Ninety percent of the most popular mobile games collect user data without consent, according to a study by Usercentrics.
This means most game developers and publishers violate data protection laws like the European Union’s General Data Protection Regulation (GDPR). Usercentrics made this discovery after analyzing about 269 popular iOS and Android games (with over 150k daily active users).
“Despite the threat of large fines for noncompliance and consumers’ increasing desire to have control of their personal data, it’s clear from the study that most mobile game developers are still putting profit over privacy,” Valerio Sudrio, the Global Director of Apps Solutions at Usercentrics, said.
This shocking revelation goes against the general trend in the mobile industry and risks alienating users, the report said. Up to 40% of gamers said they would uninstall an app if they had data privacy concerns. Additionally, 66 percent of gamers said they could stop supporting a gaming brand if their systems were hacked or if they shared user data without consent.
People Want Privacy Choices
Game developers and publishers believe getting users’ consent to collect data may negatively affect their revenue.
However, 80 percent of gamers said they would stick to companies they trust with their data, and 84 percent said they are more likely to be loyal to companies they perceive to have strong security controls. All users are willing “to share personal data if they trust a brand,” the report noted.
This sentiment has been echoed in other studies. In February, Interact released a survey revealing that Canadians have concerns about privacy and want more control over their data.
The mobile industry is undergoing a shift towards “a consent-based approach to data collection,” Usercentrics noted. We’ve seen measures like Google’s new Consent Mode, Privacy Sandbox on Android, and removal of third-party cookies as well as Apple’s App Tracking Transparency (ATT). Also, the GDPR has been strengthened with “France’s CNIL looking closely at apps in 2023” and California’s tighter measures on mobile apps.
Getting Users’ Consent Can Increase Profits
Obtaining users’ consent is “no longer solely a means of complying” or avoiding penalties, Sudrio said, adding that “consent can be a significant driver of revenue growth.”
Failing to get users’ consent for data can deter firms from running marketing analysis campaigns and increase user acquisition costs, the report said.
Today, the mobile gaming industry is more popular than ever, and this presents a unique opportunity for game developers and publishers to benefit from smart user consent frameworks. It will build long-term engagement and trust with gamers and allow the industry to better monetize in-app advertising (IAA), like increasing Average Revenue Per User, Usercentrics explained.
Due to confusing consent boxes and privacy concerns, game publishers are “seeing a 13% drop in year-on-year on iOS compared to a 35% increase on Android,” the report said. Smart consent management can lead to “increased monetization, premium brand trust, optimized opt-in rates, and better contextual advertising,” it added.
“Here’s the thing: user’s consent to data sharing is actually a great opportunity hidden in plain sight,” Usercentrics noted. Personal data acquired with consent “is the most valuable asset for forward-looking app companies.”
Case Study: Kaiju Run
The report looked at Homa Games’ Kaiju Run mobile game — launched in 2021 and downloaded over 35 million times — to demonstrate the benefits of smart consent management.
By integrating a “consent management SDK to enable consent from users and meet requirements from regulators,” Homa Games was able to “unlock ad networks inventory in regulated regions like Europe and California, bringing an ARPDAU [Average Revenue Per Daily Active Users] 1.5% uplift on Ad revenue,” the report said.
Also, smart consent methods helped Homa Games get “a better, more clear picture of their users and their consent decisions.”
You can opt out of data collection by choosing the “Reject” or “Deny” option in the consent boxes on apps and websites. Unfortunately, most mobile games don’t allow users to decide if they want to share their data. Still, there are ways to protect your privacy.
We recommend reading the privacy policies of your favorite gaming apps to learn more about the types of data they collect. You can use a virtual private network to change your IP address while gaming. This will make it difficult for apps to collect accurate data about your location. Check out our list of the best VPNs for gaming.
We also recommend reviewing app permissions on your device. Only allow apps to access functions necessary for them to function properly. For example, your gaming app doesn’t need to access your location or camera to work well.
