Playing video games is a favorite pastime of millions of people around the world. From a very young age, we come in contact with video games and many continue to enjoy them even at an older age. We can’t forget the days spent at the arcade playing games like Street Fighter, Cadillacs and Dinosaurs or the later Playstation 2 titles like Vigilante, Crash or Need for Speed.
At that time the only way for companies to make money from the game was to sell a hard copy or the actual arcade machine. But today things are quite different. Most games today are available for free and unlike playing real money roulette Canada at sites like Roulette77, gamers don’t even need to pay a single cent to play and enjoy them. But companies have found new and ingenious ways to monetize video games and make a profit.
Video Game monetization
When we talk about games monetization we are basically referring to two basic models. Those are in-game purchases and in-game advertising. These are the simplest ways to earn money from a video game and many of us have already done it without even realizing it. So, let’s see how each one works.
In-game Purchases
When we talk about in-game purchases there are several ways that companies achieve this. Here are the most popular ones.
- Pay to play
- Buying premium models
- Loot boxes
- Virtual currency
- Battle Passes
So what does this mean and how does it work exactly in video games? Well, the pay-to-play model is the basic form of monetization, which is not too popular today. You simply pay a price for the game, download it and you’re ready to play.
The second one is much more popular. Players are given access to the basic game, but to unlock the premium features they need to pay extra. A good example of this is ranked matches in PUBG where you need to pay to unlock access.
Loot boxes are another great way to monetize a game, where players buy them with virtual currency. But to buy the currency you need to pay real money or do in-game tasks to collect it. Loot boxes are highly desirable since they can hold valuable items. You can even sell them to other players and get paid in real cash in the real world.
The virtual game currency is usually acquired as you play the game and competing missions or challenges. But many players prefer just to buy currency bundles to avoid the hassle and many hours it would take them to grind in the game.
Battle passes are another great monetization model. Again, as an example, we take PUBG where each new season comes with a battle pass which you need to buy. It gives you access to special missions where each completed mission brings you rewards. It can be cosmetics, skins, crates or virtual currency.
In-Game Advertising
In-game advertising is one of the biggest ways to monetize video games. Usually, it’s reserved for smaller companies and games which are run on social platforms. This type of model brings revenue to the company by showing ads and allowing the players to interact with them. The most popular in-game advertising models you can come across are:
- Playable ads
- Integrated ads
- Video ads for rewards
- Banner ads
Playable ads are mostly a way to bring users to the game. You can see an ad watching a video and click on it to download the game or even play it for a little while. These kinds of ads are a great way to get new users to the platform.
Integrated ads are usually added to the game itself. They can be a logo of a company or a call to action as you play the game and level up. On the other hand, video ads for getting rewards are the most popular among all of them.
They can be found in many games and all work in the same way. You get a message that to acquire virtual currency, a loot box or something else in the game you need to watch a video ad. Usually, they last under a minute so most players will watch the ad to get the rewards. In many cases the ad is from another game, so there’s the potential that the player will give that game a try in the end.
Last but not least are banner ads. They’re the most basic form of advertising and have been around since the start of the industry. They stay static in the game and are usually placed in strategic places. Usually, when you click on the banner it takes you to the advertiser’s website, so they are a great way to drive traffic.
