Is in-app purchase the best way for mobile games to profit?
Yes it is, according to the 176 developers who partook in a recent VentureBeat Intel study; the technique was deemed cost-effective and most popularBy Jonathan Toyad 16 Apr, 2014
Thinking about supporting your favourite free-to-play mobile game such as Clash of Clans or Brave Frontier? Then show your affection by paying for in-game content, because that’s the only effective way mobile developers can make money to support their businesses.
This conclusion comes from a recent VentureBeat Intel report (via Gamasutra), which collected data from 176 developers and over 1,000 mobile games. The reasons the in-app purchases model scored highest include the technique being cost-effective for the effort and popularity on company surveys. In-game banner and video ads also scored high.
The top platform for developers to make money is Google (via Google Play, no doubt). It’s also the default option for developers who don’t have the time and effort to use other platforms.
The report argued that these devs are cheating themselves by not taking advantage of multiple monetisation methods from top companies that are acquiring larger shares of ad revenue per user.
It also revealed other less popular methods that can turn out to be effective; these include text walls, in-app promotion of other apps, and offer walls where players are given the option to accept an advertising offer. In addition, the least effective method of monetisation is offering premium paid downloads.
That’s all the free advice for you budding independent mobile game developers out there. Investors, publishers and developers who wish to find out more about the mobile games business scene can shell out US$499 for the full report.