Innovative ways to generate revenues from Mobile Games
The previous post on Livewire by Sankar highlights one pretty interesting fact about the increasing willingness of the users to pay for Mobile Games. With the advent of iPhone and other smart phones, there is a transformation happening in the Handheld Gaming space and we are seeing sophisticated games coming to mobile phones.
The question on the table now is – How can Operators, mobile game developers, advertisers and brands leverage this growing industry and increase their consumer’s share of the wallet? What innovations can they pursue to create revenues from the consumers who are still undecided about paying an “upfront cost” for a game?
We are already seeing some traction in this area with some early adopters trying out innovative ways to make money from Mobile Games. Some thoughts:
In-Game Advertising – This is something we have already started seeing in the mobile games. Advertisers and Operators can leverage this and place dynamic, targeted yet non-intrusive ad placements within the games. Most often, since users are engaged completely in the games, any non invasive but intelligent placements of Ads will not go unnoticed. This way, operators can drive more adoption by distributing games for free yet create revenue streams through Ad-placements. Imagine ad placements within the game’s real estate (like you see a brand being promoted in a movie), wont you notice the ad or the brand? Other opportunities exist for ad-placements like the moments when users wait for a new level or the game itself to load. These are opportunities not only for targeted ad-placements but also related content or other game recommendations.
In-Game Micro Transactions – Imagine playing a game and you are 1 level from finish line and the only way to get to the next level is by defeating the evil king who stands between you and the next level. You have only 2 lives remaining and you have almost exhausted your artillery. You wish if only you had that magic weapon that has the power to make your opponent disappear. Would you be interested in buying that weapon at that moment for 10 cents? I think you will!! Since gamers are intensely focused and actively involved in the gaming experience, Operators and Gaming developers should look at leveraging these “impulse buy” situations. If such innovations can be pursued, the basic game can be distributed free of cost to drive adoption and revenues can be achieved through these micro-transactions.
Increase Brand Presence – Brands are increasingly looking at mobile and social media as the next frontier to promote their brand presence and connect with their target consumers. Why not look at Mobile Games as another channel for increasing the brand presence? Brands and Game developers can collaborate to create games centered on the brand, a particular theme or a specific product. Telcos and Content Providers can also look at such theme-based games and applications to promote specific content like Ring Tones and Wallpapers (through micro-transactions) related to an artist tour or a movie release.
What other innovations can the Operators and Game developers pursue in the mobile gaming space?
Of course, all these aren’t possible without the Operators being able to support such flexible new ways of billing for micro-transactions in the middle of a game or the Ad Providers/Operators being able to insert relevant ads within the games? Are the operators equipped for this?
What are your thoughts?



Comments
Hi,
the thought on micro transactions sounds fantastic. There are some games in markets which give demo version which are generally time limited. It will be good to give the users a feel of the game for a longer duration.
Commented by: akshay | May 22, 2009 3:19 PM
Akshay, Thanks for your comment. Enabling these micro-transactions or in-game advertisements are some ways of giving the users a feel of the games for a longer period or even for free thereby monetizing some impulse opportunities to drive revenues during the free period.
Commented by: Sandeep Chandrasekar Seshadri | May 29, 2009 6:48 PM