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subscribe to our weekly newsletter.How Do Mobile Games Make Money? Most Popular Monetization Models
The meteoric rise in mobile device popularity and tech capability has fueled the extremely popular mobile app industry. Mobile games are amongst the most popular types of apps—in 2017, 80% of all app revenue came from gaming apps for both the Apple iOS App Store and Google Play Store. The global gaming market is targeted to reach $115 billion in 2018; the mobile gaming industry accounts for $50 billion dollars in all of global gaming revenue.
It’s clear that the mobile app industry is lucrative and continuing to grow in size each year. How do mobile games make money? Game monetization is the method by which a game product makes money for its developers and copyright owners. There are various revenue models that mobile games use to generate profit.
How Do Mobile Games Make Money? Types of Revenue Models for Mobile Gaming App Monetization
The Mobile Gaming Industry Is Incredibly Lucrative
Mobile games have come a long way since the days of playing Nokia’s Snake on a tiny screen. The first known mobile game was a prehistoric version of Tetris, installed on a mobile phone called Hagenuk MT-2000 in 1994. The launch of Apple’s App Store in 2007 marks the early days of mobile gaming as we know it today. Developers flooded the marketplace with games, many of which were incredibly addictive. Some early hits have faded from memory (Angry Birds, est. 2009), while others remain dominant in popularity (Candy Crush, released in 2012).
Mobile gaming apps have never been more sophisticated and new developments like real-time multiplayer abilities, livestreaming, and cross-device synchronization continue to drive industry growth. Another growth factor is the explosion of social media interest in gaming on platforms like Twitch and YouTube. As of April 2018, top mobile games like Fortnite and Candy Crush Saga earned more than one million dollars in daily revenue on iPhones alone.
The very first gaming apps fell into one of two broad categories: 1. Free Mobile Games (sometimes monetized through ads); 2. Paid Mobile Games (just a single upfront payment). Now, gaming monetization models have become significantly more complex and varied. The lucrative nature of mobile gaming influences game design and development, so creators can profit from their games.
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Methods Used to Monetize Mobile Game Apps
Free Mobile Games
Free-to-Play (F2P or FTP) games are free to initially download, but require payment for various upgrades.
Freemium games are free to download and play but offer small in-game purchases known as microtransactions. The top grossing mobile games in 2018 have all been freemium model games, for example Clash Royale, Fortnight Battle Royale, and Candy Crush Soda Saga.
Microtransactions allow players to purchase additional virtual goods like extra gameplay levels, cosmetic skins, exclusive gear (e.g. armor, shields), loot boxes, or in-game currency. In-game purchases vary – some enhance the player’s power or speed up their progress within the game, while others are entirely cosmetic. An example of a microtransaction for a roleplaying game (RPG) is a player purchasing a limited-edition potion which gives their character special powers that would be otherwise very difficult or time-consuming to obtain via normal gameplay.
Since the purchases are usable within the game, microtransactions are especially tempting for avid, devoted players. Microtransactions can potentially lower the skills barrier needed to progress within the game, which can make the game feel out-of-whack for those who choose not to spend. Game developers must be very careful in designing microtransactions so that don’t significantly unbalance competition between players or worse, make players feel extorted (i.e. feel like they must spend their money to be able to function within the game).
Advertising model games are typically free, but contain ads as a means of revenue.
- Display ads are the most standard type, which can include static ads, dynamic display ads, banner ads, video ads, and pop-up ads. Neko Atsume occasionally inserts dynamic display ads as a small banner at the bottom of the screen.
- Interstitial ads are ads that are shown automatically in intervals. Interstitial ads are common for games with a level-up progression since they can be displayed between levels where there is a natural break in the gameplay, making them relatively unintrusive. For example, Ray-Man Adventure requires the player to watch a 30-second video after beating a level.
- Incentivized ads offer an in-game incentive, like an in-game currency or a boost, in exchange for interacting with an ad (e.g. watching a video ad). Puzzle game Candy Crush will offer to give users a bonus if they watch a short video before beginning a new level.
- Contextual ads are integrated into gameplay, often as branded gameplay objects or branded storefronts within the scenery of a game. Think branded Pokestops in Pokemon Go or billboards on the streets of Grand Theft Auto.
