NetEase Games boosted Day 7 ROAS by 50% and reduced CPI for Racing Master in the Japan market

About NetEase

NetEase Games, the online games division of NetEase, Inc. (NASDAQ: NTES), is a leading developer and operator of some of the most popular PC-client and mobile games in key markets like China and Japan. As one of the world’s largest incubators of high-quality online game content, NetEase Games is dedicated to fostering innovative studios worldwide while expanding its global presence. In August 2024, the company launched Racing Master in Japan, a real-time racing simulation game for mobile devices.

Challenge: Accelerating user growth in Japan's competitive market for mobile games

When NetEase Games launched Racing Master in Japan, they entered one of the world’s most challenging mobile gaming markets. While Japan offers significant opportunities for user adoption, it demands strategic targeting and optimization to overcome high acquisition costs.

NetEase Games aimed to rapidly scale user acquisition during the launch phase while ensuring sustainable growth and hitting key performance metrics. The primary challenge was reducing user acquisition costs — including cost per install (CPI) and cost per registration (CPR) — while improving return on ad spend (ROAS) in a saturated and competitive market.

Solution: Targeting premium inventory and leveraging Moloco's machine learning to optimize the campaign's efficiency 

NetEase Games partnered with Moloco to develop a user acquisition strategy tailored to Japan’s competitive mobile gaming landscape. With a focus on delivering impactful and sustainable growth, the approach centered on three key strategies designed to engage high-value users effectively.

The strategy began with premium inventory placements that highlighted Racing Master to the right audience. These high-quality ad spaces elevated the game’s visibility and appeal, resonating with Japanese gamers who value standout experiences and content.

To further refine the approach, Moloco introduced a CPA-based model to enhance campaign performance further. This approach not only reduced CPI but also prioritized acquiring engaged users, ultimately driving improved ROAS across all campaigns.

Moloco designed campaigns targeting users at different stages of the acquisition journey. This included a combination of shallow event optimization and ROAS-focused bidding. Shallow events, such as app installs or registrations, occur early in the user journey and require minimal effort from users. These events helped the team drive initial engagement and test creative and targeting strategies. By layering in ROAS-focused bidding, Moloco’s machine learning platform identified users likely to continue engaging with the game beyond the initial interaction, ensuring resources were directed toward high-value players.

Results: 40% decrease in CPI and 50% increase in Day 7 ROAS 

The partnership between NetEase Games and Moloco delivered clear results for Racing Master in Japan:

• Reduced CPI by 40% through premium inventory campaigns, compared to the market average
• Increased Day 7 ROAS by 3x through premium inventory targeting, compared to market averages
• Drove a 50% increase in Day 7 ROAS with the CPA model

"Moloco provides us with much-needed dedicated support with premium solutions and has helped us achieve remarkable results in the promotion of a series of games. We are looking forward to working with Moloco for greater success in the future."

— Jessie Huang, Global Marketing Manager, NetEase Games

Ready to scale your gaming app's growth? Contact Moloco today to learn more about our premium solutions and optimization strategies.