The free-to-play gaming model, with in-game purchases, has completely disrupted the global games market.
Studios used to produce a few big titles that required purchase to play. In a traditional platform model, 90% of their revenue came from 28% of their users. In the mobile free-to-play market, 6% - 10% of mobile gamers will make premium in-app purchases. In 2016, the average iPhone user spent $27 on games, out of a total of $40 on apps.
While studios already cared about user engagement in the previous model, the new pricing model requires a deeper understanding of how users commit to a game. Micro-moments matter more than ever. Quality onboarding and rewarding feedback loops are the difference between failure and success. Techcrunch reports that nearly 1 in 4 people abandon mobile apps after only one use.
How can gaming companies compete for a user’s attention and wallet in this environment?
Gaming companies that can leverage in-game data to deliver personalized, real-time experiences, encourage increased playing time, higher spend and decreased churn. Simple A/B tests and rules-based automation aren’t up to the challenge. There is too much data, and too many possible tests for a human to hypothesize, configure and run each test. The most innovative companies are leveraging machine learning and adaptive experimentation to drive explosive player revenue and retention.
AI marketing can simultaneously run thousands of tests, without preconceived notions of segments or personas. This isn’t feasible with typical testing and personalization tools, which require assumptions up front by the marketer about the test criteria, and only allow for a few tests at a time.
One global consumer subscription platform turned to Amplero to increase adoption in their customer onboarding. They were hoping to increase adoption and cross-sell within their family of features. By scaling their experimentation and optimization efforts with Amplero, they were able to achieve an average 7.7% increase in adoption, with uplift across all four targeted key features over the first 60 days.
To find out if your organization is ready for AI-powered marketing, check out Amplero's 2017 Gaming Industry Guide, which includes an AI-focused self-assessment for marketing teams.
Headquartered in Seattle, Amplero is an Artificial Intelligence Marketing (AIM) company that enables business-to-consumer (B2C) marketers at global brands to optimize customer lifetime value at a scale that is not humanly possible.
Unlike traditional rules-based marketing automation systems, Amplero’s Artificial Intelligence Marketing Platform leverages machine learning and multi-armed bandit experimentation to dynamically test thousands of permutations to adaptively optimize every customer interaction and maximize customer lifetime value and loyalty.
With Amplero, marketers in competitive, customer-obsessed industries like telecom, banking, gaming and consumer tech are currently seeing measurable lift across key performance indicators—including 1-3% incremental growth in customer topline revenue and 3-5x lift in retention rates.
For more information or to schedule an Artificial Intelligence Marketing demo, please contact us or follow Amplero on Twitter for the latest industry news.