For games advertisers, 2021 was not business as usual. The ongoing global pandemic brought unforeseen challenges that disrupted operations, but also resulted in a boom of new players—an estimated 2.96B people now gaming globally.¹ The growth in 2020, though, was unprecedented, and for the first time in years, the industry is forecast to shrink slightly in 2021.² That said, the games industry is still on track to surpass $200 billion by 2023, with mobile gaming expected to be the fastest growing segment in the coming years.³

2021 was not business as usual...

Slightly shrinking market

Slightly shrinking market

Loss of signal

Global pandemic

For the first time in many years, the global video game industry is forecast to shrink slightly in 2021.

GLOBAL GAMES MARKET FORECAST

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$144.4

IN BILLIONS

$177.8

$175.8

...but gaming has also had some very big wins

Achieves Global Appeal

The video game industry has thrived as more people turn to mobile and console/ PC titles for social connection, stress relief, and relaxation.

GLOBAL PLAYER FORECAST

2015

2.03

5

2016

2.17

2015-2024, IN BILLIONS

2017

2.33

2018

2.49

2019

2.64

2020

2.81

2021

2.96

2022

3.09

2023

3.22

2024

3.32

Moves Mainstream

The stereotype that gamers are young, white, and male is a thing of the past. Gaming now appeals to every age range, ethnicity, and gender across the globe.

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Gen Z (16-23 years-old)

Millennials (24-37 years-old)

Gen Z

Gen X (38-56 years-old)

Baby boomers (57-64 years-old)

Casual Gaming Takes Off

With consumers spending increased time on mobile, hyper-casual games are having a moment. It’s no longer just about hard-core gamers.

80% of those who do not list gaming among their interests will habitually enjoy games on their smartphone.

86% of internet users play games on at least one device.

7

8

Growth is expected to continue

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The game industry is still on track to surpass $200 billion by 2023.

Healthy CAGR

Market growing with CAGR (2019 to 2024) of +8.7%.

10

5 key macro trends indicate that Holiday 2021 could be the strongest year yet for gaming sales

Consumer Sentiment is at Historic Levels

As we head into the Holiday buying season, consumer sentiment has never been more positive.

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The highest recorded levels of optimism since the survey began in 2015.

1/5

The Holiday season has been a historically strong time for the gaming industry.

Gaming Sales

Gaming Sales

In-App Revenues

Download by iOS Device

1200 1000 800 600 400 200 0

COVID-19

HOLIDAY

HOLIDAY

MOBILE GAMES DOWNLOADS IN MILLIONS

HOLIDAY

HOLIDAY

HOLIDAY

SEP 2016 MAR 2017 SEP 2017 MAR 2018 SEP 2018 MAR 2019 SEP 2019 MAR 2020 SEP 2020 MAR 2021

GOOGLE PLAY DOWNLOADS

APP STORE DOWNLOADS

Global Insights to Inform Holiday Games Advertising

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CPM By Global Market

Select one or more countries

10/1/20 10/16/20 10/31/20 11/15/20 11/30/20 12/15/20 12/30/20 1/14/21 1/29/21

FACEBOOK INSIGHT

Last year’s trends in Western markets followed predictions in that spikes were less pronounced but rather were continuous increases. There was a similar drop starting well before Christmas Day and leading well into January. In selected key Asian markets like Taiwan, Korea, and Japan, CPM fluctuations are way less pronounced due to higher importance of other, region-specific holidays. However, we still see similar dips around New Year’s Eve, specifically in Japan.

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CPM By Genre

Select one or more genre

10/1/20 10/16/20 10/31/20 11/15/20 11/30/20 12/15/20 12/30/20 1/14/21 1/29/21

FACEBOOK INSIGHT

With the exception of Match Three games, which saw a specifically sharp increase last year, other genres typically follow a very similar trend.

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CPM By App Store

GOOGLE PLAY

APP STORE

BLACK FRIDAY

CHRISTMAS DAY

NEW YEAR’S EVE

10/1/20 10/16/20 10/31/20 11/15/20 11/30/20 12/15/20 12/30/20 1/14/21 1/29/21

FACEBOOK INSIGHT

Unlike other years when CPM behaviors were different on Google Play than on the App Store, 2020 saw CPM trends in line across the two operating systems.

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Global ‘Market Moments’ (Japan vs. US)

Select one or more markets

100 90 80 70 60 50 40 30 20 10 0

MOBILE GAME IN-APP REVENUES IN MILLIONS

10/1/20

11/1/20

12/1/20

1/1/21

FACEBOOK INSIGHT

For the Japanese market, in-game revenues typically peak dramatically on the first day of each month, when a lot of in-game events are set to happen. These are the days of each month where Japan sees in-game revenues from games outperform the US market. This effect is even stronger on January 1st with the start of “Shogatsu” (first several days of a calendar year) where in-game revenues typically quadruple due to holidays, special in-game events, business being closed, and money (Otoshidama) gifts being made.

Global Promotional Timeframes to Keep in Mind

There are 2 more shopping days between Thanksgiving and Christmas than the year prior.

Tips to Help You Plan Ahead and Be Nimble

Advance campaign planning

Set up advertising campaigns several weeks in advance to turn on as soon as prices drop to avoid any unforeseen ad creation bugs.

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