5 Monetization Strategies for Mobile Game Developers to Maximize Revenue

Everyone knows that developing a game is all about presenting fun,?engagement , and an experience to players. But for game developers, there is another goal which earning money from games. Because if they can’t earn any money, that means their business won’t last long.

So in today’s blog, we will look at?five different monetization strategies?that can help game developers make more profitable games while delivering fun, engaging games to their players.

From?in-app purchases ?to game sponsorships, each strategy has its own pros and cons. And we will look at each of them to help you choose the right monetization model for your mobile games.

What Does Game Monetization Mean?

But first, let’s start with what?‘monetizing’?actually means. Game monetization is the process when generating income from mobile games via different revenue models.

If the game developer has the right monetization strategy, their game will remain profitable. And it leads to creating a balance between making revenue and providing an enjoyable experience for players

But it is because?we live in 2023 and everything changes rapidly?that developers must always keep up with the latest trends. They must also adapt approaches that help them to stay away from the competition.

A Deeper Look at Five Essential Strategies

1. In-App Purchases

IAP?also known as in-app purchases are the most effective and popular way to monetize games. It means selling?virtual collections, premium content,?or?in-app currency ?to players to boost the gameplay experience. Before getting deeper we should say creating the Apps can prove to be challenging for developers at first needed to find the right appealing items or content that players want to buy.

Also, players must feel secure during the buying process. If they feel rushed or forced into the IAP they may decide to quit playing the game. But if developers want to add a touch of spice to this process, they can?offer time-limited?or?exclusive items?to create a sense of urgency.

But remember, developers should find the most appropriate IAPs specifically for their games. This is the most critical part. If the pricing is too intrusive, experience-inducing, or provides an unfair advantage for paying players people can feel furious and turn into nonpaying players.

In-app Purchase Types:

There are several types of in-app purchases developers can include in their games, including:

• Virtual Goods: Power-ups, cosmetics items, or exclusive characters can be offered to players as virtual goods which increase the user experience.

• Premium Content:?Offering extra levels, game modes, or storylines as purchasable content can entice players to extend their gameplay and unlock new challenges.

• In-App Currency:?Players can spend virtual currency in-game. This makes it easier to buy things and spend money, which feels natural.

2.?Advertising

Ads ?are actually the?most-known monetization strategies ?for games and can be a very powerful revenue stream. There are different types of ads that offer different goals to developers, such as?banner ads, videos, playable ads,?and?native ads. Most developers use ads to reward users to optimize ad revenue while keeping player satisfaction.

Developers can earn money by displaying ads inside the game and earning money based on impressions, clicks, or completed actions.

Let’s look at the various types of ads to understand better;

• Banner Ads:?These types of ads are small, rectangular, and displayed inside the game, usually at the top or bottom of the screen. It can be just graphics or animated and they do not spoil the gaming experience.

• Interstitial Ads:?They are full-screen ads that appear between levels or during natural gameplay breaks. It can be static images or videos and include a close button so players can skip them after a short duration.

• Video Ads:?These are short video ads that can be non-skippable or skippable after a few seconds. It can be integrated into reward ads or displayed during gameplay breaks.

• Native Ads Blend:?They are added to the game’s design and user interface, providing a less disruptive experience for players.

3. Freemium Model & Paid Apps

Freemium Model

Freemium-model mobile games?allow players to download?and play the game?without paying any price?but of course, freemium games can offer in-app purchases or premium features to players. Because they can play and enjoy the games without financial commitment they attract more players.

Here’s an overview of the main features of the freemium model:

1. In-app purchases:?As we discussed, there are many types and reasons why developers should add?in-app purchases ?to their gaming. This includes developers who choose freemium models for their games. It is because it encourages players to spend more time and money, which increases revenue.
2. Balancing Content:?It’s essential to strike a balance between?low-cost content?and?premium offerings?in a freemium game. The free version should be enjoyable, while premium content should provide a clear value proposition that entices players to spend.
3. LiveOps:?Freemium models rely heavily on?keeping players engaged. So if developers choose this strategy they should also implement LiveOps features to keep players engaged.?LiveOps ?features include a leaderboard, tournaments, rewards, regular updates, and ongoing support.

