Monetization often ends up being an afterthought which means that it frequently doesn't tie in with other game elements. How do developers make monetization an integral part of the game development process? What factors do developers need to consider as part of game design? See this presentation to find out.

2. MONETIZATION
An integral part of game design
Tanvi Kapoor
Game Lover (& Hobby Developer)

3. Local Presence, Global Operations
6 Billion Daily Ad Requests
140 Billion Monthly Ad Impressions
Mobile First Advertising Platform
17 Offices and 900 Employees

4. A BRIEF HISTORY
Designing Games = Creating Fun!

5. Focus on MECHANICS, DYNAMICS & AESTHETICS
Aim to create fun, immersive & entertaining experiences

6. The only money exchange was at the point of sale.
Traditionally, monetization was not part of game design

7. But ‘free to play’ games changed everything
Monetization must be at the core of game design
Facilitated by the rise and ubiquity of smartphones
Making games accessible to a wider audience

8. MONETIZATION STRATEGIES
What is the most suitable business model?

9. Monetization choices
Traditional model of ‘pay before you play’ which can still
work well for big franchises and other niche titles
Free download of the game with monetisation coming
later through sale of virtual currency or consumable items
Monetise your traffic through advertising revenue by
showing banners, interstitial and video ads
Although a viable business model on PC / MMO games,
Apple has forbidden this for games (iOS Guidelines 11.15)SUBSCRIPTION
ADVERTISING
IN APP PURCHASES
PAID

10. Global IAP & Ad revenue in billion USD
2012 2013 2014
2.1
4.6
7.7
9.7
11.4
13.5
IAP vs. Ads Revenue
Ad monetization can represent up to 50% of a game’s revenue

11. Killers
Competitive gamers who like to
beat the game and other players
while mastering new tools of the
trade. Perfect target for limited
edition sales and early adopters
of new virtual goods.
Socialites
Competitive or casual gamers
who are more concerned about
sharing their achievements with
their social network be it good or
bad. Perfect target for creating a
viral effect for your game.
Achiever
Generally casual gamers who are
interested in collecting badges,
coins, etc as a matter of
prestige. They generally pay for
level ups and have the potential
to be big spenders.
Scrooges
Casual gamers who are loathe to
spending any money on the game.
Hacks and social incentives are the
most common tricks of their trade
to get ahead in the game play.
Types of Gamers…

12. IN APP PURCHASES
Monetizing ‘emotional’ states

13. CURIOSITY
IAPs can be centered around FOUR player emotions
COMFORT
AMBITION
IMPATIENCE

14. 1. If your game has new levels/content,
announce them ahead of time.
2. Log all stats of your player’s games.
You can offer statistics on how your
users stack up, as an IAP
3. Provide samples of IAP-based
content. Eg: a special gun that can be
used twice for free before you can
buy it.
CURIOSITY Monument Valley
Ruzzle
Fruit Ninja

15. 1. IAPs that help users overtake
friends (which would imply a social
angle to the game)
2. Own awesome things/collectibles
3. Cater to different demographics
and tastes
Draw SomethingAgent DashTemple Run 2
AMBITION

16. 1. Provide tools for easy progress
2. Give things that will speed things
up in a game
COMFORT
Jetpack JoyrideCookie Clickers

17. IMPATIENCE
1. Offer IAPs at tough moments. Eg:
‘save me’
2. Limited time offers / One time
deals
Doodle Jump: DC Edition
Image source: raywenderlich.com

18. WINNING WITH AD MONETIZATION
Unlocking a significant revenue stream

19. Questions, Choices, Decisions
What is the optimal ad placement?
What ad formats are available and which ones should I use?
How many ads should I show per user per session per day per hour?
Will ads impact user retention and IAP monetization?
How can I maximize my ad revenue?
What is mediation, and how does it work?
How many ad networks should I work with?

