Tag Archives: Freemium

Maximize Profits with the Top Freemium Tactics of 2020

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The global gaming market is estimated at $152 billion, with 45% derived from mobile games. The mobile game market is constantly evolving, new tactics and even platforms, like Apple Arcade, are being introduced. As a mobile game developer, being dynamic and staying up on the latest trends is of the utmost importance. Staying on top of these trends will help make a more engaging and profitable mobile game.

Keeping this in mind, below are the top freemium tactics of 2020:

RETENTION IS (STILL) KING

Mobile game developers must remember that freemium games begin and end with a good retention strategy that keeps users engaged.

Daily Tasks: Set-up daily tasks that pass the Starbucks Test. One of them can be opening the app on a daily basis. These should be fairly simple to complete and offer a reward, encouraging users to integrate gameplay into their daily lives.

Rewards Pack on User Birthdays: Give users some kind of bonus on their birthday to enrich their personal relationship with the game.

Challenge Dormant Users: After 3 days, give users a special, temporary challenge to reengage them with the app. Temporary promotions can be an effective way to instill a sense of urgency in the call-to-action and trigger users to open the app.

Promotion Before Subscription/Free Trial Ends: Tempt the user to sign-up or to extend their subscription by offering a temporary promotion 24-48 hours before their free trial/subscription ends.

When it comes to measuring retention, check out the model retention rates below from The Tool (Performance-Based Mobile ASO):

  • Day 1 Retention – 40%
  • Day 7 Retention – 20%
  • Day 28 Retention – 10%

Retention can also be tracked hourly instead of daily where Day 1 Retention will be the percentage of users who returned within 24-48 hours from the install. Here’s how it might look in analytics systems such as devtodev (via The Tool):

Retention-Analytics

OUTSTREAM VIDEO ADS

Outstream Video is a new type of video ad unit, referred to sometimes as “native video”, designed for targeting mobile users.

Outstream Video ads do not require placement within a Youtube video. They play with the sound off on mobile screens when more than 70% of the ad is visible. The user can tap the ad to turn the sound on and restart the video from the beginning, or they can continue scrolling. When less than 70% of the ad is visible, the video pauses.

Advertisers such as the Hong Kong tourism board have had great success using Outstream Video ads, delivering 30% incremental reach with a 40% lower cost per completed video and 85% lower CPM.

REWARDED ADS PAY OFF

When it comes to monetizing a mobile game through advertising, rewarded ads remain at the top of the food chain. A recent survey of app publishers asked what their most successful monetization method was. Rewarded Video Ads won with 75% of the vote.

By offering users some kind of in-game reward, such as an extra life, a bonus item, or a new avatar, app developers can improve UI and engagement while encouraging ad views without bothering the user. Rewarded ads remain the ad unit with the highest earning potential.

LOOT BOXES

A loot box is a randomized box of in-game prizes. Users pay for an in-app purchase, but there is no guarantee of whether it will contain gold or pennies, the user has to make the decision to purchase in exchange a random reward. While this tactic is somewhat controversial in Europe where Belgium and the Netherlands have cracked down and labeled it gambling, it remains a popular tactic. Loot boxes are particularly effective for  Whales, wealthy mobile game users who will readily pay to improve their performance in the game.

SELL YOUR DATA

The collection and sale of data is a massive industry. If your app offers the technical means to collect user-generated data such as geolocation, it may be worth it to acquire user consent to license that data.

Applications like Waze & Foursquare receive community-generated data from their users and effectively leverage it to monetize their applications. Waze licenses data to businesses placing location-based ads, whereas Foursquare licenses point of interest geolocation data to Google & Apple for their first party GPS apps Apple Maps & Google Maps.

CONCLUSION

It is important to keep in mind that monetization is the icing on the cake—without an engaging game that hooks users, there will be nothing to monetize. However, making key decisions in the development process with the monetization strategy in mind will *literally* pay off in the long run.

Check out our previous blogs on Mobile Game Monetization for an overview of the fundamentals.