Paid?Model

Payment models for mobile games are different from the freemium models. For?paid models, as we can understand from the name players?should pay upfront?before downloading and playing the games. Even though this model may have a limited number of potential users, it guarantees revenue for each download.

Here are some tips for mobile apps with paid models:

1. Deliver High-quality Content:?Players who pay upfront for a game have strong expectations. A polished, high-quality experience that justifies the asking price should be what your game offers.
2. Offer Regular Updates and Added Value:?Keep your players engaged and maintain your paid app’s value by providing regular updates, updated content, and ongoing support.
3. Choose the Right Price:?Research the market and competition to determine the right price point for your game. Consider factors like the game genre, the target audience, and value.
4. Leverage App Store Optimization (ASO):?Optimize your game’s app store listing with relevant keywords, an engaging description, and eye-catching visuals to improve visibility and drive downloads.

Before finishing this part here is another significant point about those models. To choose between freemium and paid apps?define your game genre, target audience,?and?monetization objectives?which help you choose the right models for your game.

4. Subscription Model

There is also another popular strategy known as subscriptions, in which players subscribe to exclusive content or benefits on a monthly or annual basis. We can think of a?Netflix?or?Disney Plus?model.

The subscription model offers several benefits to developers, such as:

1. Predictable Revenue:?Subscriptions provide a steady stream of revenue, which benefits long-term planning and investment.
2. Boost Player Engagement:?It can encourage players to spend time in the game and take part in exclusive events or activities, increasing engagement and retention.
3. Increase Loyalty:?When players subscribe to a game, they are likely to invest more time and money over time which leads to a loyal fan base.

When implementing a subscription model, there are many things to consider.?First, pricing.?To determine the right pricing strategy developers should do their resources based on market, player preference, genre, and marketing objectives.

The second is?content?which is so crucial. They should find high-quality content or features that justify the subscription price and provide a clear value proposition for players.

And finally, there are?cancellation policies. Developers should Provide clear and transparent cancellation policies that guarantee players can cancel.

5. In-game Sponsorships & Partnerships

In-game sponsorship partnerships have become popular mobile game monetization strategies in recent years. This means?when two brands or games decide to work on some content.?This content could be any type from social networks, branded content, or cross-promotions. Which can lead to expanded revenue opportunities for both sides.

Sponsored events are the most common. It includes exclusive in-game events or competitions sponsored by a brand or advertiser. One example of this is a mobile game that is offering a car race. This can be partnered with a car brand and together they can offer an in-game and in-game event that features the brand’s latest car models.

What are the benefits of in-game sponsorships and partnerships?

1. Increased Revenue:?They provide developers with extra revenue sources which can be especially lucrative if they work with well-known brands or companies.
2. More Advanced Experience:?They can provide players with exclusive and engaging material, such as in-game events or in-game items.
3. Brand Awareness:?It can help reach new audiences and increase brand awareness by promoting their products or services to mobile game players

How do you identify suitable partners for your mobile game?

Identifying suitable partners for your mobile game is crucial. Partnership developers should have researched?brand alignment, target audiences,?and?marketing goals.?For example, a mobile game that focuses on sports could partner with a sports brand or team to offer in-game events or items.

One successful example is the collaboration between?“Pokemon GO ”?and?McDonald’s . Their partnership was about turning McDonald’s locations into “Pokestops” and “Gyms,” offering exclusive in-game items, and even introducing a special McDonald’s-themed character in the game. This helped the brand at the same time McDonald’s promoted a more diverse and younger audience and Pokemon GO improved their player experiences.

Key Takeaway and Best Practices

In the blog,?we discussed the importance of monetization in developing games, which requires careful planning and execution. There are different monetization strategies which all offer a completely different output.

And creating a?balance between monetization and the player experience?is critical to avoid frustration and losing revenue.

The most effective way to earn money from mobile games is to follow these guidelines and use data to plan a strategy. This will create engaging,?profitable games that retain players and generate revenue for years.