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Choose Best Revenue
model for mobile games
in Cafebazar
Present by : @Bhamidpour
Why Mobile ?!
 sales of mobile devices were expected to reach 2.5 billion units in 2015 !
 mobile phone penetration will rise from 61.1% to 69.4% of the global
population between 2013 and 2017 !
 User intended use 3G, 4G network instead wifi !
 app economy will create revenues of more than €10 billion per year within
the European Union
Type of games and app in revenue model
Type of games and app
 1. Free
 2. For sale
 3. in-app purchase
in-app purchase revenue grew more
than 50% from 2013 to 2014
53%
1%
30%
22%
17%
78%
VOLUME REVENUE
CAFEBAZAAR CONTENT
SALE TYPES
Free For Sale In-app purchase
Type of games and app in revenue model
Key Factors That Depends App store
 The effect of revenue models on app performance depends on the app store.
 The effect of in-app purchase on app performance depends on the app store.
 Paid, freemium and in-purchase models are shown to be effective in App Store.
 Freemium and in-app purchase models are shown to be less effective in Google
Play.
 App category influences the effects of both revenue models and in-app purchase.
Now, App or Mobile Games ?
58%
42%
World App Stores / Categories
Games Other Categories
76%
24%
World App Stores/In-app purchase
Games Other Categories
Now, App or Mobile Games ?
 Total mobile game revenue is predicted to double
by 2017
 Small screen sizes and hardware limits is not a
important issues for gamers
 Games contain 15% and apps contain 85% of
cafebazaar content but games makes money 50% of
total sales !
 Just 1.35% of mobile game players spent real money
for the game ! In July 2014
…So now what’s your choice ? :)
15%
85%
Cafebazar Distribution
Games Apps
50%50%
Cafebazar Revenue
Games Apps
“
”
In payment behavior studies, perceived value
and loyalty are recognized as the main
determinants of payment intention
According : Choi and Kim 2004; Rauyruen and Miller 2009; Lu and Hsiao
2010; Hsu and Lin 2015
 Loyalty to business-to-business services leads to future transactions
 The perceived value of having the Internet on a mobile device influences
smartphone users’ intention to pay for mobile services
 Satisfaction with social networking services might not affect users’ willingness
to pay, but perceived value does.
Pay LoyaltyValue
Value
Emotional
Playfulness
Social
Connectedness
Price
Good Price
Reward
Quality
Access
flexibility
Control variables
Control
variables
Age
Gender
HabitIncome
Platforms
Value, Loyalty, In-app purchase model
Sample : Tower of Saviors
3309
Responses
89%
male
51.25%
17-22years
75.4% pay at
least once
44.86%
1-3hours
Analysis Results of paid-players
Analysis Results of unpaid-players
References
 Articles :
 Kuo-Lun Hsiao , Chia-Chen Chen, 2016, What drives in-app purchase intention for mobile games
 Paolo Roma, Daniele Ragaglia, 2016, Revenue models, in-app purchase, and the app performance: Evidence from
Apple’s App Store and Google Play
 Christoffer Rosen · Emad Shihab, 2016, What are mobile developers asking about? A large scale study using stack
overflow
 Chin-Lung Hsu , Judy Chuan-Chuan Lin , 2016, Effect of perceived value and social influences on mobile app stickiness
and in-app purchase intention
 Long-Sheng Chen, Meng-Ru Lin, 2015, Key Factors of In-App Purchase for Game Applications
 Ming Cheung1, James She1, Ringo Lam, 2014, Analyzing the User Inactiveness in a Mobile Social Game
 Books :
 Roy Sandberg ,Mark Rollins, The Business of Android Apps Development (Making and Marketing Apps that Succeed on
Google Play, Amazon Appstore and More)
 Taylor Pierce ,Dave Wooldridge, The Business of iOS App Development (For iPhone, iPad and iPod touch)
 Magazines :
 Peyvast Monthly Magazine, Iran, 2015
Any Question ?!
