Right now I’m listening to Alex St. John (pictured), the CEO of WildTangent, presenting his views of how to maximize game revenue. I must say that a lot of his ideas make sense and the presentation is very informative. Alex is also a very solid presenter, which really helps (especially when you’ve had about 2 hours of sleep, the night before…)
Anyway. Alex states that identifying the value per session of a game can really be used to break down the monitization structure of the game and what ways can be used to maximize monitization with matching the value of each game with the perceived value of each and every user – which differs from user to user. They key to this is to design games to be consumed in small units of value and support different revenue schemes like advertising and “try before you buy”.
I agree with a lot of what John is saying, especially that the revenue models around casual games need to be better researched and exploited. This holds especially true for online games (Flash Games) that can’t really use the try/buy model. Ad revenue is one way to go – another way is to offer users a way to spend the amount that they feel is proper for a specific game, instead of tagging it with a fixed price.
The free audience of a game is usually 50-100 times the size of its paying audience
The lifetime value of those players that subscribe to WildCoins is about $ 200
WildTagent is currently looking at a CPM value of $ 138 from advertising that is tied to their games
WildTagent is focused on capturing the maximum monetary value for each game from every user by combining monitizing schemes that allow the user to evalute the experience for themselves