Mobile Gaming Helps Publishers Level Up Their Monetization Strategies

By Tim Cronin

Mobile games have long been the most popular form of app downloads, and the nature of gaming means that engagement for these apps is incredibly high. A recent survey found that 86 percent of iPhone owners play mobile games and 76 percent of Android owners log time in the popular apps. With so many active users, mobile gaming is only set to grow. In fact, eMarketer estimates there will be 141.2 million mobile gamers in the US by 2014. This is the perfect time for app developers and publishers to take advantage of the increased interest in the mobile gaming platform and its unique ability to engage mobile users. We have outlined a few important things to keep in mind when it comes to monetizing your mobile games.

Research Your Demographics

The Game DevelopersConference recently found that 53 percent of game developers were working on independent projects, eschewing the big publishers and taking advantage of accessible mobile development platforms. With this independent game trend, these new app developers need to keep in mind what types of users they will be targeting with their games. Are they building the game primarily for iOS or even more specifically the iPad? Will they be releasing the game on Android? What is the target age group for your game, or even gender group? Does your targeted audience prefer to pay for their games and go ad-free, or do they prefer to pay up-front for their downloads? Knowing these key things will help app developers hone their game for the users they want the most, and it will help them entice the right advertisers for their game if they opt for an ad-supported model.

Use Ads That Work

If game developers decide to go for an ad-supported model, it is important to choose an advertising strategy that works best for game apps. Banner ads, for instance, could block important areas of the game play area and possibly create accidental clicks. However, one ad model that fits naturally with games is interstitial ads. Interstitial ads can be intrusive on other apps, but by placing them at a natural break like after a user beats a level, interstitial ads fit more seamlessly into the game. Because they come at pauses in game play, interstitial ads can also show higher click-through rates and increase conversions.

Sell Virtual Goods

One of the newer trends in mobile gaming is monetizing by selling virtual goods. This freemium model works well for users who want to download games for free, but many are willing to pay for credits or items to help them in the game. Selling upgrades and goods also means game developers can monetize more than once from the same user. eMarketer expects these in-app purchases to surpass downloads as the highest generating revenue for mobile games, and developers who take advantage of this rapid growth now could see huge benefits in the future.

Why Entertainment Apps & Sites Are the Monetization “Darlings” of 2013

By Amy Vale

Mobile devices have revolutionized the way consumers find, absorb and share information via technology and, as a result, forever created a world of mobile-first consumers. These mobile-first users are increasingly accessing their favorite entertainment on-the-go – be it live video streaming of films/television shows or music. For the most part, mobile is proving itself to be a much more disruptive consumer revolution than the Internet. Smartphone and tablet sales worldwide are going fast and hard; tablet shipments will surpass PCs in 2013. But monetization strategies just haven’t been as strong thus far to close the gap on that $20 billion monetization opportunity Mary Meeker discussed back in 2012.

Recently, Cisco’sVisual Networking Index (VNI) Forecast revealed some interesting global mobile data traffic predictions and growth trends. The report found that streaming video accounted for 51 percent of mobile traffic in 2012. These statistics suggest that mobile traffic will increase to two thirds share by 2017, making mobile video and other entertainment sites a huge portion of mobile users’ lives. The media consumption is clearly there. So what can entertainment publishers and app developers do to develop sound mobile monetization strategies?

Take a Cue from the In-App Experience

Don’t forget what matters to consumers when they’re browsing, swiping, clicking and tapping through mobile entertainment sites and apps; they want to be entertained, amused and delighted. So why wouldn’t entertainment publishers and app developers incorporate the same type of content into the ads delivered within those sites and apps? That means looking at the data and traffic being generated from these sites and apps to understand what types of ad formats resonate best with users, what times of day and location generate highest engagement and interaction rates, mobile purchases resulting from ads, and other similar data. One smart way to do this is to match the ad experience to the overall user experience of your app or mobile site.

