The cost of user acquisition is getting higher as more content and VAS services seek to garner eyeballs. So what’s the answer? Tony Pearce from gaming company Reality+ offers his views at World Telemedia Marbella 2024.
With more and more content chasing the same eyeballs, the usual channels for marketing VAS such as games are getting more competitive and much more costly.
Could the answer lie in working more closely with MNOs?
Key takeaways
- Tony Pearce introduces himself as the CEO and co-founder of Reality Plus, a company founded in 2017 with a focus on blockchain-connected games.
- Reality Plus developed its own blockchain platform and created games with utility around this, like the Doctor Who trading card game and Top Gear Metaverse project
- It has also collaborated with FIFA, Tour de France and other major brands on blockchain-based games and NFTs
- He discusses the challenges of user acquisition and advertising due to privacy changes, leading to increased costs and competition for a shrinking targeted audience
- The cost of acquiring users (CPI) has increased significantly, from $1-$2 to $5-$10 per install, making it unsustainable for the mobile games market.
- He explains that 90-99% of mobile games are free to download, and only a small fraction of users make in-app purchases, making it a highly competitive market.
- Tony mentions the exploration of alternative advertising methods, such as value-added services from carriers and old-school marketing tactics like influencer partnerships and PR campaigns.
- He notes that smaller indie studios often struggle to scale globally without significant funding, leading to partnerships with larger publishers to help expand reach
