Game developers have to walk a tight line: they want to provide players with the best possible gaming experience, but they also need to make a profit. That is where monetization models come in. These models allow developers to create immersive games, fund their projects, and also give users the flexibility to choose what and how they want to pay.
We’re discussing the six most creative monetization methods that developers use today to provide engaging titles while still ensuring financial stability.
1. In-Game Purchases
Examples: Fortnite, Roblox, League of Legends, Dota 2
In-game purchases are a model where the purchases are not required to play the game, but they make it easier and can speed up game progress. For example, if the game uses energy to perform actions, and the energy reloads every five hours, players can buy more energy instantly to keep playing.
These in-app purchases can be weapons, skins, customizable elements, additional content, or extra lives. There are typically affordable and expensive items on offer, as well as time-limited offers, seasonal specials, and bundles. These bundles are often offered based on the player’s experience level. For example, a new player will receive a notification for a starter bundle with helpful items to overcome the first couple of levels.
This model is also called “free-to-play” or “freemium”, since anyone can still complete the game at no cost.
A common genre that uses the freemium model is sweepstakes casino gambling. With this type of online gambling, players can gamble for free using virtual coins, with no real money involved. Yet many sweepstakes casino sites follow the same in-game logic, offering users the option to purchase extra coins when they run out and don’t want to wait for their virtual funds to reload.
2. Subscription Model
Examples: Final Fantasy XIV, World of Warcraft
A growing number of game developers are incorporating subscription models in their titles. Players are required to pay monthly subscription fees to continue to get access to the game, as well as an ad-free playing experience.
This model puts pressure on the developer, who has to ensure fresh game content is constantly released.
The entire game does not necessarily have to be subscription-based. It can be a free-to-play game with the option to subscribe to special features, like battle passes.
These games usually have a more immersive storyline and intricate gameplay mechanics so that players feel like they’re getting value for their money.
3. In-Game Ads
Examples: PUBG Mobile, Candy Crush Saga, Gardenscapes
In-game ads are not exactly unique, since most mobile phone games use this monetization technique. However, the ads themselves are becoming increasingly unique.
With this model, players get to enjoy the game for free, and the developer earns ad revenue on ads displayed during playtime. Developers have to find the perfect balance between making a profit from ads while not bombarding the players and interrupting their gameplay.
Ads are usually displayed while the game is loading, in between levels, or to earn extra rewards.
There are different types of in-game ads:
- Reward ads: Users choose to watch an ad in exchange for an in-game reward. These ads are voluntary. Rewards can include extra lives, power-ups, or hints.
- Interstitial ads: They are full-screen advertisements that appear at natural transition points in the game, like during loading screens.
- Native banner ads: These ads are compact, rectangular advertisements that blend seamlessly with the content and design of the game’s interface. They’re non-disruptive and designed to look like the game content.
- Offerwall: This is a dedicated in-game menu or page that presents users with a list of tasks or offers they can complete in exchange for in-game rewards. These tasks can include watching videos or taking surveys.
Playable ads
Playable ads deserve their own mention, since it is the latest, unique approach to game monetization. Most ads are passive, where users have to endure 30 seconds of a video before being able to continue with the game.
However, playable ads act as a small demo of another game. Players are able to play the game or try the app for a few seconds before being taken to the app store. It offers a “try before you buy” experience, which is highly engaging. They typically have high conversion and retention rates compared to static or video ads.
4. Meta Layer Monetization
Examples: Project Makeover, Call of Duty: Mobile, Merge Mansion
Usually, games monetize the core gameplay. But with this model, “meta layers” are added on top of the main gameplay to create more ways to make money.
These layers are outside of the core game, like collecting characters, decorating spaces, or light RPG elements like levelling up.
Developers can make money directly from these layers. They can sell special currency or limit how long the extra mode can be played before payment is required.
5. Loot Boxes
Examples: Overwatch, Genshin Impact, FIFA
Loot boxes are extra downloadable content that can be bought in the game itself. These loot boxes are mystery treasure chests, where the player only sees what is inside the box once they purchase it. Loot boxes come at various prices, with the rarity of the items inside differing.
Loot boxes are not required to complete the game, but they do give players an advantage. There is increasing pressure on developers to be more transparent about what is inside these loot boxes, for a fairer playing experience.
6. In-Game Currency
Examples: Overwatch, Pokémon Go, Minecraft
Modern games have in-game currencies that can be earned by playing or purchased using real money. These currencies are then used in the game to buy items, weapons, cosmetics, or bonus content.
Developers use in-game currency to drive engagement, encourage game play by rewarding players with coins, and also to generate game revenue.
Final Thoughts On Game Monetization
Game monetization requires developers to always keep their audiences in mind. They need to find the right monetization strategies to keep players engaged without interrupting their gaming sessions. For example, an indie developer releasing a new game will likely not have any luck with a paid-for game, but by using clever ad placement or in-game purchases, they will attract and retain players.
Monetization strategies are constantly adapting, and developers will have to embrace these methods if they want their games to be a success.
