Mobile Games Revenue Models
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Mobile Games Revenue Models

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You can see more details in my blog: http://startupbizmodel.com

You can see more details in my blog: http://startupbizmodel.com
(in portugueses)

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Mobile Games Revenue Models Mobile Games Revenue Models Presentation Transcript

  • Mobile Games Revenue Models! Thiago Paiva! ! Blog: http://startupbizmodel.com! Twitter: @ThiagoPaiva!
  • Introduction!Today,  smartphones  are  a  great  way  to  play  games  like  Angry  Birds  and  Zombie  vs  Plants.  These  casual  games  are  easier  to  be  done,  which  allow  independent  developers  to  make  their  own  games  too.    But  they  usually  don’t  know  very  well  about  the  revenue  models  they  can  use  to  mone?ze  their  games.  That’s  way  I  had  the  idea  of  doing  this  presenta?on.    Here  I  will  present  the  most  common  revenue  models  for  mobile  games,  explain  a  liEle  bit  about  their  pros/cons  and  give  some  examples.  
  • Selling Games!This  is  the  most  common  way  games  developer  uses  to  earn  money,  because  it’s  the  easiest  one  and  have  good  results.      Good:   Easiest  model  to  use  and  users   are  very  familiar  with.   Cut  the  Rope,  Angry  Birds  and  Zombie     vs  Plants  are  successful  example  of    Bad:   games  that  used  game  selling.   One  ?me  revenue,  hard  to     define  prices  and  less  users   Best  alterna?ve  to  new  game   then  free  to  play  games.   developers.  The  only  difficult  here  is  to     define  best  price  to  sell  the  game.  
  • Startup Biz Model – Brazilian Startups Business Model www.startupbizmodel.com Awesome Brazilian Startups Business Model Analysis Advertisement!Other  simple  form  to  earn  money  with  games  is  using  ads  inside  games.  We  have  3  different  approaches  to  that:   Best,  Fun  &  Cool  Games  uses  preEy     well  cross-­‐ads  games  to  promote  their  •  Nego?ate  directly  with  third-­‐ best  games,  Bunny  Shooter  is  an   party  to  put  their  ads.   example,  that  they  used  cross-­‐ads  to  •  Nego?ate  with  an  ad  network   lead  to  it  and  them  mone?ze  it  with   to  put  ads.   ads  they  nego?ate  directly.  •  Use  cross-­‐ads  games  in  poor     or  old  games  to  promote  one   iAds  is  an  ad  network  that  makes  it   that  can  be  mone?ze  more.   easier  to  put  ads  in  games.      Good:   Bad:  Users  aren’t  charge  for  this  and   Less  money  per  user,  need  great  user  allow  apps  to  be  free.   base  to  make  good  money.  
  • Subscription!In  the  subscrip?on  model,  users  pay  a  fee  per  month  (usually)  to  play.  The  good  thing  about  this  model  is  that  provide  recurring  revenue,  instead  of  a  one  ?me  selling  a  game,  but  you  need  to  keep  developing  for  this  game  so   Two  good  examples  of  subscrip?on  users  always  find  something  new   models  are  the  MMO  RPG  Order  &  that  makes  them  want  play  more.   Chaos  and  the  game  portal  Big  Fish     Games,  both  you  have  to  pay  for  month      Good:   to  use  them.   Recurring  revenue.       This  model  is  beEer  used  in  MMO  RPGs,    Bad:   but  can  be  used  in  in  others  as  social   Need  to  be  updated  frequently   games  too.   and  is  difficult  to  manage  it.  
  • In-App Purchases!This  is  model  is  proving  to  be  one  of  the  most  successful  models  for  mobile  games.  Usually,  game  is  a  free-­‐to-­‐play  game  that  sells  virtual   This  model  is  especially  good  for  social  goods  to  let  users  accelerate  things,   games  like  Farm  Ville,  Smurfs,  BaBle  get  more  money  or  buy  special   NaDons  and  Snoopy’s  Fair.  Where  there  is  thing.   a  compe??on  between  the  users  and  they     can  buy  stuffs  to  get  beEer  than  their      Good:   friends  faster.   Allow  users  to  spend  as  much  as     they  want  in  these  games.   This  model  is  an  applica?on  of  the     Freemium  model  studied  by  Chris    Bad:   Anderson.   It’s  difficult  to  use  in  a  good  way,   need    strategy  and  constant   updates.  Only  a  small  percentage   of  users  will  pay  for  this.   Free,  by  Chris  Anderson:  Introduces  the  freemium  model  
