By Liam Callahan, Director, Games Industry Analyst at The NPD Group
With more than 1.2 million apps in the Apple App Store, it’s increasingly difficult for new games to attract attention, let alone encourage downloads. Today, it’s more important than ever to hone in on audience behavior to better drive marketing strategy. NPD Group’s Checkout Tracking offers three ways to help game developers and marketers boost brand loyalty and remain competitive in this crowded space.
Follow the Money
Companies spend a great deal of money and time creating new ways to improve customer loyalty in hopes to increase sales, but what’s often overlooked during this process is the importance of determining share of wallet, or the percentage of a customer’s spending within a specific category across multiple brands. In the case of gaming, it should be priority for marketers to find out the full picture of where their target audience is purchasing and how much they’re spending elsewhere on in-app gaming. This not only provides a comprehensive suite of insight for their own brand but also gives opportunity to win share of wallet from competitors.
According to NPD, year-to-date (January-June) mobile game revenues have topped $1.36 billion, an increase of 16% over the same period last year. This is just one indicator that the gaming industry is maturing and shows no signs of slowing down in terms of growth, making share of wallet indispensable. Determining share of wallet, once thought of as inherently muddy due to the lack of available data, is now readily available as a result of the emergence of technology such as Checkout Tracking.
Keep Your Enemies Close and Your Competition Closer
With the vast number of apps available it’s almost inevitable that someone will have had the same idea as another, but this is not to be seen as a red flag. Not only is competition a sign of a healthy market, but it also allows the opportunity to learn from them when putting together a marketing plan.
Users have a seemingly endless list of apps to choose from, however there is still a select group that pulls ahead of the pack. In Q1 2015, six in 10 mobile game players spent money on only one game. The top five game purchases were for Clash of Clans, Game of War, Candy Crush Saga, Candy Crush Soda Saga, and Trivia Crack.
Competitors will also serve as benchmarks, which is helpful for both short-term and long-term planning. Benchmarking is also necessary in order to know how an app compares to others and where improvements should be made. Tracking the competition may also inspire new approaches, whether in design, content or strategy.
No Two Downloads Are Alike
To better understand your target audience, the first question to ask is who is most likely to use and enjoy your app — and the answer isn’t everyone with a smartphone. It’s not practical to market your app the same way for everyone. Rather, you must establish your core audience and from there draw more in-depth insights about who they are as consumers. For example, Checkout Tracking data shows Android users are more likely to purchase foods like roast beef and fried chicken, whereas iPhone users are more likely to purchase smoothies and soups. This can help inform your next advertising strategy — from brand partnerships to strategic ad placements — to attract more users.
NPD Group’s Checkout Tracking provides deep insights into gamers’ habits — from other games they’re purchasing to purchasing behavior outside of the gaming sector. Savvy marketers, however, know that no matter the industry, trends and the marketplace makeup refuse to remain static. It’s up to them to stay one step ahead in order to capitalize on the market inefficiencies and useful patterns that emerge.
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