21 January 2015

Game Monetisation Done Right – It’s All About The User

Game Monetisation Done Right – It’s All About The User

Objective: Integrating ad-based monetisation to increase game revenue.Challenge: How to implement ads without damaging the game-flow and compromising the user experience?So, How do we go about it?Well, you’ve launched an awesome F2P game, and you want to start reeling in the dough… Let’s start with a few well-known facts:

  1. Freemium is the way to go – according to Distimo, 90% of all games revenue on the iOS App Store, and 98% on Google Play come from freemium apps.
  2. Paying users account for 2%-7% of your user base.
  3. On average – you’ll have around 95% non-paying users, all of which you can monetize – if you go about it the right way.
  4. When implemented smartly (and we will be elaborating quite a lot on that throughout our series of posts…) – gamers are actually quite welcoming to value-exchange in-game advertising, are happy to engage with offers, and are quite receptive to the content served. In fact, an IHS survey indicates that:
    1. 86% of players welcome value exchange in-game ads in freemium games.
    2. 66% said they’d like to have even more opportunities to earn rewards through ads.
    3. Value exchange in game advertising can generate a significant increase in gameplay session length, as well as an increase in the number of gamers visiting the game’s shop area, and the frequency of their visits.

Ok, so that is GREAT to know – but how do you get it to work this well in YOUR game?

First, and most important step – It is all about the user.

If you treat “traffic” in terms of “clicks and impressions” – you’re setting yourself for failure.

People play video games for different reasons – competitiveness, means of time-pass, social activity, shear entertainment, etc. Therefore, they engage differently and have different needs, preferences and react differently to key moments within gameplay. It’s not about clicks and impressions – it’s about INDIVIDUAL USERS.

If you want great monetization results, you first must provide your users with a great gaming experience. This includes of course the flow of your game, your game’s ‘economy’, the accessibility of IAP (In App Purchases) and your value exchange model – all of which we shall be discussing in more detail as we come along, but it is first and foremost – about the USER.

Once you obtain the ability to track, identify and cater to each user’s preference and optimal mindset for serving ad content during gameplay, and assuming you apply top-quality targeting capabilities – not only will you not be disrupting your users – you will be bettering their gameplay, prolonging their game-session, increasing the quantity of monetized users, encouraging them to obtain tools to further themselves within the game – and increasing your revenue!

To sum it up: serve the right content, to the right user, while in the right mindset – and you can’t get it wrong…     


Let us know if you’d like to get notification about our next blog post:

Monetization – where, when and how? (Part One): Building a Smart Game Economy