How Indian Developers can Balance Revenue and Fun in Mobile Game Monetization

The Indian market has emerged as a global leader in mobile game downloads, with over 15 billion app installs in 2022 alone. This boom is driven by the widespread adoption of smartphones and affordable internet access, making mobile gaming accessible to a vast audience. However, striking a balance between fun and revenue is crucial for the sustainability and success of mobile games.

The Dominance of Free-to-Play Models

Free-to-play (F2P) games have become the backbone of India's mobile gaming industry. These games offer the base experience for free, generating revenue primarily through in-app purchases (IAPs) and advertising. The F2P model is particularly effective in India, where users are generally cautious about spending money upfront on games. For instance, games like Ludo King and Teen Patti have capitalized on this model, offering in-app purchases that enhance gameplay without requiring an initial purchase.

In-app purchases in these games often include virtual items or premium features that enhance the gaming experience. For example, in Ludo King, players can buy virtual coins or special pieces to gain an edge over their opponents. This approach not only generates revenue but also keeps players engaged by offering them a sense of progression and achievement.

The Role of Advertising in Mobile Gaming

Advertising is another critical revenue stream for mobile games in India. Rewarded video ads are particularly popular, as they offer players in-game rewards for watching ads, thereby increasing engagement and retention. Indian gamers, especially those aged 18-24, are highly tolerant of ads and often prefer them as a way to earn rewards without spending money.

Games like PUBG Mobile and Free Fire have successfully integrated rewarded ads into their monetization strategies. These ads not only provide additional revenue but also enhance the player experience by offering rewards that can be used to purchase in-game items or access premium features.

Subscription Models: An Emerging Trend

While advertising and in-app purchases remain dominant, subscription models are gaining traction in India. Platforms like Google Play Pass and PUBG Mobile Prime offer ad-free experiences or exclusive content for a monthly fee. This segment is expected to grow significantly, reaching over $400 million by 2027. Subscription models appeal to players seeking a premium experience without the interruptions of ads or the need for frequent purchases.

For instance, some poker platforms offer subscription services that provide users with access to exclusive tournaments and premium features. This approach caters to dedicated players who are willing to pay for a seamless gaming experience.

Real Money Gaming: A Growing Segment

Real money games, such as fantasy sports, poker, and rummy, have become increasingly popular in India. Several platforms in India allow users to participate in tournaments and games with real cash prizes. These platforms have seen significant growth due to their ability to offer both entertainment and the potential for financial rewards.

In games like Andar Bahar and Teen Patti, players can use their skills with robust strategies to win. These games are not only entertaining but also provide an opportunity for players to earn real money, making them highly engaging and lucrative.

Balancing Revenue and User Experience

Achieving a balance between revenue generation and user experience is crucial for the long-term success of mobile games. Overly aggressive monetization strategies can alienate players, leading to negative reviews and decreased engagement. Therefore, it is essential to align monetization methods with player preferences, ensuring that purchases feel natural and rewarding rather than forced.

For example, offering a seamless gaming experience with minimal ads, focusing on in-app purchases and real money tournaments is a good starting point. This approach keeps players engaged while generating revenue, demonstrating how a well-balanced monetization strategy can enhance both the user experience and the game's profitability.

Emerging Trends and Technologies

Technologies such as cloud gaming and 5G connectivity are poised to revolutionize the mobile gaming landscape in India. These advancements will enable smoother gameplay on lower-spec devices, expanding the reach of mobile games to a broader audience. Additionally, social and multiplayer features are becoming increasingly important, as they foster a sense of community among players, enhancing retention and engagement.

Games like Mobile Legends and Clash of Clans have successfully integrated social features, allowing players to form clans, participate in tournaments, and interact with each other. This social aspect not only enhances the gaming experience but also encourages players to spend more time and money within the game.

Successful monetization balances player engagement with revenue generation in India's mobile gaming landscape. The market's preference for free-to-play models with integrated advertising creates distinct opportunities for developers who seamlessly blend technology, social elements, and reward systems into their revenue framework. As this dynamic ecosystem evolves, forward-thinking leaders must continuously refine strategies that enhance rather than detract from the gaming experience—ultimately transforming monetization from necessary friction into value-added engagement.

By Tarun Bisht Vice President, Mobile Premier League (MPL)