Detailed Mobile Market Data

Trevor Doerksen
Jan 30, 2018 · 8 min read

The Core Network, like ePlay and Mobovivo is in the sports and entertainment business including the following key markets:

  1. Mobile Games
  2. eSports
  3. Sports Advertising
  4. Sport Gaming
  5. Social Media Influencer
  6. Mobile Advertising
  7. Charity
  8. Reality television / film
  9. Merchandise

Combined these industries are in the trillions of dollars worldwide.

Mobile Advertising

Mary Meeker, at Venture Capital firm Kleiner Perkins, demonstrates that US Internet advertising is accelerating in growth with mobile at a 22% year over year increase in 2016, reaching US$107B in 2017. Meeker points out a large mismatch between advertising spending on mobile and time spent on mobile in the US. According to Meeker, this represents a US$16B opportunity as advertising spending closes the gap with time spent by consumers. At the same, Internet ad spending has matched TV ad spending in the last 12 months. Core allows brands to use augmented reality to engage audiences through mobile games.

Mobile Gaming

In addition to driving advertising revenue through the CORE coin, transactional revenue will be made possible through new modules added to an existing platform. The mobile games market worldwide is expected to exceed US$100B in 2017 with US$46B of that in the US. Online sports gaming transactional revenue is estimated at US$38B in the US.

Mobile game revenue falls into 3 categories. The fastest growing, in-app purchases, driving massive revenues. The above shows the breakdown of mobile app revenue by category: advertising vs. in-app purchases vs. paid apps. These revenue types are not mutually exclusive. A mobile game can achieve in-app transaction revenue and advertising revenue simultaneously. According to figures from AppFlyer, in-app revenue is now the largest and fastest growing revenue segment and exceeds mobile advertising by 300%.

Transaction revenue does exceed advertising, however advertising is becoming a bigger part of the formula. AppFlyer has determined that the “the average global paying user spends $9.60 a month per app, which is 20 times more than the average user.”

AppsFlyer also breaks down in-app spending by user and shows that iOS users are 2.5x more likely to make an in-app purchase and value is about 2 times greater than Android users. They also break down revenue by region, showing the highest average monthly spending is in Asia followed by North America.

The in-app purchase market is clearly a big and growing market. At the same time mobile game advertising continues to climb and take a larger proportion of overall app revenue.

Mobile app revenue is expected to continue to grow with projections for US$189B by 2020. The top grossing app in 2017 was Pokémon Go with over US$2B in revenue. According to Statista, other top mobile games including Candy Crush and Clash Royale. Tencent, which is the Chinese game developer behind Clash Royale, recently reported a 27% year over year increase in revenues for the quarter.

Newzoo released the latest quarterly update of its Global Games Market Report that shows 2.2 billion gamers are expected to generate US$108.9 billion in revenues in 2017. This represents an increase of US$7.8 billion, or 8%, from the previous year.

Digital game revenues will account for US$94.4 billion or 87% of the global market. Mobile is the most lucrative segment, with smartphone and tablet gaming growing 19% year over year to US$46.1 billion, claiming 42% of the market. In 2020, mobile gaming will represent just more than half of the total games market. The PC and console game markets will generate US$29.4 billion and US$33.5 billion in 2017, respectively.

Asia-Pacific is by far the largest region, with China expected to generate US$27.5 billion, or one-quarter of all revenues in 2017. Newzoo expects the global market to grow at a CAGR of +6.2% toward 2020 to reach US$128.5 billion. Based on its review of final 2016 financial results of more than 70 public companies, Newzoo also upped its final take on 2016 by US$1.1 billion to US$101.1 billion. Mobile games performed even better than expected, especially in China, while the PC games market performed worse than anticipated in Newzoo’s previous quarterly update.

Core allows users to purchase level-up, digital goods, and unlocks to extend and enhance experiences — a US$100 billion market.

Pokémon Go Market

Given the similarity in game play and demographics of the game titles in the Core slate, diving deeper into Pokémon Go data is useful. The following are key Pokémon Go data points:

  • Total number of downloads — 752 million — July 2017
  • Total revenue — US$2 billion (to July 2017)
  • Average revenue per DAU — US$0.25
  • Percentage of iOS users that do in-app purchases — 80%
  • Daily Active Users — 20+ millions
  • Time Android users spend with the game daily — 43 minutes
  • Three-day retention — more than 60%
  • Gender female vs. men split percentage — 40/60
  • Revenue-share per retail visit US$0.15–0.50

Additional data, important to advertising, shows a significant amount of time Pokémon Go Android players spend inside the Pokémon Go app as compared to WhatsApp, Instagram, Snapchat and Messenger. Core allows users to experience real worlds via augmented reality to engage with influencers and athletes.

