Monetization Strategies
One of the most crucial decisions when developing a mobile game is how to monetize it. Many mobile game developers face the decision of whether to charge for the game upfront, include ads, or use in-app purchases. Despite many different strategies, a free-first approach is an increasingly popular model.
Monetization through Paid Apps: Challenges
The most traditional method of monetization is charging upfront for the game. While this model has been around since the beginning of mobile gaming, it faces significant challenges. With the abundance of free-to-play options available in the app stores, gaining traction with a paid app can be difficult for smaller developers without brand recognition or significant marketing budgets. Even if an app offers quality gameplay, users often hesitate to pay for something they haven’t tried.
The Rise of Ads and Free Apps
As app stores gained popularity, a new monetization model emerged—advertising. Developers began integrating networks like Google AdMob to place banner ads or interstitials in games. This model allows the game to remain free, attracting more users who can try the game without commitment. However, this approach often detracts from the user experience, as ads can be intrusive. While the advertising network that once provided the best returns, Apple’s iAd, is no longer available, AdMob still generates revenue, albeit at a lower rate.
In-App Purchases and the “Freemium” Model
Most large-scale mobile games today rely on in-app purchases (IAP) for monetization. Developers sell in-game currency or items that enhance the player’s experience through this model. IAP works particularly well with games with extensive internal content, encouraging players to spend money to advance or gain advantages. However, this strategy is less effective for small, casual games with limited content, making it harder for smaller developers to capitalize on this method.
Exploring the Free-First Approach
A free-first approach has gained popularity to maximize a game’s initial success. Rather than launching a paid game or overwhelming players with ads, developers can release the game for free and monitor its performance. This strategy increases the likelihood of the game being tried by more users, as there is no financial barrier to entry. If the game proves successful and garners attention, monetization strategies such as ads or in-app purchases can be introduced in future updates.
Switching from Free to Paid
Starting a game as a free app also allows for flexibility in monetization. Developers can later introduce a paid model if the game gains traction and collects positive reviews. Initially offering the game for free helps build an audience and reduces the risk of a failed paid launch. A successful game can transition to a paid model or introduce other monetization strategies without losing its user base.
In-App Purchases for Future Updates
Another viable option is to offer the game for free initially and then introduce in-app purchases later as the game expands with new content. This could include new levels, features, or special game modes. By starting with a free app, developers can attract a larger audience and gradually monetize the game as it evolves.
Advantages of the Free-First Approach
A significant advantage of the free-first model is its ability to attract a large user base without the initial pressure of monetization. Additionally, there is a “halo effect” when a game performs well. A successful game can increase the visibility of other apps from the same developer, boosting ad revenue and other games’ sales.
Conclusion: A Logical Approach to Game Launches
Ultimately, the free-first approach is often the most logical choice for indie developers. By launching a game for free, developers can assess its performance and adapt their monetization strategy as necessary. If the game failed to gain traction, it likely wouldn’t have succeeded as a paid app. If it does succeed, monetization strategies can be gradually introduced without alienating the player base.