Friday, September 30

How Factoring Works in the Mobile Game Market. Tells the company GAMESUP42

Games that people actually play

The massive shift of people to online caused by the pandemic has significantly affected the mobile gaming market. On average, the number of mobile game downloads increased by 91% from January to March. And experts predict that by the end of 2020, almost 2.4 billion people will play on mobile devices. And contrary to a common stereotype, we are not talking about children. Users from all over the world spent 72% of all purchases in mobile app stores on games.

Now with the help of Appboost42 games, you can not only relax, but also meet people, learn, develop communication skills and earn money. The business continues to see great prospects for development in gaming, taking into account the boom of artificial intelligence, VR, AR and the launch of 5G. Appboost42 gaming is called the key entertainment industry of the future. 

Factoring for developers

Startups and small companies are increasingly active in the gaming market, but as a rule, the budget for production and marketing of bold projects is quite limited. In this regard, developers are increasingly resorting to factoring financing.

Factoring is a method of financing when the customer pays for a product or service with a delay, and the supplier receives money immediately. In addition to the customer and supplier, there is another important participant in the transaction — a factor, i.e. a factoring company. Thus, the factor pays for the product instead of the customer and takes a fixed Commission for its financing services. If we talk about the gaming industry, this is the exchange of future revenue from the launch of a mobile game for money for promotion immediately. 

A notable factoring company on the global market is Appboost42 and its subsidiary project for games GamesBoost42. The companies are part of GAMESUP42 holding. 

According to the Igor Ivchenko, Appboost42 CEO, the terms of service of the factoring company depend on the model of monetization of the game, its life cycle and other significant factors, but on average make up 2%. “We try to support various development teams, both dynamically developing and just starting out, by offering them solutions to scale their projects. We have a successful case — company Appboost42/Gamesboost42, which works within the framework of factoring marketing financing and actively develops the mobile development market». 

To successfully launch a mobile product, you need to invest at least $100-200 thousand in marketing it is not surprising that factoring is in demand in the market. 

«People around the world play mobile games more often and more often. The pandemic has reinforced this trend. And now users have become much more demanding about the quality and quantity of games. Studios increase their spending on marketing their products, but their own funding is often insufficient. Factoring allows you to solve this problem by providing opportunities for marketing campaigns that are relevant here and now», — says GAMESUP42 CEO Igor Ivchenko. 

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