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In this article, various effective methods of monetizing games are explored. It begins by discussing different types of Game Monetization strategies, including in-app purchases (IAP), advertisements, freemium models, and subscription services. The focus then shifts to monetization strategies specifically made for free games.
Developing a mobile game is not the final destination for a game owner. The next objective is to plan monetization strategies from which the game can generate revenue. What are these revenue models? Does it really help in earning profits?
Monetization strategies not only help earn revenue but also play a large role in promoting your business globally through advertising. The rise of free-to-play games in recent years maximizes the need to understand these game monetization strategies even more. So, what are these strategies then? How would you implement them to Monetize Unity Games?
In this article, we will primarily focus on game monetization and explore the various strategies that game owners can use to maximize their earnings.
In simple terms, we can say that the process of generating revenue from games through various strategies and techniques is called Game Monetization. With monetization strategies in place, players have the option to spend money within the game, whether through in-game purchases, advertisements, or subscription services. By monetizing their games effectively, game owners can turn their passion into profit and ensure the sustainability of their game app.
Monetization strategies play a crucial role in a game app’s success. When a monetization strategy is implemented perfectly it boosts player engagement and fosters a loyal audience base. On the other hand, poor monetization practices can drive players away and tarnish the reputation of a game.
So, which monetization strategy you should implement in your game app? Let’s explore the types of Monetization Strategies.
Premium games require players to pay an upfront cost to purchase and download the game. This model is traditional and straightforward, where once the game is bought, players have access to the entire game without any additional charges or advertisements.
Examples of premium games include “The Witcher 3: Wild Hunt,” “Stardew Valley,” and “Minecraft.” The primary advantage of this model is that it provides developers with immediate revenue and ensures that players get a complete, uninterrupted gaming experience.
However, the challenge lies in convincing potential players to make an upfront purchase, especially if the game is relatively unknown or priced higher. Despite the predictability of revenue, this model limits the potential for ongoing earnings from a single user unless the developer offers additional paid content such as expansions or downloadable content (DLC).
The free-to-play model allows players to download and play the game for free while offering optional in-app purchases for items, currency, or additional features.
Popular games like “Clash of Clans,” “Candy Crush Saga,” and “Pokémon GO” utilize this model. It significantly lowers the barrier to entry, encouraging more downloads and a larger player base. The primary revenue comes from dedicated players who spend money on enhancing their gameplay experience.
This model can generate substantial revenue, but it risks creating a “pay-to-win” environment where paying players have significant advantages, potentially alienating those who cannot or choose not to spend money.
Balancing the game to ensure fairness while still incentivizing purchases is a critical challenge for developers.
Subscription models involve players paying a recurring fee, either monthly or annually, to access the game or additional content. Games like “World of Warcraft” and services like “Apple Arcade” use this model.
The main advantage is the steady and predictable revenue stream, which can support ongoing development and content updates. This model encourages long-term player engagement, as subscribers are more likely to stay invested in a game they are continually paying for.
However, it requires developers to consistently provide new content and maintain high levels of player satisfaction to prevent churn. Building and retaining a large subscriber base can be challenging, especially with the competition from free-to-play games.
In the ad-supported model, games are free to play, but generate revenue through advertisements. This can include banner ads, interstitial ads, video ads, and rewarded ads, where players watch an ad to receive in-game rewards.
Many casual mobile games, such as “Angry Birds” and “Crossy Road,” adopt this approach. The advantage is that the game remains accessible to all players, regardless of their willingness to spend money.
However, the presence of ads can disrupt the gaming experience and potentially annoy players if they are too frequent or intrusive. Developers must strike a balance between monetizing through ads and maintaining a positive user experience.
The freemium model combines free-to-play and premium features. The base game is free, attracting a wide audience, but certain advanced features, content, or items require payment.
Games like “Fortnite” are free to play but offer a Battle Pass and cosmetic items for purchase. This model allows developers to attract a large player base while still generating significant revenue from players who opt for premium content.
The challenge lies in ensuring that the free version of the game is compelling enough to engage players without making them feel pressured to spend money, while also offering enough value in the premium content to justify the cost.
Sponsorships and partnerships involve collaborating with brands for in-game promotions or sponsored content. For example, “Fortnite” has partnered with brands like Marvel and Nike to create themed content and events. This model can generate significant revenue from brand deals and provides unique, engaging content for players.
However, there is a risk of alienating players if the partnerships feel forced or disrupt the core gameplay experience. Developers must ensure that sponsored content aligns with the game’s theme and player expectations.
For free games the monetization strategy changes. Free games that make money come under this category. Here there are 13 different types of monetization strategies categorized in 3 sections. We will explore each section one by one.
These ads occupy a small portion of the screen and can generate between $2 to $7 CPM. While not a major revenue source, they can still help increase ad impressions. However, they can sometimes annoy players, though they are easy to implement and don’t require extensive coding knowledge.
These are full-screen ads that appear during gameplay. When placed correctly and relevant to the player’s interests, they can generate higher CPMs, typically around $10 to $15. They tend to be less annoying than banner ads due to their placement and size.
This newer concept is mainly used in virtual money games. When a player chooses to exit the game, a full-size ad is shown, often related to the player’s interests. Similar to interstitial ads, these are displayed with the exit button.
This involves sending push notifications from the game to promote other apps or games. Companies like AirPush specialize in this method, which is currently available only on Android.
Similar to affiliate marketing, this method rewards users with in-game points or currency for installing and playing other games. The game owner gets paid by the developers of the installed apps.