Shareware model games will allow you to play a free trial or demo version of a game, but require payment to unlock the full game license. Shareware gives free users limited gameplay compared to the full game – the idea is to entice users to pay for the game once they’ve gotten a taste. This model somewhat outdated as the vast majority of mobile game developers have embraced freemium.
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Paid Mobile Games
Up-front payment model applies to games that are purchased via a one-time payment then downloaded directly onto a mobile device. A few popular examples of paid games include Minecraft, NBA 2K18, and Grand Theft Auto: San Andreas.
Subscription model games charge a recurring fee to continue playing them, usually on a monthly basis. It’s uncommon for mobile games to use the subscription model – it’s more frequently used for massively multiplayer online games (MMOs) and other video games that require continuous server hosting and administrative overview in order to operate. Mobile games don’t lend themselves to a subscription model in part because they tend to be fleeting in popularity. Consumers tend to grow bored of mobile games, constantly looking for a novel diversion.
That said, chief marketing officer Al Campa of the business intelligence form App Annie predicts “I think you’ll start to see subscriptions making their way into gaming.” The success of media apps like Netflix and Spotify suggest that there’s a market for paying a monthly subscription to access collections of games. “The gaming world needs to continue coming up with new hits all the time,” explains Campa.
Monetizing Mobile Games IRL
Mobile games with a strong brand and fanbase can tap into revenue streams outside of the app itself.
Event marketing hosted by game creators bring together an army of avid gaming fans.From huge conventions like E3 and VidCon to regional competitions, gaming fiends are eager to connect with fellow fans at events. Other in-person events that draw die-hard fans include charity tournaments, festivals, and one-off experiential events. These photogenic, interactive events create photo-worthy moments for selfies, videos, and tweeting, which helps them to amplify the brand’s message beyond those in attendance. There’s significant opportunity to sponsor an event to further establish a gaming brand.
Merchandise is another outlet for mobile gamers to bring in revenue. Zealous gaming fans will don T-shirts and snap up collectible merchandise as an extension of their love of the game. Popular games, as well as cult indie games, can commoditize their brands by producing merch.
Tricks To Push Users to Make Purchases While Playing Addictive “Free” Games
Game developers have come up with truly ingenious tactics to make their games profitable. Leveraging a sizable pool of user behavior data, game creators learn to push the buttons of their gaming community. Game developer companies with a large roster of titles can test out different tricks and dedicate manpower towards marketing various upsells.
Whales, named after high rollers at casinos, are players who spend a disproportionate amount compared to other players. Although gaming apps aim to draw revenue through all of their players, they tend to make the bulk of their earnings from a smaller subset of devotees.
VIP Programs are an emerging tactic to retain power-users who are deeply devoted to the mobile game. Extra bonuses that come with membership can include performance enhancers that give a competitive advantage, elimination of advertisements, customer service support
In addition, some mobile games [World of Tanks Blitz, Poker King, TMNT Legends] offer a monthly VIP or premium tier accounts, which offer gameplay bonuses within a pre-specified timeframe.
Special offers can lure an apathetic player by giving them a strong incentive to make a purchase and get back in the game. Like an e-commerce display ad showing that an item once abandoned in a shopping cart has since gone on sale, special offers are all about timing and knowing one’s audience.
A once avid player hasn’t opened the app in over a month? Offer a discounted starter pack for a hot new game. Is a player grinding to beat a boss? Tempt them with a special booster pack that will help them build skills more quickly. A user is obsessed with customizing their avatar character? Sell them a pack of limited-edition skins or clothing.
Game creators can market offers via emails, push notifications, and in-game banner ads. This makes the messaging almost inescapable to a heavily invested player. In a sense, it’s unsurprising that mobile games are so lucrative. Considering the domestic market alone, 77% of Americans have smartphones and are virtually always with them. People frequently look at their phones out of habit and boredom and mobile games provide an instant dose of entertainment. The industry is ripe with potential for customer loyalty and a large customer lifetime value.
Influencer Marketing for Mobile Games
Mobile games are a great fit for influencer marketing partnerships because they appeal to all demographics and have a low barrier to entry. Since the majority of people own a smartphone and have access to mobile app marketplaces, a game download conversion can happen with just the tap of a smartphone.
Mobile games lend themselves well to videos and screenshots, meaning that creators can easily develop visually compelling content that will showcase video games in action. More and more video streaming platforms promote gaming as the industry continues to expand. Influencer marketing will continue to play a role in mobile app monetization going forward.
