all the games we play on the smartphone, most of them are free games but still, free games earn more than paid games and according to the data. 90% of android games total earnings that part is from free games, while their total participation in the download is only 40%. Have you ever thought that if these games are free then how do their developers make money? Which business models help in their earnings? so will discuss all these things in our article.
That we have to pay before downloading opposite to these, the business model of these free games is known as freemium also in 2019, they did the business of 87.1 billion which is 80% of total digital gaming revenue till now. The most popular and highest-earning freemium games are CANDY CRUSH SAGA, FORTNITE, PUBG, AND POKEMON GO. If we talk about their earnings then, in 2014, over 93 million people were playing CANDY CRUSH SAGA spending a total of 493 million dollars and in 2019, Fortnite earned 1.8 billion dollars rather in 2018, PUBG Mobile earned 920 million dollars so, the question is how free games can earn this much amount of money? The answer is advertisements, Consumable in-App purchases, micro-transactions, and subscription.
Advertisements as an example let’s take PUBG, whenever you get a surprise crate in PUBG to open it you get to see a video. Which is basically an advertisement, if you watch this video till last, then you’ll get the things out of these crates which consists of costumes, parachutes, gun, skins. And, if you skip this video then, you won’t get this crate. This video that, you just saw was just an advertisement for which company has given money to PUBG.
In many games, you might have seen a banner at the bottom of some brands advertisement and there is one more way, i.e. In-Game Advertisement. So you have seen PUBG OPPO series, in between of the game there were promotions and advertisements of OPPO. But, how do they earn money from these advertisements? So, the advertisers contact developers of popular games and place their ads. The games and charges of the ads will depend upon clicks so whatever amount of clicks you want. You are going to give that much money to developers for example, if you’re an advertiser and you want to place your Ads in a game.
Then obviously you’re going to need the contact of some developer of the game. So, here you can through EASYLEADS using LINKEDIN. You can search up for any contact rather it is related to marketing or with advertisements. You can easily share a subscription of EASYLEADS with your team members so that you can help in contact with access and networking. If you want to grow more then go to description link and download and start with 5 free contacts while paying for paid plans use this coupon and you will get extra 5 credits too. Also, you can get a refund if you report a wrong contact coming back to other income sources of free games.
Consumable IN-APP PURCHASES nowadays revenue models are most of the games. The most popular example is PUBG in which you can buy the royal pass, outfits, guns skins, vehicle skins, and many more. In the game itself for which you will have to spend money and this process of spending money is called MICRO TRANSACTION. That was one more way by which game developers earn money.
SUBSCRIPTION based earning the game with subscriptions is just like Netflix. Only which, if you pay the monthly or yearly charges then enjoy so many games. There is one more benefit of this that you can get early access to these new and exclusive games. You give money to the service provider this money will then be distributed amongst the game developers according to its popularity and downloads. Apple and Google have recently started the subscription-based cloud gaming APPLE ARCADE and GOOGLE STADIA, they have been called the future of mobile gaming.
Now let’s find out which method is the best to earn money and about their future too according to a report of 2017. 76% of apps, revenue comes from display advertisements, video ads, and native ads. The future of free games is even brighter and global market worth has already reached 88 billion dollars, out of which 75% comes from mobile. So, next time whenever you are going to play a game, you will already know about the source of money of that game.
In the last article, we discuss How earning developers from free games? Please comment on how to help my information.