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As the global economy evolves, businesses are increasingly seeking innovative solutions to expand their reach and streamline operations. Leveraging data and intelligent strategies is now a necessity to remain competitive on the global stage.
At the recent AI in Gaming summit hosted by AWS, global leaders discussed emerging technologies and the transformation of gaming business models. Mlytics was invited to share how its cutting-edge data-driven solutions address key operational challenges for gaming companies looking to scale internationally.
At this summit, the CEO of Mlytics shared how to utilize Mlytics’ data empowerment and intelligent scheduling strategies to solve key problems in game applications and create value.
Optimizing Customer Acquisition and Market Strategy
In his keynote speech, the CEO of Mlytics discussed the insights and challenges of the global gaming market from years of experience. He first pointed out that the online gaming market in the Asia-Pacific region is expected to grow at the fastest rate, with a compound annual growth rate (CAGR) of 15.4% from 2021 to 2028, indicating huge potential for the future. Meanwhile, according to statistics from Statistic 15, Europe holds the largest share of the online gaming market, accounting for 49% of revenues in 2020, highlighting the global influence of the industry.
However, further analysis reveals that despite the diverse selection of games, 77% of players are willing to switch from their current platform to alternative options. Another study shows that only 4% of players remain loyal to a single platform for more than a year.
In addition to player retention and loyalty, we have also observed a rising trend in customer acquisition costs year by year, with significant differences in the costs of mobile app acquisition based on the type of app and promotional channels. Generally, the cost per install (CPI) for regular mobile applications can be as low as $0.80 and as high as $5.00. However, mobile gaming costs are slightly higher, with CPI ranging from $2.00 to $6.00 depending on the game type and operating system.
In terms of overall user acquisition, costs may range from $280 to $1,400, while the customer lifetime value (CLV) for a single user is about $300. These data indicate that although user acquisition costs may be high in the current market conditions, and the value provided by the platform may not match the return on investment, the mobile gaming market still has huge commercial potential if effective user retention and profitability strategies are implemented.
New Strategy for Global Gaming: Mlytics’ Decisive Agent Revolutionizing Business Value
In the current global gaming market, traffic is no longer an absolute guarantee of revenue. Moreover, after the development cycle ends, public cloud services, information security, and content delivery networks (CDN) account for more than half of the total costs. With user acquisition costs already quite high, reducing overall cost expenditure and increasing revenue growth has become a key issue.
In the highly competitive gaming market, continuously optimizing cost structures and expanding profit margins have become the top priority for industry practitioners. They are dedicated to maximizing cost-efficiency and enhancing user experience through innovation and refined management to stay ahead in fierce market competition.
The CEO of Mlytics mentioned that a “data-driven” routing decision is the solution most needed by game enterprises today. Mlytics’ Smart Load Balancing intelligent routing strategy can optimize gaming developers’ CDN routes based on latency and availability, achieving the possibility of cost reduction and efficiency improvement for global acceleration.
“But the technology that can truly bring a ‘Game Changer’ to the global gaming industry on the business side will be achieved through Mlytics’ Decisive Agent,” said the CEO of Mlytics. How exactly does Decisive Agent play a role in “cost reduction and efficiency improvement” and enhance the business value of global gaming enterprises?
Solving the Challenges of Live Streaming with Mlytics’ Decisive Agent
With infrastructure deployed globally across more than 300 nodes, Mlytics’ monitoring network is vast and capable of measuring key performance indicators such as Quality of Service (QoS), Quality of Experience (QoE), and cost structure for global gaming enterprises. Particularly in terms of cost structure, the role of Decisive Agent is more prominent.
The figure below shows the significant results after a Proof of Concept (PoC) with a company, achieving the target of saving 41% of cost. Thanks to Decisive Agent, intelligent routing to other CDN networks such as Cloudflare, Akamai, and Mlytics’ self-developed GMA CDN enabled the selection of the best routes at each key moment, maintaining consistent quality while spending less.
Mlytics’ Decisive Agent is now generally available for global enterprises to test. A company specializing in providing live sports streaming services to Southeast Asian markets worked with Mlytics to solve challenges in live-streaming services. Due to the popularity of the UEFA European Championship broadcasts, a large number of viewers flooded in within a short time, so Decisive Agent prioritized the optimization of live streaming applications for this scenario.
After confirming that the company’s CDN routing strategy prioritized QoS, Decisive Agent began its tabulation of maintaining the high availability and stability of the overall application. Once ensuring QoS indicators, intelligent routing for CDN was performed for QoE indicators to provide a high-quality viewer experience. Since QoS and QoE were both ensured, the current CDN cost performance was checked, and routing was adjusted to a cost-effective CDN when possible.
Result
During the live streaming service, we measured the overall application performance of the company. After a comprehensive evaluation of QoS based on latency, availability, and throughput, the performance scored 85 out of 100. As for QoE, considering factors such as video start time, quality, and smoothness, the final score was 90. In terms of costs, the live streaming company managed to control costs at $0.004 per GB.
Mlytics’ Decisive Agent is capable of precisely prioritizing routing strategies based on the needs of global enterprises. As the gaming peak season approaches, schedule a consultation with our experts to measure your application’s performance worldwide and optimize your CDN strategy according to businesses needs, achieving the goal of “cost reduction and efficiency improvement” in real time!