Although freemium is currently the dominant form of monetization, the ever-changing industry will continue to evolve. It’s possible that subscription to access a library of games (ala Netflix) or a new game-changing monetization model will crop up as mobile gaming continues to evolve.
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The mobile phone market earlier used to be dominated by the iOs as well as the Symbian OS. But after the introduction of Android OS, Android smartphones have now flooded the mobile phone market! These days, 7 out of 10 people are users of Android phone, when it comes to developing nations like India and Brazil! What if I say that you folks may make money right out of your Android phone? Yes, just using the smartphone, you may make decent money! I’ll share some nice strategies that’ll help you achieve the above mentioned feat! Read on and choose the method that suits you best!
How To Earn Money By Playing Games On Mobile
Ways to make money using Android mobile phone-
#1 Using rewarding paying apps
Do you know what makes Android OS so exciting? It is the open source platform and the large community of app developers. Due to the above mentioned factors, there is no dearth of awesome free and premium apps on the Google Play Store!
Among those apps, some apps pays the users for completing different tasks. For example- there are apps that pays users for completing surveys, apps that pays users for downloading new apps from play Store etc.
Among those apps, my favourite one is- mCent. It is an app that pays users for trying out new apps from the Play Store. It also has an awesome referral program, that pays well for each referred friend.
One may earn up to 100 Rupees free talk time by simply downloading apps using mCent. You may use the talk time to top up your mobile phone or you may top up others’ mobile phone and charge money for it.
An excellent app, I must say. So far, I’ve been able to make as much as 1,035 Indian Rupees using the app, which is a pretty decent amount, when we are talking about passive income!
There are other such paying apps out there. But mCent is my preferred one since it is the most well paying one among them. It is also really easy to use too! Install it from Play Store and start making money!
#2 Using Blogger App
Blogger service is offered by Google. Using this service, you may create and maintain free blogs! Also, they have created a good Android app for this service.
You know, this is excellent news since it’ll help you manage your blog right from your Android phone! You may create a free blog and maintain it using the app from your phone. You may monetize the blog using AdSense program that also belongs to Google!
If you are creative enough, you may also promote your own affiliate and referral links (like the mCent referral link) using your blog and get stuff promoted for free! One may create more than one blog. Try to focus on particular niches that are much searched for and you’ll get rewarded, if the blog is good enough.
#3 Make money using WhatsApp
If it is an Android OS mobile phone you are using, there is 85% chance that you have WhatsApp installed on your device! It is the most popular messaging app out there!
Play Mobile Games Earn Money
What if I say that one can make money using WhatsApp? Yes, you read it right! I’ve already written a detailed article about how to make money using WhatsApp. Do click on that link and go through that useful and informative article!
#4 Using apps like Mobikwik, Paytm, Freecharge etc
The above mentioned apps helps users get mobile recharges done. The good news is that these apps comes along with awesome recharge offers time and again!
Sometimes they come up with good cashback offers. Other times, they come up with free coupons and vouchers that a user may redeem at food outlets, movie theatres etc. 200 free spins online casinos.
So how to make money using them, you might ask. Well, one may use these apps to offer recharge services to others. For example- if a 40% cashback offer pops up, you may approach others and offer to get their recharge done using the app and your credit/debit card. Do the recharge and get the amount from them. So far, you haven’t lost money or gained it.
Soon, you will get another 40% of the cashback amount credited to your account. So, out of nowhere, you get money in form of cashback!
Similarly, you may also get food vouchers, movie tickets etc using the same method!
#5 Make money using the Facebook app and Page manager app
Just like WhatsApp, Facebook app is also one such app that is almost always used by Android phone users from around the world! And yes, you may make money using Facebook app too!
Free Games Earn Money
If you own a good Facebook page and have the Page manager app on your Android phone, you may make money using that app from your Android phone! Check out this article to know how you may make money out of Facebook.
Also read: Best websites to make money online
#6 Make money selling stuff
Apps like OLX, Quikr etc are excellent platforms using which one may sell used stuff and get paid for it! These apps are free to install and are easy to use as well.
One may use them and sell one’s own or friends’ as well as relatives’ used unwanted stuff and make money out of it.
These are some effective and easy ways to make money using your Android mobile phone. Not just mobile phones, one may even make use of devices like tablets and get the above mentioned tasks done!