Mobile gaming has come a long way from being just a causal time killer and now it is one of the
most profitable and popular gaming platforms. This has resulted in transformation in the way
game is monetized, therefore developers have a wide range of options in monetizing than ever
before.
Earlier the developers rely on paid games and in-app purchases to monetize games and increase
their revenue. Now things have changed with the fast growing technology, developers can now
increase their revenue from paid games and in-app purchases to the advertisement by reducing
their dependency on waterfall optimisation. These are some significant innovations that have
taken place in game monetization.
Diversifying Revenue Source Leads to Increased Results.
The freemium monetization is the model preferred by most of the mobile game developers, which
normally generates revenue via in-app purchases. But it has several challenges like it depends
on a small amount of in-app purchases made by the user. According to research done by an app
testing company, they have found that only 2.2% of the players send and the other 46% is
generated by the spenders. Hence, most of the game developers are including advertisements to
the revenue source along with the freemium model results in generating revenue from a number of
players.
Revenue generated mostly is from the advertisements. They offered the players a
freemium basis, so whenever a player watch a video ad, they are rewarded a coin with which they
can either access any in-game contents or hints. All the professional gamers and game
enthusiasts are aware of the fact that the ads are integral part of the mobile game and they are
happy with ad-funded mobile game model.
Ad Placements Pilot’s To Greater Retention and Value.
The game developers and publishers have found out that testing with ads, like the flow and ad
format integrated into the game depends on generating revenue. Identifying the nuances of
placing the ads in help in game engagement, the participation of the players, and minimal churn
without spoiling the player’s game experience.
The most effective form of advertisements is rewarded ads, as it offers players the option to
gain reward for watching the advertisements within the game. Generally players enjoy receiving
rewards or points additionally in game without paying or waiting for them, thus it makes both
advertisers and game developers goodwill of the players also benefits the players.
Importance of playable ads.
Another in-app format designed specifically for mobile games are playable ads. This type of ad
allows the user to play a demo of a game before downloading it. Mobile games that use playable
ads type saw an increase in conversion rates, revenue, and even user retention.
According to Emarketer’s survey among US agency professionals, 28% of them found playable ads
the most effective ad format. In fact, these ads perform up to 8 times better than interstitial
ads (SmartyAds). Playable ads come with a higher CPI but remain effective because they help
reach valuable users. Facebook and Google have recognized this as well and added playable ads to
their ad network inventory.
Paid Games
While in-app purchases generally work better than paid games, this is still a mobile game
monetization trend that’s worth mentioning. If you are an established mobile game publisher with
a large fan base, paid game makes sense.
Subscription Model
More and more games have started adding subscriptions to their game. Gamers make regular
repayments to gain access to additional game content, features and items or to get an ad-free
gaming experience. Some subscriptions are auto-renewable.
They are non-renewing subscriptions that last for a set amount of time. In most cases, they come
in the form of battle pass seasons. During this time, players get an opportunity to unlock
different battle pass rewards.
Final thoughts on Mobile Game Monetization, they have become more accessible and
rewarding more
than ever before. The global video game market size was estimated at USD 195.65 billion in
2021
and is expected to reach USD 220.79 billion in 2022.
tags: monetize games, profitable gaming, Thirdeyeverse Studio, gaming strategies 2023, in-game purchases, gaming advertising, game revenue, game monetization techniques, gaming industry trends 2023, profitable game development, gaming ROI, freemium games
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