Live From the Mobile & Digital Licensing Summit: Mobile Gaming Gains Momentum

Last year, consumers paid for 382 million downloads of mobile games, and that number is expected to soar to 1.7 billion by 2010, representing a $5.9 billion industry and signaling the industry’s rapid growth.

The figures were part of a presentation by mobile gaming company I-Play, at the Digital Mobile and Licensing Summit in New York City yesterday. “The mobile gaming industry is in the process of taking over from games played on consoles such as Xboxes,” said Anders Evju, general manager, for Plainsboro, NJ-based I-Play.

Entertainment companies are the forerunners in the industry using the medium to unleash mobile games to complement action-packed movie releases or TV programming. Universal Studios launched a mobile game for its 2 Fast 2 Furious movie in 2004 and NBC for the The Weakest Link game show.

While used as brand extension tools by media companies, mobile gaming is also relevant for consumer package good companies, said Scott Jensen, VP and head of licensing and branding at Hands On Mobile, Santa Monica, CA.

“Consumer brands or anything that has physical merchandise can extend to mobile gaming,” Jensen said. “It’s the next wave as people leverage the mobile audience to get to the right demographic.”

Females represent nearly half of the demographic (48%) that downloads mobile games.. In general, mobile gamers fit the 18- to 34-year-old demographic, Evju said.

For companies that wish to reach these users, “It’s a matter of creating a game that works for the brand and…promotes their product,” said Andy Nulman, president and CMO, Airborne Entertainment, Quebec, Canada.

Otherwise, brands can sponsor games or integrate their products within games, Jensen said. Games, however, have to be simple, snack-like pieces of entertainment, he added.

“They also have to be implemented…into a marketing mix bundled with other content such as wallpapers, ringtones or screensavers,” Jensen said.

The Mobile & Digital Licensing Summit took place one day before exhibits open for Licensing 2006 International. The Licensing Show kicks off today at the Javits center in New York City today and runs through June 22.

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