVP free for allUGC: YesUses licensed nonendemic brand: No9CRAZY RED VS BLUE rvbPractice PVP free team deathmatchUGC: YesUses licensed nonendemic brand: No10Ranked Zero BuildEpic Games Battle Royale against like players without BuildingUGC: No (first party)Uses licensed nonendemic brand: No

© Sensor Tower Inc. -All Rights Reserved24Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024The opportunity isn’t limited to UEFN: Roblox is the “OG” of UGC (User Generated Content) “native ads”Top 5 worldwide Roblox games, and next three branded games, by revenue and visitsH1 2024 Source: Spaceport.xyz, 2024.•Roblox’sDAU was >77M in Q1 2024; Robloxis 100% UGC games.•TelanthricDevelopment’s Toilet Tower Defense(highlighted green at right) was consistently on Roblox’s top 5 list by revenue and player visits 1H 2024, according to Spaceport –and the game used an officially licensed IP franchise, SkibidiToilet. (Spaceport connects brands to UGC creators by easing IP licensing processes.)•The next 3 Roblox games that used licensed brands that came from outside of gaming ranked between 20 and 150 by revenue and they ranked between 50 and 250 by player visits in H1 2024, according to Spaceport.•Combined, the top four Roblox games with licensed IP generated approximately $13.8M in H1 2024 for their developers, nearly as much as the top four comparable games made in 2023 ($16M).•In 2023, Roblox’s top four games with licensed IP generated 2.6 billion player visits and H1 2024’s total for the top four comparable games was 1.8 billion, per Spaceport.RankBy Revenue: Game Title, Creator, and GenreNotesBy Visits: Game Title, Creator, and GenreNotes1BloxFruitsGamer RobotAdventureUGC: YesUses licensed nonendemic brand: NoBrookhaven RPWolfpaqTown and city simUGC: YesUses licensed nonendemic IP: No2Pet Simulator 99!BIG Games PetsObbyand collectionUGC: YesUses licensed nonendemic brand: NoBloxFruitsGamer RobotAdventureUGC: YesUses licensed nonendemic IP: No3Toilet TowerTelanthricDevelopmentTower defenseUGC: YesUses licensed nonendemic brand: YesThe Strongest BattlegroundsYielding ArtsFightingUGC: YesUses licensed nonendemic IP: No4Blade BallWiggityFightingUGC: YesUses licensed nonendemic brand: NoToilet Tower DefenseTelanthricDevelopmentTower defenseUGC: YesUses licensed nonendemic brand: Yes5Adopt Me!Uplift GamesRPGUGC: YesUses licensed nonendemic brand: NoMurder Mystery 2NikilisHorror and fightingUGC: YesUses licensed nonendemic IP: No…Next 3 branded:…Driving Empire Car RacingVoldexAdventure and racingUGC: YesUses licensed nonendemic brand: YesDriving Empire Car RacingVoldexAdventure and racingUGC: YesUses licensed nonendemic brand: Yes…Sonic Speed SimulatorGamefamx SonicAdventureUGC: YesUses licensed nonendemic brand: NoBarbie DreamHouseTycoonGamefamx Barbie Building/RPGUGC: YesUses licensed nonendemic brand: Yes…My Hello Kitty CaféRock Panda GamesTown and city simUGC: YesUses licensed nonendemic brand: YesSonic Speed SimulatorGamefamx SonicAdventureUGC: YesUses licensed nonendemic brand: No•The “native ad” oppisn’t limited to UGC games: licensed IP is already being sold in Roblox’s and Fortnite’s avatar and item stores and making $M. Nonendemic brands should let game dev’s lead.

© Sensor Tower Inc. -All Rights Reserved25Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 202451.36 59.17 47.32 37.61 56.04 15.90 33.50 30.16 11.96 25.21 010203040506070RobloxMinecr aftBr awl S ta rsFo r tn i tePU BGMO BILESubwaySurfer sPoké monGOClashRoya leGe o m etr yDa s h L it eClash ofClansUser-generated content doubles player engagement in mobile gamesAverage minutes per day among top 5 games by MAU UGC vs non UGC, Q1 2024, United StatesSource: Sensor TowerNote: Active Users across iPhone & Android Phones. Average Minutes Per Game on Android Phones. •We looked at the impact of inclusion of User Generated Content (UGC) on player engagement within mobile games by examining the top five games by monthly active users, both with and without UGC. Our focus was on the average minutes per day spent by players in the United States.•The results were striking: on average, users of UGC enabled games spend about 50 minutes per day on their games, while users of non-UGC games spend just 24 minutes per day. This means that players engaged with UGC content spend roughly twice as much time gaming compared to their non-UGC counterparts. These findings highlight the significant role UGC plays in enhancing player engagement and extending game sessions, underscoring the value of integrating UGC features in mobile games.Average Among Top 5Average Minutes Per Top Game50.30 23.35 010203040506070UGCNon UGC

