China for the Win! What Publishers Need to Know to Succeed in this Emerging Market

CHINA FOR THE WIN!What Publishers Need to Know to Succeed in This Emerging Market

Infrastructure for in-app

video advertising

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A LITTLE ABOUT ME

Colin Behr

VP, Business Development & International@colinnathanbehr

[email protected]

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10,000

196countries served

2 Billion+monthly video views

200 Million monthly unique devices

top apps

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IF YOU REMEMBER ANYTHING FROM THE SESSION…

The opportunity is

vast

Entering China

is complex, but

not impossible

Control is worth

the challenge

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HOW VAST?

550Mmobile devices

240Mmobile devices

96% have at least

one gaming app installed

28%spend more than

an hour a day playing

Chinese mobile gamers

install a new game every

3.48 days

Sources: Nielsen: bit.ly/17gCjes; TalkingData: bit.ly/1JqaPVf; Venture Beat: http://ow.ly/JHAIZ; Pew Research: http://ow.ly/JHAPl

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2014 GROWTH IN MOBILE GAMES

Developers

84%236%

Total Revenue

Source: talkingdata.com/index/#/datareport/-1/en_us

Users

162%

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7 Realities of Publishing in China

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Reality #1:Android dominates the market

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ANDROID DOMINATES THE MARKET

68%market share

32%market share


10Source: xiaomishop.com

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GOOGLE’S MARKET SHARE IN CHINA

“Chinese Android users

only used Google Play

for downloading 5.6% of

all mobile apps on their

devices.”

-Umeng Analytics

68%

5.6%

Source: Umeng Analytics; TalkingData

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Reality #2:100s of app stores =

a fractured market

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72.6% of apps in China are from alternative app stores

Source: bit.ly/1Lemowm

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360 MOBILE ASSISTANT

• 360 is virus prevention software

• Huge Android app store

• 275 million monthly users

• 30 billion downloads

• Offers localization support to developers

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TENCENT MYAPP

After captivating players in the US, MinoMonsters sought to reach an

international audience. Partnering with Vungle, MinoMonsters attained a

6x increase in installs worldwide. • Developed by Tencent, who started messenger

QQ (829 million active users)

• Also connects to QQ browser and WeChat

• 110 million daily downloads (Dec 2014)

• King launched Candy Crush Saga on Tencent

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BAIDU

After captivating players in the US, MinoMonsters sought to reach an

international audience. Partnering with Vungle, MinoMonsters attained a

6x increase in installs worldwide. • Search giant used by more than

700 million

• Has its own app store with direct

integration to search results

• Recently acquired 91 Wireless,

increasing its reach into app

distribution

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Reality #3:Culturalization is critical

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LOCALIZATION VS. CULTURALIZATION

PocketGems is a leading mobile game developer with

over 150M downloads. Vungle drives a record-breaking

volume of impressions for PocketGems worldwide.

Source: bit.ly/1vHbYfA

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GOOD CULTURALIZATION




▪ Use culturally relevant scenarios

▪ Tie thematically into holidays

▪ Run relevant advertising

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Reality #4:Mobile piracy is rampant

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MOBILE PIRACY IS RAMPANT




Consumer

piracy

Competitor

piracy

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Reality #5:Social doesn’t mean

Facebook and Twitter

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Wechat

(Weixen)

Messenger app

Sina Weibo

“Chinese Twitter”

RenRen (means “schoolyard”)

Social network for college students or connecting with

old friends

Tencent Weibo

Microblogging with focus on

communication among friends

QQ & Qzone

Messenger app & Facebook-

style social network

73% of

market

share+

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Reality #6:Your APK must be hosted

in country

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Reality #7:Monetization must go beyond

IAPs

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SUCCESS WITH A PAID APP IS POSSIBLE, BUT

HARDER

31.2%

11.3%

17.3%

23.4%

4.7% 4.3%2.3%

3.8%1.7%

Card Battle SLG MMORPG Turn-basedRPG

Action Card &Board

TowerDefense

Casual Other

Paid App Revenue by Genre

Source: TalkingData bit.ly/1JqaPVf

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CHINESE USERS ARE SPENDING MORE MONEY IN APPS

8.7%

9.6%

5.4%4.7%

6.7%

8.5%

3.8%

5.0%

9.5%9.2%

7.4%6.9%

9.6%

10.9%

6.6% 6.5%

Card Game Chess Game Simulation Strategy Action RPG Puzzle Casual

Android In-App Purchase Revenue by Genre


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CHINESE USERS ARE SPENDING MORE MONEY IN APPS

6.5%

3.5%

5.8%6.7% 6.6%

7.2%

4.6%

2.7%

10.8%

3.8%

9.4%8.5%

9.4% 9.5%

4.1% 3.0%

Card Game Chess Game Simulation Strategy Action RPG Puzzle Casual

iOS In-App Purchase Revenue by Genre


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USE THE RIGHT BILLING PARTNERS TO BOOST

IAPS

Transactions by Payment Method Spend by Payment Method

AliPay,

59%

AliPay,

49%

UniPay,

20%

UniPay,

25%

TenPay,

10% TenPay,

13%

Service Card, 7% Service Card, 7%Pre-paid Card, 4%

Pre-paid Card, 6%

Source: TalkingData bit.ly/1JqaPVf

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In China, 9 in 10

smartphone owners

clicked on a mobile

advertisement

in the past month.

MOBILE ADVERTISING FORMAT CHINA %

Video 36

Mobile coupon 33

Banner 9

Ad displayer after in-app activity 8

Search 7

Text 4

Audio 2

Other 1

Source: “Mobile Advertising in China,” Price Waterhouse Cooper, May 2014

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In-app video ads extended

user session length by 25%

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PLAN FOR MONETIZATION FROM THE BEGINNING

Peak

Median half-life of games:

2 months post-peak$

Source: Benchmarking the Half-Life and Decay of Mobile Apps, Flurry.com 2/20/14

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PARTNERS

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WHERE DOES THIS LEAVE YOU? DEPENDS ON YOUR

SIZE.

CASUAL/

LOW LTVMIDCORE HARDCORE

SMALL PublisherDirect/Publishe

rX

LARGE PublisherDirect/Publishe

r

Direct/In-

house

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IF YOU REMEMBER ANYTHING FROM THE SESSION…

The opportunity is

vast

Entering China

is complex, but

not impossible

Control is worth

the challenge

1 2 3

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MEET THE SPEAKERS!

Join us tonight from 6-8pm @ Oola(RSVP in back)

Ben BearVP, Sales

Colin BehrVP, Business Development

and International

Michal PilawskiVP, Product

Jahed MomandSr. UX Designer

Q&A

Questions?

CHINA FOR THE WIN!What Publishers Need to Know to Succeed in This Emerging Market

Infrastructure for in-app

video advertising

China for the Win! What Publishers Need to Know to Succeed in this Emerging Market

Marketing

Transcript of China for the Win! What Publishers Need to Know to Succeed in this Emerging Market