Focus on how monetization works in mobile gaming and what common case studies are in App marketing. To analyze how monetization works in popular gaming apps.
- Paid Game Monetization
- Free-to-Play Game Monetization by In-App Advertisements (IAA)
- Free-to-Play Game Monetization by In-App Purchases (IAP)
- Monetization Recommendations Based on Game Types
Paid games require users to make a purchase before they can download and play, and the most paid games monetize in a Fixed Price, while some games can be acquired by Subscription:
A typical example can be Apple Arcade, where users can access a range of high-quality, ad-free, and in-app purchase-free exclusive games by paying a fixed monthly or annual fee. (Also Microsoft Xbox Game Pass and Google Play Pass)
>>> How to join Apple Arcade? 
>>> How to join Google Play Pass?
Please consider factors like game length, complexity, graphics quality, and replayability when setting your price.
Also don't forget to research similar titles within your genre to determine an attractive yet competitive price point.
Allow potential buyers to try out a limited version of your game before committing to the full purchase. This builds trust and reduces perceived risk for consumers who are unsure about spending money upfront.
Keep players engaged by providing regular updates and new content post-launch, such as new levels, characters, challenges or seasonal events periodically without charging extra fees.
This can enhance player loyalty and encourage positive Ratings & Reviews.
Nowadays apps are mostly taking free strategies to get an initial user base and expand to more potential audiences. According to statistics, users will spend more for ongoing game content in the long term compared with fixed-price paid games.
The main types of free app monetization can be divided into two main groups: In-App Ads (IAA) and In-App Purchases (IAP).
Choosing the appropriate monetization method that fits into your game can not only positively affect your profit growth, but also the internal app metrics like Retention, Daily Active Users, or Average Session Time, ensuring long-term growth in organic traffic in App Store or Google Play.
There are several types of In-App Ads:
To get a valuable resource, gamers can watch 5 to 30 second long videos that advertise another service or mobile game.
2. Offerwall
Users can take a range of actions to get the product for free; for example, connect their social media. Should they take action, the advertiser pays to the site.
Videos in this format show up randomly and do not give the users any rewards. You can often skip them after the first 3 to 5 seconds.
4. Playable Ads
This format means interactive ads with gameplay elements to give the users an idea of what awaits them.
Native, or natural, ads are less common in mobile gaming. They include the type of videos where popular streamers show how passionate they are about the game. The problem is, that mobile game streamers aren't as well known as PC and console streamers.
Rewarded Video Ads, Offerwall and Playable Ads, unlike other advertising tools, are usually only used in gaming apps as they often suit the most mobile games.
According to the Facebook Audience Network, nearly 80% of mobile game developers believe that Rewarded Video Ads is the most effective and promising ad format. More than 50% of gamers admit that they played the games longer that had this type of advertising and the opportunities it opens up.
In the perspective of game monetization, rewarded Video Ads is good because it can indirectly earn from players who have lower intentions to pay in games.
It offers users the right of choices which means the behaivior of watching rewarded videos is voluntary. So, mostly, it's acceptable for players to watch short ads to get in-game resources or an additional attempt.
💡 Mobile Game Market Insight: The Golden Timing of In-app Purchases
In recent years, in-app purchases (IAP) have evolved into several major types:
Typically, the app remains free to download; however, a one-time payment or subscription is required to unlock certain content or remove ads. This model allows users to access premium features without upfront costs.
This format is ideal for mobile games that offer paid characters, weapons, equipment, or additional attempts to continue playing after failure. It provides players with options to enhance their gameplay experience through microtransactions.
The Battle Pass system grants access to extra content via a leveling mechanism. Users can earn rewards by reaching higher levels within the pass. If they play enough to reach the maximum stage, they may receive the next battle pass for free. This approach has proven effective in many online action games as it encourages prolonged engagement.
As users progress through the game, they accumulate items or in-game currencies that remain locked until a one-time payment is made. Often combined with the Battle Pass system, this format offers some free content upon leveling up while reserving other items behind a paywall.
Loot boxes provide random items which can range from common to extremely rare. This element of chance adds excitement but also requires careful implementation to avoid potential regulatory issues.
These diverse IAP models encourage different forms of player interaction and spending behavior, thereby positively influencing key performance metrics and improving the app's standing in store algorithms.
In-app purchases (IAP) are particularly relevant for mobile gaming apps, where users can buy additional content or features within the app itself. The more extensive your game's content, the greater the opportunities to introduce a variety of monetization models.
To maximize the returns, you can combine the two monetization techniques. Here're some notices for you:
💡 User Experience on Ads
- Integrate ads seamlessly into the game environment so they feel like a natural part of the gameplay rather than an interruption.
- Control the frequency of ads to avoid annoying users while providing valuable in-app purchase options that enhance their experience.
- Use targeted advertising to show relevant ads based on user behavior and preferences, minimizing disruption.
💡 Segmented Monetization
- Segment your audience based on engagement levels and spending habits. Offer tailored experiences with fewer ads for paying users and more ad opportunities for non-paying users.
- Utilize data analytics to monitor user responses to different monetization strategies. Adjust the balance between IAA and IAP based on real-time feedback and performance metrics.
By thoughtfully integrating these strategies, you can create a balanced monetization model that maximizes revenue while maintaining a positive player experience.
Since there are various types of games with different characteristics in the world, a customized strategy should be taken.
💡 Paid or Free: What's Best for Your App?
We summarized several monetization strategies for specific mobile game categories:
Characteristics: Simple mechanics, short play sessions.
Monetization Strategies:
In-App Purchases (IAPs): Offer cosmetic items, power-ups, and extra lives.
Ads: Use rewarded video ads for in-game currency or bonuses; consider interstitial and banner ads sparingly to avoid disrupting the user experience.
Freemium Model: Free to download with optional paid features that enhance gameplay.
Characteristics: Mid-core mobile games which are more complex than casual games but still accessible, often involving strategy or RPG elements.
Monetization Strategies:
Gacha Mechanics: Randomized item draws can be a significant revenue source.
Battle Passes/Seasonal Content: Regularly updated content that players pay for on a subscription basis.
Limited-Time Events: Special events with exclusive rewards encourage spending.
Characteristics: Deep mechanics, long-term engagement, competitive elements.
Monetization Strategies:
Subscription Models: Monthly fees for premium access or additional content.
Expansion Packs/DLCs: Paid expansions that add substantial new content.
E-Sports Integration: Monetize through sponsorships and ticket sales for tournaments.
Characteristics: Highly social interactions, often played within social media platforms.
Monetization Strategies:
Microtransactions: Small payments for virtual goods or boosts.
Energy Systems/Timers: Players can pay to speed up progress or replenish energy faster.
Collaborative Purchases/Gifting System: Encourage spending by allowing players to buy gifts for friends.
By tailoring these strategies according to the specific characteristics of each game type you can maximize both player satisfaction and revenue generation
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