The mobile app industry is fueling like never before and given rise to thousands of lucrative app ideas every day. Among all the categories of mobile applications, mobile game apps have registered themselves as the most popular category. As more and more users are going crazy over games, the mobile game industry is thriving. It is giving opportunities to new players to come up with unique games and make grossing profits. But, do you ever wonder how the new releasing games are charging users with nothing to play and making millions?
As per Forbes, 2018 recorded the total gaming market revenue of $ 138.7 Billion. It is poised to grow by 9.6% and reach 152.1 Billion in 2019. As these games are free to download, the genuine question arises how these companies make money from their free app.
To understand this, we’ve listed down various ways how free games making grossing profits:
As these games are free to download and play, developers use the advertising model to generate money. Ads are considered to be one of the prime ways of monetizing the games app, where developers use different types of ads. While opening any game app, you might often see different ads placed within the app. This acts as a revenue model for app owners. The different types of ads placed within the app include:
- Display or banner ads: These are the most commonly used ads that are dynamically displayed at the top or bottom of the screen in different sizes.
- Interstitial ads: These ads are shown in the application automatically at intervals. These ads are usually displayed after getting through each level in the game, making them unintrusive.
- Incentivized ads: These ads act like a bonus in exchange for watching the video ad. These types of ads are most commonly seen in Candy Crush. In this the users get a new life or spin if they choose to watch the ad.
- Contextual ads: These ads are branded game play objects that are placed within the scenery of the game.
2- Micro-transaction model:
Micro-transactions allow users to make small transactions to buy small things in exchange for small prices to enrich users’ playing experience. For example, users can buy gold or lives in Subway Surfers in exchange for a small amount. Game addicts who want uninterrupted experience likely purchase them from a game app that acts as a revenue model for different apps.
These micro-transactions are in-game purchases which can unlock specific features. It allows users to buy virtual goods right through the game application. Different types of micro transactions include in-game currencies, random chance purchases (deals, packs or special gifts), in-game items and expiration. (where users are encouraged to make a transaction to continue playing)
Using different advertising techniques and the micro-transaction model is not enough. To make grossing profits through the game apps, developers also have leverage on other techniques. There are some games making use of subscriptions as a part of their revenue model.
The game owners charge a recurring fee from the users. in order to permit them to continue playing the same. In most of the cases, users pay their “subscription fee” on a monthly basis. However, this model is generally picked up by MMOs (Massively Multiplier Online) games. The other video games which require unbroken server hosting to function.
A freemium game app is free at the app store to download but it includes in-app purchases (using microtransactions). It allows users to pay money in order to unlock certain features. In this model, the developers give the core functionality of the game for free. They only keep some “extras” or “upgraded features” for users to pay.
For example, users can pay from the app in order to stop seeing ads. As these apps are free to download from the app stores. These apps generally have a more user base as compared to the paid ones. Through this technique, Once the owners download the application, they can be converted into paying users.
Though this technique is considered to be a little outdated nowadays with the usage of the freemium model. Yet there are few game apps that still leverage on shareware technique as their revenue model. This model allows the users to play a trial version or the demo version of the game for free.
Later requires the users to make the payment in order to unlock the full version of the game. The idea behind this mode is to entice the users by providing them a demo version. Then later ask them to pay in order to unlock the full version of the game.
There is no doubt that people are going crazy over game apps and these cool app ideas are dominating the app world. There are several games that have a huge following base. For them, it is not just techniques which fetch them huge money. It also uses various other techniques like selling merchandise & honoring events.
Imagine big game applications that are making millions. Games like Candy Crush, Monster Strike, League of Legends, Temple Run, Hay Day, PuBG, etc are already among the big players making huge profits. If you too have a gaming idea, go ahead, use the right revenue models and make your fortune.