I'm trying to keep up to date on Monetizing on mobile games, and still thinking about which route to go for my main project. Reading up on some of the latest data it seems like IAP is the way to go. At least according to some of the articles I've read lately.
For example this one.
[quote:1rn3rova]Only 5 percent of app users make in-app purchases, yet they drive much more publisher revenue than app-based advertising.
Personally I totally despise ingame ads. Being an avid mobile game player, for me ingame ads is synonymous with low quality games most of the time. Yes, there are a few ad-monetized games that are pretty good, but they usually have an IAP option to remove ads. But most of the time... games with ads are of pretty poor quality, and it seems like the only reason people are playing them are because they are "free". (Not all games, but many)
It seems like payed games, and games that use some form of IAP model usually are of much higher quality, and according to the article above, they still earn a lot of money. I don't know why developers chose to put ads in their games, as for me, they can sometimes ruin the experience and give an overall "cheap" impression. But this article tries to look why some developers choose ads as a monetization model.
Most developers see it like this:
[quote:1rn3rova]Ads are seen as a necessary evil, and not used as a way to engage players
It's seems like they are not confident enough in their game or product, so the only way to earn money and get a higher number of downloads is to release it for free, with ads. I'm not sure though, but according to my own observations after playing hundreds of mobile games, it seems that AD based games, are generally of poor quality, and are slapping on this monetization model to attract "free" players. It's like they would rather have 100.000 free players, that play only because it's free, than 5% of those genuine customers.
Just speculating here, but any one else come to the same conclusions or a different one?
I'm not bashing all Ad-based games, It's just a general observation, that they are usually of poor quality, or you use AD based monetization because you intentionally want to attract a certain type of "free" player, that don't usually pay for their games.
What monetization model are you going for and why?