Sanlo survey says 81% of mobile gamers are aware of web shops

Sanlo reported its survey of mobile gamers found that 81% of them are aware of web shops that are alternatives to the Apple and Google app stores.

San Francisco-based Sanlo, a provider of web shops and other tools, found that 77% of more than 5,000 people surveyed said they have made purchases through them.

Olya Caliujnaia, CEO of Sanlo, said in an interview with GamesBeat that positive user experiences with web shops is leading to repeat purchases. A significant 90% of web shop purchasers expressed a high likelihood of making repeat purchases. This highlights the importance for developers to implement strategies such as loyalty programs, special offers, and free gifts to encourage continued engagement.

“It is interesting 81% of mobile gamers are aware of web shops and they’re visiting them,” she said. “Despite all the odds, people are still finding out, and they still going there.”

That is, despite the restrictions that the app stores place on developers for driving traffic from the games to the off-store web shops, people are finding out.

Caliujnaia also said there is an emerging preference for web shops. While traditional app stores remain dominant, the report shows that 25% of players now prefer purchasing via web shops. This shift is driven by the exclusive deals and better offers that web shops can provide, pointing to a growing opportunity for developers to further increase this preference.

And the report identifies challenges and solutions: The report also identifies key barriers to web shop adoption, such as security concerns and payment issues.

Web shops are online stores where players can buy in-game items through a game’s website, as
opposed to buying directly in the game app via the App Store or Google Play. Web shops are a
hot trend among mobile game developers because they can help devs avoid 30% commission fees in the Apple and Google stores. That boosts revenue and creates a direct connection between gaming companies and their players.

About 90% of web shop purchasers are likely to buy again. This is self-serving considering that Sanlo enables web shops as its business. But it makes sense. Players realize they can get better deals and special offers in the web shops, as the developers running the shops want to give the players a real benefit for the hassle of going to a separate web site. Enticing them with good deals will get the players to come, and then the devs can make more money and give better discounts because they don’t pay Apple or Google on those transactions on the web store.

Overall, the majority of mobile game players are unaware of the high commission fees that game developers have to pay to Apple and Google. But those who purchased from a web shop are more aware than others. About 43% of those who have made a web shop purchase know that devs pay 30% commissions to Apple and Google. And only 9% of players who have never visited a web shop were aware of the 30% commission.

Of those who have made a web shop purchase, about 45% think that the 30% commission is unfair.

The numbers of players who believe the app store fees are unfair are surprisingly high, and the consequence of that, Caliujnaia wonders, is whether that means they are more likely to go to web shops. Caliujnaia said she doesn’t know the answer.

“We did not cut the data that way, but actually we could,” she said.

This data suggests an opportunity to build deeper relationships with your players through a web shop to help them understand the large fees that game developers have to pay the duopoly, she said. It could be a good idea to educate your players around how a web shop creates an environment with less fees, which allows game developers to pass those savings onto players in the form of more value for their money and special offers.

One of the interesting tips Sanlo has: Use in-game promotions and social media to increase awareness and traffic about an off-store web shop. Don’t use clickable hyperlinks in games as that triggers the new platform fees. Apple has instituted 27% fees on such transactions where players leave its store and go to a web shop. Caliujnaia believes the European Union regulators will shut down Apple on that fee. But Apple may be able to use its legal staff to delay that day as much as possible.

“The amount of time and resources that a company like Apple has for the legal negotiations, to go back and forth, is one step forward, two steps back. It can take potentially years,” Caliujnaia said. “It also depends on how aggressive EU regulators are going to get on this. But it’s moving in the right direction. It’s a matter of how much time.”

Players who have made purchases from a web shop still prefer the Apple app store or Google Play. A total of 25% of mobile gamers say they prefer to buy from web shops. That’s a sign it takes time to change habits, and it’s worth noting it’s far more convenient to buy from Apple or Google, given they already have your payment information.

Some 18% didn’t purchase because they were uncertain of the web shop’s validity, and 10% didn’t spend due to a difficult user experience. So it’s crucial for web shops to build trust with consumers. In summary, legitimacy, security and smooth payments are crucial to convert new people to make web shop purchases.

What gets them over the hump? About 53% said that discounts and promotions were the reasons they would buy from a web store rather than in-game. About 50% liked free gifts and bonuses, and 37% go for the rewards and loyalty programs.

But the report acknowledges that security concerns and payment issues deter some players from diving into web shops. (It takes a lot of steps for Apple to allow a player to move off store to an alternative web shop — with many scary questions about security. So Sanlo says the web shops have to enable popular payment methods.

Caliujnaia believes that creates a deeper connection between gaming companies and their players, and that web stores allow game developers to own the purchase point with maximum freedom. Such stores can boost revenue by providing exclusive and personalized offers for players.

Based on the company’s audit, currently 26 of the top revenue-grossing mobile games in the world have a web shop, which showcases their popularity among mobile game businesses.

Sanlo recommends that developers address challenges such as implementation of trusted payment methods and secure checkout processes to build player confidence.

Caliujnaia said, “The Web Shop World Report sheds light on the evolving landscape of mobile game monetization and quantifies the big opportunity around web shops. I was delighted to see such high awareness and purchase intent data points. It’s quite amazing that 81% of mobile game players said they are aware of web shops and that 71% have made a purchase via a web shop. This report provides developers with actionable insights that can help them better connect with their players and optimize revenue.”

Caliujnaia said that some developers are finding that they may have a “whale,” or big spender in a free-to-play game, somewhere in the world where they don’t have traditional payments. Those devs have to find payment vendors that support the whale’s preferred method of payment.

A movement toward web shops

About 26 of the top 100 game companies on the app stores are now using alternative web shops.

“This isn’t something that is unproven,” Caliujnaia said. “If it were, these massive companies who have hundreds of millions of dollars to lose would not be doing it.”

She foresees every one of the major game companies having web shops. Supercell had a web shop ready for the Squad Busters game launch.

“That just speaks to the efficacy of this tactic and the benefits,” Caliujnaia said. “It’s not just the money. When someone comes to my website and I’m collecting data on that player, it allows me to have a lot more freedom with developing a relationship, using data to personalize their experience, launching experiments where I don’t have to submit my game to the app store every single time I want to change the way that the store looks.”

Caliujnaia added, “I think these games are also leaning into web shops because it helps them just drive better commerce for their customers and give them what they want: experiment and have a deeper connection. And I expect this number to go up over the years.”

Methodology

Sanlo is a provider of digital commerce and payment solutions for the gaming industry. The Web Shop World Report: 2024 is a big survey.

There were 5,050 mobile game players surveyed from the U.S., United Kingdom, Japan, Canada and Germany. About 52% were female and 48% were male. The largest age group was players 35 to 44 years old. The players were active, with 30% player every day and 22% player multiple times per day. At least 85% of respondents had made at least one in-app purchase in the last 12 months.