Chinese characteristics in the eyes of Japanese mobile game industry insiders: unique application distribution and promotion methods

via:appying

If overseas games are to be released in mainland China, they will basically choose to cooperate with local large companies, and the promotion after release will be handed over to local companies. Game applications flow into platforms with countless users, and each platform has its own model. Let's take a look at those local business models.

1. The actual situation of game distribution

The most common form of cooperation between overseas developers and local publishers is a profit-sharing model where both parties bear certain risks. The profit-sharing will be defined differently according to the actual situation, but generally speaking, the sales of the application (after deducting the platform fee) will be divided according to the pre-negotiated ratio. The most common ratio is 3:7, with the publisher taking the majority.

Another important thing in the cooperation is the Minimum Guarantee ( MG Plan). According to this plan, after the publisher and the developer sign an agreement, the publisher will first pay a portion of the funds to the developer to localize the game and other local improvements, and then hand the game over to the publisher for promotion and operation. The most important feature of this cooperation model is that the publisher has the right to obtain 70% of the profits, and the MG Plan is a necessary additional condition.

Unlike the market dominated by Google Play and App Store abroad, there are hundreds of channels in China, so it is difficult to grasp the actual situation. In order to flow applications into this huge channel group, publishers often adopt a "multiple distribution plan". If the main body that directly cooperates with developers to share the profits is called the first distribution, then there are 2nd and 3rd distributions after that. While promoting on their own platforms, they expand the scope and cooperate with multiple other channels. China's unique distribution method has achieved this pyramid structure.

Each channel has its own user base, and through multi-channel dissemination, the user audience is further expanded. The revenue sharing will continue after the second release. The specific ratio will vary according to the actual situation, but most of them are in the form of 50-50. However, in the form of cooperation with overseas developers, the specific actual situation after the second release is usually not very detailed.

II. Characteristics of the primary issuance

With strong capital and rich experience, they usually also conduct game development and distribution, etc., and have obtained a large number of user groups from other Internet businesses. They have the advantage of being an application channel platform and the ability to control secondary distribution at will. For example, when Tencent and GungHo cooperated, Tencent was the only one to distribute.

III. Characteristics of 2nd or fewer issuances

As mentioned in the previous article, from the classification point of view, there are many different types of channels, such as application management assistants, communication operators, manufacturers, etc., but in fact, the second issue is a platform that directly cooperates with the first issue or has the qualification of being entrusted for promotion. These may not have the scale to be an application platform, but if they can have a precise audience, they will be stacked as the third or fourth issue.

4. Diverse promotion channels

While the first release and the second and third releases expand channels in a profit-sharing model, they will also carry out publicity strategies. If they cooperate with overseas developers, the promotion costs are generally borne by the publisher. Based on strong funds, they use pre-investment to acquire users and thus expand profit sharing.

They usually use advertising agencies, or directly promote in secondary distribution centers. It is common to use such platforms as promotion channels (but in this case, the share ratio will be adjusted based on the cost of promotion). In other words, the distribution and promotion channels of game applications are basically the same. To effectively carry out large-scale promotion in such a complex channel, the most suitable one is the "multiple distribution plan".

The following are the main forms of various promotion channels in China, for reference only. (Translator's note: The information is not the actual situation in China and is compiled by Japanese colleagues)

In Japan, in addition to mass advertising, the main promotion methods are advertising columns on application platforms, paid advertising, and application introduction websites. However, in China, the extremely complex types of promotional media and the widespread use of internal means make people feel incredible.

1. Android to third-party application platform

Major platforms: Hiapk, Anzhi, Gfan, Appchina, Mumayi;
Methods: advertising, rankings, etc.
Reference information: There are many large platforms, which are necessary media for distribution and acquiring users, and the price is mostly around 50,000 yuan.

2. Application installation management platform

Main platforms: Wandoujia, 360 Mobile Assistant, 91 Assistant, Tencent Mobile Assistant, Baidu Mobile Assistant;
Methods: advertising, rankings, etc.
Reference information: There are many large platforms, which are necessary media for distribution and acquiring users, and the prices are mostly around 40,000 yuan.

3. Manufacturer Platform

Major platforms: Xiaomi, Huawei, Samsung;
Methods: advertising, rankings, etc.
Reference information: Each manufacturer's own application platform will be installed in the smart terminal, and the price is about 40,000 yuan.

4. Communication operator platform

Main platforms: China Telecom, China Mobile, China Unicom;
Method: Cooperate with operators;
Reference: Since the user quality is relatively high and it is popular, the requirements for applications are relatively high. The cooperation price is generally negotiable.

5. Web portal platform

Major platforms: Tencent, Netease, Sohu, Sina, Alibaba;
Methods: advertising, rankings, etc.
Reference: Although there are more than 200 such platforms, only 10 websites account for more than 80% of the traffic and have good advertising effects, so many publishers will choose them.
Examples: CPC: 0.5 to 2 yuan, CPA: 2 to 8 yuan, CPT: 1,000 to 10,000 yuan per day.

6. Mobile Advertising Platform

Major platforms: Domob, Limei, admob, Weiyun, Youmi, Yidon;
Methods: Pay-per-click, pay-per-performance, pay-per-install;
Reference information: The price is relatively low when you get a lot of traffic, but it is difficult to get accurate traffic due to false media and inconsistent tools;
Example: CPC: 0.3~0.8 yuan, CPA: 0.5~2 yuan.

7. Pre-installed applications on licensed terminals

Main platforms: Android smart devices, mainly Huawei and ZTE;
Reference: This is a traditional method since the smartphone era, which promotes apps to users who have purchased licensed products. This method requires a high budget. However, compared with the push method, the contribution of this method to app sales is not high;
Example: CPC: 0.5~1 yuan, CPA: 1.5~5 yuan.

8. Pre-installed applications on knockoff terminals

Main platforms: Xda, Coolhc, Shuame, etc.
Reference information: The users obtained are not accurate, and many of them join the mobile advertising platform. CPA: about 2 yuan.

9. Ranking Agents

Major platforms: Most are centered around small and medium-sized agencies;
Cooperation method: Pay to reach target ranking;
Reference: Although there is a risk of the app being removed from the shelves, this is a very common method.

10. Review and guide websites

Main platforms: Kingsoft, Goqu, Apple Garden, iDianping, and Free Master;
Methods: advertising, rankings, etc.
Reference: Although you can get accurate traffic, the cost is slightly higher. CPC: about 0.5 yuan.

11. Cross-promotion website

Main platforms: Kingsoft, 91.com, NetEase;
Method: Apps promote each other, and some people specialize in cooperating to sell apps.