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5 Essential Mobile Game Monetization Strategies to Keep Your Pockets Full

A recent study by Venture Beat showed that less than 1% of mobile game players contribute 48% of total revenue to game publishers. Inability to effectively capitalize upon this hyper-concentrated group of revenue drivers leaves many mobile game developers in the red. The rise of the Freemium model has essentially killed the paid gaming app, leaving many developers scratching their heads on how to turn a profit out of their passion. Here are some of the best methods for mobile game monetization:

1. SEGMENTATION Without a price to download, app publishers can no longer rely on a single method of monetization. Thus segmentation, the division of profit streams, is key to any mobile game monetization plan. App monetization revenues stem from three major categories: in-app purchases, subscription-based premium upgrades, and ad revenue. Highly-successful games can also bring in money through sponsorships, merchandise, and even big-budget Hollywood movies, but the bulk of app developers generate revenue from inside the phone. Experienced mobile game developers use their understanding of each of these revenue streams and how they relate to their target audience to leverage multiple revenue streams within their games.

2. REWARDED AD FORMAT Ads and in-app purchases are both great assets to mobile game developers looking to monetize, but what if you could play them off each other to increase both sources of revenue? That’s the idea behind the rewarded ad format. In exchange for watching full ads during breaks in gameplay, users receive in-game rewards, power-ups, lives, etc. The incentive increases video completion rate, as well as ad revenue, and preview premium features to entice more in-app purchases. While the rewarded ad format can lead to a surge in both in-app purchases and ad revenue, it still requires strategy. Keeping the audience in mind by ensuring the user base will find the content of the ad interesting will increase completion rate. Strategic rewarded ad placement is also key to keeping users engaged. Rewarded ad overkill will alienate users and prevent them from playing the game.

3. FREEMIUM The popular Freemium monetization method entails developers offering a free download of the most basic form of the app to entice the user, then premium services and features available for purchase or through a subscription fee. The Freemium model drives revenue through in-app purchases, premium features available through subscription fees, and ads. Apps like Tinder and Candy Crush have capitalized on their massive user base by enticing users to make in-app purchases and update to premium accounts. Candy Crush also uses social media to allow users to receive premium features in exchange for sharing with their friends.

4. NATIVE ADS Native ads are advertisements designed to match the form and function of their surroundings. TwitterFacebookGoogle, and Instagram all offer native ads and tools to help developers create and customize their ads. Native ad placement increases the chance of engagement by seamlessly blending the design of the ad in with the UI of the app. While many ads stand out in the context of a mobile app, native ads look like they are a part of the app rather than an advertisement. Some say native ads are unethical and deceptive, while others praise the improved customer targeting and enhanced content. Effective native ads blend seamlessly with the surrounding UI. The number one rule of native ads is to know your audience. If the developer can incorporate relevant content rather than ads for products that do not interest the user, native ads can appear to become more of an enhancement than an interruption.

5. FEEDER APPS Feeder apps are simple games with addicting gameplay which app developers utilize to spread brand awareness. Feeder apps often feature such simple gameplay, in-app purchases and ads would feel intrusive. Instead, push notifications and links in the main menu redirect users to their company website or another one of their games in iTunes. Many mobile development companies develop a network of feeder apps as a part of their publication and monetization strategy. By utilizing a well-integrated native ad for the company or game the developer intends to monetize, developers can turn viral feeder apps into profits. This comprehensive article by Scientific Revenue offers a great example of how feeder apps can function effectively. ZeptoLab cross-promotes their featured app King of Thieves through their feeder app Cut the Rope.

CONCLUSION Succeeding in the world of mobile gaming requires the same intense flare for competition which fuels mobile gamers. Experienced game developers know the stakes and come out swinging, ready to capitalize on every strategy they can to create a revenue stream. With the right combination of smarts, app developmentpromotion and strategy, mobile game developers can capitalize on their user base to rake in the big bucks.

