All the games we play on the smartphone, most of them are free games but still, free games like pubg and Fortnite earn more than paid games and according to the data,90 per cent of android’s 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?
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 and 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 earned 920 million dollars.
How can free games earn this much amount of money?
The answer is, advertisements, Consumable in-App purchases, microtransactions and subscription so,let’s start with 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. The second example is pop-up ADS. in many games, you might have seen a banner at the bottom of some brand’s advertisement and there is one more way,i.e. IN-GAME advertisement so you’ve seen PUBG OPPO series, in between of the game there are promotions and advertisements of OPPO.
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How do they earn money from these advertisements?
so, the advertisers contact developers of popular games and place their ads. in 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 ad In a game then, obviously, you’re going to need the contact of some developer of the game. so, here you can, through EZ LEADS using LINKEDIN you can search up for any contact rather it is related to marketing or with advertisements. you can easily share subscription of E LEADS with your team members so that you can help in contact access and networking .
Next option is consumable IN-APP PURCHASES these days revenue models is most of the games the most popular example is PUBG in which you can buy the royal pass, costume, 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.
The next technique is SUBSCRIPTION based earning the game with subscriptions are just like Netflix only which if you pay the monthly or yearly charges then enjoy so many Free games like PUBG and Fortnite use this, 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 being called as 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 and, 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 be already knowing about the source of money of that game what’s your favourite game? Comment, please.