ChinaJoy: Signaling China’s rising influence in mobile gaming

Whether you’re a cosplayer or game marketer, there was only one place you wanted to be this weekend: ChinaJoy 2018, Asia’s biggest gaming show of the year in Shanghai. Chinajoy has become the gauge of where China’s gaming industry is headed, which sets the trends globally.

Our team from Beijing was there to catch up with friends and partners from the mobile industry and to discuss topics defining their gaming strategies. The theme this year was “new technology, new entertainment and new value,” and rightfully so. We saw more internationalized players with an eye on new media channels and business models.

More game developers are now considering international markets

The international market has become increasingly attractive to Chinese game developers. While this might remind you of a natural way to grow business, the real reason behind this trend are legal challenges in the domestic market. Apps must comply with the China cloud policies and laws to receive a license of a new game, which can be difficult. The path of the least resistance for app developers then leads to overseas markets.

Casual games becoming popular internationally

Chinese casual games in particular have double the reason to invest abroad, which is a growing base of excited players. With a booming demand for casual games on the international market, developers have changed their marketing objectives and strategies. Having previously focused on organic growth and monetization, more casual game publishers have now increased their budgets for user acquisition. So far, most of them advertised mainly on Facebook. The interesting question is which platforms they will expand on? Definitely something to keep an eye on.

Ad networks seeking new opportunities

In the face of the market difficulties mentioned earlier, affiliates and ad networks have begun to look for new opportunities and to enhance their business model. The conference was a great platform for discussing the possible directions. Let me share with you some of which we believe got potential.

Entering the game developer field

Ad networks and affiliates started developing apps and monetizing them via Facebook, Google and rewarded video. While development has not yet become one of their strengths, they know how to buy traffic and monetize. That’s why they are able to make profit as long as their monetization revenue is higher than their promotion spend.

Going all in with WeChat

As WeChat is becoming the largest mobile internet ecosystem in China, many companies start building their entire businesses around it. From creating their own instant apps supported by WeChat to developing an instant app market within WeChat. We also see remarkable interest from advertisers in promoting via instant apps or WeChat public accounts.

Counting on Cash on Delivery

COD (cash on delivery) has proven to be sufficient for ecommerce with a large number of media buying companies focusing on this. For many affiliate companies, this is still a highly profitable way to do business.

Choosing Facebook media buying

The last business model shouldn’t be ignored: increasing your revenue from Facebook media buying. Facebook is the first choice for Chinese clients with overseas demand.

Finally, a thank you.

Conferences are always hectic, but it’s worthwhile due to the opportunities for growth and connection. We want to thank everyone we met, from old friends to new clients. We look forward to doing it all again next year!