With the mobile gaming market expected to touch $100 billion, in-app purchase is emerging as an important tool for gaming firms to earn revenue
With the mobile gaming market expected to touch $100 billion, there are multiple ways for gaming firms to earn revenue and in-app purchase is one of the most important ways. However, a lot depends on the experience, “You have to keep in mind that when a game runs ads, the benefits it gives should be different from the benefits the users buy via in-app purchases (IAP). If both of them overlap, the company ends up losing the revenue it could’ve made throup IAP to ads,” Vimal Sathish, lead game designer, Zynga. Sathish was speaking at the inaugural edition of the India Gaming Summit. Sathish further added that incase of IAP’s, games need to give value to the customer for the money paid. “If ads are integral to the core of a game, it can be seamlessly integrated in the game anywhere and anytime without disrupting user experience,” he added. The session was moderated by Ashish Pherwani, partner – Media and Entertainment, EY India.
When it comes to better optimisation of ads, companies feel it is important for the ads to be interactive, “In terms of ad placements in the games, we play around with the current mechanics. What we have realised is that a lot of gamers might not go to the particular ad feature to get gaming currency but if ads are displayed in an interactive manner, it has a positive effect,” Afsar Ahmad, co-founder, Gameberry Labs, said.
Citing an example of Paper Boat Apps managed to get subscription revenue rolling in, Anupam Dhanuka, co-founder and CEO, stated, “we are the only gaming company which has had success with subscription which I primarily attribute to our target consumer which are preschool kids. To succeed in subscription you have to provide continued value, fresh content and maintain constant communication with your customer.” According to him, one has to research the segment very well and price it smartly. Additionally, the company’s move to provide users a taste of its content before they had opted for the trial, seems to have worked in its favour. “Adoption and acceptability of sessions is increasing across geographies now.” he added. Hence, it is important to firms to not only up the ante on content, even ads need to be interactive to drive purchases.