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Game Basics: Monetization
MONETIZATION
The means in which a game produces revenue,
by applying game mechanics that make players
            pay with actual money




   ARPU / ARPPU                kDAU                LIFE TIME VALUE
Average Revenue Per   The revenue generated   The Revenue generated by
  Player (monthly)     by every 1,000 daily   a player during his life time
                            active users              in the game
CURRENCY
 Digital games use a variety of virtual resources,
   used by players to purchase in-game goods,
         trade and nurture their game play




     SOFT CASH                HARD CASH                  JUST CASH!
Game world currency.        Currency used to        Direct cash payment is
    Acquired by         purchase premium goods       becoming a popular
 performing actions     and services. Acquired by   choice in virtual games
  within the game         spending real money
Game Design - Monetization
VIRTUAL GOODS
In-Game items/assets that have a unique visual
   or functional value within the game world.
 Purchased by conducting Micro Transactions




     VANITY                     UTILITY                  CONSUMABLES
Goods with a visual   Virtual Items that have a     Utility goods consumed
aspect only; Capes,     game-altering effect:     upon usage, having a time-
Clothware, Tattoos,   Boots that grant speed,     limited effect on the game
   emblems, etc             Weapon, etc             (potions, boosters, etc)
Game Design - Monetization
PREMIUM CONTENT
       Top Quality game content, deprived from
                    Freemium users.
       Offering a unique visual or utility incentive




     EYE-CANDIES               GAME LEVELS                    CONTENT!
   Portraits, symbols,     Unique game areas or       Actual premium content
emblems, backgrounds and   levels that can only be   such as music tracks, video
      visual assets         accessed by premium        clips and inside stories
                                    users
Game Design - Monetization
RULE OF CONVERSION
   When dealing with Micro-Transactions,
  Only a small amount of players will actually
       convert to become paying users




90 9
   non paying     paying users
                                       1
                                   power users‫‫‬
‫‫‫‬    $0            $5-$60          $100-$1000
CONSUMABLES
     Limited quantity goods, used by players to
        affect gameplay and bend the rules
     Can be limited by time-frame or Quantity




         BUFFS                    HEX                    REGENERATOR
   Buffs are positive    Hex are negative effect       A consumable that
effects applied on the   applied on opponents      regenerates a lost attribute
player or his comrades   (slowing or weakening        (health, energy, etc)
                                 them)
Game Design - Monetization
RESOURCES
  A gameplay unit, used to measure/limit the
amount of activity a player can conduct in every
                 game session




            PLAY MORE                              QUICKENING
  Usually used in skill games, Play-   A quickener enables a player to bypass
  More resource enables a player to     “grinding” and access game content
   conduct more game sessions                 upon instant gratification
    (Energy, Coins, Tokens, etc)
Game Design - Monetization
PETS & AVATARS
  Virtual beings controlled by the player, offering
           Vanity and Utility game-value




        DRESS UP                  NURTURING                 PROGREESSION
Many pets enable precise    Pets may require feeding,   Advanced systems may
customization: clothware,   grooming or other means        offer a complete
 hair/fur, color scheme,      of nurturing requiring        leveling, XP and
     accessories, etc          consumable goods         evolution paths for pets
Game Design - Monetization
SUBSCRIPTION
A monthly fee paid by a player, entitling access
        and free usage of the game




              BUNDLES                              PRICE POINTS
 Subscription is usually purchased in   Reduced Price points are assigned to
  bundles of 1,3,6 and 12 months,           each bundle, offering a major
 each offering a reduced price point      incentive for long-time offerings
Game Design - Monetization
ADVERTISEMENT
     Advertisement is a common monetization
       engine for numerous games, enabling
      developers to monetize returning traffic




    CPM / CPC                CPV / CPA / CPI                OFFER WALL
Monetize each 1000     Monetize specific actions        Reward players with
impressions or every     conducted by players,          virtual resources by
  individual click      such as watching a video      requiring them to fulfill
                       or installing an application       real-world tasks
Game Design - Monetization
FEE MODEL
 Fee-Based games enable players to purchase
the game for a one time fee, ranging between
                $0.99-$19.99




