Bango PLC (LON:BGO) has signed an agreement with South Korean digital advertisement firm NHN ACE to develop digital marketing solutions targeting Korean mobile games users.
The two companies will work with app developers to attract new paying users and increase in-app purchase revenues, employing premium apps and content while reducing marketing costs.
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The AIM-listed mobile commerce company said the South Korean market offers some of the world's highest “lifetime value” customers, who spend hundreds of dollars a month online due to the popularity of mobile gaming.
While the average monthly revenue per user is US$96, user acquisition costs are high – to allow one user to make an in-app purchase requires a US$66.95 expense – meaning marketing to low or non-spenders is unlikely to bring returns.
“Through this partnership, NHN ACE and Bango will help app developers spend their marketing dollars wisely,” Guy Singh, vice president of product marketing at Bango, said in a statement.
“By effectively targeting marketing using Bango Audiences, app developers have the opportunity to generate significant revenue from Korea's high spending gamers.”