The growth in online shopping is forcing dozens of major retailers to close hundreds of unprofitable stores.
The trend is upending the traditional retail model and forcing many shopping malls out of business, as Business Insider Intelligence reported Thursday.
Here’s a graph from the report showing some top retailers’ plans to downsize.
With King, the London-based game maker behind the incredibly successful Candy Crush Saga, expected to price its initial public offering tonight, we’ve been given an ideal opportunity to look back at the sizzling growth of the digital and mobile gaming space.
In short, it’s gobsmacking.
While music, media and movie industries have all struggled to reconcile their business models to the digital age, video games have been a perfect fit. Consumers spent $34 billion on downloadable video games last year, according to App Annie, more than four times what they spent on online movies, for example.
And that $34 billion figure doesn’t even include the lion’s share of the $16 billion in spending on mobile apps that goes to games. Macquarie Equities analysts report that 91% of purchases in Google Play, 80% of iPhone app purchases and 72% of iPad app purchases in the iOS store were tied to games.
Why has mobile gaming been so successful? A lot of it has to do with the “free-to-play” pricing model. Essentially, apps are free to download, but players then buy things within the game. Last month, nearly all of the top 100 grossing apps on the major mobile platforms used this model.
King’s games like Candy Crush Saga are free-to-play too. Essentially, if a user gets stuck on a certain level, they can pay to make progress, or to unlock new episodes. Only 5% of King’s users actually buy things when playing the game. But Candy Crush has a massive base of users. (It was around 408 million average monthly average users in the December quarter). So even if a relatively small sliver of players make purchases, it still generates solid profits.
As we recently noted, King is profitable. The company made $568 million last year. That in itself is an achievement, given 56% of tech companies that went public last year were losing money, according to PwC.
The big question is whether King’s profits are sustainable. According to thecompany’s IPO filing (p5). both revenue and profit began to slow in the fourth quarter of 2013.
The NFL is famous for its high-priced Super Bowl commercials. But when it comes to the bottom-line, no sport makes more money off of television ads than the NCAA Men’s Basketball Tournament.
In 2013, the NCAA Tournament generated $1.15 billion in ad revenue over 67 games, compared to $1.10 billion for the 11 games in the NFL playoffs according to data collected by Kantar Media.
The NBA is a close third while Major League Baseball and the NHL are way off the pace.
These are the Facebook accounts that “Liked” my company page.
These are examples of fake Facebook accounts, created by bots using plagiarized images and other content, sometimes misspelled, incomplete words, etc.
Much of this opportunity lies in new tactics, specifically mobile and digital video, which have been revolutionized since the last time middle-tier borrowers were buying at 2014 levels.
At the start of the purchase path, mobile, tablet and video ads each laid claim to prompting 34% of buyers to start researching vehicles, according to a May 2013 survey from Google, Millward Brown Digital and Polk.
From there, video continues to prove itself as an influential part of automotive marketing. Among other measures, auto led all global industries in terms of video completions of mobile banner ads in 2013, according to DG MediaMind (recently rebranded to Sizmek).
Most projects fail to use available or requested marketing analytics, report American CMOs responding to the latest CMO Survey conducted by the Duke Fuqua School of Business. The study’s results indicate that on average, only 32.5% of projects use analytics – and that’s actually a slight improvement from the past couple of biannual studies, where […]
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
Collaborators – Digital Profs
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Coke vs Pepsi vs Dr Pepper
- Marketing Costs Normalized to CPM Basis for Comparison
- The JKWeddingDance video was real; the viral effect was MANUFACTURED - Post 1 of 2
- Samsung 52 inch HDTV $9.99 at BestBuy - purchase receipt below (6:21a eastern time August 12, 2009)
- Facebook usage by hour
- The Grand Unified Theory of Marketing(tm) - Digital String Theory
- Moore's Law Gives Way to Bezos' Law
- This Cornell Student Went From Sleeping In Starbucks To Investing In More Than A Dozen New Companies This Year
- Brand Advertisers: Escaping an Ecosystem of Digital Advertising Fraud
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
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