Choosing the Right Revenue Model for Your Mobile Game: A Guide for Game Studios

Designing a revenue model for your game? 🎮 It’s not just about slapping on a “buy” button or showing an ad. It’s about choosing a model that aligns with your game's unique style, engages your players, and maximizes your revenue potential in the fast-paced world of mobile games and online games.

Let’s break down the revenue strategies—In-App Purchases (IAP) and In-App Ads (IAA)—and explore when each works best. With relatable examples and practical insights from the game development realm, you’ll have a roadmap to monetize your games without sacrificing player experience (which should be the most important thing in a game).

1. Which Revenue Model Works Best for Your Game?

Different games call for different revenue models. Casual gaming experiences thrive on IAA, keeping play-free and light.

Take Angry Birds, for instance. 🐦 Ads between levels keep players engaged without pressure to make a purchase. But for RPGs like Genshin Impact, IAP shines, allowing players to pay for character enhancements or new worlds to explore.

Match your model to your genre and your players’ habits. For hyper-casual mobile games, think IAA; for deeper story-driven gaming experiences, IAP offers value without interrupting immersion.

2. IAP vs. IAA Ratios on App Store vs. Play Store

Here’s the lowdown: iOS users tend to spend more on IAP, while Android users engage more with IAA. 📱 So, on the App Store, you’re looking at a 70% IAP / 30% IAA split.

For Android and the Play Store, it’s closer to 60% IAP / 40% IAA. Why does this matter? Android’s diverse user base often gravitates towards free-to-play models with ad-based options. Understanding these trends can help you balance ads and purchases smartly.

3. Pros and Cons of Each Model: What Fits Your Game?

Each model has unique perks—and potential pitfalls. Let’s compare them to help you decide what’s best for your game development journey:

The takeaway? IAP works wonders for games with dedicated fans, while IAA thrives in casual gaming environments. Use this insight to align your game development with the right revenue model.

4. Blending Models: When IAP + IAA Work Together

For certain online games, adopting a hybrid monetization strategy can be transformative. Combining in-app purchases (IAP) with in-app ads (IAA) lets you engage both paying users and ad viewers. Take Candy Crush Saga, for instance, where players can buy boosters or watch ads, creating a balanced revenue stream that appeals to different user preferences.

A hybrid model can also future-proof your mobile games. Players might start as ad viewers and later convert to paying customers once they’re fully hooked on the game experience.

5. Add Social Features to Drive Revenue

Want to amp up engagement? Add multiplayer and social features! Games like Fortnite allow players to show off unique skins and customizations in public matches, driving purchases.

The more your online games enable social interaction, the higher the likelihood that players will spend. After all, who doesn’t love showcasing their skills in a fun, competitive environment? 💸

6. Limited-Time Offers and Events: Boosting In-Game Spending

FOMO (Fear of Missing Out) can be a powerful driver of revenue. Timed events or limited-time offers work wonders for short-term spikes in spending. 🎉

Candy Crush leverages this brilliantly, introducing holiday-themed challenges that encourage players to invest. By crafting limited-time offers, you can monetize without overwhelming your users with constant ads or purchases.

7. Rewarded Ads: Let Players Control the Experience

Rewarded ads are all about value exchange. You’ve probably seen these in mobile games like Subway Surfers, where watching an ad gives players an extra life.

This model lets players choose to engage, making ads feel less intrusive. Users who can opt in are more likely to return, building loyalty and boosting revenue over time. It’s all about giving them a choice while keeping the gaming experience enjoyable!

8. Subscriptions: Adding Consistent Revenue Streams

Subscriptions can significantly boost revenue if your game offers ongoing value. Think of PUBG Mobile’s monthly pass that provides exclusive content and boosts to dedicated players.

Subscribers generate steady revenue, but only if they perceive genuine value. Ensure your subscription packages include worthwhile content or perks to keep players committed month after month.

9. Personalize Offers with Data-Driven Insights

Got analytics? Use them to personalize offers tailored to your audience. Tracking player behavior allows you to craft in-app purchase deals based on user habits.

For instance, if a player frequently spends on in-game currency, consider offering bundles for their preferred items. Personalization can make users feel valued—and, as a result, more likely to spend on your games.

10. Cross-Promote Games in Your Portfolio

If you have multiple titles in your arsenal, cross-promote within your game development portfolio. Studios like Zynga excel at this, encouraging players of one title to explore others. Cross-promotion can lead to increased downloads and keep ad revenue flowing.

Just ensure your games align in style or genre for a seamless transition that keeps players engaged across your offerings.

11. Optimize Ad Placement and Frequency

Ads are effective when they don’t overwhelm your players. Placing ads after levels or offering rewards for watching keeps users in control, especially in casual gaming like Crossy Road.

Too many ads? That’s a recipe for retention issues. Regularly monitor user feedback and find a balance between generating revenue and maintaining a positive user experience.

12. Adjust Pricing Regionally for Greater Affordability

Players across the globe have different spending power. Adjusting prices regionally makes IAP more accessible to your entire player base, enhancing the overall gaming experience.

PUBG Mobile, for example, tailors its pricing to local markets, maximizing purchases across diverse regions. Players appreciate this sensitivity, which broadens your reach in global markets.

When you’re devising your game design (for which we have a blueprint as well <add link>), start by really getting to know your target audience—understand what they love and what keeps them coming back for more. Dive into market trends and take notes on successful games in your genre; think about what makes them tick, whether it’s innovative gameplay or clever monetization strategies. Next, sketch out your game concept, focusing on those key features that make your title stand out.

As you develop your roadmap, break it down into phases, setting realistic milestones that keep your team motivated. Collaborate closely with artists, programmers, and marketers to ensure everyone’s on the same page and excited about the vision. 

Don’t forget to prioritize user feedback through playtesting—this is where you can really fine-tune the experience. We’ve talked about this in detail in our game design blog, so feel free to check it out for more insights! Establish a clear vision for your game’s art style and narrative, and make sure they mesh seamlessly with your gameplay. Keep an eye on your budget, allocating resources wisely for development, marketing, and post-launch support. And remember, analytics tools are your best friends; they’ll help you track player engagement and retention, empowering you to make informed decisions.

Finally, stay flexible! The gaming landscape changes quickly, so being open to feedback and ready to adapt can lead to unexpected enhancements that keep your game fresh and appealing in a competitive market. Embrace the journey, and let your passion for game development shine through!