The mobile gaming industry is facing unprecedented challenges as studios grapple with declining revenue and cautious approaches to investing in new titles. One of the most notable examples is Playtika, which has announced it will no longer invest in new games and instead focus on optimizing existing ones.
AI-Powered Insights for Mobile Gaming Success
In today's market, launching a mobile game is an uphill battle, and the stakes are even higher in 2023. The increasing cost of user acquisition (CPIs) is making it difficult for studios to attract high-quality installs. According to Eric Kress, principal of Gossamer Consultant and chief outrage officer at Deconstructor of Fun, this rise in CPIs is not solely due to the post-Covid correction but rather a combination of factors, including changes in privacy restrictions (thanks to SKAN), record-breaking inflation, and the looming global recession.
The Rise of AI-Powered Mobile Apps
As studios navigate these uncertain times, they are turning to artificial intelligence (AI) to drive insights and inform their decision-making. By leveraging AI-powered data analytics, studios can gain a deeper understanding of their existing titles' performance, identifying areas for optimization and scaling. This approach not only helps studios reduce costs but also enables them to make more accurate forecasts about the future of their titles.
Optimizing Existing Titles with AI
One of the most effective ways to navigate this challenging landscape is by focusing on optimizing existing titles rather than investing in new ones. By working with more data, studios can gain a deeper understanding of their game's performance and identify areas for improvement. This approach has been particularly successful for our clients, who have seen significant improvements in their title's monetization and user acquisition strategies.
AI-Powered Insights for Scaling Existing Titles
In addition to optimizing existing titles, AI-powered insights can also help studios scale their UA efforts more efficiently. By analyzing data from various channels and ad formats, studios can identify which strategies are most effective and allocate their resources accordingly. For example, one of our clients was able to shift their spend from a less profitable channel to a more profitable one, resulting in significant gains.
Conclusion
In today's turbulent mobile gaming landscape, AI-powered insights are more crucial than ever. By leveraging the power of AI, studios can gain a deeper understanding of their game's performance, identify areas for improvement, and make more informed decisions about their marketing strategies. Whether it's optimizing existing titles or scaling UA efforts, AI-powered insights can help studios navigate these challenging times and achieve long-term success.
Recommendation
If you're still considering launching a new title this year, be sure to read our post on "How not to f**k up your soft launch" for valuable tips and insights.