Mobile Game Monetization: Strategies that are Changing the Industry

Mobile Game Monetization: Strategies that are Changing the Industry

Freemium Model

As one of the most simplistic yet elegant monetization strategies, the freemium model is widely used by mobile games across the full breadth of the industry. It applies to any type of mobile game and is popular across various sectors of the mobile gaming industry. Essentially it works by allowing players to initially play a game for free but offers limited functionality and locks certain parts of the game. 

This model is used for all types of mobile games, from racing games to FPS games, and everything in between. It’s become so effective that it’s even been used in the iGaming industry. 

When you explore the best mobile casino sites, you’ll likely come across sizable welcome bonuses and other gaming incentives. As pointed out by casino writer Jeremy Olson, these bonuses can be particularly lucrative, with some sites offering 200% welcome bonuses. To attain these, you must deposit some money and play some games. However, it is possible to find online casinos that allow players to play for free initially in order for them to become acquainted with the gameplay. 

For example, some sites offer ‘free spins, no deposit’ bonuses, which give players a certain amount of spins for free. These games lend themselves well to the freemium model since players are generally provided with free spins at first and can pay to top up their casino accounts if it runs out and they want to keep playing. 

With the freemium model, players who want to keep playing and unlock all parts of the game have to pay for this to happen. These days, in order to maximally leverage this monetization strategy, developers cleverly integrate in-app purchases (IAPs) with game mechanics to encourage players to spend without disrupting the gameplay experience. 

Purchases need not be costly either. With billions of mobile games downloaded every year, these kinds of monetization strategies pay off even if only a small percentage of players end up paying. As a result of the freemium model, many mobile games today feature options like limited-time events or exclusive content that can only be accessed by paying. 

Subscription Services

These days when we think of subscription services, it’s usually streaming services that come to mind. However, given how expensive gaming can be between the equipment, games, and accessories, the subscription model is now being widely adopted for gaming too. 

This has led to a boom in cloud gaming, which effectively means players may not have to buy games one day and can simply rent or subscribe to a service to play them. The success of this model means it’s now being tried with mobile games too, although it’s unclear if it will be as successful as it’s been with PC and console gaming.  

By subscribing to a particular game or platform that gives you unfettered access to certain games, players can play more seamlessly by triggering the ad-free experience. By subscribing, players can usually also unlock exclusive content and receive in-game currency top-ups. However, for these privileges, it means paying a monthly fee. For developers and mobile operators, it means securing a steady income that creates a stable revenue stream.   

Advertising

Speaking of advertising, ads are a critical part of mobile game monetization. Many mobile games entice players by the fact that they are mostly free to download and play, that is unless there are also freemium aspects. However, for those without freemium features, the developers have to find some way to earn revenue from the game if they aren’t going to charge players to play it.

By utilising advertising, games like these are able to generate income while offering their games for free to players. Modern mobile games are incorporating more innovative advertising techniques that are less intrusive and thus better received by players. This creates a win-win situation as the game can make money while players can play it for free. However, most mobile games these days use hybrid monetization strategies. 

This means a game may be free to play. However, it could still run ads to make money, and have a freemium aspect for exclusive content, while offering a subscription offering to remove ads. 

Emerging Technologies and Monetization

The integration of emerging technologies like augmented reality (AR) and virtual reality (VR) is opening new monetization channels in mobile gaming. On the other hand blockchain technology is proving to be a game-changer. With its play-to-earn models, players can earn rewards that can be translated into real-world assets by playing crypto games. This sector is growing rapidly and might turn monetization strategies on its head one day. 

Conclusion

Monetization strategies for mobile games are continually evolving. TDriven by advancements in technology and changes in consumer behaviour, most mobile games these days use a hybrid monetization strategy that incorporates more than one model. From freemium to subscriptions, cloud gaming, ads, and crypto gaming, the world of mobile gaming and its revenue models have made this genre the largest growing sector of gaming by far.