This is a newer strategy where players are rewarded with discounts on real-world items, like a 10% off pizza coupon, for completing difficult game levels. While not yet widespread, some local game apps have started using this to attract and retain players.
Freemium games are a great example of this approach. Developers create two versions of the game. The first is a free, lighter version that anyone can download and play without any cost. The second is a premium version, accessible only to those who make a purchase through in-app transactions.
In this model, certain levels of the game are reserved for players willing to pay. While the base game is free, these paid levels offer unique, innovative, and engaging content. Typically, the game is segmented, with these special levels available for individual purchase.
Some games feature background music that players find so appealing they want to use it as their ringtone. Recognizing this, many game owners sell these ringtones in their stores. Similarly, game wallpapers that appeal to players are also available for purchase.
Ads can be irritating, and most gamers dislike them popping up during gameplay or even sitting in a corner of the screen. Game owners offer an option to play without ads, but to remove them, players need to pay a small fee.
This feature is ideal for virtual money games where time is crucial for completing levels. Players can buy extra time for each level by making a transaction, giving them a better chance to progress.
Typically, a player has three lives to complete a game, and once these are exhausted, they must start over. Buying an extra life allows players to continue even after losing all chances. Similarly, the concept of “More Energy” applies to racing and fighting games, where more energy means more fuel or power. To get this, players need to make a purchase.
For players, doubling their virtual money provides more power and privileges in the game. For developers, it’s a revenue-generating feature. Many players are willing to pay to double their virtual currency, gaining extraordinary advantages in gameplay.
In-game advertisements can be a lucrative revenue stream for game owners when implemented strategically. By partnering with ad networks or advertisers, game owners can display ads within their games and earn revenue based on user interactions.
To maximize ad revenue, developers should consider the placement, frequency, and relevance of ads to ensure a seamless integration with the game environment.
To maximize revenue, it’s essential to optimize the placement and frequency of ads. Ads should be strategically placed at moments that feel natural and least disruptive to the gaming experience, such as during level transitions or after a game over. Balancing the frequency of ads is also crucial; too many ads can frustrate players, while too few can limit revenue potential.
Regular A/B testing of different ad formats, placements, and frequencies can help determine the most effective strategies. Analyzing player engagement and retention data allows developers to fine-tune their ad implementations to maximize revenue while maintaining a positive user experience.
Using ad mediation platforms can help maximize gaming monetization revenue by dynamically selecting the highest-paying ads from multiple ad networks. This ensures that developers get the best possible rates for their ad placements, increasing overall earnings.
Segmenting players based on their behavior and preferences allows for more targeted advertising. For example, frequent players who spend a lot of time in the game might be more tolerant of ads and can be shown more ads compared to casual players. Personalized ad experiences can lead to higher engagement and revenue.
Unity is a popular game development engine used by developers worldwide to create high-quality games across various platforms. Monetizing Unity games requires a strategic approach that uses Unity’s monetization tools, such as Unity Ads and Unity In-App Purchases.
By integrating ads, optimizing in-app purchases, and experimenting with different monetization strategies, developers can monetize their Unity games effectively and generate revenue.
As the gaming industry continues to evolve, so do monetization strategies and techniques. Game owners must stay abreast of emerging trends, technologies, and player preferences to adapt their monetization approaches effectively. The future of game monetization lies in personalized experiences, value-driven monetization models, and ethical practices that prioritize player satisfaction.
The Bottom Line
Gaming makes money is not a phrase we frequently used to come across in the initial days of game development. But in the last 4-5 years, the gaming industry has grown significantly and game owners have found various ways to generate revenue from games be it free games or paid games.
So, to build a game what are the criteria you will consider? Will you opt to monetize mobile games by partnering with a development company?
If yes, then look no further. Hire Unity 3D developers from Artoon Solutions, a leading Unity 3D game development, boasting an experience of over 14 years in mobile game development. 
The most common monetization strategies for mobile games include in-app purchases (IAP), where players buy virtual goods or currency, and advertisements, such as banner ads, interstitial ads, and rewarded video ads. Games often use a freemium model, offering free downloads with options to purchase premium content or subscriptions for additional features.
Developers optimize in-app purchases for maximum profit by ensuring they offer value to players, using tiered pricing to cater to different spending capacities, and creating urgency through limited-time offers. By analyzing player behavior and preferences, developers can tailor their in-app purchase offerings to maximize revenue.
Monetizing mobile games differs from PC/console games in several key ways. Mobile games heavily rely on ads and in-app purchases, whereas PC/console games often use one-time purchases and downloadable content (DLC) for additional revenue. The mobile platform’s ability to reach a larger audience through freemium models and ads makes it unique in its monetization strategies.
Recommended Unity monetization tools for developers include Unity Ads, which integrate ads seamlessly into games, and Unity IAP (In-App Purchases), which facilitates in-game purchases across different platforms. Unity Analytics also provides insights into player behavior, helping developers optimize their monetization strategies based on real-time data.
The future of game monetization in the gaming industry is expected to focus more on personalized ads and in-app purchases. Developers will likely continue exploring subscription models and hybrid monetization approaches that combine different strategies to maximize revenue while enhancing the player experience.
Artoon Solutions
Artoon Solutions is a technology company that specializes in providing a wide range of IT services, including web and mobile app development, game development, and web application development. They offer custom software solutions to clients across various industries and are known for their expertise in technologies such as React.js, Angular, Node.js, and others. The company focuses on delivering high-quality, innovative solutions tailored to meet the specific needs of their clients.
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