Turkey has been making significant strides in the mobile gaming and app development industries. The government has introduced a plethora of incentives aimed at nurturing these sectors. These incentives are designed to support companies in various aspects of their operations, from development to marketing and beyond. Here, we delve into the specifics of these government app rebates and their implications for the industry.
Government Incentives Overview
Turkey’s Ministry of Commerce, along with organizations like KOSGEB and TÜBİTAK, plays a crucial role in providing incentives for the gaming and app industries. These app rebates cover a wide range of activities, from establishing companies to supporting employment, adhering to UA acquisition, and more.
Ministry of Trade Technology Incentives
Prerequisites for Support
To qualify for these appHow to Obtain a Crypto Licence in Turkey? incentives, companies must meet several prerequisites:
- Having a company In Turkey: The ownership of the company does not matter. It can be foreign shareholder. However, to get advertising support, the company should be established minimum one year ago.
- Membership in Exporters’ Association: Companies must be members of an exporters’ association, a straightforward process that ensures they are integrated into the formal export network.
- Bank Account Expenditures: All expenditures must be made through the company’s bank accounts to ensure transparency and proper documentation.
- Turkish Store Accounts: The apps and games must be published through Turkish store accounts to qualify for the rebates.
Digital Marketing and Promotion
One of the standout incentives is the rebate on digital marketing expenditures. Companies can get back an average of 60% of their digital marketing costs, which include spending on platforms like Facebook, Google, Unity, Applovin, Tiktok Snapchat, and more. This rebate applies to expenses incurred within the past six months and is designed to encourage companies to invest in robust marketing strategies.
For digital marketing, the Ministry of Trade offers substantial support. Companies can receive a rebate of 60% on their marketing expenditures, up to a limit of 310,000 USD per app or game per year. This allows companies to spend up to 515,000 USD and receive a refund of 310,000 USD. The support extends to three apps, after which the limit decreases to 40,000 USD per app. This initiative helps companies manage their advertising budgets more effectively and promotes their products on a global scale.
This support is provided for each application separately, but there is a limit of three applications. Therefore, a company can obtain a cash grant of 930 thousand USD per year for marketing expenditures.
To avail of this support, companies must submit proof of advertisement, stamped bank receipts, and other official documents. The Ministry of Trade ensures that expenditures are targeted towards foreign markets, thus promoting the international visibility of Turkish-developed apps and games.
Fair and Event Support
The government also supports companies participating in fairs and events. This includes covering costs related to booths, design, sponsorships, and travel. Companies can receive up to 60% of their expenses back, provided the events are approved by the government. The limit for this support is 60,000 USD per event, and it ensures that Turkish companies can showcase their products on global platforms, enhancing their visibility and market reach.
Reporting and Tool Support
The support for reporting and tools is also significant. The Ministry of Commerce provides rebates for marketing reporting tools such as MMP, App & Ad Intelligence, and other databases. Companies can receive a 60% rebate on these costs, up to a limit of 40,000 USD per year. This support encourages companies to use advanced tools to analyze their marketing performance and make data-driven decisions.
For companies investing in reporting tools and analytics products like Adjust, AppsFlyer, Sensortower and Mobile Action, the government offers substantial rebates. Pre-approval is required, and expenditures must be made through official bank channels.
App Rebates in Development and Commission
App and Game Development
Development support is another critical area where the government provides assistance. Expenses related to software tools like Unity, 3D Max, GitHub, and more are eligible for rebates. The goal is to reduce the financial burden on companies during the development phase, promoting innovation and quality in the final products.
The Ministry of Trade provides up to 60,000 USD per company per year for software costs associated with the development of games, with a rebate covering 60% of these expenses. This means companies can spend up to 100,000 USD and get back a significant portion, facilitating the acquisition of essential development tools.
Platform Commission Fees
Companies can also receive support for commission fees charged by platforms like Google Play, App Store, and Steam. This incentive covers up to 60% of the commission fees for sales made abroad, helping companies to retain more revenue from their international operations. The limit for this support is 80,000 USD per app or game per year, providing substantial relief from platform fees.
Abroad Unit Rental Support
For companies looking to establish or expand their presence internationally, the government offers rental support. This includes rebates on gross rent and commission expenses for offices abroad. This support extends to up to 60% of the costs, significantly reducing the financial barriers to international expansion.
The Ministry of Commerce offers up to 100,000 USD per office, with a maximum of 10 offices, covering 60% of the expenses. This support is intended to help companies establish and maintain a presence in foreign markets, fostering global business relationships.
Conclusion
Turkey’s comprehensive suite of incentives for the mobile gaming and app industries demonstrates a robust commitment to fostering growth and innovation in these sectors. By providing financial support across various stages of business operations, the government aims to position Turkey as a global hub for technology and digital entertainment. These incentives not only reduce the financial risks associated with development and marketing but also encourage international investment and collaboration, paving the way for a vibrant and competitive industry.