Mobile game business models
What is a mobile game business model?
A mobile game business model is a monetization strategy developers use to drive revenue for their app. They can either choose to monetize through a one time payment, in-app purchases, or via ad monetization. One time payments relate to premium paid apps, essentially meaning users get your game for an upfront price. In-app purchases and ad monetization offer a more recurring revenue stream, increasing user engagement, platform experience, and in-game earnings.
Trending mobile game monetization models
With the worldwide mobile gaming market exceeding $57 billion in 2018, developers are looking for new ways to monetize. Popular mobile game monetization models to add to your monetization strategy include in-app advertising, in-app purchases, and one-time payments.
- In-app advertising: There are several ad formats to choose from, such as rewarded videos, banner ads, interstitials, and offerwall ads.
- In-app purchases: With 74% of spending in the Google play store coming from in-app purchases in previous years, it is no wonder IAP’s are an effective mobile game business model. This monetization strategy also lets developers manage their sales directly, influencing the users behavior within the game.
- Premium paid apps: Developers can monetize with premium paid apps only if a mobile game has a strong value proposition and little to no competitors providing the same characteristics and quality within the genre. This model might turn away a majority of players accustomed to engaging with an app before they buy, but holding to high standards allows premium paid apps to do well in the app store.
How much money can mobile game ads make?
In 2017, mobile games were expected to generate $39.8 billion in global ad revenue, a 90% difference form $21.1 billion in 2015, and projected to hit $49 billion in 2018 according to App Annie. Mobile game ads prove to be one of the most effective ways at generating considerable revenue for mobile game developers, while engaging users and influencing their behavior.