How to Monetize Your Game in Mobile App Business?
No matter what type of game you are developing, making money is always an unavoidable topic.
How can you tailor a suitable monetization strategy for your game? And how should it be implemented?
We will provide you with insights based on popular games in the app market, offering a comprehensive guide that discusses the following topics:
- 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 Monetization
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)
What are the Advantages of Paid Games?
1. Upfront Revenue: Paid games generate immediate income from each download, providing a quick return on investment and helping to cover development costs early on.
2. High Perceived Value: Users often perceive paid games as higher quality compared to free-to-play alternatives. This perception can attract more serious gamers who are willing to invest money for a premium experience.
3. No In-Game Ads: Since revenue comes directly from purchases, there's no need to clutter the user experience with advertisements. This leads to an uninterrupted, immersive gaming experience that players appreciate.
4. Predictable Revenue Stream: While not recurring like subscriptions, the upfront payments provide a predictable revenue stream based on sales projections and marketing efforts.
Implementation Tips
By choosing an appropriate pricing strategy, you can effectively monetize your paid mobile game while ensuring long-term success in today's competitive app marketplace:
💡 Set Competitive Pricing
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.
💡 Offer Demos or Lite Versions
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.
💡 Regular Updates & Content Additions
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.
Free-to-Play Game Monetization
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.
In-App Advertisements (IAA)
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. Offer Wall
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, Offer Wall 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 behavior 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.
In-App Purchases (IAP)
In recent years, in-app purchases (IAP) have evolved into several major types:
Extended Access and Paid Subscriptions
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.
Unlockable Items and Resources
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.
Battle Pass
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.
Piggy Bank
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
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.
Mix Strategy of IAA and IAP
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.
Monetization Recommendations Based on Game Types
Since there are various types of games with different characteristics in the world, a customized strategy should be taken.
We summarized several monetization strategies for specific mobile game categories:
1. Casual Games
Simple mechanics, short play sessions.
Monetization Strategies:
2. Strategy Games/RPG Games
Mid-core mobile games which are more complex than casual games but still accessible, often involving strategy or RPG elements.
Monetization Strategies:
3. MOBA/FPS Games
Deep mechanics, long-term engagement, competitive elements.
Monetization Strategies:
4. Social Games
Highly social interactions, often played within social media platforms.
Monetization Strategies:
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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