Sink or Swim: Why Google Needs Andromeda to Compete with Apple

Andromeda summed up in a graphic (Via thehackernews.com)

App developers commonly cite device fragmentation as one of their biggest peeves about the Android platform. While Apple keeps a stronghold on all iOS devices, Android allows third-party developers to create hardware for the platform. With a number of different devices all with different screen sizes, tech specs and OS capabilities, developers cannot efficiently optimize the end user experience of their apps for all devices as they can with iOS. However, Google is making a major move to create a more streamlined app ecosystem with Andromeda.

Rumors of Andromeda began when multiple independent sources revealed it would be announced at Google’s October 4th announcement. When October 4th turned out to be hardware-focused, the heat died down on Andromeda. However, in the big picture, Andromeda represents a necessary move in order to prevent Google from losing potentially billions of dollars to Apple in the years and decades to come.

WHAT IS ANDROMEDA?

The idea of Andromeda is to combine Google’s laptop OS (Chrome OS) and their mobile and tablet OS (Android). Chrome OS is not Google Chrome, the web browser you may or may not use every day, but their desktop operating system which works with Chromebooks. For the skinny on Chrome, check out this awesome breakdown:

https://www.youtube.com/watch?v=0QRO3gKj3qw

Rather than integrate Android features on Chrome OS, Andromeda will do the opposite and enable mobile devices with Chrome OS features. Mobile devices will begin to feel like an extension of one’s desktop. Rumored features include file organization, multi-modal windowing and compatibility between mobile and desktop apps. While the details have yet to be revealed, the concept behind Andromeda makes it a huge, necessary step for Google’s long-term future in the OS market.

WHY IT’S IMPORTANT

Andromeda will put Google in direct competition with the Mac OS X and Windows platforms. Apple has long been focused on device Continuity, the interchangeability between iOS devices. Their mobile (iOS) & desktop (OS X) operating systems are optimized to work together. By merging Google’s mobile platform with their desktop OS, Google increases cross-device functionality  and creates a strong incentive for consumers to keep all their devices within the Google brand.

THE INTERNET OF THINGS MAKES THIS SINK OR SWIM FOR GOOGLE 

The good news for app developers is in Andromeda’s long-term potential. Andromeda will enable developers to create apps which seamlessly function across devices: smartphones, tablets and desktops. As the IoT becomes domesticated, having a unified OS will mean big bucks for software companies looking to capitalize on home automation and commercial IoT products. In 10 years, consumers will be incredulous if they can’t control their coffee machine, change the channel on their TV and lock their doors on any of their devices. They want cohesive simplicity. If Google loses the OS battle with a less cohesive strategy than Apple, they will also lose the smartphone, tablet, TV and laptop.

CONCLUSION

Dennis Jones, CEO of payments technology company Judopay, put it this way for Developer-Tech: “Andromeda will be the foundation for omnipresence for Google-powered hardware, similar to Apple’s ecosystem… Andromeda is the foundation to enable this omnichannel world.”

Without Andromeda, Google would be dead in the water against the future omnichannel world Apple has been developing over the years. Who will execute better? Until the public sees Andromeda in action, the answer remains to be seen.

Apple Brings the Internet of Things Home with HomeKit & iOS 10

Anyone engrossed in the tech scene knows the Internet of Things is one of the trendiest technology topics on the web. The IoT is shaping our world and building fortunes for innovators, futurists and top app development companies. However, in the common household, the IoT has yet to break through to the mainstream. The biggest company in the world is now looking to enact change.

Tim Cook, in his September Announcement, declared that iOS 10’s HomeKit update is the first time home automation has been integrated with a major platform. While Apple introduced HomeKit in 2014 with iOS 8, iOS 10 comes with a dedicated app called Home that controls all home automation devices.

HOME IS A HOME RUN

Home Apple App via Wareable

Home combines IoT technology with the masterful UI of iOS. Previous iterations of iOS and HomeKit required the user to manage each interface separately. So if a phone had 20 HomeKit apps, they would have 20 user interfaces to manage. The Home app unifies HomeKit apps, creating a central control center for all home automation applications.

With over 1 billion active Apple devices across the world, Home enters the market with giant global reach. Virtually every major manufacturer of home automation devices now supports HomeKit. Accessories cross all major categories, from lights and air conditioners to window shades, locks and home security. Commercial IoT companies now have massive domestic reach, and iOS users have more incentive to update their homes than ever before.

