Game Monetization Strategy

So, what are the tools available to diversify revenue in your game? I am going to introduce three monetization trends to drive diversification, each of which will be discussed in more detail over the course of the next three posts.

  1. Subscriptions

In the games world subscriptions have traditionally been the domain of PC and console games, while on mobile they have been used primarily for content and tools based apps. But in the past two years, we see an increasing number of game developers who are experimenting with subscriptions and are using this strategy on top of their in-app purchases, to offer a premium experience for users. With more than 70% year-on-year growth of subscribers in games on Google Play, players are reacting positively to subscriptions.

  1. Rewarded ads

There are several reasons for using rewarded ads:

  • It can help monetize non-paying users by giving users the option to choose the currency they would like to pay with: either their time (watching a rewarded ad) or their money (by paying for in-app purchase);
  • They can also help boost user retention and playtime of payers and non-payers by encouraging users to come back to the game more frequently and play longer sessions;
  • They are a strong predictor of in-app purchase conversion.
  1. In-app purchases

As with rewarded ads, in-app purchases is not a new monetization strategy per se. However, in the past two years, we’ve seen an increasing number of developers across regions who are shifting their focus from ads only monetization strategy to include also in-app purchases (IAP). These developers are experimenting with in-app purchases in their titles or developing new IAP based games for the first time.

For example, Tapps Games, a Brazilian company who is known for hyper-casual games, decided to focus on IAP in their title Bid Wars, an auction strategy game. In less than 2 years they reported an increase of more than 200% in in-app purchase revenue.

The monetization landscape for games is changing. It’s no longer the case that the type of game dictates the type of monetization; the game is now about diversification. By exploring other options for revenue generation, developers can have steeper revenue curves while also achieving greater stability in their revenue streams.