Though In-App Purchases and Pay-to-Play seem to be the best option for any company to make money, these are considered as the least favorite amongst users. Thus, most of the new applications and games are initially released as free and if the customer likes the application then they can buy the paid version which offers more features.
Considering the fact that many mobile games are coming free, most of them rely on making money by placing ads in between the game. At the same time, the revenues of agencies which deal with mobile related advertisements have shown an upward trend which suggests that there are more opportunities available now as compared to the past. However, it is not that simple and the developers have to come up with clever ideas to earn money with ads.
First of all, the aim should be to increase the customer base. Though it is evident that users rarely spend money on an application, advertisements allow developers to cash in the money from their free rider customers. The bigger the customer base, the better will be the chances of generating revenue from ads.
The first step in introducing ads in game is to contact well known partners in this field. After this, comes the integration of ad networks into game coding. Next comes, fill rate which is a very critical step regarding the money a company will make from running ads on their games. Fill rate basically refers to the ratio between the number of times an ad was requested to the number of times the network was successful in providing it. Thus, higher the ratio, higher will be the monetary return from ads.
Another important factor to consider is the clickthrough rate. This generally refers to the ratio between players who clicked ads and those who just saw it. Ad networks have a higher payout for clicked ads. Therefore, having the right ad will result in higher profits. It is safe to say that the more relevant the ad is to the game and user, the more clicks it will generate. Furthermore, the audience of the ad should be kept in mind. It is obvious that if the ad and game are correlated then the audience will be satisfied with both.]]>