While the amount you can generate has a lower ceiling with ads, you can still build a subscription model using ads. Create an additional subscription stream where players deliver revenue through ads.Second, rather than ask people to sign up for a regular charge, they are more likely to agree to a subscription if the cost is “free,” simply watching an advertisement(s).įor game companies, this peanut butter cup (the combination of subscriptions and advertising) presents multiple opportunities: While it is still too early to understand the impact of Coronavirus, people may become even more conservative with their cash flow as they have to deal with a new economic environment. The first is that while traditional subscriptions are still promising, many people are reluctant to add more subscriptions to their monthly burn. There are two very important implications of this research. Additionally, 64 percent of consumers say they don’t plan to add a subscription video streaming service in the next year. A survey of consumers with connected televisions found that 76 percent are open to see ads in exchange for free streaming services. Recent research in the streaming space highlights an intriguing opportunity for game companies. I also recently noted the success of hypercasual games, which has been driven by advertising. I am also a big fan of in-game advertising, as it allows players who would not normally monetize to gain greater value from a product while delivering revenue to the creator. I think subscriptions are a great way to create recurring revenue and increased loyalty. I am always on the lookout for monetization models that can augment or disrupt the gaming space and I have recently come across a hybrid one that has great potential.
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