Why Real-Money Play Will Revolutionize Game Monetization
In the fast-growing social, free-to-play game markets, developers do not have many options when it comes to game monetization, and those that are available to them produce low average revenue per user (ARPU) and customer lifetime value (CLV). At Betable, we want to change that by giving social, mobile, and open-web game developers new ways to monetize their user base through engaging, real-money play. We offer a real-money platform that gives game developers the ability to add real-money play into your game. Subscribe to this blog to find out more about us and game monetization. Whether you get paid via virtual currency, ads, paid content, or lead generation, we will show you how you could easily bolster your existing sources of revenue with real-money play.
For even the best social games, their ARPU typically ranges between $0.50 and $1.00, although mileage may vary depending on the type of game and audience. This revenue is almost entirely based around the 5-10% of paying users that are willing to spend money to enhance their gaming experience. Gaming studios are left with limited avenues for increasing revenues. Mainly, they can convert free users to paying users, inject disruptive advertising into their games, or find new ways to make money.
Paying users are usually highly invested in their games, but existing mechanics have already extracted much from these users, and their growth as a percentage of total users has slowed in many major existing social games. In order to grow their revenue, game developers need a new, engaging way to monetize these power users. Real-money play has the potential to provide the most engaging source of revenue yet by rewarding dedicated players with cash money for their gameplay.
Free users are typically less invested in their games than paying users, although some free users are equally invested but do not spend real money to play these games out of principle. For many of these free users, there is no compelling reason to invest real money into a virtual game because they can’t earn tangible rewards, but they could be converted through a new game mechanic that allows them to put real money in and take real money out.
Historically, gambling has proven to be a massively lucrative form of entertainment. Combining real-money play with the large user-bases of modern social and mobile games could prove to be an industry-changing combination. As we discussed in our post “Why Zynga Is Leaving Money On The Table”, empires have been built around existing mechanics. Real-money gaming is the next “Gold Rush”, and just as Zynga demonstrated with social gaming, the earliest prospectors, end up claiming all the gold.
Acquiring a license to enter this market is expensive and time consuming; however, Betable provides a fast, inexpensive, and legal real-money platform that gives game developers the ability to implement real-money play into their games.