In mobile gaming, user acquisition has always been the holy grail for publishers. Getting valuable players on board and attracting big spenders has been the name of the game for decades. However, recent privacy changes by tech giants Apple and Google have thrown a curveball at this tried-and-true strategy, making user acquisition a challenging task. But fear not, because artificial intelligence is saving the day.
The User Acquisition Challenge
User acquisition (UA) has long been the bedrock of success for mobile game publishers. The key was access to abundant and actionable user data, which fueled efficient marketing campaigns. But times have changed. With privacy changes limiting the supply of granular data, User Acquisition has become a puzzle that marketers must solve differently.
According to the 2024 App Marketer Survey, nearly 60% of app marketers are now setting more aggressive KPI targets compared to a year ago. The User Acquisition landscape is evolving rapidly, and the pressure is on to adapt.
Data Limitations and Marketers’ Dilemma
Privacy changes mean that marketers have less data at their disposal. In fact, 71% of marketers admit that having more data would have improved their decision-making. With limited data, 62% of them have seen their campaigns become less successful.
But it’s not all doom and gloom. Marketers are responding by increasing their budgets. This financial boost allows them to explore new channels and strategies to make up for the data deficit.
The Shift in Strategy
It’s not just about throwing money at the problem anymore. Marketers are embracing new approaches that merge acquisition and engagement. The goal is to create a seamless and engaging user journey. This shift marks a departure from focusing solely on vanity metrics and volume.
AI and Automation: The Game Changers
In this era of limited data, AI and automation have emerged as game-changers. These technologies help marketers track and interpret the breadcrumbs of user behavior and contextual clues they leave behind as they navigate through apps.
AI is particularly vital in the fiercely competitive world of mobile gaming. With consumer spend softening and players spending more time in-game than ever before, the stakes are high. Publishers are sitting on mountains of app engagement data that can be used to fine-tune UA campaigns.
Publishers that harness this data can optimize and boost conversion rates by a significant margin, sometimes as much as 10-15%. For publishers investing millions every month to reach high-value users, this translates to substantial revenue and invaluable insights.
Taking Control of Data and Destiny
Mobile gaming publishers are taking control of their first-party data, putting them ahead of traditional ad networks. By optimizing and automating the entire UA process, they’re able to leverage their unique insights into player behavior.
A prime example is TapNation, a Paris-based mobile game publisher. They recently made headlines by acquiring UA Hero, an AI-powered mobile app user acquisition platform. This strategic move enables TapNation to create forecasting and prediction models using first-party data and AI. The result? Higher LTV (Lifetime Value) targets and an extended player life cycle.
The Industry’s New Paradigm
TapNation is not alone in its pursuit of AI-driven UA excellence. The mobile gaming industry is witnessing a paradigm shift. Publishers are unlocking player data and refining modeling and targeting techniques to maximize ROI.
Gonçalo Martins, VP of Marketing at mobile game publisher BoomBit, highlights the importance of optimizing and automating the entire acquisition process. This approach, powered by first-party data, gives publishers a competitive edge over ad networks.
TapNation’s acquisition of UA Hero is part of a larger trend. Powerful publishers like King and Zynga have also invested in data analytics companies and AI to automate acquisition. As privacy changes make targeting tougher, AI is becoming a central tool for publishers.
The future of AI-powered User Acquisition is promising but competitive. More players are harnessing AI to unlock valuable player data. Some companies may even offer AI-powered models to other game publishers, creating a booming picks-and-shovels business.
However, competition is on the horizon. Industry giants like Google and META are entering the arena with their vast data resources. The landscape is evolving, and the secret is out.
Conclusion
AI is reshaping the world of user acquisition for mobile game publishers. In an era of data limitations, AI and automation provide the keys to success. Publishers are taking control of their data and adopting new strategies to stay ahead. The future promises a competitive “purple ocean” of opportunities, with AI at the helm of user campaigns. The game has changed, and AI is the new MVP in user acquisition.
