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I recently had a fascinating discussion with Max Samorukov, the CEO of mobile apps market intelligence platform AppMagic, regarding the company’s recent $3 million Series A funding round. Eight years after its inception, AppMagic finds itself in a unique position on two significant fronts.
Earlier this year, Sensor Tower acquired data.ai, its main competitor, for an undisclosed sum, consolidating the two largest players in the industry. Sensor Tower had previously raised $45 million for its growth, while data.ai reportedly raised up to $157 million, according to Tracxn. Additionally, Sensor Tower has made strategic acquisitions over the years, such as Pathmatics and Libring.
Price wars
Discussing potential competition concerns, Sensor Tower COO Tom Cui mentioned that despite the larger combined business post-acquisition (although with reduced staff), there are still many other mobile app intelligence providers in the market.
It’s a challenging future for these companies as they lose that visibility on player spending.
AppMagic, one of these providers, aims to compete with Sensor Tower despite the significant difference in fundraising ($200 million vs approximately $3 million). Samorukov outlined new features in the pipeline, including ad revenue estimates, that would position AppMagic as a strong contender for the second-largest market share.
He suggested that Sensor Tower’s acquisition of its rival could benefit AppMagic, as the price wars have ceased, potentially opening up opportunities for customers seeking alternatives.
Data visibility
Another challenge faced by companies like AppMagic and Sensor Tower is how to maintain accuracy in their data. Platforms such as AppMagic provide estimates for apps and games on major app stores like the App Store and Google Play but lack visibility on third-party stores, particularly in countries like China.
As industry trends shift towards web shops, third-party payments, and cross-platform development, challenges in data gathering emerge. Changes in revenue distribution or shifts to new platforms can impact data accuracy, posing a challenge for existing estimates.
Ensuring data accuracy remains crucial for these companies as the landscape evolves. While ad revenue and IAP estimates present ongoing challenges, market intelligence providers like Sensor Tower and AppMagic are actively exploring solutions to address industry shifts and maintain data transparency.
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