2024 Mobile Gaming: Trends, Spending Shifts, and Player Motivations

As we dive into 2024, the mobile gaming landscape is evolving faster than ever, driven by cutting-edge technology, shifting player expectations, and innovative game design. In this newsletter, we bring you the latest insights into industry trends, from developing gaming devices to the growing importance of social connectivity in games.

Why are people addicted to games?

As the stress from studying and work keeps rising, more and more folks are opting to play a game to unwind. Fandom's annual study indicates that the top three reasons individuals engage in gaming are unwinding and stress relief, creation, imagination and self-expression, and achievement and rank, with 54%, 46%, and 40% of respondents selecting these motivations, respectively. Notably, the proportion of gamers identifying creation, imagination, and self-expression as a key motivator has increased by 10% year-over-year. Furthermore, players who view gaming as an avenue for authentic self-expression are 30% more likely to desire additional gaming time compared to previous years. Additionally, 69% of gamers report that self-expression through gameplay has become a more deliberate choice than ever before. A survey conducted by Tinuiti in 2023 highlights another significant motivation for gaming: entertainment, with approximately 34% of players acknowledging this factor.

However, when asked to compare their personality in the gaming world to their behavior outside of gaming, 44% of surveyed gamers reported being more competitive, while only 12% indicated that they are less competitive. Additionally, many respondents noted that they feel more confident, friendly, curious, impulsive, and ambitious while engaging in gaming activities.

It's pretty easy to see that players find a better version of themselves in games. A lot of them become more competitive, confident, and ambitious while gaming. Some introverted players ditch their social anxieties and get super lively and cheerful in the game. Meanwhile, others become more driven and competitive because of their in-game purchases. So, let’s check out why and how much they're spending!

The motivation of game spenders and the expenditure shifts in 2024

First, let's split all the spenders into three groups based on how much they spend every month:

High-value spender: $100 USD and up

Mid-value spender: $10-99 USD

Low-value spender: less than $10 USD

Amongst the most gaming-obsessed Gen Z'ers, around 90% of players spend less than $60 per month, found by ZBD's Gen Z Gamer Study.

According to MISTPLAY's Mobile Gaming Spender Reports, gamers typically invest in their gameplay to boost progression (approximately 60%), enhance personal satisfaction (about 45%), and access exclusive content (nearly 40%).

For spenders, the top three reasons for playing are relaxation, fantasy, and progression, with 80%, 53%, and 43% of respondents saying so.

The landscape of mobile game spending may experience a noticeable shift this year, as 32% of spenders, along with 41% of high-value spenders, intend to decrease their in-game expenditures and adopt more budget-conscious approaches to discretionary spending.

The shift of spending across game genres

Players who typically invest in match, puzzle, and simulation games are experiencing a decline in their overall spending across these categories, which has decreased by 28%. They are also making purchases less frequently (17%) and opting for more discounted or on-sale items (20%).

Similarly, individuals who frequently engage with strategy, action, shooter, and RPG games are also spending less across the board (29%), reducing the frequency of their purchases (18%), and increasing their acquisition of discounted or on-sale items (26%).

The trends among social casino gamers mirror this pattern.

Among all spending players, more than 70% make in-game purchases fewer than two times per month. However, this trend changes with high-value spenders, as 60% of them engage in in-game purchases 1-6 times per month.

All spenders tend to make in-game purchases more sporadically, with the highest percentage (37%) making purchases less than 2 times per month. High-value spenders make purchases more consistently, with significant portions (16%) making purchases over 10 times per month, indicating that high-value spenders are more consistent and frequent in their in-game purchases. The "Sometimes" group shows that many players, including those who spend more overall, tend to make purchases fairly regularly but not excessively. This regularity might suggest that these players are engaged in the game and willing to spend consistently, though not at a high frequency.

Social casino game players spend more games, more frequently than the average spender, being the least likely to spend in only 1 game (26% vs 39% average), and most likely to spend in 6+ mobile games (7% vs 4% average) and make 3+ purchases per month (40% vs 29% average).

Over 30% of spenders in each cohort plan to spend about the same in 2024, suggesting a general stability in spending habits. A notable portion of spenders, especially high-value spenders, plan to spend less(18%) or much less(23%), indicating a potential decrease in overall spending. A considerable number of respondents are undecided about their future spending, reflecting uncertainty in their spending behavior for the upcoming year.

Social relations

According to a survey conducted by MISTPLAY, Facebook is the leading social channel for game spenders, with 81% of respondents discussing and discovering mobile games there. This is followed by YouTube and TikTok, with 40% and 39% of spenders actively engaging on these platforms, respectively. Additionally, 79% of Gen Z males identify YouTube as their preferred platform.

For high-value spenders, the primary motivations for purchasing influenced by other players include competition and rankings, as well as in-app gifts and rewards, with 10% of the spender cohorts expressing agreement with these two factors. However, the latter factor shows higher percentages, at 15% and 16%, among mid and low-value spenders, respectively.

Loyalty program

Consumers are seeking opportunities to maximize their discretionary spending and are more likely to engage with brands that facilitate this. A significant majority (79%) participate in various loyalty programs and are inclined to invest more in games if it allows them to earn additional points or monetary rewards (51%). Across all categories of consumers, a substantial portion is more inclined to spend on games when offered extra rewards through a loyalty program.

Trends in top markets

The mobile gaming market is set to grow to $83 billion in 2024, a 6% increase from the previous year.