  • Advergames! This  model  is  different  from  others,   because  the  game  is  made  to  a   specific  adver?sement  campaign  of   a  company.      Good:  Games  are  more  simple  to  be   Sprite  City  and  Pepsi  Twist  Shot  are  made  and  game  devs  don’t  run   some  examples  of  advergames.  all  the  success/failure  risk  of   Usually,  these  games  are  directed  to  games   kids  and  teenagers.      Bad:  Games  devs  don’t  run  all  the   Ow,   Yeah!  success/failure  risk  of  games  
  • Free Games!This  may  look  like  a  bad  idea  but  is  very  handy.  Game  devs  use  free  version  of  games  to  promote  the  paid  version,  use  free  games  just  to  promote  themselves  or  in  combina?on  with  other  revenue  model.     Angry  Birds  Free  and  Cut  the  Rope    Good:   Lite  are  examples  of  free  games  to  It’s  nice  and  cheap  marke?ng   promote  their  paid  version.  tool  to  promote  games  and    makes  it  easier  to  get  a  large   Free-­‐to-­‐play  games  are  been  very  base  of  users.   successful,  because  thei  create  a     large  users  base  and  mone?ze  it    Bad:   selling  virtual  goods  Have  to  think  carefully  to  not  cannibalize  your  paid  game  or  other  revenue  sources.  
  • Sell Real Products!This  model  is  based  in  make  products  around  your  game  and  sell  it,  plush  toys  are  the  most  common  example.  With  this  you  can  increase  the  bound  your   You  can  create  almost  anything  users  have  with  your  game  and   around  your  game  to  sell,  that  goes  earn  some  extra  money  with   from  plush  toys  to  shirts  and  even  that.   pen  drives.  But  your  game  needs  to   be  a  hit  for  this  be  a  good  op?on.      Good:     Increase  users  bound  with  the   Some  examples  are  Angry  Birds,   game  and  is  another  source  of   Fruit  Ninja  and  Cut  the  Rope.   revenue  besides  game  itself.   A  good  way  to  do  this  is  licensing  to     others  companies  sell  the  products.    Bad:   Need  users  to  be  fans  of  the   game  to  buy  and  need  a  large   quan?ty  to  worth  it.  
  • Using Multiples Models !As  you  can  image,  you  can  (and  probably  will)  use  more  than  one  revenue    model.  Bellow  there  are  some  strategies  to  combine  them:   Free Game + Ads! This  is  a  good  combina?on  to  earn  money  both  ways,   using  a  limited  free  version  to  let  people  try  your  game   Selling Game! but  s?ll  mone?zing  them  with  ads  and  if  they  like  it  sell   the  game.   In-App A  nice  combina?on  to  have  a  good  number  of  users  and   Purchases! mone?ze  them  in  two  ways:  Selling  premium  op?ons  (ex.   +   Virtual  goods)    and  ads.  This  way  you  mone?ze  even  the   Ads! user  that  don’t  buy  premium  op?ons   Selling Games! This  combina?on  is  a  selling  game  and  use  in-­‐app   +   purchases  to  sell  virtual  goods  to  maximize  the  game   In-App revenue.  Angry  Birds  use  this,  if  you’re  stuck  in  a  level,   Purchases! you  may  pay  US$  0.99  to  pass  this  level.  
  • A little Example!Angry  Birds  is  a  great  example  on  how  to  use  different  revenue  models  combine.  They   have  2  apps  in  Android  Marketplace  and  2  in  App  Store  with  different  strategies:   Free Version + Ads ! Selling Game + Virtual Goods! Free + Ads + Virtual Goods! Selling Game + Virtual Goods! Angry Birds Store - Sell Real Products ! (Shirts, Plush Toys, Pen Drives, Bags…)!
  • App Stores!Is  good  to  remember  that  different  app  stores  need  different  strategies  to  maximize  a   game  revenue.  Here  are  the  5  most  important  apps  stores:   Blackberry! iOS! Android! Windows! Nokia! You  should  think  carefully  before  developing  a  game  which  one  app  store  is  beEer  for  your  game,  maybe  is  not  the  best  op?on  to  develop  a  social  game  to  Blackberry  plaform   but  could  be  an  awesome  opportunity  to  develop  a  casual  game.