I’m sure you’ve seen the TV commercials and maybe direct mail for video games. It’s huge!
Just take the Super Bowl.
Many of these expensive Super Bowl ads marketed FREE mobile apps – like Game of War, Clash of Clans, and Heroes Charge.
Why market free phone games with the most expensive ads of the year? The answer: user acquisition.
After the Super Bowl, Heroes Charge moved from being unranked to number 86 in iOS games, and Game of War and Clash of Clans moved up 95 and 18 slots.
Here’s the deal: these games make their money through in-app purchases for the game. After they’ve started playing, they’ll need to pay for bonuses – an energy recharge, for example.
That’s why getting people to start playing (user acquisition) is so important. But the cost for each loyal user is expensive – reaching $2.25 in September 2014 and staying over $2 since.
Because there are over a million apps for users to choose from, the market for these games is oversaturated and the cost to market is high.
The winners in the game of marketing – those who follow the rules of direct marketing.
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