20. Player goes through an emotional rollercoaster while playing a game
Leading to states of EXPLORATION, ACHIEVEMENT & DISENGAGEMENT

21. Multiple Ad Formats
USE ONE or USE ALL?
Standard Banners
Static Interstitials
Animated (Rich Media) Interstitials
Video Interstitials
Rewarded Video
Native Ads

22. INTERSTITIAL
HIGH CONVERSION FULL SCREEN FORMAT
“Push” Format
Segment user base to only non-
buyers
Placement at natural pauses in
the game
Custom frames improve CTRs
Static Animated Video
$8 - $12 eCPM
In tier 1 countries

23. REWARDED VIDEO
HIGH CONVERSION FULL SCREEN FORMAT $10 - $15 eCPM
In tier 1 countries
2
3
4
1
Featured Game: Compass Point West by Next Games
“Pull” Format
Works for both buyers and non
buyers
Make them feature in the
game, a retention tool
Offer currency, consumables
and exclusives!

24. Lets explore a few examples

25. Casino & slots
More than 5% Paying Users
Game Dynamics:
10 Sessions per Week for Casino
20+ Sessions per Week for Slots
40-45 yr old Males
35-50 yr old Females
A user who hasn’t been paying for 9 months can also turn out to be a whale. Hence User Experience is key!
Monetization Method:
Focus on in-app purchases
Limit the use of banners
Show only high eCPM ad formats at sufficiently
long intervals
Leverage Rewarded Ads to increase retention

26. Endless runner games
Less than 2% Paying Users
Game Dynamics:
5-10 Sessions per Week
Average session length of 2-5min
20-25 yr old Players
Almost 60% of players are
Females
Monetization Method:
Combination of interstitials, rich media (videos)
and rewarded videos
Show video ads when the gamer beats his high
score or every 5 turns
Show rewarded ads when the gamer has failed in
his attempt to beat the challenge
Show interstitials every 2/3 turns

27. Arcade games
Less than 1% Paying
Users
Game Dynamics:
5-15 Sessions per Week
Average session length of < 4 min
25-35 yr old Players
50 - 65% of players are
Females
Monetization Method:
Combination of interstitials, rich media /
videos
Show video ads when the gamer beats his
high score or every 10 turns
Show interstitials every 3-5 turns

28. Action & adventure games
2-5% Paying Users
Game Dynamics:
5-10 Sessions per Week
Average session length of 10 mins
20-35 yr old Players
70% of players are Males
Monetization Method:
Combination of rich media /videos, rewarded
video ads
Show video ads when the gamer beats his high
score
Show rewarded video ads in the shop front to
complement IAP

29. Playable Ads
After trying 10 times,
disengagement sets in.
It is best to monetize
with a high eCPM format.
Long Wait
Level Win
Short Wait
Level Lose
Turn Counter
%10 = 0?
Turn Counter
%5 = 0?
Rewarded
Counter = Y?
Score < 10?
Score < High
Score?
Score < 15
Yes
No
NoYes
Turn Counter
%3 = 0?
Native Interstitials
If time spent playing the game
is less (<10 seconds), show the
interstitial every 3 times.
Yes
No
Do
Nothing
Yes Yes
Rewarded Ad
Video Ad
If rewarded deals for
the day are over for
the user, monetize
with a video ad.
No
No
Yes Yes
If time spent playing is less than 15
seconds, show an interstitial ad instead
A simple ad-rule
template can be
customized for
every game
category

30. IMPLEMENTATION
Choose the right partners!

31. Choosing the right mediation partner
# of networks integrated with
Ad formats supported
Tech support offered
Ease of use
Commercial offer

32. Choosing the right ad networks
PERFORMANCE: eCPM and fill rates
SCALE: To match your users & inventory
AD FORMATS: Networks often specialize
EASE OF USE: Documentation, customer support
PAYMENT TERMS: Payment cycle, etc.

33. Thank You!
Tanvi Kapoor
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