5 Essential Mobile Game Monetization Strategies to Keep Your Pockets Full

A recent study by Venture Beat showed that less than 1% of mobile game players contribute 48% of total revenue to game publishers. Inability to effectively capitalize upon this hyper-concentrated group of revenue drivers leaves many mobile game developers in the red. The rise of the Freemium model has essentially killed the paid gaming app, leaving many developers scratching their heads on how to turn a profit out of their passion. Here are some of the best methods for mobile game monetization:

1. SEGMENTATION Without a price to download, app publishers can no longer rely on a single method of monetization. Thus segmentation, the division of profit streams, is key to any mobile game monetization plan. App monetization revenues stem from three major categories: in-app purchases, subscription-based premium upgrades, and ad revenue. Highly-successful games can also bring in money through sponsorships, merchandise, and even big-budget Hollywood movies, but the bulk of app developers generate revenue from inside the phone. Experienced mobile game developers use their understanding of each of these revenue streams and how they relate to their target audience to leverage multiple revenue streams within their games.

2. REWARDED AD FORMAT Ads and in-app purchases are both great assets to mobile game developers looking to monetize, but what if you could play them off each other to increase both sources of revenue? That’s the idea behind the rewarded ad format. In exchange for watching full ads during breaks in gameplay, users receive in-game rewards, power-ups, lives, etc. The incentive increases video completion rate, as well as ad revenue, and preview premium features to entice more in-app purchases. While the rewarded ad format can lead to a surge in both in-app purchases and ad revenue, it still requires strategy. Keeping the audience in mind by ensuring the user base will find the content of the ad interesting will increase completion rate. Strategic rewarded ad placement is also key to keeping users engaged. Rewarded ad overkill will alienate users and prevent them from playing the game. For more tips on rewarded ads, check out this awesome article by InMobi.

Castle Clash Rewarded Ad via AdWeek

3. FREEMIUM The popular Freemium monetization method entails developers offering a free download of the most basic form of the app to entice the user, then premium services and features available for purchase or through a subscription fee. The Freemium model drives revenue through in-app purchases, premium features available through subscription fees, and ads. Apps like Tinder and Candy Crush have capitalized on their massive user base by enticing users to make in-app purchases and update to premium accounts. Candy Crush also uses social media to allow users to receive premium features in exchange for sharing with their friends.

4. NATIVE ADS Native ads are advertisements designed to match the form and function of their surroundings. TwitterFacebookGoogle, and Instagram all offer native ads and tools to help developers create and customize their ads. Native ad placement increases the chance of engagement by seamlessly blending the design of the ad in with the UI of the app. While many ads stand out in the context of a mobile app, native ads look like they are a part of the app rather than an advertisement. Some say native ads are unethical and deceptive, while others praise the improved customer targeting and enhanced content. Effective native ads blend seamlessly with the surrounding UI. The number one rule of native ads is to know your audience. If the developer can incorporate relevant content rather than ads for products that do not interest the user, native ads can appear to become more of an enhancement than an interruption. Here is an example of a native ad by Google’s service AdMob:

Native Facebook Ad via The Next Web

5. FEEDER APPS Feeder apps are simple games with addicting gameplay which app developers utilize to spread brand awareness. Feeder apps often feature such simple gameplay, in-app purchases and ads would feel intrusive. Instead, push notifications and links in the main menu redirect users to their company website or another one of their games in iTunes. Many mobile development companies develop a network of feeder apps as a part of their publication and monetization strategy. By utilizing a well-integrated native ad for the company or game the developer intends to monetize, developers can turn viral feeder apps into profits. This comprehensive article by Scientific Revenue offers a great example of how feeder apps can function effectively. ZeptoLab cross-promotes their featured app King of Thieves through their feeder app Cut the Rope.

CONCLUSION Succeeding in the world of mobile gaming requires the same intense flare for competition which fuels mobile gamers. Experienced game developers know the stakes and come out swinging, ready to capitalize on every strategy they can to create a revenue stream. With the right combination of smarts, app developmentpromotion and strategy, mobile game developers can capitalize on their user base to rake in the big bucks.

The Secret to Monetizing Mobile Games: Retention

In the Freemium era, retention is perhaps the most important measurement of a mobile game’s success. While console games are sold in boxes, rely on marketing, and profit primarily from sales (in addition to ongoing online content/purchases), the bulk of mobile games are free and must begin generating revenue after they have been installed. In-app purchases and advertising revenues make up the vast majority of revenue. The average in-app purchase is made 12 days after first launching an app. During that time the user is likely generating revenue primarily through in-game advertising.

