MGFICONS:SEOULNavigating the South-East Asia Mobile Ecosystem

Presented By: Robin Ng

AboutME!

MynameisRobinNg

InternationalBusinessDirectorofAsiasoft

IntomobilestuffssinceSMSdays

SpecializeonSEAmarketsinceearlydays

LeadingGamePublisherinSEA

14Years

6Countries

600+ Staff

35PublishedGames

150mGamerBase

PublicListedinThailand

Asiasoft– SomeFacts

South East AsiaThe Market Potential

SouthEastAsiaisaregion- 11Countries

- DifferentLanguages

- DifferentCultures

- DifferentBehavior

- DifferentLikes

- EastMeetsWest

SizingtheSouthEastAsiaMarket

SizingtheSouthEastAsiaMarket

SizingtheSouthEastAsiaMarket

• YoungPopulation

• HungryforContent

• SmartPhoneConversion

• Improvedmobilenetworks(4G,LTE)

• Increased IncomeLevel

• LifestyleChanges&Trends

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155MONE HUNDRED & FIFTY FIVE MILLIONS & MORE!

SizingtheSouthEastAsiaMarket

NumberofSmartPhonesinSEA

• Smartphone penetration is less than 35% of the population• Mobile penetration rate is more than 100% for all countries• People are buying smartphones as their first digital device than a PC

NumberofSmartPhonesinSEA

• Thanks to Google for android open platform• Thanks to China for the low cost android phones• Thanks to Social Media & Entertainment Content for fueling the demand

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SEAAppstoreRevenueSplit

• Thanks to Apple for helping to segregate the market• Paying consumers has a higher chance to use an iPhone

SEA Mobile Gaming MarketThe Opportunities & Challenges

GlobalGamesDominates!

Global games in fact is dominating the app stores in SEA. However,does not mean that any game will work in SEA and this maycontinue in the long run

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SouthEastAsiaAppstoreBehavior

• RPGgenredominatesthegrossingchartinSEA

• SEAusersdonothaveaspecificpreferenceofgamesfromacertaincountry

• Loyaltyforcoreusersarehigh.Someareplayingthesamegameformorethan2year

• ChinadevelopedgamesareattractinggoodfollowinginTH&VN

• Westerngamesstilldominates

CommonChallengesfacedinSEA

Common Challenges• Localization

• Community

• Customer Support

• Payment Channels

• Marketing Costs

Localization– Notjusttextalone

Localizationofgamesisnotjustlocalizingtextbutmoretowardslocalizingthemarketingprogramsandcampaigns.

Howtoeffectivelydevelopalocalizemarketingcampaignisthekeychallenge.

Genericmessagemaynotbeeffectively inreachingouttogamers.ThisresultsinhighacquisitioncostandlowROI.

Community– Areyoupartofmygang?

ThecommunityspiritofgamersinSEAisverystrong.Itcreatesstrongbondingamongtheplayersandencouragesthememberstokeepplayingandgrowing.

BuildingthecommunityhelpstoincreasetheLTVofthegameandretention.Theformingofthecommunityrootsneeds tocomefromthepublisher.

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CustomerSupport– Showingthecare

Most of the gamers incountries with strong nativelanguage use prefer customersupport to be in local language

SEA gamers needs to be spoonfed, they expect CS to leadthem all the way to resolve theproblem faced

Expectations from gamers arevery high especially thosespending users.

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Payment– whereisthemoney?

Payment is the biggest concern as ARPU is still very low in SEA. Low creditpenetration and heavy use of Scratch Cards for payment is relatively new tooverseas publishers. This results in low revenue for mobile which discouragesPublishers to focus more efforts & resources in SEA.

Local payment channels are available for publishers to tap onto the market but onlya few has the full access to hook up the whole region

Marketing– FastRisingCosts

ThecommonwaytogetusersisviaCPI.Howeverratesaregettingcompetitiveduetoinfluxofpublishers.SEAhaslimitedadsinventorywhichspikespricesconstantly.Notethatpayrateislowandneedsamassofuserstoreachtopofrankingchart

iOSAppstore

GooglePlayStore

South East AsiaTaking the step into South East Asia

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Indonesia– MostPopulousinSEA

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Country is wide spread from east to west but focus is only within a few key cities.

