26 Mar Gaming app monetization strategies: pros and cons
To start getting revenue from a mobile app you need to choose the right strategy. There are not a lot of them, however, there is a risk of failure and obtaining no profit in the end. Here we are looking at the monetizing strategies for gaming apps, their advantages, and disadvantages, and determine which one is the most efficient.
Ways of mobile app monetization
To begin with, we would like to say that you can get your revenue from both the users downloading your product and the advertisers who will use your application as a platform for the promotion of their products (goods and services).
How to obtain the revenue from users:
- Paid download, which is a clear strategy, but when we talk about mobile games there is a chance that it won’t work. The users will pay for the download only if the product is unique and gives them the chance to have the experience they won’t get at any free game. In the case of a gaming app, the chances for minimal conversion are pretty high.
- Paid content – this strategy implies free download but the content is not available to users. If they want to gain access, they need to pay a certain amount for it.
- In-app purchases are also often used in mobile games. For instance, the gamer reaches a certain level of difficulty which is impossible to complete without a paid tool. If the user is passionate enough, they might buy some of the features on offer.
All these strategies work and are efficient to some extent. Yet, there is one big disadvantage – fewer and fewer users are willing to pay for something in gaming apps as there is always a free alternative. The same goes for downloads.
Monetization via programmatic advertising
If you are not sure whether you will be able to get revenue from your users, you might try an alternative monetization strategy for gaming apps – programmatic advertising. Platforms working with this type of advertising offer two partnership options:
- You are the advertiser.
- You are the owner of the advertising space.
In our case, we are interested in the second option. You, as the owner of a gaming app, add it to the catalog of a certain service and it is going to be used as the platform for the display of ads to the targeted audience. This way you simply get paid by advertisers and have the opportunity to keep your app free for its users. This may be the main and the most appreciable advantage of programmatic advertising.