How Do Free Mobile Games Make Money?
Find out how free mobile games make money through in-app purchases, advertising revenue, and data monetization.
Ever wondered how free mobile games manage to make money when all the ads in the game are from other free mobile games?
The answer lies in their revenue generation strategies.
In-App Purchases
Free mobile games make a significant portion of their revenue through in-app purchases.
These purchases are usually made by a small percentage of players known as ‘whales’.
These 'whales' represent around 20% of the user base but are responsible for a substantial amount of the game’s revenue.
This model is based on the Pareto principle, also known as the 80/20 rule.
Advertising Revenue
Another key revenue stream for free mobile games is through advertising.
While it may seem like a closed loop of game companies paying each other, the reality is that these games also run ads from various other sources.
These ads are bought as advertising packages and provide a steady income stream for the developers.
Data Monetization
Free mobile games often collect and monetize user data.
They analyze player behavior and preferences to offer targeted advertisements, as well as sell anonymized data to third-party companies.
This data is used for various purposes, including improving ad targeting and enhancing overall user experience.
Freemium Model
Many free mobile games operate on a freemium model, offering a free basic game while charging for premium features or ad-free experiences.
This model entices players with a taste of the game and then offers additional content or benefits for a price.
Game Sponsorships
Some free mobile games incorporate sponsorships and product placements within the game.
This could involve featuring products or brands within the game environment, adding another layer of revenue generation.
Subscription Services
In addition to in-app purchases and ads, some free mobile games offer subscription services.
These subscriptions provide players with exclusive in-game content, bonuses, or ad-free experiences in exchange for a recurring fee.
So, the next time you play a free mobile game and wonder how they make money, remember that there's a lot more to it than just in-game ads for other free mobile games.
