At SuperScale, we’re constantly exploring innovative strategies to enhance mobile game revenue for our partners. In our latest endeavor, we look at regional pricing, a tactic to tailor in-app purchase (IAP) prices to specific geographical regions. Today, we’re excited to share the initial results of our regional pricing test conducted on a number of Nimblebit’s games like Pocket Planes or Pocket Trains.
Understanding Tier 1, 2 & 3 countries
Understanding the varying value of different countries in mobile gaming advertising is essential for expansion efforts. Countries are often categorized into tiers based on economic factors, spending habits, and other relevant considerations, aiding marketers in pinpointing optimal targets for their campaigns.
Tier 1 countries, including the US, Australia, UK, and Germany, among others, offer higher payouts and a populace with stronger purchasing power. However, they also pose challenges such as intense competition and expensive traffic.
Tier 2 nations like Italy, Spain, and Brazil offer less competition and substantial traffic volumes but may have lower payouts and different spending habits. Meanwhile, Tier 3 countries, encompassing various African nations and others like India and Pakistan, offer cheap traffic and reduced competition but generally yield lower payouts and poorer traffic quality, making conversion more challenging.
The Experiment:
In this specific test, we adopted a two-pronged approach:
Decreased IAP Prices in Tier 3 Countries:
We slashed all IAP prices by a significant 50% in Tier 3 countries, aiming to make purchases more accessible and appealing in regions where economic factors may limit spending capacity.
Increased IAP Prices in Tier 1 Country (Australia):
Furthermore, we raised all IAP prices by 20% in a Tier 1 country, Australia, to evaluate how pricing adjustments in higher-income regions would impact revenue.
Initial Findings:
The results of our regional pricing experiment exceeded our expectations:
- We witnessed an impressive 22% increase in revenue on Google Play, with iOS revenue soaring by more than 50%.
- The implementation of regional pricing led to an increase in conversion rates, climbing from 0.79% to 1.37%, signifying a significant enhancement in user engagement and willingness to make purchases.
- The impact of regional pricing was even more pronounced in Pocket Trains, with revenue surging by over 100% in the affected countries
The preliminary results of our regional pricing experiment underscore its potential to revolutionize mobile game monetization. By customizing pricing strategies to align with the economic landscapes of different regions, developers can unlock new avenues for revenue generation while enhancing user experience and engagement.
At SuperScale, we’re excited to continue exploring innovative tactics like regional pricing to empower game developers to maximize their revenue potential and deliver unparalleled gaming experiences to players worldwide. Stay tuned for more updates as we delve deeper into the realm of mobile game optimization.