Ask Now or confirm me by @BHamidpour
Thank you and Go on
playing Games :)

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Choose best revenue model for mobile games in cafebazar

  • 1. Choose Best Revenue model for mobile games in Cafebazar Present by : @Bhamidpour
  • 2. Why Mobile ?!  sales of mobile devices were expected to reach 2.5 billion units in 2015 !  mobile phone penetration will rise from 61.1% to 69.4% of the global population between 2013 and 2017 !  User intended use 3G, 4G network instead wifi !  app economy will create revenues of more than €10 billion per year within the European Union
  • 3. Type of games and app in revenue model Type of games and app  1. Free  2. For sale  3. in-app purchase in-app purchase revenue grew more than 50% from 2013 to 2014 53% 1% 30% 22% 17% 78% VOLUME REVENUE CAFEBAZAAR CONTENT SALE TYPES Free For Sale In-app purchase
  • 4. Type of games and app in revenue model
  • 5. Key Factors That Depends App store  The effect of revenue models on app performance depends on the app store.  The effect of in-app purchase on app performance depends on the app store.  Paid, freemium and in-purchase models are shown to be effective in App Store.  Freemium and in-app purchase models are shown to be less effective in Google Play.  App category influences the effects of both revenue models and in-app purchase.
  • 6. Now, App or Mobile Games ? 58% 42% World App Stores / Categories Games Other Categories 76% 24% World App Stores/In-app purchase Games Other Categories
  • 7. Now, App or Mobile Games ?  Total mobile game revenue is predicted to double by 2017  Small screen sizes and hardware limits is not a important issues for gamers  Games contain 15% and apps contain 85% of cafebazaar content but games makes money 50% of total sales !  Just 1.35% of mobile game players spent real money for the game ! In July 2014 …So now what’s your choice ? :) 15% 85% Cafebazar Distribution Games Apps 50%50% Cafebazar Revenue Games Apps
  • 8. “ ” In payment behavior studies, perceived value and loyalty are recognized as the main determinants of payment intention According : Choi and Kim 2004; Rauyruen and Miller 2009; Lu and Hsiao 2010; Hsu and Lin 2015  Loyalty to business-to-business services leads to future transactions  The perceived value of having the Internet on a mobile device influences smartphone users’ intention to pay for mobile services  Satisfaction with social networking services might not affect users’ willingness to pay, but perceived value does. Pay LoyaltyValue
  • 11. Value, Loyalty, In-app purchase model
  • 12. Sample : Tower of Saviors 3309 Responses 89% male 51.25% 17-22years 75.4% pay at least once 44.86% 1-3hours
  • 13. Analysis Results of paid-players
  • 14. Analysis Results of unpaid-players
  • 15. References  Articles :  Kuo-Lun Hsiao , Chia-Chen Chen, 2016, What drives in-app purchase intention for mobile games  Paolo Roma, Daniele Ragaglia, 2016, Revenue models, in-app purchase, and the app performance: Evidence from Apple’s App Store and Google Play  Christoffer Rosen · Emad Shihab, 2016, What are mobile developers asking about? A large scale study using stack overflow  Chin-Lung Hsu , Judy Chuan-Chuan Lin , 2016, Effect of perceived value and social influences on mobile app stickiness and in-app purchase intention  Long-Sheng Chen, Meng-Ru Lin, 2015, Key Factors of In-App Purchase for Game Applications  Ming Cheung1, James She1, Ringo Lam, 2014, Analyzing the User Inactiveness in a Mobile Social Game  Books :  Roy Sandberg ,Mark Rollins, The Business of Android Apps Development (Making and Marketing Apps that Succeed on Google Play, Amazon Appstore and More)  Taylor Pierce ,Dave Wooldridge, The Business of iOS App Development (For iPhone, iPad and iPod touch)  Magazines :  Peyvast Monthly Magazine, Iran, 2015
  • 16. Any Question ?! Ask Now or confirm me by @BHamidpour
  • 17. Thank you and Go on playing Games :)