· 6 min read
Exploring monetization: Maximizing game revenue
The GameAnalytics monetization series:
- Exploring game monetization: Traditional strategies
- Exploring innovative game monetization: Alternative approaches
- Exploring monetization: Maximizing game revenue
- Exploring monetization: Using data to guide decisions
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In our exploration through Part 1 and Part 2, we established the two primary monetization models: freemium and premium games, including numerous examples of monetization strategies. While much attention and effort is often directed towards monetization within free-to-play games, premium games also offer revenue generation opportunities.
Regardless of which model your game aligns with, the core principles of successful monetization remain the same – prioritizing player satisfaction while maximizing revenue potential.
Successful game monetization strategies
To ensure that you’re effectively implementing and managing your monetization efforts, several approaches can be taken:
1. Tracking revenue and player behavior
Tracking revenue and player behavior involves collecting and analyzing data related to in-game transactions, player interactions, and engagement metrics.
By leveraging data through GameAnalytics, developers gain insight into players’ spending habits, preferences, and behaviors. This data can then be used to optimize monetization strategies, tailor content offerings to meet player needs, and identify opportunities for revenue growth.
For example, tracking which in-game items or features are most popular among players can inform decisions about pricing, promotions, and content updates. Additionally, analyzing player retention and churn rates can help identify areas for improvement in the overall player experience, ultimately leading to increased monetization opportunities.
All-in-all, data is key to success.
Note: The last part of this series, focused on how to use GameAnalytics’ Monetization Overview will be released next Thursday. In the meantime, please make sure your business events are connected to GameAnalytics.
2. Cost-effectiveness of monetization solutions
When evaluating monetization solutions, it’s important to consider not only the potential revenue they can generate but also the costs associated with implementing and maintaining them.
For example, while in-app purchases may offer significant revenue potential, they may also require ongoing development resources to create and update content, as well as marketing expenses to promote them effectively.
On the other hand, advertising-based monetization models may have lower upfront costs but typically require a large player base to generate substantial revenue.
To ensure cost-effectiveness, developers should carefully assess the return on investment (ROI) of each monetization solution, taking into account factors such as development time, resources required, and potential revenue generation.
Reduce store commissions with custom Web Shops
Platform fees are another critical aspect to consider. These fees can impact your game’s profitability, as some platforms can charge up to 35% percent of revenue earned through their services.
Luckily, there are solutions that can help to mitigate these fees by conducting transactions directly through your own storefronts – reducing reliance on third-party platforms and retaining a larger portion of generated revenue.
The best and most popular solution particularly for mobile games are Xsolla’s Web Shops – a Direct to Consumer (D2C) store that enhance a game’s LiveOps using promotion, retention, and engagement mechanics to monetize players in the most personalized way possible.
Additionally, Web Shop solutions not only help you preserve more revenue (Xsolla only charges you a small fee of 5%), but they also help you increase your reach of paying players by expanding into new markets and accepting payments in over 700 currencies. They’re available to developers, studios and publishers as a trusted partner to guide through this innovative strategy.
This approach eases the burden of store commissions while offering greater flexibility and control over monetization efforts, enabling developers to optimize revenue streams more effectively.
3. Marketing efforts beyond user acquisition
While user acquisition is an essential component of any marketing strategy, developers should also consider other marketing initiatives to promote purchasable content and drive revenue.
This could include targeted advertising campaigns, social media engagement, influencer partnerships, and community events. For example, hosting in-game events or tournaments can generate excitement among players and encourage them to make purchases to participate or unlock exclusive rewards.
Also, leveraging social media platforms to showcase new content updates, promotions, or special offers can help drive player engagement and increase revenue opportunities.
Cross-promotion and partnerships
Collaborating with other developers or brands to cross-promote each other’s games or products can expand your reach and drive revenue. By tapping into each other’s audiences and marketing channels, developers can increase visibility and attract new players who may be interested in purchasing additional content or features.
4. Continuous updates with personalized offers
Regularly updating your game with new content, features, and events will keep players engaged and encourage them to spend more. Offering limited-time promotions, seasonal events, or other exclusive rewards for loyal players can create a sense of urgency and generate revenue.
As we mentioned earlier, data and analytics will be your best friends in creating personalized offers or adjusting pricing. By segmenting players based on their behavior, preferences, and spending habits, your offers will better match individual player needs and interests, leading to increased revenue.
Earlier in this article, we mentioned Xsolla Web Shops as a great cost-effective monetization solution. These stores can be highly customizable, offering players the best content personalized to them – helping to create a quality player experience.
5. Explore incentivized actions
Offering incentives for players to take specific actions within the game, such as watching ads, completing surveys, or inviting friends, is a good way to increase your ad revenue.
By rewarding players with in-game currency, items, or bonuses for engaging with advertisements or participating in promotional activities, you can generate additional revenue streams without disrupting the player experience.
6. Gamification of monetization
Incorporating gamification elements into your monetization strategy, such as loyalty programs, achievement systems, or progression rewards, can encourage players to spend more, increase engagement and improve retention.
Rewarding players for their loyalty, progress, or achievements with exclusive benefits or bonuses, can foster a sense of investment in the game and encourage continued spending over time.
7. Revenue allocation strategies
Careful allocation of revenue is critical to sustaining long-term profitability and continuous growth. When it comes to managing and allocating your newly gained revenue, we recommend you prioritize investments that contribute to enhancing the overall player experience and driving more growth (and therefore more revenue).
This could include investing in game development to create new content, features, or updates that add value for players and encourage spending. Also, allocating resources to marketing efforts can help attract new players, while retaining existing ones. Generally, the more players, the higher the possibility of a successful purchase.
Finally, investing in player engagement initiatives such as customer support, community management, and live events can help foster a loyal player base and drive long-term revenue growth. By strategically allocating revenue across these areas, developers can maximize the return on investment and ensure the ongoing success of their games.
Compare, analyze and optimize your revenue with GameAnalytics
Taking guesses isn’t the best way to boost your monetization and keep your games making money. With GameAnalytics, you can track your IAP (in-app purchase) and WebShop revenue to get a clear picture of how your players spend and improve your strategies. Head over to our tool or click to learn more about maximizing your game’s revenue and using data to make smart decisions.
