Covid-19’s impact on game CAC and LTV

(This was originally published as a section in today’s newsletter. Subscribe here.)

Unity Technologies released a report on how Covid-19 lockdown has impacted user acquisition and monetization in the gaming industry. The data comes from games made with Unity or using the Unity Ads network.

  • Overall use
    • 46% DAU increase in HD gaming (i.e. console, PC, VR) and 17% in mobile gaming
    • Weekend and weekday differences in gaming behavior narrowed by 63%
  • User acquisition
    • Mobile gamers are installing 84% more apps
    • Click-through rate (CTR) for mobile gaming ads went up 34% compared to 2019
    • Average cost per install (CPI) for mobile games dropped by 33%
    • “Pandemic gamers” — gamers who joined only since the start of the pandemic — convert 27.5% more often to paying users, but generate 8% less daily revenue.
  • Retention
    • In HD gaming,  D1 retention is up by 11% and D30 retention is up by 8.8%
  • Monetization
    • In-app purchase (IAP) revenue for mobile games increased by 24%
    • Mobile gaming ad impressions increased by 57%, and ad revenues surged by 59%
    • Among mobile game players who watch ads, average number of ads watched increased by 14%
    • Individual average eCPM decreased by 3% compared to 2019