The great FTP (Free-To-Play) game monetization expert Nicholas Lovell (a consultant on Angry Birds Go—the very first FTP game from the conception on) breaks down the FTP game design process into a pyramid of three games which play off of each other: Core Loop, Retention, and Superfan games.

FTP Pyramid Via Game Sparks

CORE LOOP: The Core Loop is active gameplay: playing matches in Madden, clearing a level in Candy Crush, catching a Pokemon and battling in Pokemon GO. The Core Loop is the heart of the game. Without an engaging Core Loop, a game has nothing on which to build.

RETENTION: The Retention Game revolves around the Core Loop and is everything that instills the user with a sense of progression toward an overarching goal to keep them  coming back. It is the scoring mechanisms, the levels, the mechanics which establish progression (commonly the game maps), the narrative in Single Player games like Grand Theft Auto and Assassin’s Creed, the achievement system, and the leaderboards. Retention reinforces positive feelings and a sense of accomplishment from the Core Loop experience. Without an effective Retention game, users will not see any point to the game and will not receive an sense of accomplishment or progression toward a greater goal, and the Core Loop will seem insignificant and fade out.

SUPERFAN: The Superfan gameplay mechanics are catered to those who have developed a significant relationship with the game. They are premium subscriptions, extravagant in-app purchases, add-ons for  game’s die-hard fanatics.  Many mobile games are designed for casual play and no Superfan game, while other high-budget multiplayer games, like Clash of Clans and Pokemon GO, have very established brands and use Superfan methods to capitalize on their fervent fandom.

While having an addictive Core Loop is the most important building block, Retention reinforces positive feelings about the game, instills a sense of progression toward both immediate goals and overarching goals, and ensures users are feeling rewarded by the time they put into gameplay. Core Loop will get them in the door, while Retention will keep them in the house and lubricate their wallet.

Here are four of the best guidelines for developing retention, including specific methods, for mobile games:

SEDUCE THE USER WITH AN INTRODUCTION

In the highly competitive market for mobile games, games must engage from the introduction. Games with bland introductions will not retain users. An investing opening cut scene, an aesthetically appealing title screen and awesome music/SFX will pay off when they seduce users from the outset to play on and enter the Core Loop.

MAKE THE GAMEPLAY ACCESSIBLE

If a game is too easy or too hard, it won’t be worth the user’s time. It’s important to specify a game’s audience, decide what level of gamer they will be, and make it accessible to them.  Tutorials can help introduce game concepts, but when they are too long or restricting, they hurt more than they help. Offering users tips and tricks during loading screens and through push notifications are a clever way of increasing accessibility to new users without infringing on the Core Loop.

REDUCE AVERAGE LENGTH OF SESSION

The STARBUCKS TEST has become common terminology in game developer circles. If the user can’t have a meaningful experience in the time it takes for a barista to make your drink, then the game loop is too long. In mobile games, which are primarily played in the pockets of time where the impatient smartphone owner must wait, it’s vital to have a short Core Loop which the user can complete quickly and come back to throughout the day.

INSTILL A SENSE OF PROGRESSION

While some games, like Flappy Bird, are simple and fun enough to succeed on an arcade level with only high scores, most mobile developers are unable to achieve the same level of competition and must instill a sense of progression in order to retain the user. Whether it’s unlocking new levels or characters or progressing along a game board, the game must congratulate the user frequently in order to reinforce positive feelings about the game. Many games enlist achievement systems in order to give the user tangible goals with rewards outside of the main objectives of the Core Loop.

Read more on Achievement systems here via Gamasutra

Learn more about retention in the YouTube lecture below by Lovell. At 1:11:00, Lovell explains how prototyping the retention game outside of the Core Loop to see if it still feels effective is a great way of testing how effective retention methods.

Ultimately, the two biggest factors which will lead to uninstalls for mobile games are boredom and frustration. The game designer must battle these factors both in the immediacy of the Core Loop and the overarching retention strategies.

Are You Cashing Out? Rule the Mobile Game Market with Top Monetization Strategies

The ultra-competitive world of mobile game development leaves many game developers in the red. Less than 1% of mobile game players contribute 48% of revenue to game publishers. With the rise of the Freemium model, many feel paid apps are essentially dead. Without a price to download, app publishers can no longer rely on a single method of monetization.

