Player Behavior and Monetization Strategies in Mobile Gaming
A new report from Mistplay sheds light on some of the behaviors of mobile gamers and their relationship with their games — including how monetization affects them. According to their 2024 Mobile Gaming Growth Report, mobile growth in 2025 is going to be marked by new marketing initiatives and new monetization models as developers and game creators attempt to user acquisition costs and scale revenue. Mobile gaming creators are also predicted to use brand collaborations and reward programs to reinvigorate user interest and retention.
Challenges in Mobile Gaming
According to Mistplay, mobile gaming faces several challenges when it comes to keeping players invested in their games — the goal is to avoid users “churning” out of a game and never returning to play. One of the findings in the report shows that there are several causes for player churn: 77% of gamers surveyed say they leave due to poor balance between gameplay and monetization, and 66% say it’s a similar dissonance between gameplay and in-game ads.
Ramanand Reddi, Mistplay’s Chief Product Officer, said in a statement, “As mobile game publishers face continued challenges heading into 2025, the core opportunity lies in rethinking the traditional approach to growth and manifesting that mindset across all teams. Those who can fully embrace adaptability and innovation, to drive incremental revenue and combat rising [customer acquisition cost], will ultimately unlock sustainable growth for their games.”
Player Advertising and Alternative Monetization
Mistplay’s report shows that one of the most reliable methods for reaching new players is in-app advertising. 67% of players report finding new games in that fashion, with a large amount of gamers also reporting finding new titles on social platforms such as Instagram, YouTube, and TikTok. However, the report also shows that 48% of players report being overwhelmed by the amount of games being offered — meaning there is a point of oversaturation.
Another part of the report also details more about consumer behaviors. According to Mistplay, 75% of players do extra steps before installing a new app, including researching for more information and reading reviews, meaning that maintaining a good reputation is another important factor in avoiding player churn. Players report to Mistplay that they have left a game because it “feels too pay-to-win” (77%) and because of disruptive ads (71%).
Given how informed players are, Mistplay suggests that game developers can offer alternative monetization options. These can include subscriptions, premium titles (where the whole game has a single set cost) and direct-to-consumer web shops. At present, some of these options aren’t as successful with consumers as others — only 14% of players surveyed have engaged with DTC shops. But the report also shows there is room for growth with those options.
Mistplay’s report reads: “DTC web shops are an emerging strategy, rapidly scaling alongside a resurgence of subscription models and continued exploration of IP collaborations for new IAP. This shift aims to improve margins, diversify beyond the traditional app store monopolies, and adapt to changing player behaviors. Investing in these up-and-coming monetization models early will open the door to growing [lifetime value] as adoption rates increase over time.”
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FAQs
Q: What are some common reasons for player churn in mobile games?
A: Some common reasons for player churn include poor balance between gameplay and monetization, as well as dissonance between gameplay and in-game ads.
Q: How can game developers combat player churn?
A: Game developers can combat player churn by offering alternative monetization options, such as subscriptions, premium titles, and direct-to-consumer web shops.
Q: What is the significance of in-app advertising in reaching new players?
A: In-app advertising is a reliable method for reaching new players, with 67% of players reporting finding new games through this channel.
Provided by: Mistplay
Credit: venturebeat.com