         TRY BEFORE U BUY                MICRO TRANSACTION
     A sale technique, enabling      A technique in which “layers”
    players to test the game for a    of the game (levels, worlds,
  limited period prior to purchase   etc) are sold for minimal fees
Game Design - Monetization
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Game Design - Monetization

  • 2. MONETIZATION The means in which a game produces revenue, by applying game mechanics that make players pay with actual money ARPU / ARPPU kDAU LIFE TIME VALUE Average Revenue Per The revenue generated The Revenue generated by Player (monthly) by every 1,000 daily a player during his life time active users in the game
  • 3. CURRENCY Digital games use a variety of virtual resources, used by players to purchase in-game goods, trade and nurture their game play SOFT CASH HARD CASH JUST CASH! Game world currency. Currency used to Direct cash payment is Acquired by purchase premium goods becoming a popular performing actions and services. Acquired by choice in virtual games within the game spending real money
  • 5. VIRTUAL GOODS In-Game items/assets that have a unique visual or functional value within the game world. Purchased by conducting Micro Transactions VANITY UTILITY CONSUMABLES Goods with a visual Virtual Items that have a Utility goods consumed aspect only; Capes, game-altering effect: upon usage, having a time- Clothware, Tattoos, Boots that grant speed, limited effect on the game emblems, etc Weapon, etc (potions, boosters, etc)
  • 7. PREMIUM CONTENT Top Quality game content, deprived from Freemium users. Offering a unique visual or utility incentive EYE-CANDIES GAME LEVELS CONTENT! Portraits, symbols, Unique game areas or Actual premium content emblems, backgrounds and levels that can only be such as music tracks, video visual assets accessed by premium clips and inside stories users
  • 9. RULE OF CONVERSION When dealing with Micro-Transactions, Only a small amount of players will actually convert to become paying users 90 9 non paying paying users 1 power users‫‫‬ ‫‫‫‬ $0 $5-$60 $100-$1000
  • 10. CONSUMABLES Limited quantity goods, used by players to affect gameplay and bend the rules Can be limited by time-frame or Quantity BUFFS HEX REGENERATOR Buffs are positive Hex are negative effect A consumable that effects applied on the applied on opponents regenerates a lost attribute player or his comrades (slowing or weakening (health, energy, etc) them)
  • 12. RESOURCES A gameplay unit, used to measure/limit the amount of activity a player can conduct in every game session PLAY MORE QUICKENING Usually used in skill games, Play- A quickener enables a player to bypass More resource enables a player to “grinding” and access game content conduct more game sessions upon instant gratification (Energy, Coins, Tokens, etc)
  • 14. PETS & AVATARS Virtual beings controlled by the player, offering Vanity and Utility game-value DRESS UP NURTURING PROGREESSION Many pets enable precise Pets may require feeding, Advanced systems may customization: clothware, grooming or other means offer a complete hair/fur, color scheme, of nurturing requiring leveling, XP and accessories, etc consumable goods evolution paths for pets
  • 16. SUBSCRIPTION A monthly fee paid by a player, entitling access and free usage of the game BUNDLES PRICE POINTS Subscription is usually purchased in Reduced Price points are assigned to bundles of 1,3,6 and 12 months, each bundle, offering a major each offering a reduced price point incentive for long-time offerings
  • 18. ADVERTISEMENT Advertisement is a common monetization engine for numerous games, enabling developers to monetize returning traffic CPM / CPC CPV / CPA / CPI OFFER WALL Monetize each 1000 Monetize specific actions Reward players with impressions or every conducted by players, virtual resources by individual click such as watching a video requiring them to fulfill or installing an application real-world tasks
  • 20. FEE MODEL Fee-Based games enable players to purchase the game for a one time fee, ranging between $0.99-$19.99 TRY BEFORE U BUY MICRO TRANSACTION A sale technique, enabling A technique in which “layers” players to test the game for a of the game (levels, worlds, limited period prior to purchase etc) are sold for minimal fees