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Mobile Monday: Japan Drives 22% of Mobile Games Global Revenue, U.K. Mobile Ad Spend Remains Stable

Posted Oct 25, 2020

Japan has always had a major role in the history of gaming. The country has given birth to some of the leading gaming consoles over the decades. Japanese companies have also created a few of the most successful and acclaimed game franchises in the world. Although it’s not talked about much, Japan is also home to some of the biggest stars in mobile gaming. A new report revealed that Japan was responsible for 22% of global mobile gaming revenue in 2020 up until September. Meanwhile, digital advertising spend in the United Kingdom has dipped but is mostly stable this year. Get all the details on these reports in this week’s Mobile Monday!

Japan Drove 22% of Mobile Games Global Revenue in the First Nine Months of 2020

According to Sensor Tower, Japan was responsible for 22% of all worldwide mobile revenue in the first nine months of 2020. Japan brought in 30% of global revenue in 2015 and then fell to almost 23% in 2019 as the U.S. and China markets grew. Even with the decrease, that’s still nearly a quarter of worldwide mobile player spending at a local market record of $14.5 billion. From 2014 to 2018, Japan was the No. 1 market in the world for combined App Store and Google Play game revenue. In 2019 and 2020 (as of Q3), Japan has ranked No. 2 behind the United States.

For the past five years, eight of the top 10 revenue-generating mobile games in Japan were from Japanese publishers, with seven of those accumulating more than $1 billion in that time. The top-earning Japanese games have also been accumulating more from player spending each year overseas. In 2019, player spending grew 3% year-over-year from 2018, adding an additional $25 million in international revenue. So far in 2020, revenue for the top 10 Japanese games abroad has hit $814.5 million, accounting for 1.7 percent of global revenue outside of Japan.

UK Mobile Ad Spend Declines Only 1%

IAB UK and PwC released a new report that says mobile ad spend in the United Kingdom declined just 1% to £3.85 billion. Total digital advertising spend in the U.K. dropped 5% during the first six months of the year. While digital advertising is relatively unaffected, overall advertising has seen a drop. With U.K. GDP down by 20.4% in Q2, the total U.K. ad market is predicted to decrease by 15.6% in 2020 compared to 2019.

The IAB’s data shows that the display market has grown slightly by 0.3% to £2.84 billion, a total year-on-year increase of £10 million. Video ad spend jumped 5.7% to £1.35 billion as a result of the increased viewership on digital streaming platforms during lockdown. Search ad investment dropped 3.7% during the first six months of 2020 with revenues down £143 million to £3.7 billion compared to H1 2019.

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