There are many effective ways game developers can monetize their mobile games, including using a subscription model, implementing video or banner ads, offering in-game purchases and utilizing interstitial ads. In recent years, the gaming industry has seen a surge of unique and creative monetization strategies, making it crucial for developers to stay updated on the latest trends and best practices in order to maximize revenue.
In this article, we’ll explore the different models and strategies used in the mobile game business, as well as their pros and cons. With that being said, there is no right or wrong answer as the gaming market is constantly evolving, and what may work for one game may not necessarily work for another. As one of the leading game analytics companies, Helika has gathered insights and data from various games to provide a comprehensive overview of the most popular ways developers are monetizing their games.
1. Subscription Models
Recurring revenue is a key factor for game developers, and one way to achieve this is through subscription models. This model allows players to pay a fixed amount of money on a monthly or yearly basis in order to access premium content, special items or features within the game. Subscriptions can also be structured as battle pass subscriptions where players have the option to purchase tiers that provide exclusive rewards.
Imagine a player who loves playing a popular mobile game that offers new levels, challenges and rewards every week. By paying for a monthly or yearly subscription, the player can access all of this exclusive content without having to wait or pay for each individual item separately. This not only provides convenience for players but it also guarantees recurring revenue for developers.
Although the benefits of predictable revenue are appealing, subscription models also have their drawbacks. It can be a challenge to convince players to commit to a recurring payment, especially for casual gamers who may only play the game occasionally.
In addition, there is always the risk of losing subscribers if the content being offered does not meet their expectations. You’re expected to constantly provide fresh and interesting content to keep subscribers engaged and paying which may dry out resources and creativity for developers.
2. In-Game Advertising
By partnering with advertisers, game developers can offer players a free-to-play experience while still making a profit. In-game advertising involves placing ads within the game that generate revenue based on clicks or impressions.
This model works best for games with a large player base and high engagement rates. The more time players spend in the game, the more likely they are to see and interact with advertisements, providing value for advertisers.
However, excessive or intrusive advertising can also drive players away and harm the overall user experience. Striking a balance between profitability and player satisfaction is crucial for success with this model.
That’s why many game developers have found Helika as the solution to their advertising problems. With Helika, developers can easily integrate non-intrusive, customizable ads into their games and earn revenue from them without compromising on player experience. That’s because with advanced data analytics, game developers can increase, decrease or customize the frequency and placement of the ads based on player behavior, ensuring a seamless and enjoyable experience for all players.
3. Additional Game Content
Downloadable content brings new life to games and keeps players engaged long after the initial purchase. These additional game content can include new levels, characters, weapons, costumes, and more. Rather than creating a completely new game, developers can add on to the existing one and keep players coming back for more.
This model allows for continued revenue stream as players pay for the additional content. It also gives developers the opportunity to experiment with new ideas and potentially turn them into full-fledged games in the future.
DLCs are also a great way for developers to gather feedback and insights from players, allowing them to improve the game and tailor future content based on player preferences. With Helika, game developers can analyze their original releases and create DLCs that cater to the specific interests and demands of their player base, leading to higher satisfaction and engagement levels.
With that being said, the challenge when it comes to DLCs is finding an appropriate price point while not alienating players that can’t or won’t pay for additional content. If a DLC grants over-powered bonuses, it can create a divide between players who have purchased it and those who haven’t. This in-game class divide may make the game unfair and less enjoyable for those who have not purchased the DLC. Game developers must carefully consider the balance between providing additional content and maintaining a fair playing field for all players.
4. Loot Boxes
Similar to DLCs, loot boxes are another form of additional content that can be purchased within a game. Loot boxes contain random in-game items and rewards, often with varying levels of rarity. While they may seem like a fun and harmless addition to games, loot boxes have faced controversy for resembling gambling mechanics and potentially targeting younger players.
Some argue that loot boxes create an unfair advantage for players who are willing to spend more money on them, creating a pay-to-win dynamic. This can lead to frustration and resentment among players who cannot afford or choose not to purchase them.