Here are some of the best methods for mobile game monetization:

SEGMENTATION

Segmentation, the division of profit streams, is key to any mobile game monetization plan. By understanding the many different ways in which one can create a revenue stream out of their game, developers are able to tactically decide which streams they want to pursue and how they want to pursue them.

App monetization revenues stem from three major categories: in-app purchases, subscription-based premium upgrades, and ad revenue. Highly-successful games can also bring in money through sponsorships, merchandise, and even big-budget Hollywood movies, but the bulk of app developers generate revenue from inside the phone. Experienced mobile game developers give individual attention to their apps, analyze what monetization streams will be the most effective, and design individual strategies for each stream.

REWARDED AD FORMAT

Ads and in-app purchases are both great assets to mobile game developers looking to monetize, but what if you could play them off each other to increase both sources of revenue? That’s the idea behind  the rewarded ad format. Games offer its users in-game rewards in exchange for watching full ads. The incentive increases video completion rate as well as ad revenue. By giving users a free in-app purchase, developers are not only able to increase ad revenue, they also preview the premium features, enticing more in-app purchases.

While the rewarded ad format can lead to a surge in both in-app purchases and ad revenue, it still requires strategy. Keeping the audience in mind by ensuring the user will find the ad interesting will increase completion rate. Considering the best time to show the ad also will affect whether the user is frustrated or eager to view the ad. Showing an ad after every level can be overkill and limiting the amount of rewarded ads can help strike a balance between user experience and monetization.

For more tips on rewarded ads, check out this awesome article by InMobi.

The following is an example of a rewarded ad:

Castle Clash Rewarded Ad via AdWeek

FREEMIUM

The popular Freemium monetization method entails a free download of the most basic form of the app to entice the user, then offering a price for premium services and features. Freemium apps can also profit through ads, but in order to be considered freemium, they must offer in-app purchases or premium versions for a subscription fee.

Apps like Tinder and Candy Crush have capitalized on acquiring a massive user base then enticing users to make in-app purchases and update to premium accounts. Candy Crush also intelligently uses social to allow users to receive premium features in exchange for sharing with their friends.

Candy Crush Social Share via BeatCandyCrushLevel.com

NATIVE ADS

Native ads are advertisements which are designed to match the form and function of their surroundings. Twitter, Facebook, Google, and Instagram all offer native ads and tools to help developers create and customize their ads. Native ad placement increases the chance of engagement by seamlessly blending the design of the ad in with the UI of the app. While many ads stand out in the context of a mobile app, native ads look like they are a part of the app rather than an advertisement. In 2013, Twitter upped their ante on mobile ads with the purchase of MoPub for $350 million.

The debate surrounding the morality of native ads is still ongoing. Some say they are unethical and deceptive, but few argue against the fact that they lead to better customer targeting and enhance content to reach more customers by blending in with surrounding content. The number one rule of native ads is to know your audience. While some will be bothered by the deceptiveness of native ads, if the developer can incorporate relevant content rather than ads for random products, native ads can appear to become more of an enhancement than an interruption.

Here is an example of a native ad by Google’s service AdMob:

AdMob Native Ad via The Next Web

FEEDER APPS

Feeder apps are simple games with addicting gameplay which app developers utilize to spread brand awareness. Feeder apps often feature such simple gameplay, in-app purchases and ads would feel intrusive. Instead, push notifications and links in the main menu  redirect users to their company website or another one of their games in iTunes. Many mobile development companies develop a network of feeder apps as a part of their publication and monetization strategy.

By utilizing a well-integrated native ad for the company or the game the developer intends to monetize, developers can turn viral feeder apps into profits. This comprehensive article by Scientific Revenue offers a great example:

ZeptoLab cross-promotes their featured app King of Thieves through their feeder app Cut the Rope.

Succeeding in the world of mobile gaming requires the same intense flare for competition which fuels mobile gamers. Experienced game developers know the stakes and come out swinging, ready to capitalize on every strategy they can to create a revenue stream. With the right combination of smarts, app development, promotion and strategy, mobile game monetization can rake in the big bucks.

For help with your next monetization strategy, contact Mystic Media today by clicking here or by phone at 801.994.6815

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