Monetization reports and market data
Documents
F2P Design Tips for 2021, Collections FTW (3 of 4) Ft. Jeff Witt
Collections represent a highly versatile and effective design feature for free-to-play games, capable of integration across diverse genres ranging from RPGs and strategy titles to social casino and farming games.
- Collections function as a versatile, low-risk engagement tool that provides short-term, achievable milestones to break the monotony of core gameplay loops across genres like RPGs, strategy, and casual games.
- Designers should integrate collection systems early in the development cycle rather than as post-launch additions to ensure they effectively bolster player retention and provide consistent objectives.
- To maximize effectiveness, developers must tie the acquisition of collection pieces to specific, thematic in-game actions, which helps educate players on progression while providing secondary goals.
F2P Design Tips for 2021, Embrace System Deprecation (2 of 4) Ft. Jeff Witt
For developers managing long-running free-to-play games, the strategy of system deprecation is essential for maintaining economic health and player engagement.
- Developers of long-running free-to-play games should use system deprecation to reset economic balance when veteran players accumulate resource stockpiles that render original progression systems ineffective.
- Instead of inflating costs or adding incremental tiers, developers should introduce entirely new currencies or inputs to regain control over the game economy and reset player expectations.
- The mobile title Summoners War successfully implemented this strategy by introducing a 'second awakening' system that required new energy and boss-fight materials, bypassing the obsolete resources held by long-term players.
TWIG 122: PUBG New State, Genshin Impact Dev Costs, Google Stadia Problem, Spotify Remote Work
The gaming industry is currently undergoing a significant strategic recalibration, characterized by a retreat from forced live-service models toward more sustainable, premium-focused development.
- Modern AAA gaming dominance requires massive capital, exemplified by Genshin Impact’s $100 million initial development cost and $200 million in annual maintenance.
- Major publishers are shifting away from forced live-service models toward sustainable, premium-focused development to mitigate the financial risks of project failures.
- The gaming market is experiencing extreme saturation, creating high barriers to entry that favor established studios with significant capital reserves over mid-sized competitors.
Ad Tech + Game Studios | The BIG Dangers from AppLovin, Zynga, and More Coming!
The mobile gaming industry is undergoing a profound structural shift driven by the vertical integration of ad networks, game studios, and measurement platforms.
- Vertically integrated firms like AppLovin and Zynga are consolidating ad mediation, network infrastructure, and attribution data, creating a conflict of interest where they act as both service providers and direct competitors to the studios they serve.
- These integrated entities leverage granular performance data from their partners to gain proprietary insights into user behavior and revenue margins, potentially disadvantaging independent developers who rely on their platforms.
- Despite the risks of platform bias and data exposure, studios remain locked into these ecosystems because the immediate necessity for high-performance user acquisition outweighs the difficulty of scaling through alternative channels.
F2P Design Tips for 2021, Copy Clash Royale! (1 of 4) Ft. Jeff Witt
Game design strategy for 2021 emphasizes the importance of selectively adopting successful mechanics from established titles rather than replicating entire systems.
- Adopt the real-time, card-based combat mechanics of Clash Royale while decoupling them from its shallow card economy to avoid long-term engagement and monetization plateaus.
- Replace flat, steep stat-boost models with a granular progression system spanning 40 to 60 levels rather than the standard 12, ensuring more frequent rewards and consistent player achievement.
- Mitigate the frustration of long grinds by keeping players within 'striking distance' of the next milestone through more frequent, manageable progression rewards.
Superstar Fireside Chat: The Importance of Culture & Values When Building a Free-to-play Studio
This fireside chat, held at the February 2021 Pocket Gamer Connects Digital event, explores the role of organizational culture and values in the success of free-to-play game studios.
- Successful free-to-play studio management relies on a decentralized model that empowers autonomous, veteran-led teams rather than top-down corporate structures.
- Leadership in high-performing studios functions as a support system for game teams, maintaining an inverted hierarchy to preserve the entrepreneurial spirit required for innovation.
