Mobile Advertisers Have Online Gambling in Their Sights

Business Insider’s research service BI Intelligence recently released a report on the state of the mobile gaming market, particularly in view of the move to free-to-play (F2P) monetization. The report noted how this transition will impact developers, such as increasing their marketing costs, and the pressure to acquire users with an open-mind towards in-app purchases, as well as the potential consequences from gamers who don’t spend in-app.

Having said that, the online gambling market, especially mobile gaming apps, hold great revenue potential for developers. Mobile advertisers too can benefit immensely, an opportunity they have recognized as they accelerate their investment in mobile and online gambling.

Mobile Advertising Watch forecasts that the online gambling market will grow by 11 per cent through 2020. In 2014 alone, it generated a revenue of approximately $US37 billion, including revenue from casino gaming apps on mobile devices, laptops and PCs.

Data suggests that mobile casino gaming apps are a huge hit with smartphone users. As of February 2016, downloads of casino apps from the App Store grew by a massive 286 per cent year-on-year. At the same time, casino apps that don’t use real money were also one of the categories that performed well in terms of cost per install (CPI). In 2015, the combined revenue generated by the top four mobile casino apps stood at over $645 million.

In this regard, it is safe to assume that the return on gambling apps – including those that don’t use real money – is high enough to accommodate the escalating installation costs. Developers, for their part, seem gung-ho about creating exciting new mobile apps. With the availability of faster processors and the ability for larger screens and more compelling graphics, the potential to deliver memorable online gaming experiences has never been higher.