Widespread smartphone adoption and improving internet infrastructure have boosted the mobile gaming segment in the region.– Screen Post/Unsplash
PETALING JAYA: There’s no denying the appeal of mobile gaming, especially in the last decade.
Fuelled by the rise of smartphone adoption and higher data accessibility, the mobile gaming segment has surged in popularity, accounting for over US$103bil in consumer spending last year.
The increasing interest in the segment has also paved the way forward towards media buying in mobile gaming.
According to Mintegral, a leading data-driven, programmatic, and interactive advertising platform, South-East Asia remains the second-largest market by ad media buying volume (app with ad media buys) in the mobile gaming industry.
As a dedicated platform designed to help mobile apps bridge the gap among the world’s most valuable markets, Mintegral recently released its findings in its report “The State of Media Buying first half of 2024 (1H24): SEA Spotlight”.
The report revealed that the region’s prevalence in ad media buying volume puts it just behind the United States, excluding China.
The region also ranks first in ad views, reflecting the region’s dynamic growth and strategic importance in the mobile gaming industry.
According to the report, South-East Asia’s expansion in the segment marks a year-on-year growth of 11% in the volume of ad creatives produced compared to the other regions.
The region makes up 55% of global in-promotion mobile games compared to global figures.
Countries like Indonesia, Thailand, and Vietnam lead in market size and revenue, with Indonesia emerging as the largest single market.
The region’s mobile game revenue distribution shows Thailand and the Philippines as the most lucrative markets, with gaming revenues expected to see substantial growth by 2027.
“South-East Asia’s position as a leading market by media buying highlights the region’s critical role in the global mobile gaming ecosystem,” explained Mintegral chief executive officer Erick Fang.
“Our report provides valuable insights for marketers and game developers aiming to capitalise on this vibrant market.
“By understanding regional trends and adopting effective advertising strategies, businesses can unlock new growth opportunities and build awareness around their games.”
Rebounding from last year, action and puzzle games are particularly prominent in the region, both in terms of the number of games promoted and the volume of ad creatives, while playable ads are slowly gaining traction.
The shift towards playable advertising is pronounced, with a high output of new playable creatives catering to various game genres.
This trend is particularly strong in growing markets where playable ads have become a crucial component of user acquisition and engagement strategies, underscoring the region’s robust demand for mobile gaming and its burgeoning advertising ecosystem.
According to Mintegral global business development head DJ Li, the rise of South-East Asia as a key market for ad buying in the mobile gaming industry can be attributed to a dynamic combination of rapid technological advancements, evolving consumer behaviour, and tailored advertising strategies, with the region showing strong potential for continued growth.
“The region’s widespread smartphone adoption and improving Internet infrastructure are significant factors that have nurtured a large, engaged user base.
“Affordable smartphones, coupled with increasing Internet penetration, have allowed more people to participate in mobile gaming, making South-East Asia an attractive market for advertisers,” she added.
For some advertisers, mobile gaming offers a compelling balance between cost and exposure, making it an attractive option, especially for brands looking to target a broad audience.
Li expanded further on the matter pointing out to the widespread popularity of casual and hyper-casual games.
“These games have a high appeal to a broad audience, allowing advertisers to achieve substantial exposure at a relatively lower cost compared to traditional digital channels,” she explained.
Video ads and playable ads in mobile games are also particularly effective, driving high user engagement while maintaining cost-efficient cost-per-mille.
Additionally, advertising costs in these South-East Asian markets tend to be lower than in Western markets.
The flexibility of programmatic advertising in mobile games allows brands to fine-tune their campaigns for optimal spending efficiency, ensuring they reach the right audiences without overspending.
Tools like smart bidding and advanced targeting capabilities further help advertisers maximise their return on investment.
In addition to the technological infrastructure, the development of programmatic advertising technologies has also supported this growth.
Adtech platforms like Mintegral support D0 and D7 return on ad spend targets and help advertisers find the right users and drive positive returns on investment.
This encourages advertisers to increase their ad budgets, further fuelling the market.
According to Mintegral’s report, in 1H24 alone, over 35,000 mobile games purchased advertising, marking a 13.72% year-on-year growth.
Li noted that the mobile gaming space continues to remain attractive to a cross segment of industries due to its diverse audience and effective engagement capabilities.
“Companies focused on emerging markets tend to use mobile gaming ads to connect with a younger, tech-savvy audience,” she added.
“Online retail platforms like Shein, Temu and Alibaba have leveraged in-game advertising to enter these markets to not only build up their recognition but also create constant brand awareness among a new generation of audiences.”
Looking towards the future of the segment, Li remains encouraged by the growth rate of playable ads, which now accounts for over 10% of creatives in hypercasual, puzzle, shooting, and simulation/management games.
However she believes the segment is expected to evolve beyond this format.
“Ultimately, the success of an ad campaign relies not only on the type of ad but also on aligning the right ad format with an effective bidding strategy.
“As the market grows more sophisticated, finding the optimal mix of ad formats and strategies will be key to maximising user engagement and cost efficiency.”
Not to mention, she also believes that there is a growing trend of advertisers going beyond simple playable ads by incorporating more advanced in-game ad formats.
“Customised video ads, interactive HD videos, and dynamic creative optimisation that adapts content based on user interaction, will no doubt transform the segment further in the near future.”
