How do you test and validate game monetization assumptions before launch?

Game monetization is directly tied with game engagement. In order to lift the game revenue you'll need to make the gameplay compelling enough for the users and create a need for them to make a purchase, watch the ads and play for long. In order to achieve this you'll need to define realistic (read: ambitious yet achievable) goals that eventually trickle down to smaller KPI targets. It’s an iterative process that on a high level goes like this… * define a broader goal e.g. X% lift in LTV * break it down into several KPIs, each contributing towards the goal above e.g. +3% retention, +20% playtime, +20% RVs, etc * start build-release-test iterations for each KPI * make data driven decisions with each sprint and inch closer towards your goal

Understanding the audience is key! Not all types of players will spend money. Those who usually do will spend on the stuff they want to do. Bartle taxonomy of players divides the players into 4 archetypes: killers, achievers, socializers & explorers. Each of these archetypes have different ambitions of playing. In most games you can't satisfy all 4 at the same time. Know what kind of players you're targeting and offer them the content they want to play. There are many sophisticated tools out there that automate this for you and help with player segmentation within the game. This allows you to give in-game offers that resonate with your users, hence boosting your monetization and engagement.

Testing Game Monetization: User Feedback: Gather player opinions through surveys and focus groups to assess their willingness to engage with specific monetization methods. A/B Testing: Experiment with different strategies in a controlled environment to identify the most effective approach. Market Research: Analyze successful games in your genre to glean insights into effective monetization methods. Monetization Models: Freemium: Offer a free base game with optional in-app purchases for premium content. Subscription: Charge regular fees for access to premium features or content. Ad-Based: Generate revenue through in-game advertising while providing the game for free. Balancing ad frequency is crucial for a positive player experience.