Monetize with Subscriptions

According to JuniperResearch, global mobile entertainment revenue will grow about 80 percent from $36 billion in 2011 to $65 billion by 2016. That leaves a big door open for mobile entertainment publishers and app developers to monetize via pad subscriptions. Just look at what Nokia is doing. Earlier this year, they announced plans to launch a subscription service upgrade to its free music streaming service in the first quarter of this year. For just £3.99 each month, users will be able to upgrade to a paid-for monthly subscription that lets them download unlimited music mixes, which can also be played offline (think of in-transit times on trains/planes when there is no Internet connection available). Nokia’s Vice President for Entertainment, Jyrki Rosenberg, was quoted in Mobile Entertainment: “By removing barriers like adverts and sign-ins, Nokia Music makes it easy for users to discover and enjoy music on the go. Nokia Music+ now provides increased control over the listening experience at half the cost of many third party services.” For mobile entertainment publishers and app developers, subscriptions are clearly a smart and effective way to monetize.

Leverage Multiple Screens

On a daily basis, nearly 39 percent of smartphone users are on their devices while watching TV, according to a new report from BIIntelligence. That number is even higher with the younger, more engaged millennial audience of 18-24 year olds, with 80 percent saying they multi-task and perform a variety of activities on their mobile devices and TV simultaneously. Clearly, mobile entertainment app developers and publishers should tailor their monetization strategies to increase traffic, click-through rates, downloads, social shares and ROI/revenue across multiple screens. For example, cable giant Viacom and social TV company Zeebox have partnered to let advertisers show both TV commercials and digital ads simultaneously thanks to its newly launched automated advertising platform called SpotSynch. Here’s how it works: SpotSynch allows companies to include an advertisement within the app at the exact same time a commercial airs on TV. The result is simple – more personalized and interactive ads. And that means more eyeballs, more clicks, more downloads, more social shares, and ultimately, more revenue for publishers and app developers.

Though it’s a new product, it will be interesting to see how Zeebox’s engagement shortcut affects advertisers’ ROI.

Rental Revenue Has Benefits Too

While subscriptions are great, some users may want a less committed relationship with their entertainment app or mobile site. Another option would be offering users the chance to download or rent their entertainment content right in the app. Allowing users to easily buy songs, films, or TV shows within the app or mobile site interface keeps them engaged and clicking. One app that plans to capitalize on the digital rental market is Yeah!, an AMCNetwork project unveiled at SXSW last week. One of the really innovative things about the rent vs. purchase monetization model here is that each rental includes exclusive interviews, trivia, and quizzes. By providing several layers of entertainment within each in-app download, Yeah! offers something Netflix and other streaming services don’t.

Mobile World Congress: Our Three Favorite Things

By Amy Vale

This year’s Mobile World Congress hit record highs in attendance with over 72,000 visitors – a big jump from the 67,000 who came out in 2012. What that tells us is that mobile is no longer just an add-on; it’s becoming a necessity for publishers, app developers and ad networks to tap into the $20 billion monetization opportunity revealed by analyst Mary Meeker. The good news is that the gap between the time spent on mobile devices worldwide and ad spending is expected to shrink even further. According to eMarketer, global mobile ad spending is expected to see double-digit growth, approaching $37 billion by 2016.

With all of these stats, it’s no wonder Mobile World Congress was such a world-class event for the mobile industry. Here are three of our favorite things from this year’s Mobile World Congress.

Our aquarium delighted and calmed attendees.

One of the best parts of Mobile World Congress is the showmanship and beautiful lengths exhibitors go to create a show-stopper experience at their booths. It was a visual smorgasbord of sky-high glass displays, larger-than-life signage, more tech gadgets than you could count and even acrobatic dancers in the case of HTC. Not to be biased, but our own booth was pretty spectacular itself and one of my favorites for a few reasons. If you look at the photos of our booth on our Facebook page, you’ll see why so many people were entranced by the aquarium (with over 150 fish of varying colors and sizes) and commented on its calming effect amidst such a frenetic and loud environment.

Relationship building was a top priority.

