Introduction
Generating revenue from a free mobile game may seem like an impossible task, but with the right strategies and tactics in place, it’s possible to turn your game into a lucrative business. In this article, we will explore the different revenue streams available for free mobile games and provide insights on how to effectively monetize your game.
Revenue Streams for Free Mobile Games
There are several ways to generate revenue from a free mobile game. The most common revenue streams include:
- In-App Purchases (IAPs)
- Advertising
- In-Game Currency (IGC)
- Subscription Model
In-App Purchases (IAPs)
IAPs are one of the most popular ways for mobile game developers to generate revenue. These purchases can range from in-game currency to virtual goods such as items, weapons, and power-ups. There are several types of IAPs:
- Consumable IAPs: These are purchases that are used up over time and need to be replenished. Examples include consumables like ammo for a weapon or lives in a racing game.
- Non-Consumable IAPs: These are purchases that are not used up over time and can be used repeatedly. Examples include virtual currency, items, and power-ups.
Advantages of IAPs:
- Provides an additional revenue stream for the game
- Allows players to enhance their in-game experience with virtual goods
- Encourages players to spend more time playing the game by offering them incentives
Disadvantages of IAPs:
- May be seen as exploitative by some players who feel that the game is being pushed towards them to buy more
- Can lead to a "pay-to-win" model, where players with more money can advance further than those without
Best Practices for IAPs:
- Offer a variety of IAPs to cater to different player preferences
- Make IAPs optional and not necessary to progress in the game
- Ensure that IAPs are priced appropriately and offer good value for money
Case Study: Candy Crush Saga
Candy Crush Saga is a popular puzzle game that has generated millions of dollars in revenue through IAPs. The game offers players the option to buy virtual currency, lives, and power-ups. The game also offers daily bonuses, which encourage players to come back every day and play. Candy Crush Saga’s success can be attributed to its addictive gameplay, frequent updates, and engaging social features that encourage players to share the game with friends and family.
Advertising
Advertising is another popular revenue stream for mobile games. Advertising can take many forms, including interstitial ads (ads that appear between levels), banner ads, and native ads. There are several types of advertising:
- Display Ads: These are static ads that appear on the screen, such as banners or interstitials.
- Video Ads: These are ads that play before, during, or after a level or game session.
- In-Game Rewards: These are ads that offer players virtual currency or items in exchange for watching an ad.
Advantages of Advertising:
- Provides an additional revenue stream for the game
- Can be targeted to specific demographics, such as age or gender
- Can provide players with incentives to watch ads
Disadvantages of Advertising:
- May interrupt the player’s experience and make the game less enjoyable
- Players may find ads intrusive or annoying
Best Practices for Advertising:
- Limit the number of ads shown per session to avoid overwhelming players
- Ensure that ads are relevant to the player’s interests and preferences
- Offer incentives for watching ads, such as virtual currency or items
Case Study: Angry Birds
Angry Birds is a popular puzzle game that has generated millions of dollars in revenue through advertising. The game offers players the option to watch video ads to earn coins, which can be used to buy power-ups and other items in the game. The game also offers daily bonuses and challenges that encourage players to come back every day and play. Angry Birds’ success can be attributed to its addictive gameplay, frequent updates, and engaging social features that encourage players to share the game with friends and family.
In-Game Currency (IGC)
IGC is another way for mobile games to generate revenue. IGC can take many forms, including virtual currency, items, and power-ups. There are several types of IGC:
- Consumable IGC: These are items that are used up over time and need to be replenished. Examples include ammo for a weapon or lives in a racing game.
- Non-Consumable IGC: These are items that are not used up over time and can be used repeatedly. Examples include virtual currency, items, and power-ups.
Advantages of IGC:
- Provides an additional revenue stream for the game
- Encourages players to spend more time playing the game by offering them incentives
Disadvantages of IGC:
- May be seen as exploitative by some players who feel that the game is being pushed towards them to buy more
- Can lead to a "pay-to-win" model, where players with more money can advance further than those without
Best Practices for IGC:
- Offer a variety of IGC to cater to different player preferences
- Make IGC optional and not necessary to progress in the game
- Ensure that IGC is priced appropriately and offers good value for money
Case Study: Clash of Clans
Clash of Clans is a popular strategy game that has generated millions of dollars in revenue through IGC. The game offers players the option to buy virtual currency, items, and power-ups using real money. The game also offers daily bonuses and challenges that encourage players to come back every day and play. Clash of Clans’ success can be attributed to its addictive
