2024 In-Depth Analysis of User Acquisition for Chinese Mobile Games Going Global: Status, Drivers, Challenges, and Recommendations

Current Status Overview

In 2024, the user acquisition (UA) market for Chinese mobile games going global continues to grow but at a slowing pace. According to industry estimates, total overseas UA spending exceeded $8 billion, up ~15% YoY. The US, Japan, and South Korea remain the top three markets, but emerging markets like Southeast Asia and Latin America now account for over 20% of spend. On ad platforms, Meta (Facebook), Google Ads, and TikTok for Business collectively hold about 75% share, with TikTok's share rising from 15% in 2023 to 22% in 2024, showing remarkable growth.

Core Drivers

• Strong user acquisition demand: In mature markets like the US, CPI (Cost Per Install) rose 12% YoY, pushing developers to increase budgets to maintain user scale.
• Rise of emerging markets: Smartphone penetration is increasing in Southeast Asia and Latin America, and young users show higher willingness to pay, becoming new growth sources.
• Ad platform technology upgrades: Automated tools like TikTok's smart bidding and Google's App Campaigns lower the entry barrier and improve efficiency.
• Category diversification: Casual and simulation games have increased UA share, while mid-to-hardcore games still spend heavily but face rising ROI pressure.

Key Challenges

• Soaring costs: US iOS CPI has reached $5-8, with payback periods exceeding 12 months for some genres, putting financial pressure on smaller studios.
• Attribution & data privacy: Post iOS ATT, SKAdNetwork (SKAN) attribution accuracy declined, and conversion signals from Meta and Google weakened, impacting optimization.
• Creative homogenization: Ad creative lifecycles have shortened to 2-3 weeks, user ad fatigue is increasing, and ROAS (Return on Ad Spend) volatility rises.
• Policy & compliance risks: The EU's DMA, South Korea's revised Game Industry Act, and stricter platform reviews increase compliance costs and account suspension risks.

Recommendations & Outlook

• Refined creative strategies: Leverage AI generation tools (e.g., Midjourney, Runway) to quickly produce differentiated creatives, and increase A/B testing frequency to weekly.
• Multi-platform diversification: Increase test budgets on emerging channels like TikTok, Apple Search Ads, and Unity Ads to reduce reliance on Meta.
• Deep data-driven approach: Build MMM (Marketing Mix Model) and incrementality testing frameworks to improve attribution; partner with third-party platforms (e.g., Adjust, AppsFlyer) to better handle SKAN 4.0.
• Localized operations: Customize language and cultural elements for different markets, and combine community operations (e.g., Discord, Line) to boost organic installs.
• Explore hybrid monetization: Integrate ad monetization in mid-to-hardcore games to balance IAP (In-App Purchase) pressure and increase LTV.

Overall, user acquisition in 2025 will enter a stock competition phase, where tech-driven efficiency improvements and deep localization are key to breakthroughs.