© Sensor Tower Inc. -All Rights Reserved26Gaming Spotlight H1 2024Understanding mobilegamer ad engagementand churn factors

© Sensor Tower Inc. -All Rights Reserved27Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 202422%17%19%42%0%10 %20 %30 %40 %50 %Actively pay att ention if t he adis appealing, no mat ter t hety pe o f ga m e ad ve rti se dOnly pay close attention if the ad is for a similar game/genre I’m already playingOnly pay close attention if I’m actively looking for a new game to start playingTypically ignore and disengagewith a ll adv ert ise ment sSource: MistplayJuly 2024 Mobile Gamer Survey, 8,000+ respondents from the US, 18+•42% of gamers disengage from ads in mobile games, while 22% pay attention no matter the genre being advertised. Users of Puzzle games are the least engaged, while users of Lifestyle games are the most engaged with ads.•28% of players install a game within 24 hours of seeing an ad they like, 27% within a few days –nearly one in five (19%) will not install at all. Users of Racing games are among the quickest to convert rate after ad impressions.Mobile ad behaviors:US gamers are quick to install after ad impression, but many ignore in-app ads overallIn effort for mobile publishers to lower cost per install, establishing a captivating first ad impression is crucial not only due to players’ quick installation patterns, but also to capture maximum engagement from both core and broad audiences.Mobile gamer behaviorduring ads in mobile gamesAmong all genres & select standout genresQ: Which best describes your behaviorwhen experiencing an ad in a mobile game?Frequency of ad impression to InstallAmong all genres & select standout genresQ: If a new game looks appealing, how many times do you generally need to see ads for it before you download?Lifestyle (29%)RPG (26%)Puzzle (46%)Geolocation (46%)Tabletop (46%)Racing (23%)Racing (35%)Lifestyle (34%)28%27%15%11%19%0%5%10 %15 %20 %25 %30 %Install the gamewithin 24 hours orlessSee more ads for afe w day s befor einstallSee more ads for afe w wee ks beforeinstallSee more ads for amonth or mor ebefor e inst allI typically don’t install the game, even if it seems interesting

© Sensor Tower Inc. -All Rights Reserved28Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 202449%49%49%42%35%27%23%14%12%7%0%10 %20 %30 %40 %50 %60 %T he g ame ha d t ooma ny ad sThe game became too “pay to win”No lo n ge r ab le toa ch iev e a n yprog ressT oo ma n y b u gs a n dissu e sR an o u t o f th in gs tod o (e .g b e at t hegame)T he fi le s izeb ec ame t oo b igR an o u t o fresources /v irtualcu r re n cyA no t h er ga me wa sa dv er t ised t h atca u gh t myattentionCu sto me r ser vic ew as n o t h e lp fu l inr eso lv in g is sue sFr ie n d s / fam ilysw it ch ed t o p l ayi nga di ffe r en t ga me42%40%38%29%24%10%0%10 %20 %30 %40 %50 %Re w a r ds a nd in ce n t iv e s(e.g sign-up bon us,limited-time events)Game genre and personalpr e f e r e nc e sEn gaging gamepl ay ( e.gex ci tin g f eatures ,comp elling vi su als)Vi sual ap peal (e.g h igh-qu a li t y g r a ph ic s,app eali ng art sty l e)So ci al proo f (e. g p osi tiv ereview s, awards )Community andmul tip layer features (e.gcommun ity events,comp etiti ons)Source: MistplayJuly 2024 Mobile Gamer Survey, 8,000+ respondents from the US, 18+•Leading motivations for ad interaction are rewards and incentives (42%), relevance to game genre (40%), and engaging gameplay (38%). Users of Casino games are among the most responsive to ads driven by rewards and incentives.•“Too many ads” is a top 3 reason to churn for nearly 50% of players, 14% claim to churn after they see an ad and install a different game to play. Users of Geolocation games have a lower tolerance for bugs and issues, with half citing them as the primary reason for churn.Mobile ad engagementand churn:Rewards and game relevance drive ad engagement for gamersBeyond relevant and engaging gameplay, try experimenting with special incentives in ads to increase campaign performance. Inclusion of offers can yield higher top of funnel conversion while also impacting deeper funnel value as gamers progress from initial novelty to long-term engagement.Motivations to engage with an ad and install a gameAmong all genres & select standout genresQ: What motivates you to click on an ad and install a different game? (Select all that apply)(10% “none of the above,” 4% “other” not shown) Reasons for mobile game churnAmong all genres & select standout genresQ: What are the reasons you would stop playing your current favoritegame(s) and fully switch to playing a different game? (Select all that apply)Casino (51%)Arcade (52%) Lifestyle (51%) RPG (51%)Shooter (18%)Racing (17%)Lifestyle (39%)Action (37%) Sports (22%) Geolocation (50%)