TremendousgrowthofInternetsubscribers ispushingIndonesiatoquicklyupgradethemobilenetworkfrom3Gto4G.

The Indonesian government has signed a regulation requiring that all 4G-capable smartphones sold in the country as of the start of 2017 must include 30 percent local content.

Indonesia’sCreativeEconomyAgency,announced planstoboostIndonesia’sgameindustry.

Emergenceoflocalgamestudios

Pricingneedstobeskewtolocalincomedemands

Indonesia– MostPopulousinSEA

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Malaysia– DiversityinGaming

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More than 60% of the spenders for mobile games are from the chinesepopulation

3G and 4G fueling growth of internet usage in sub-urban areas

Playing behavior and preference of Chinese and Malays are very diverse

Emergence of local studios

Malaysia– DiversityinGaming

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Philippines– AvidGamers

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HighnumberofplayersbutARPUislowestintheregion

InfrastructureofInternetaccessisakeyissue.Highinternetusagegrowthbutnotabletomeettheneedsofdemand,oneoftheslowestandmostexpensive intheregion

Similartoindonesia,goodgrowthprojectionbutspendinghabitswilltaketimetocultivate

IAPpricingneedstoskewtocatertolocalincomelevels

Emergenceoflocalstudios

Philippines– AvidGamers

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Singapore– SmallestCountryinSize

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HighestARPUinSEAregion.

Growthhasreachedthepeakforgaming.Notexpectingmuchgrowth

Population is40%nonlocals,chinachinese hasthehigh%share

BestplacetosetupbusinessentitiesinSEA

Mostofgaminggiantshasofficeinsingapore.(Google,Facebook)

Emergenceoflocalstudios

Singapore– SmallestCountryinSize

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Thailand– MaturedGamingCountry

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LINEisthe#1usedmessagingservicewithover33mregisteredaccounts.FacebookmostusedSNS.

GamershasbeecultivatedtopayforgamesovertheyearsfromthestartofPCgames

Mostofthai gamersdon’tspeakenglish fluently

ConsumesmobilecontentfasterthanmostofSEAcountries

Countryeyedbymanypublisherstoenter, fiercecompetitionexpected

Emergenceoflocalstudios

Thailand– MaturedGamingCountry

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Vietnam– wherethe3rd PartyStoresrule!

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Governmenthasbeentryingorcontrollingthemobilegamesmarket

Localcompaniesneedstoobtainlicensepergametoconductmarketingactivitiesthroughlocalchannelsandmedia

Followedthechinastyle.3rd partystoresruletheandroidmarket(fornow)

3rd partypaymentisaabsolutemusttointegrateforrevenuegeneration

Lesseducatedgamerstendstoleantowardschinastylegames

Emergenceoflocalstudios(mostinSEA)

Vietnam– wherethe3rd PartyStoresrule!

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SummingupSEA

Beeninthemobilegamingspotlightfor2015

Highgrowthregionbutnotonrevenue

EastMeetsWest– anythinggoes!

Fiercecompetitionexpectedfromchina

Changingtrendsandtasteoflocalgamers

Indonesiawillbethebiggestgrowthcountryfor2016

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Questions&Answers

RobinNgDirectorInternationalBusiness&StrategicDevelopment

AsiasoftCorporationPCLM:+6581217577E: robin.ng@asiagroup.netW:www.asiasoft.net

Skype:dweetengLINE:dweeteng

WeChat :robinasiasoftKakao :dweeteng

ContactingMe!

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CreditstoInformationSource

• WeAreSocial

• NikoPartners

• Nielsen

• Waiwai marketing

• Chartboost

• Asiasoft

• Appannie

• Facebook

• Google– helpingmeonthesearches

SEAAppstoresLongTailforTop100GrossingGames

After#30inranking,itisalongflatline.