In addition, the randomness of loot box rewards can also entice players to continue purchasing them in hopes of getting rare or desirable items. Combined with an analytics partner such as Helika, game developers can gain further insights into how to optimize their loot boxes and drive more sales.
Transparency about the odds of obtaining certain items from loot boxes can also help mitigate concerns about gambling mechanics. This dual approach of optimized loot box design through analytics and transparency of odds can help alleviate concerns and create a more fair playing field for all players.
Loot boxes should not be used as a way to exploit players and should instead enhance the overall gaming experience for all players. Helika helps you find that perfect balance.
5. In-Game Currency
Many games have their own in-game currencies that can be earned or purchased with real money. These currencies can then be used to buy in-game items, cosmetics, and other content. By creating an economy with real-world value, in-game currencies can drive engagement and monetization for game developers.
However, there is a fine line between using in-game currency as a means to enhance gameplay and exploiting players through microtransactions. Players should not feel pressured or forced to spend real money on virtual items to progress in the game. This can ruin a game developer’s reputation.
To take out the guess work of finding that perfect balance, Helika provides valuable insights on player spending behavior and helps game developers make informed decisions to create a fair and enjoyable gaming experience for everyone.
Additionally, Helika also helps game developers track and monitor virtual economies to prevent exploitation by players or third-party sellers. This can help maintain a healthy balance between player engagement and monetization without crossing the line into exploitative practices.
For example, Proof of Play is an innovative game that utilize cryptocurrencies to provide a transparent and secure in-game economy for players. With Helika’s analytics, this studio tracked 840K+ Onchain and In-game item tokens tracked across This led to a 76.24% retention for new players. By proving that in-game currencies can enhance gameplay and drive player engagement, Proof of Play demonstrates the potential for a successful balance between in-game currency and fair monetization.
How To Discover The Best Monetization Strategy For Your Game
The only way to truly know what will work for your game is to understand your players and their spending behavior. This requires a deep understanding of player motivations, preferences, and habits. Helika’s advanced analytics can provide valuable insights into these areas, allowing you to develop a monetization strategy that resonates with your target audience.
To begin, it’s important to gather data on your players’ demographics, such as age, gender, location, and device preference. This can help you tailor your monetization strategy to appeal to specific groups of players. For example, younger players may be more likely to spend money on virtual items compared to older players who may prefer a one-time purchase model.
In addition to demographic data, tracking player behavior is crucial for understanding their spending habits. This includes data on how often they play your game, which features they use the most, and what motivates them to make purchases. Helika’s analytics can provide this level of detail, giving you a comprehensive view of your players’ behavior.
Once you have a clear understanding of your players, it’s important to test and iterate on different monetization strategies. This can include offering in-game purchases, subscriptions, or advertising options. Helika’s analytics is a powerful tool that helps you find the right balance between monetizing your game and providing a positive player experience.
Tracking user behavior is not an intuitive manual process and requires advanced analytics tools like Helika to collect, analyze, and interpret data. By understanding your players’ spending behavior, you can make the best monetization decisions for your game while also providing a seamless and enjoyable experience for your players.
It can be a simple change such as presenting a loot box offer just at the right time to increase the chances of a purchase or implementing a subscription model for players who regularly engage with your game. The possibilities are endless, and Helika’s analytics can help you identify the most effective strategies for your specific player base.
Final Thoughts
Now that we’ve outlined five of the most popular monetization strategies that the top game developers use, it’s important to remember that a hybrid monetization model may be the most effective for your game. This means combining different strategies and continuously testing and iterating to find the best approach for your players.
On a final note, as a partner that has played a significant role in the success of many games, Helika’s analytics is not only one of the most valuable tools for game monetization but also the most dynamic and customzation. We understand that each game likely has their own unique player base and needs, which is why our platform allows for easy customization and flexibility in tracking and analyzing data.
Feel free to contact us today to learn more about how we can help you make the most revenue out of your hard work and creativity. Let’s give your game the earning potential it deserves!