- Trust and autonomy are only effective when paired with high levels of professional discipline, competence, and experience within the development team.
The State of Mobile Gaming in 2021
The mobile gaming industry experienced a transformative period in 2020, solidifying its position as the dominant force in global entertainment.
- Mobile gaming solidified its dominance in 2020 with $143 billion in consumer spending, accounting for 70% of all app store revenue and projected to outperform all other gaming platforms combined in 2021.
- Daily mobile gaming engagement reached an average of 4.2 hours, representing a multi-year acceleration in consumer behavior that establishes mobile as the primary hub for digital entertainment.
- Market dynamics show a split between volume and value, with casual games driving 80% of downloads while core games capture 66% of total consumer spending.
#ElevateYourGame: Improve Revenue & Retention With the Right Ads Approach
Modern mobile game monetization increasingly relies on a hybrid model where in-app advertising functions as a core component of the player experience rather than a disruptive afterthought.
- Approximately 65 percent of developers now utilize a hybrid monetization model, integrating in-app advertising alongside in-app purchases to improve both revenue and player retention.
- Transitioning from traditional waterfall structures to a unified auction model using real-time in-app bidding increases operational efficiency and maximizes gross revenue by allowing demand sources to compete for every impression.
- Rewarded video is the industry’s fastest-growing and most player-accepted ad format, making it the primary vehicle for integrating ads into the player experience without disrupting engagement.
Superstar Speed Panel: Navigating Uncertainty: Apple Privacy Changes & the Impact on Ad Monetisation
Apple’s implementation of stringent privacy changes and the subsequent loss of Identifier for Advertisers (IDFA) data have fundamentally altered the mobile gaming landscape, forcing developers to navigate a period of significant financial uncertainty.
- The loss of Identifier for Advertisers (IDFA) data has forced a strategic pivot away from granular user tracking toward a model prioritized by product quality and diversified monetization.
- Studios are offsetting downward pressure on eCPM rates by focusing on increasing session duration and long-term retention metrics to maintain profitability.
- Developers are reclaiming user data ownership by implementing third-party login systems and integrating in-app purchases to reduce reliance on external ad networks.
Panel: Lessons Learnt in Game Monetisation
Modern game monetization is defined by a strategic shift toward hybrid models that integrate in-app purchases, subscriptions, and advertisements to accommodate diverse player behaviors and genre-specific requirements.
- Modern monetization relies on hybrid models that integrate in-app purchases, subscriptions, and advertisements to cater to diverse player behaviors rather than relying on universal industry benchmarks.
- Developers should prioritize iterative testing and data-driven insights to balance complex in-game economies and maintain long-term player retention.
- Machine learning and automated bidding systems have replaced manual waterfall management to improve the precision of user acquisition and targeted offer delivery.
Mo Money Less Problems! Increasing Revenue Without Damaging Retention
Non-intrusive audio advertising represents a viable strategy for mobile game developers to generate incremental revenue without compromising player retention or disrupting the core gameplay experience.
- Non-intrusive audio advertising generates incremental revenue without cannibalizing existing monetization models like rewarded video or negatively impacting player retention.
- Audio ads achieve click-through rates between 6% and 8%, significantly outperforming standard banner ad benchmarks.
- Developers can secure CPMs ranging from $6 to $10 by implementing audio advertising strategies that respect the player's environment.
How to Monetise Mobile Games in 2021
The mobile gaming industry faces significant monetization challenges in 2021, primarily driven by Apple’s iOS 14 privacy updates.
- Apple’s iOS 14 App Tracking Transparency framework restricts IDFA access, necessitating the integration of SKAdNetwork IDs and updated SDKs to maintain ad performance and mitigate declining eCPM rates.
- Publishers should adopt a hybrid monetization strategy combining in-app purchases (IAP) and advertising to maximize lifetime value, as fewer than 5% of users typically engage in IAP.
- Transitioning from manual waterfall management to automated bidding systems can increase ARPDAU by up to 27% and reduce ad operations time by 50%.