HOW TO MAKE MONEY AS A GAME APP DEVELOPER?

Smartphones have changed the way people spend their time on mobile. Now you can watch movies, listen to music or even play games by just clicking on few buttons. Playing games on mobiles is the favorite pastime for kids and adults. Many companies are busy launching exciting new games so as to engage with their target market.

THE MARKET FOR GAME APPS DEVELOPMENT

Market share of App industry – The global mobile app revenue increased from $69.7 billion in 2015 to $88.3 in 2016. (App Annie) Android technology dominates the app segment with close to 88% market share followed by IOS technology with around 11-12 % market share. Around 0.4% to 0.5% goes to Windows phone.

Market share of game app industry – Mobile segment truly dominates the gaming market with around 42% market share in 2017. (Source: Newzoo) This comes to almost $46.1 billion. The revenue from gaming is from smartphones as well as tablets. But tablets contribute just close to 1/4th of the revenue. More people like to play games on mobile as compared to desktop. Hence, the demand for game app developer has increased exponentially in the past decade.

SMARTPHONES’ EXPONENTIAL GROWTH 

Usage of smartphones around the world – Worldwide, there are 2.32 billion smartphone users as of 2017. (Source: Statista 2018) It is expected to increase further because of decreasing prices and convenience factor.

Different platforms – Most of the smartphone users, use an Android or IOS phones. Majority of the games also run on Android and IOS phones as this two dominate more than 90% of the smartphone market. (Source: Gartner)

Usage of Applications on daily basis – Most of the people used utility related apps, followed by social networking, productivity, photos/videos, and games. People spent 79% of the time on music and 51% on social networking. As per research, people spend around 15% of the time on mobile games.

Future trends – New technologies like AR and VR will engage more gaming enthusiasts in the future. Pokémon Go is now a benchmark for mobile games utilizing VR technology. Virtual reality will take mobile gaming to a different level in future.

WHY IS GAME DEVELOPMENT A PROFIT INDUSTRY?

Recent trends – Mobile gaming is a niche category. But there are still many small and big players making money by the game app. These companies are constantly trying to give a different experience to the users. They constantly try to innovate. Recent trends have shown that social gaming is on the rise. Game developers are asked to synchronize the game with social media platforms so that the users can compete with their friends, relatives or colleagues on social media. Gaming companies want more engagement and competition.

Daily app usage and time spent– Traditional toy manufacturers have also realized the potential of mobile gaming and so they are also trying to adopt the digital media. The average smartphone user is spending 88 per minutes per day on smartphones. This provides an ample scope for companies to use the app medium for advertising. Many companies are trying to create brands by launching mobile games. This way, they are able to easily connect and engage with the target audience.

Examples of good money making game application– According to App Annie, Mobile games are expected to earn around $39.8 billion through ad revenue globally. Other revenue streams for mobile games include – paid subscriptions, in App purchases, subscription fee, data collection and selling, Merchandizing, Affiliate income etc. The mobile gaming medium is easily measurable and has got a wide reach for advertisers. So there is a good scope for it grow in the next few years.

Key Monetization Strategies

•  Advertisement Revenue – As a mobile game developer the game developer can approach companies and ask them for advertisement. The game developer can earn revenue on CPC or CPM basis.
• Free or paid Applications – a game developer can also earn through paid applications in the game. Certain applications which are more interesting can be paid applications for the user. · In-App Purchases – The game developer can also earn by placing a fixed price on the app. This way the user will have to pay if he/she wants to download and play the game.
• Subscription fee – The game developer can charge a nominal subscription fee which can be on a monthly or yearly basis. You should make sure that the game has good demand in the market.
• Cost per install networks – Companies can strategically place short banner ads in the game. This can help the publisher in driving more installation of the advertised application.
• Sponsorship – If there is a good brand connect between the game and the product then the game developer can ask for sponsoring the game.
• Physical purchases and merchandise – Once the game grows more in terms of popularity, the game developer can earn by way of merchandising. The game developer can create t-shirts, toys etc which will show the popular characters of the game.
• Collection of data and selling – Prior to logging into the game, the gamer sometimes needs to enter details like name, phone number etc. This data can be sold to other companies which may find it useful.
• Affiliate income –Game developers can also earn commission by affiliating with some websites.

Conclusion:

Every game is different. The game developers should smartly choose his way of earning income. If a certain game earns more through sponsorship then it may not necessarily more through in-App purchases. The app developer should choose the revenue source more wisely.