One of the most valued metrics in gaming is ARPDAU (average revenue per daily active user). This metric is especially significant to freemium game developers. According to research firm SuperData, freemium games accounted for 78% of the $139.9 billion in total gaming revenue generated in 2020. Developers are constantly looking for ways to boost ARPDAU.
Use of IAPs (In App Purchases) alongside traditional in-game ads has proven to be an effective growth strategy for big and small gaming companies alike. According to Statista, IAPs accounted for 73% of total revenue generated by RPGs in 2020. Numerous success stories validate the use of IAPs to enhance monetization among AAA games.
Prior to their $250 acquisition by Zynga, Gram Games tested IAPs on one their ten active games, the rest being ad monetized. The results led Gram Games to move towards IAP implementation across all titles, with 90% of their revenue being generated by this model (in-game ad revenue continued to grow over this time frame as well).
Any sequence of the game where players tend to get stuck should be revamped to keep players engaged in gameplay. Doing so will result in a reduction of churn rates, which allow more time in the player life cycle for monetization. By identifying important issues in game play, developers can use analytics to make sense of those issues and improve upon the user experience.
Identify users that are most likely to be monetized by in-game offers and focus marketing efforts on those users. By targeting segments of users, a marketing team can allocate resources to the highest converting groups and tailor promotions to each specific group’s needs.
Any friction within a game’s purchase funnel can put a damper on revenue generated. Teams should focus on each step of the purchase funnel, from add to cart to order confirmation. If a step of the funnel proves to hinder user conversions, that portion of the checkout process should be retooled to create an optimal user experience.
