"A blast of market data on the Chinese mobile games market by the stat experts" by SkyMobi

“By the Numbers – A blast of market data on the Chinese market by the stat experts”

• Market Overview• Market Breakdown by City Tier• Overview of ‘Diaosi’

William Heathershaw, Head of International Marketing, SkyMobi

China Mobile Internet Users as % of Internet Users

Source: KPCB

Percent of Global GDP

Conversion of Users to Paid and ARPPU

Source: Super Data

Comparison: Revenue per Download and CPI Q4 2013

Comparison: China and US CPI & ARPU

Source: Super Data

Comparison: China/US MAU & Annual Revenue

Source: Super Data

Know Who Your Customer Is

Population: 1.36 billion

Mobile internet users: 500 million

Mobile gamers: 266 million MAU

All these 266 million gamers are pretty much the same profile, right? NO

Classify Users by the Tiers of Cities in China

• Population• Provincial GDP• Cities with strong economic growth• Geography vicinity to other powerful cities• Advanced transportation infrastructure• Historical and cultural significance

Source: American Chamber of Commerce

Let’s Break it Down

1st Tier cities only have 10% of China’s population

1st Tier Cities: Beijing, Shanghai, Guangzhou, Shenzhen

Distribution of Active Devices in Chinese Cities

Annual Changes of Daily Sessions per User

Source: umeng

Distribution of Active iOS and Android Devices

Source: umeng

Top 5 Android Brands per City Tier (2014 Q1)

Source: umeng

I see the significance of focusing on lower tiered cities…but what do the users look like?

• Game Preferences• Game Preference Trends• User Behavior

Diaosi

Diaosi Game Preference

Source: Maopao appstore

Diaosi Game Preference Trend

Casual

Action

Card

Racing

RPG

Adventure

Time

Source: Maopao appstore

Wifi vs Cellular Network Usage for Downloads

Source: Maopao appstore

Success Rates of Downloads Relative to App Package Size

Source: Maopao appstore

238 251

271

316

377

282 298 303

323

354

Q1-13 Q2-13 Q3-13 Q4-13 Q1-14

AVG.RAM AVG.ROM

Diaosi’s Handset Performance Increasing, but yet Relatively Low End

Source: Maopao appstore

Diaosi’s Most Responsive Time Periods to Promotions

Source: Maopao appstore

Games Are Most Important to 3rd Tier and Below

Source: umeng

“Hmm, does Diaosi have money to spend?”

• Most affordable form of entertainment

• Able to “show face” through games

Reaching Diaosi

• Maopao app store • Pre-installed on 40% of Android handsets

• 147 million users, 25 million MAU

• Partners• 100+ Chinese OEMs

• 30,000+ China Unicom & China Mobile stores

• 70+ distribution channels incl Tencent, Qihoo, Baidu

Thank You! Kiitos!