Core Insights - The gaming industry in China has shifted from a reliance on channel resources for user acquisition to a focus on "buying traffic" as a core strategy for growth, especially with the rise of 4G and social media platforms [1][4][5] - As domestic traffic growth plateaus, overseas markets have become the new battleground for user acquisition, but challenges such as fragmented platforms and differing attribution mechanisms complicate this transition [1][6][7] - The industry is now facing the challenge of developing sustainable growth models through refined operations, brand building, and technological empowerment amidst rising costs and diminishing returns from traditional advertising methods [1][13] Traffic Acquisition Evolution - In the early stages of the Chinese gaming industry, companies relied heavily on various promotional methods to attract players, with channels playing a crucial role in game distribution [4][5] - The emergence of mobile gaming led to a significant shift, with app stores becoming the primary distribution channels, and companies adopting revenue-sharing models to secure promotional resources [4][5] - The "channel dominance" significantly impacted the autonomy of game developers in marketing and reduced their profit margins, prompting a need for direct user engagement strategies [4][5] Overseas Market Challenges - Chinese gaming companies have begun systematic user acquisition in overseas markets, but many domestic strategies have proven ineffective abroad due to cultural and operational differences [6][9] - The overseas market is characterized by a fragmented channel landscape, requiring tailored advertising strategies for different platforms, unlike the concentrated domestic market [7][8] - The reliance on device parameters for user tracking in China contrasts with the probabilistic models used overseas, complicating user attribution and increasing customer acquisition costs [8][9] Privacy Compliance Impact - The tightening of privacy regulations globally, such as GDPR and Apple's App Tracking Transparency, has significantly affected the advertising landscape, reducing the traceability of ad campaigns and the precision of audience targeting [11][12] - In response, the industry is moving towards broader collaboration and data sharing among platforms, service providers, and advertisers to enhance targeting strategies within compliance frameworks [12][13] Cost and Effectiveness of Advertising - Despite fluctuations in the gaming market, global user acquisition costs continue to rise, with significant increases projected for top mobile games in the coming years [13][14] - The rising costs of user acquisition are leading to a diminishing marginal return on advertising investments, prompting a shift towards a balanced approach between brand and performance advertising [14][15] - The introduction of AI technologies in advertising is expected to enhance efficiency and effectiveness in user acquisition, with companies increasingly adopting automated and intelligent systems for campaign management [15]

Core Insights - The Chinese gaming industry has experienced significant growth from 140.7 billion yuan to 325.7 billion yuan in annual revenue over the past decade, particularly after key regulatory changes in 2015 [1] - The focus of the industry has shifted towards user acquisition strategies, particularly "buying traffic," which has become a core skill for most Chinese game developers [3][4] - The industry is now facing challenges due to rising traffic costs and the need for more targeted marketing strategies, leading to a shift from broad-based to localized and AI-enhanced approaches [2][3] Industry Trends - The early years of the gaming industry relied heavily on various promotional methods, including partnerships and advertising through channels like app stores, which became crucial for game distribution [4][5] - The rise of 4G and social media platforms has transformed user acquisition strategies, with a significant shift towards buying traffic as a primary growth method [3][5] - As the domestic market matures, the focus has shifted to overseas markets, where the fragmented nature of platforms and differing attribution mechanisms pose new challenges for traditional buying strategies [6][7] Market Dynamics - The gaming industry is moving towards a more refined approach to user acquisition, with an emphasis on understanding local market preferences and behaviors [8][9] - The introduction of stricter privacy regulations has impacted the ability to track user data effectively, prompting the industry to seek new collaborative approaches to data sharing and advertising strategies [10][11] - Despite rising costs, the overall trend in user acquisition spending continues to increase, with significant growth in advertising budgets for mobile games [12][13] Advertising Strategies - The effectiveness of traditional performance-based advertising is diminishing, leading to a growing recognition of the need for a balanced approach that includes both brand and performance advertising [13][14] - Platforms like Twitch are becoming influential in shaping consumer decisions through authentic content and real-time feedback from gamers [14] - The integration of AI technologies is seen as a key direction for enhancing advertising efficiency and effectiveness, with companies increasingly adopting automated and intelligent systems for user acquisition [14][15]