© Sensor Tower Inc. -All Rights Reserved29Gaming Spotlight H1 2024Key themes+ takeaways

© Sensor Tower Inc. -All Rights Reserved30Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024Gaming Spotlight H1 2024Key takeaways to drive growth in 2024•Mobile remains the primary driver of growth in digital games consumption, showing signs of recovery in 2024. This resurgence cements mobile gaming as the world’s preferred form of gaming and a key component of a robust cross-platform experience. As a result, standing out in this competitive market has become even more critical and challenging.•Mobile gaming has enabled the democratization of gaming, allowing every type of gamer to access their own niche. Whether it’sa specific subgenre like driving simulators and interactive story games or core genres like MOBA and 4X strategy titles, mobilegaming caters to all preferences. This trend is setting the stage for the “new gamer,” the most inclusive cohort yet.•Mobile games that have performed well in H1 2024 are diverse, including a familiar board game turned into an on-the-go mobile experience, a savvy Match-3 game blending puzzle and lifestyle mechanics, and a 4X strategy game set in post-apocalyptic themes.Leveraging strong IP, capitalizing on market momentum, and utilizing live operations are common themes driving their success.

© Sensor Tower Inc. -All Rights Reserved31Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024•Sentiment towards in-game mobile ads improved in Q3 2023, according to US mobile gamer survey results, but a broad pattern showing the relative unpopularity of video ads remained. Rewarded video and playable ads were gamers’ preferred ad types in the US. However, native ads have emerged as another option that appears to be relatively popular with gamers.•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. Diversify the types, formats, and placements of ads shown in-game as pragmatism allows.•Ad interaction is primarily driven by rewards, game relevance, and engaging gameplay. However, too many ads can lead to player churn, with 14% of players claiming they churn after installing a different game.•Games with UGC significantly enhance player engagement, with mobile users spending about twice as much time on these games compared to non-UGC games. This highlights the importance of integrating UGC features in mobile games to boost engagement and extend game sessions.Gaming Spotlight H1 2024Key takeaways to drive growth in 2024

© 2023 Sensor Tower Inc. -All Rights Reserved32Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024About Sensor TowerSensor Tower is the source of truth for mobile app, digital advertising, and audience insights. Since 2013 our digital data estate has grown into the largest and most trusted among the biggest brands, media companies, investment firms, and mobile game and app publishers across the Americas, Europe, Africa, Asia, Middle East and the Pacific. We deliver the most robust picture of the mobile app and digital advertising ecosystems in the most privacy safe way possible.Sensor Tower mobile app insights help mobile marketers and app and game developers capture consumer mindshare where they spend their time –their mobile devices.Pathmaticsby Sensor Tower Digital Advertising Insights help demystify the digital ad ecosystem –helping marketers drive waste from their budgets and better position their campaigns.Press Inquiries: press@sensortower.com

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC Offers Unmatched Global& Local Expertise More than 1100 analysts in over 50 countries with 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 countriesIDC’s Gaming and eSports service advises 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.

© Sensor Tower Inc. -All Rights Reserved34Sensor Tower + IDC + MISTPLAY | GAMING SPOTLIGHT | 2024The MistplayplatformMistplayis the #1 loyalty app for mobile gamers.* Headquartered in Montreal and launched in 2016, Mistplayhas climbed the ranks as a media source for game publishers, most recently achieving #8 overall on the AppsflyerPerformance Index for Android Retention and Top 10 for ROI and Retention on the 2024 Singular ROI Index. Here’s how publishers succeed with Mistplay:●A growing community of millions of gamers means publishers can reach a massive audience of engaged players looking for their next favoritegame.●An AI-driven recommendation engine suggests games based on player habits, ensuring users play and spend in games they’re most likely to enjoy.●Play-and-earnfosters increased user retention and LTV as users redeem loyalty points for tangible rewards like gift cards from top brands. To learn more, contact us at media@mistplay.comor visit www.mistplay.com/advertising*Based on 2024 Sensor Tower data

© Sensor Tower Inc. -All Rights Reserved35Thank You@sensortower@LewisAWard@mistplayapppress@sensortower.comlward@idc.commedia@mistplay.com