Social Influencer Commerce

Big brands such at Qatar Airways, Emirates, Starbucks, Red Bull, BMW and others have effectively started to embrace social media and leveraging user generated content of influencers on Instagram and Facebook. According to Statista, influencer market size is expected to increase to US$2.3B by 2019, and is currently a US$1B market. Core Network connects influencers digital personas and mobile game revenue directly to digital and physical goods, for example, users will be able to buy the same sneakers for their game avatar and in real-life with both appearing in mobile eSports streams.

eSports Market

The coming year will see the eSports Economy grow to US$696 million, a year over year growth rate of 41.3%. Brands are expected to spend US$517 million, broken down into US$155 million on advertising, US$266 million on sponsorship, and a further US$95 million on media rights. Brand investment will double by 2020, pushing the total market to US$1.5 billion. Consumer spending this year on tickets and merchandise will amount to US$64 million. Another US$116 million is invested by game publishers into the eSports industry through partnership deals with white-label organizers. As eSports is becoming engrained in the DNA of successful competitive games, publishers are actively looking to grow their franchises as spectator sports with the aim to engage their current fans, and reach new ones.

eSports viewers are increasing with a majority between 21–35 years old and 18% over 35 years old.

Augmented Reality Market

In 2018, the Augmented Reality (AR)market is expected to push spending in AR games and apps to over US$2B. New and existing games built on top of new technology released in late 2017 by Apple and Google will drive further adoption. Pokémon Go recently announced updates to its AR features. Piers Harding-Rolls of IHS Market says, “I expect there to be solid growth in augmented reality apps spend in 2018. The arrival of Apple’s ARKit and Google’s ARCore and the 2018 follow up to Pokémon Go — Harry Potter: Wizards Unite — should push AR apps (including games) spend over $2 billion in 2018.”

AR is a big theme at the January 2018 CES — the worlds largest consumer electronics show. ePlay’s platform and AR in general is highlighted at CES and AR in sports as a key trend at CES. This success at CES was proceeded by ePlay’s Mobovivo being named as a top innovator at the 2017 Mobile World Congress in Barcelona.

Online Charity Market

Charities are increasingly using celebrities and influencers to actively solicit contributions, support, and awareness on their behalf. At the same time influencers want to be seen as involved in charity for personal reasons in addition to profile management and to attract positive publicity. Celebrity-fan engagement through charity has helped NFL player Chris Long raise enough money for 30 water wells in Africa at US$45,000 each. Influencers (actors, athletes, celebrities) use digital engagement, physical merchandise, and other mechanisms to interact and raise money for charity.

The market size for online charity is $US2.6 billion in 2016, an increase of nearly 8% over the previous year. 17% of online donations are from a mobile device.

Daily Fantasy Sports (DFS) Market

Fantasy sports are centralized and heavily monopolized by FanDuel and DraftKings holding over 90% of DFS market. High commission rates, lengthy verification process, unfair competition and slow withdrawal of money are problems in DFS.

Approximately 59.3 million users played fantasy sports in North America in 2017 with 39% using smartphones to play. The DFS market was US$3.26B in 2016 and is estimated to reach $5.6 billion by 2021. Average user spending on FanDuel and DraftKings was US$41.70 per month and expected to increase. DFS out performs: 1) mobile game average monthly revenue per user and 2) ESPN television average subscription rate.

Cryptocurrency Market

The total market cap of cryptocurrencies is about US$150 billion with Bitcoin dominance of nearly 50%. The market cap of cryptocurrencies has increased by about 900% from 2016. Further adoption of these coins in meaningful projects will help make the market larger. Successful tokens are often considered low supply tokens. Of course, simply supply and demand and the law of scarcity would indicate success. With growth in demand and reduction in supply, the price of the underlying asset begins growing steadily, while a reduction in demand and an increase in supply give rise to a rapid drop in the underlying asset’s price. An excessive increase in the turnover of tokens on the market will likely lead to depreciation. A low supply of coins with higher demand leads to a higher price. For example, Zcoin (XZC) began with 21 million Zcoins when it launched in September 2016. The price of XZC increased from $0.36 in October 2016, to $40.89 in December 2017, increasing 113 times in a little over a year — it has been suggested that limited supply was one of the key factors behind this performance.


Sports & Entertainment on the Blockchain

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