How to monetize your mobile game?

OTRO GAMES
Sep 3, 2018 · 3 min read

Almost every game developer dream to earn big money, and nowadays we can observe plenty of successful cases. But still majority losses. Hence, first what you should do — plan your mobile game monetization at the very beginning and keep in mind that many aspects will mostly depend on the mobile game monetization model you go with, and a lot of features and game strategy will be built on it.

Lets try to find which one type of monetization is better!

One of the most important decisions you’ll need to take is whether to make your game free or paid.

Paid apps might help you to make short-term revenue but free apps might help you to attract more users and make more money long-term through in-game ads and purchases.

So, lets see pros and cons of Paid apps. Firstly, every download will generate money. It could be easily free from advertisement. In-app purchases still possible. Not to mention higher perceived value. And of course users are more loyal. On the other hand, there could be fewer downloads, limited monetization options, higher user expectations and your game will require higher quality.

Free apps. You are likely to have more downloads and to have multiple monetization strategies. Probably user will have lower expectations. Also, you might have positive reviews. But, you are about to have no guaranteed revenue, lower user loyalty and if you include ads it may distract users. Moreover, freemium requires high engagement to generate revenue. To conclude, you’ll need to have crazy download numbers, high prices, high conversion rates and recurring revenue to succeed.

And now lets move to In-App Purchases.

Mostly all free games offer you paid in-app purchases that give you some sort of advantage in the game, for example to buy extra life, coins and other stuff. Another thing is Subscription, which is a set amount of money paid on a regular basis (weekly, monthly, or annually) for additional features, privileges, or even to use the app ad-free.

But it presents several challenges; namely, its dependence on a small percentage of users to make in-app purchases. A mobile monetization report released by one app testing firm, found that only 2.2 percent of players spent any money at all, and 46% of app revenue comes from the Top 10 percent of those spenders. Surprised?

And the last type of monetization is In-App Ads. The reality is that most game enthusiasts understand and accept that advertising has become an integral part of the games they play, so it could be really good way to earn money. There are many ads types, like:

  • Direct Ads — based on deals you have with sponsors or by cross-promoting your game within other games or platforms.
  • Banner Ads — usually shown at the top or bottom of the screen featuring relevant text and images.
  • Rich Media Ads — has video, audio, or other elements that encourage viewers to interact and engage with the content.
  • Native Ads — integrated into the mobile game UI so that the ad experience follows the natural form and function of the user so experience in which it is placed.
  • Reward Ads — delivered for users impressions or other app installs in exchange for in-game rewards like coins, items, upgrades, etc.
  • Event-based Ads — triggered at a certain point in the game, also rewarding users with in-game rewards in exchange.

By the way, rewarded video has become one of the most effective and preferred ad formats, presumably, because it gives players the opportunity to watch an ad in exchange for a reward within the game. Players like gaining additional benefits in the game without having to wait or pay and this reflects well on both, the app and the advertiser.

So which Model is the best?

There is no absolute answer for this question, as it all depends on your game. A lot of mobile games mix and match between different strategies (e.g. in-store purchases and ads). Your aim might be to maximize your revenue, but pushing way too many ads and turning everything in your game into in-app purchases would have an inverse effect. So make sure to balance it out and keep user retention in mind, try out different strategies, measure, optimize, and repeat.

If you enjoyed article — just clap :)

OTRO GAMES
Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade