Download - SkyMobi - The Largest User Segment of China's Mobile Games Market

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Page 1: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Opportunities and Challenges in the Soon-to-Be World’s Largest Mobile Games Market

• Market Overview• Market Breakdown by City Tier• Overview of the largest Chinese user segment

William Heathershaw, Head of International Marketing, SkyMobi

Updated June 2014

Page 2: SkyMobi  - The Largest User Segment of China's Mobile Games Market

China Mobile Internet Users as % of Internet Users

Source: KPCB

Page 3: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Percent of Global GDP

Source: KPCB

Page 4: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Conversion of Users to Paid and ARPPU

Source: Super Data

Page 5: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Comparison: Revenue per Download and CPI Q4 2013

Source: Chartboost/Distimo

Page 6: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Comparison: China and US CPI & ARPU

Source: Super Data

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Comparison: China/US MAU & Annual Revenue

Source: Super Data

Page 8: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Know Who Your Customer Is

Population: 1.36 billion

Mobile internet users: 500 million

Mobile gamers: 266 million MAU

All these 266 million gamers are pretty much the same profile, right? NO

Page 9: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Classify Users by the Tiers of Cities in China

• Population• Provincial GDP• Cities with strong economic growth• Geography vicinity to other powerful cities• Advanced transportation infrastructure• Historical and cultural significance

Source: American Chamber of Commerce

Let’s Break it Down

Page 10: SkyMobi  - The Largest User Segment of China's Mobile Games Market

1st Tier cities only have 10% of China’s population

1st Tier Cities: Beijing, Shanghai, Guangzhou, Shenzhen

Distribution of Active Devices in Chinese Cities

Page 11: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Annual Changes of Daily Sessions per User

Source: umeng

Page 12: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Distribution of Active iOS and Android Devices

Source: umeng

Page 13: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Top 5 Android Brands per City Tier (2014 Q1)

Source: umeng

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I see the significance of focusing on lower tiered cities…but what do the users look like?

• Game Preferences• Game Preference Trends• User Behavior

Page 15: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Game Preference

Source: Maopao appstore

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Game Preference Trend

Casual

Action

Card

Racing

RPG

Adventure

Time

Source: Maopao appstore

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Wifi vs Cellular Network Usage for Downloads

Source: Maopao appstore

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Success Rates of Downloads Relative to App Package Size

Source: Maopao appstore

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Q1-13 Q2-13 Q3-13 Q4-13 Q1-14

238 251

271

316

377

282 298 303

323

354

AVG.RAM AVG.ROM

Handset Performance Increasing, but yet Relatively Low End

Source: Maopao appstore

Page 20: SkyMobi  - The Largest User Segment of China's Mobile Games Market

Most Responsive Time Periods to Promotions

Source: Maopao appstore

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Games Are Most Important to 3rd Tier and Below

Source: umeng

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“Hmm, do Chinese have money to spend?”

• Most affordable form of entertainment• Able to “show face” through games

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Reaching China’s Largest Gamer Segment

• Maopao app store • Pre-installed on 40% of Android handsets sold today in China• 147 million users, 30 million MAU

• Partners• 100+ Chinese OEMs• 40,000+ China Unicom & China Mobile stores• 100+ distribution channels incl Tencent, Qihoo, Baidu, Xiaomi