With an event that draws such huge crowds, exhibitors and press buzz, forging new relationships and strengthening existing ones is more important than ever. This was definitely the case at this year’s Mobile World Congress. Information sharing was at its best, especially in the thought leadership panels and sessions. Networking was also on everyone’s minds because it removed the formality and structure of walled business meetings and conference calls. I myself had a number of informal chats in the contexts of dinners and cocktail parties. And idea generation happened in real-time on the exhibition floor. It was really very inspiring to see it all unfold in front of me, especially considering it was all done on little to no sleep at all.

The new venue lent itself to the world-class event.

The new venue was much better equipped to handle the sheer volume of visitors (as we mentioned previously, a record high of 72,000) that came through the week-long event. I must tip my hat to the GSMA team for doing an excellent job at preparing, planning, strategizing (even for mishaps that might occur in the 11^th hour) and execution. The event was, by far, one of the best Mobile World Congress events I've attended in the last few years and really allowed all who attended to focus their energies on showcasing and launching new and innovative products, sharing their mobile knowledge and, of course, getting down to the real “business.”

New Mobile Technologies Extend Monetization Possibilities

By Amy Vale

Just as the iPhone took the mobile industry by storm when it entered the market in 2007, a number of new mobile technologies are doing wondrous things to simplify, improve, and enable consumers’ lives. As recently as last week, technology heavyweights the likes of Nokia, LG and Samsung were vying to show off their latest and greatest mobile technologies at Mobile World Congress in Barcelona. Whether it’s streaming ultra HD-video over Wi-Fi from a mobile device to a TV or transforming a smartphone into a gaming console, each new mobile technology brings with it a number of monetization opportunities for publishers and app developers.

We can’t talk about mobile and innovation without looking at Apple. Just last week, reports surfaced of Apple’spatent filing to develop its highly rumored iWatch. The display would work like a 90s snap bracelet, with the entire wristband being part of the display. Essentially, the iWatch would work with the iPhone, connecting and transmitting features such as music playlists and maps to users’ wrists. As cool and funky as this new piece of jewelry will be for users, it’s going to be even more beneficial for publishers and app developers. To really make sure that ads appearing on the new iWatch can monetize, publishers and app developers will need to ensure that ads are relevant, personalized and targeted to consumers’ needs at that very moment. That’s where the big challenge will be and one that could mean the difference between the iWatch being a cool, fun new fashion accessory and a clear route to monetization for publishers and app developers.

Of course, it’s not only the iOS platform that’s got the corner on the mobile market. Let’s look at another smart watch with a different user interface and experience from Canada-based startup Neptune. Neptune’s product is Android-based and independent of another device, featuring a 2.2 inch screen, roughly the same size of older-model Blackberries. Apps will automatically resize themselves, but with less screen-space. As a result, publishers  and app developers will need to be much more strategic, creative and targeted in how they serve ads or appvertising to users. For instance, publishers and app developers should analyze (and understand) what types of apps are most popular on this new smart watch? What are the demographics of users who will use the Neptune smart watch? Are they more likely to click on rich media or video ads, or are they more inclined to make in-app purchases? Just as the strategies, creative executions and metrics need to be tailored specific to smartphones or tablets, smart watches will require the same approach if publishers and app developers want to generate a consistent stream of revenue.

Last but certainly not least, Samsung debuted their bendable smartphone at CES this past January. Using OLEDs, these new unbreakable phones can also double as tablets, folding out to reveal a bigger screen. That additional screen real estate can be a huge benefit to publishers and app developers in that it accommodates and encourages the use of several types of mobile ads – from banner ads to rich media to streaming video. What that means for publishers and app developers is higher click-through rates, more video plays, increased app downloads, greater social integration and sharing and, ultimately, more revenue.

If there’s one thing we know, it’s that there is no real “year of mobile.” Mobile is just as nascent and fresh as it was back when the first iPhone entered the market in 2007. There’s still so much learning to be done in terms of mobile device functionality, advertising units, creative executions and metrics. As more mobile technologies come into play, it’ll be up to publishers and app developers to tailor their monetization strategies to keep up.