Most developers rely on click-through ads paidĭevelopers hope to recover costs through downloads and in-game purchases of virtual goods. This time round, heightened competition could double or triple the amount spent on marketing cost per install or CPI, wiping out typical revenue gains of up to 200 percent. Spending peaks globally during the holidays, when developers pull out the stops to try and draw in many receiving Apple or Google Android devices on Christmas morning.

That poses a challenge for thousands of developers ranging from San Francisco-based Glu Mobile to independent studios hoping to follow in the footsteps of outfits like Supercell and King, analysts say. Industry executives say there are more mobile games than ever aspiring to become the next “Candy Crush Saga” or “Clash of Clans” and developers are spending to get there.

The cost of getting new users through paid-for click-through ads on mobile phone apps and Facebook is skyrocketing. SAN FRANCISCO, Dec 20 (Reuters) - The annual no-holds-barred Christmas holiday slugfest between mobile game developers has a new twist this year: marketing and user-acquisition costs will likely hit an all-time high and surpass any revenue earned over the festive season.

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