Analyze the growth trajectories

Major APAC markets like China and Japan saw a slight dip in spending, while up-and-coming markets such as India and Indonesia drove growth in mobile spending in the APAC region. Plus, mobile gaming spending really took off in Mexico, Saudi Arabia, and Poland in the Rest of the World area. These changes show just how dynamic the global mobile gaming market is, with emerging economies playing a bigger role in overall growth.

● Demand for Switch Lite games held up pretty well in the U.S. and Japan year-over-year, but it wasn’t the same story in Western Europe, resulting in a 4.1% revenue share rise in North America and a 4% rise in Asia-Pacific.

● Regional PC and Mac game spending shares stayed fairly stable year-over-year, with the ROW region (Latin America, Middle East Area, and Central and Eastern Europe) gaining about a percent while Asia-Pacific lost 2% due to ongoing regulatory pressures in China and some broader economic softness.

● Changes in home console shares were also modest, but North America led the pack in year-over-year share gains. As with handhelds, Western Europe's console spending results were relatively weak, likely impacted by economic factors (like the EU’s GDP being just 0.3% in Q1 2024).

Download statistics & IAP(In-App Purchase) Revenue

In Sensor Tower's Q1 2024 survey, mobile game downloads on the App Store in Mainland China increased by 10% quarter-over-quarter, totaling 260 million. Regarding in-app purchase (IAP) revenue, the App Store's mobile game revenue in this market reached nearly $3.8 billion for the quarter, reflecting a modest 4% growth from Q4 2023, which indicates a potential rebound. IAP revenue for lifestyle and shooter games on the Chinese App Store has experienced significant growth, while strategy and arcade games also showed an increase in revenue.

There was a slight quarter-over-quarter increase in mobile game downloads and IAP revenue in Japan. In Q1 2024, mobile game downloads in the Japanese market reached over 160 million, representing a 6% increase compared to the previous quarter. Additionally, IAP revenue in Q1 2024 saw a 2% quarter-over-quarter rise, totaling $2.9 billion. Puzzle, Strategy, and Lifestyle Games Experience Growth in Downloads and IAP Revenue in Japan.

Southeast Asia saw a marginal dip in mobile game downloads while IAP revenues remained stable in Q1 2024. There was a modest 4% quarter-over-quarter rebound in mobile game downloads in the Southeast Asian market, surpassing 2 billion, with a 91% share from Google Play. However, in terms of IAP revenue, Q1 2024 saw a marginal 1.5% quarter-over-quarter dip to nearly $600 million, remaining largely stable. Simulation and Shooter Games Drive Download Growth in Southeast Asia, with Indonesia Up 16% Quarter-over-Quarter in Mobile Game Downloads.

Ad engagement

In the US, 42% of gamers tune out ads in mobile games, while 22% actually pay attention, no matter what genre is being advertised. Puzzle game users are the least engaged, while Lifestyle game users are the most into ads. About 28% of players download a game within 24 hours of seeing an ad they like, and 27% do so within a few days—almost one in five (19%) won't download anything at all. Racing game users are among the fastest to jump on games after seeing ads.

The main reasons players interact with ads are rewards and incentives (42%), how relevant the ad is to the game genre (40%), and engaging gameplay (38%). Casino game users are some of the most responsive to ads that offer rewards and incentives. "Too many ads" is one of the top three reasons players bail, with nearly 50% saying it's a dealbreaker. Plus, 14% admit they'll ditch the game right after seeing an ad and opting for something new. On the other hand, people playing geolocation games have way less patience for bugs and issues, with half saying those are their main reasons for quitting.

Preference Mobile Gaming Genres

Western European gamers love casino games, puzzles, and strategy games. Sensor Tower found that Coin Master and MONOPOLY GO! are topping the mobile gaming charts in Western Europe, both falling under the Coin Looters (Casino) subgenre. Besides casino games, titles like Brawl Stars (MOBA) and Candy Crush Saga (Puzzle) show that mobile gamers in Western Europe really dig into strategy and puzzle genres.

In the APAC region, games like Honor of Kings (MOBA) and Honkai: Star Rail (Turn-based RPG) are leading the mobile gaming charts, showing just how popular strategy and RPG genres are in that part of the world.

Game publishers can adopt these strategies

With numerous games and genres vying for a limited pool of player spend, and players tightening their budgets given the current economy, publishers need to strategically position themselves to build long-term loyalty and ultimately scale in a sustainable manner. This changing landscape demands innovative approaches to IAP strategies, urging publishers to explore tailored offers, robust loyalty programs, and new lifecycle marketing channels to encourage sustained player investment in the years ahead. There may be even more flexibility in adopting these strategies alongside the increasing shift towards direct-to-consumer (DTC) web shops, which can yield revenue increases of up to 25% for top publishers.

Brands can tap into these use cases through marketing vehicles like rewarded video ads, which allow gamers to earn in-app rewards by voluntarily watching a video advertisement. By offering power-ups or other add-ons directly to gamers to attract ad views, marketers can offer a good value exchange without detracting from the gameplay.

Developers can generate revenue from their games by offering in-app purchases, display ads, or a combination of both. In-game advertising is one of the most popular monetization strategies for gaming publishers. Publishers can also partner with advertisers to monetize their games without relying on players. Other monetization models include in-app purchases, sponsored content, branded content, and sponsored events.

Reference

Gaming: It's Personal! Fandom Inside Gaming 2024 Study

Mobile Gaming Spender Report, MISTPLAY

Gaming Spotlight H1 2024 Review, Sensor Tower

APAC Mobile Game Market Insights, Sensor Tower

Gen Z Gamer Study, ZBD

Marketing to Gamers in 2024 & Beyond, Tinuiti