Monetization models for mobile games (Part 2)

Hybrid monetization strategy

A hybrid monetization strategy basically combines all the strategies we mentioned so far to maximize a game’s earning potential. This approach allows you to cater to different player preferences and spending behaviors, ensuring a more robust and diversified income stream.

Benefits of Diversifying Income Streams:

• Increased Revenue Potential: By combining various monetization methods, developers can tap into different revenue sources, maximizing overall earnings. For instance, players who don’t make in-app purchases might still generate revenue by viewing ads.
• Player Choice: A hybrid strategy offers players flexibility in how they support the game. Some players may prefer to make purchases, while others might be more comfortable watching ads for rewards.
• Reduced Risk: Relying on a single revenue model can be risky. Diversifying income streams helps mitigate the risk associated with changes in player behavior, market trends, or platform policies.
• Enhanced Engagement: Offering different ways to access premium content or rewards can keep players more engaged. Rewarded ads, for example, can provide non-paying players with a way to progress, keeping them involved and satisfied.

Here are some examples:

• Clash of Clans uses a combination of in-app purchases and ads. Players can buy in-game currency and resources, but they can also watch ads to speed up building times or earn extra rewards.
• Candy Crush Saga employs in-app purchases for extra lives, power-ups, and moves, while also offering rewarded video ads for players to gain additional bonuses.
• PUBG Mobile utilizes in-app purchases for cosmetic items and battle passes, alongside occasional ads and event-based promotions to enhance the player experience.

Premium paid model

The premium paid model requires users to pay a one-time fee to download and play your game. This approach offers a straightforward monetization strategy, where players gain full access to all game content without the need for additional purchases or ads. It ensures a clear and direct revenue stream from each download, allowing you to focus on creating a polished and complete gaming experience without worrying about ongoing monetization tactics.

However, attracting users to paid games in a market dominated by free-to-play titles can be challenging. Players are often hesitant to spend money upfront without first experiencing the game. To overcome this, it’s important that you offer a compelling value proposition through high-quality graphics, engaging gameplay, and unique features that set your game apart. Strong marketing, positive reviews, and leveraging social media gaming communities also helps build anticipation and trust among potential buyers.

Many premium games have found significant success even when offering a price upfront. Monument Valley, Minecraft, The Room, and others have demonstrated that players are willing to pay for exceptional quality and unique experiences. Focus on delivering a standout product and effectively communicating its value to attract a dedicated audience willing to invest in a premium gaming experience.

Meta layer monetization model

The meta layer monetization model involves adding monetizable features outside the core gameplay, such as cosmetic items, battle passes, and social features. This approach enhances the overall gaming experience without affecting the fundamental gameplay mechanics. By offering optional content that players can purchase, you provide additional revenue streams while keeping the game enjoyable and fair for all players.

This model appeals to different player segments by catering to their diverse interests and spending habits. Casual players might appreciate cosmetic items that allow them to customize their avatars, while more dedicated players could be interested in purchasing battle passes that offer exclusive rewards and progression boosts. Social features, like guilds or chat functionalities, can also attract players who value community and interaction within the game, encouraging them to spend on features that enhance their social experience.

Examples of the meta layer monetization model in action include Fortnite, where players buy skins and emotes, and Call of Duty: Mobile, which offers battle passes with exclusive content. By integrating these monetizable features, you can boost revenue without disrupting the core gameplay, keeping both paying and non-paying players engaged and satisfied.

Sponsorships and collaborations

Sponsorships and collaborations with brands or other games can generate substantial revenue by leveraging the visibility and reach of your game. These deals often involve integrating branded content, exclusive events, or cross-promotions that enhance the gaming experience while providing financial support from the partnering brand. By incorporating well-known brands or popular games, you can attract new players and retain existing ones through unique, limited-time content that adds value to your game.

The benefits of sponsorships and collaborations extend beyond immediate revenue. Increased exposure is a significant advantage, as partnerships with established brands can elevate your game’s profile, attracting media attention and boosting downloads. These collaborations can also open the door to future partnerships, creating a network of opportunities that can sustain long-term growth. Additionally, aligning your game with respected brands can enhance its credibility and appeal, making it more attractive to potential players and investors.

Successful examples of sponsorship and collaboration deals in the mobile gaming industry include Angry Birds teaming up with the movie Rio, which resulted in a special edition game that promoted both the film and the game. Another example is Pokémon GO collaborating with brands like Starbucks and McDonald’s, turning their locations into in-game PokéStops and Gyms, driving foot traffic to these businesses while enhancing the gaming experience. These partnerships illustrate how strategic collaborations can benefit both parties, creating a win-win situation that drives revenue and engagement.