India’s gaming industry is on a rapid growth trajectory, largely due to the surge in mobile gaming, increased smartphone penetration, affordable data plans, and a growing appetite across age groups for mobile gaming. With millions of new users flooding the digital space, it has become one of the fastest-growing markets globally. Amidst this, programmatic advertising is playing a critical role in enabling brands to connect with India’s diverse gamer demographics, making it an essential tool for growth.
This blog explores key user acquisition (UA) and retargeting strategies for gaming app marketers, focusing on how programmatic advertising can maximize lifetime value (LTV) in a market with immense potential and unique challenges.
Market Overview: The Rise of Mobile Gaming in India
India’s mobile gaming market has seen unprecedented growth in recent years, with user numbers expected to reach 720 million by 2028, positioning India as one of the largest gaming markets globally.
The revenue potential of India’s gaming sector is equally impressive. This surge is fueled by the high levels of engagement among Indian gamers, who spend an average of 4.7 hours per day on mobile apps. Such engagement presents an ideal environment for advertisers seeking to reach a captive and active audience to capitalize on their extended screen time.
In-game advertising, in particular, is emerging as a powerful avenue for monetizing the gaming market. The average revenue per user (ARPU) for in-game ads is projected to reach $1.78 by 2024, with the global gaming-related advertising market expected to hit $17.6 billion by 2030.This presents a massive opportunity for programmatic advertising to tap into the gaming ecosystem and capitalize on the growing demand for digital advertising that seamlessly integrates with gameplay.
Yet, sustaining this growth trajectory for India’s gaming and AdTech sectors will require addressing several challenges. The core challenges in India’s mobile gaming landscape stem from high competition, diverse user preferences, and the increasing demand for seamless, non-disruptive ad experiences. As new gaming apps flood the market, standing out and capturing user attention has become increasingly difficult. Additionally, users' expectations vary widely, influenced by differing gaming habits, spending patterns, and preferences across demographic segments. For instance, casual gamers may respond differently to ads than those invested in real-money gaming, making broad targeting approaches ineffective.
In this environment, acquiring users at a sustainable cost is an ongoing challenge. Brands must move to a full-funnel programmatic approach that helps them capture the attention of specific user segments and optimize acquisition costs.
Strategies for Effective User Acquisition (UA) in Gaming
The gaming landscape in India is rapidly evolving, driven by mobile-first strategies and a vast, engaged player base. As of 2023, mobile gaming apps saw 9.66 billion downloads across the country. With the gaming industry projected to hit significant revenue milestones, User Acquisition (UA) strategies play a critical role in scaling mobile games and driving profitability.
Data-Driven Optimization & Personalization: Tapping into programmatic data insights allows advertisers to zero in on high-LTV (lifetime value) users in India’s gaming market. By analyzing in-game behavior, spending patterns, and engagement trends, brands can customize messaging based on behavioral insights, thereby fine-tuning their ad placements and bidding strategies to enhance ROI and amplify value over time. For instance, offering a beginner-friendly incentive to new players or showcasing premium content for seasoned gamers can boost click-through and conversion rates.
Automate for Real-Time Optimization: Automation is one of programmatic advertising’s superpowers. By leveraging automated bidding and budget allocation, advertisers can respond instantly to user behavior shifts, optimizing campaigns on the fly. This flexibility helps maintain high engagement rates and boosts LTV without requiring constant manual adjustments.
Creative Campaigns for India’s Diverse Audience: India’s gaming audience is diverse, spanning multiple languages, regions, and cultural backgrounds. Crafting region-specific campaigns—through localization of both creatives and offers—can significantly boost player acquisition rates. For example, including culturally relevant events or rewards in campaigns can enhance player engagement.
Retargeting for Maximizing LTV
Given the nature of mobile gaming apps, it is tempting for users to explore different apps in the market, so user stickiness can be an issue if you’re trying to make sure your users continue to play and pay. Retargeting plays a critical role in re-engaging these users and encouraging sustained interaction. Effective retargeting strategies are key to maximizing the lifetime value (LTV) of users in India's gaming market.
Segmented Campaigns: Group users into targeted segments based on their behavior and in-game progress. By identifying key user groups—such as dormant players, active users, or recent in-app purchases—you can craft tailored ad experiences that resonate with each segment. Leverage predictive analytics to identify users and create specialized segments for retention-focused campaigns.
- Engagement Triggers & Personalized Ad Creatives: Personalization is critical to enhancing user engagement. Craft dynamic ads that reflect users’ in-game achievements or progress. For example, if a player has unlocked a special character, you can show them ads promoting relevant upgrades or items related to that character. Using Dynamic Creative Optimization (DCO) to automatically adjust ad elements based on user behavior and preferences ensures that each ad feels unique to the individual player, helping to build stronger connections and increase conversion rates.
- Optimize Timing and Frequency: Timing is everything in retargeting. Avoid overwhelming users with excessive ads by carefully selecting the best moments to engage. Retargeting users within the first week of install for maximum impact, and then optimizing ad frequency to 3-5 impressions per user per day, can help maintain engagement without causing ad fatigue.
- Continuously Test and Optimize: Retargeting is not a set-it-and-forget-it strategy. Continuously testing different creatives, segmentations, bidding strategies, and channel performance is essential to refine your campaigns. Using A/B testing to experiment with various ad components—like visuals, copy, and CTAs—helps identify what drives the best results. Additionally, implementing incrementality testing to compare the behavior of retargeted users with a control group allows you to measure the true lift of your campaigns, ensuring that your retargeting efforts are effectively enhancing engagement and driving value.
Wrapping it Up
Programmatic advertising has transformed India’s mobile gaming sector by enabling brands to reach and engage with diverse high-LTV gamer demographics through precise UA and retargeting strategies. With the right blend of strategic insight and innovation, mDSP empowers advertisers to drive sustainable growth, build meaningful player connections, and secure a lasting advantage in one of the world’s most dynamic markets.