HAVE SIRI SET THE SCENE

Siri Scenes via Next Market

One of the coolest features of Home is the Siri integration. Users can control Home from both the Control Center and Siri, but Siri can work at the speed of your language. Siri’s ability to handle multiple requests means users can accomplish their ideal environmental preferences in the speed of a sentence. Apple refers to these combination commands as “scenes” and users can give “scenes” a nickname. A rambunctious user might say “Hey Siri, let’s get funky,” prompting Siri to lock the doors, dim the lights, put Barry White on the speakers at a reasonable volume and provide the most apt customized ambience for the user to rock out.

THE APPLE TV IS THE HEARTH

The fourth generation Apple TV can also act as a hub for the Home app, with the Siri Remote making it easy to control your home on the go. Apple TV’s seamless integration with HomeKit and other iOS products makes it the ultimate smart TV for a smart home, providing yet another reason for consumers to consistently buy iOS products.

BUILDING COMMERCIAL IOT FROM THE GROUND UP

The Home Automation page on the Apple website is a clear indicator of Apple’s intentions to not only be a household name, but to be the name on your household. The company already has a major market share of phones, tablets, computers, TVs and watches. They are rumored to be looking to acquire McLaren as a part of Project Titan. Apple understands that the ubiquity of the iOS platform makes them the most appealing platform for manufacturers of smart devices. Apple also announced that leading home builders, including Brookfield Residential, KB Home, Lennar Homes and R&F Properties, are integrating many HomeKit devices into new homes.

With the Apple Home potentially on the horizon, one can only wonder how much of Apple’s vision of the smarthome will be realized in the next 5-10 years.

Water Cooler Tech Talk: What iOS 10 Can Do For Your Business

As we detailed last week, the release of iOS 10 marks a major turning point for the software. By opening up internal apps to developers, Apple has offered a major opportunity for businesses to improve and expand the functionality of their apps. Here are a few ways that iOS 10 can help your business.

CISCO INTEGRATION

Apple & Cisco (image via Apple)

While Apple announced their partnership with Cisco in August 2015, iOS 10 introduces the fruits of that partnership. Businesses which utilize Cisco networks and iOS devices will see a major improvement in functionality and compatibility. Companies with Cisco networks would be smart to encourage employees to switch to iOS, and companies which use other networks may want to take note of the new changes as they are designed to improve business processes.

OPTIMIZING WIFI

Finding the right AP can make or break major business processes. As a leading network provider, Cisco understands this issue and has used iOS 10 as an opportunity to address it. Devices with iOS 10 recognize Cisco networks, enabling WiFi optimization and prioritization for business critical apps. So if an employee is walking as they take a WebEx meeting on their iPad, rather than scanning all channels for the next strongest signal, Cisco networks use a 801.11k to provide a list of the top six neighboring APs. This saves time and battery. As iPhones reach the end of a cell, they check the location and create a short list of the next best AP based on signal and utilization.

BUSINESS APP PRIORITIZATION

With the bevy of applications, devices and content constantly occupying business networks, network connections can easily become bogged down, slowing business critical processes. Networks typically give apps the same level of priority, regardless of whether they are business apps like voice, messaging, video conferencing and document sharing, or non-business apps like games, movies and social media apps.

Cisco networks allow users to not only configure QoS (Quality of Service) on company infrastructure, but to control the link from client to AP. Thus, even if a wireless network is congested with different app traffic, businesses can “whitelist” critical apps to prioritize them over noncritical apps. IT managers can even whitelist by SSID, allowing them to customize each user profile so that apps are prioritized by what is critical to the individual’s performance. Users can have different settings for different networks, optimizing connections for apps based on whether they are at their office network, school network, home network or somewhere else.

CISCO SPARK INTEGRATION

iOS 10 also includes CallKit, a new API which allows VoIP apps like Cisco Spark to be built to take advantage of the accessibility of iOS 10. CallKit enables VoIP apps to utilize the native phone app, ensuring continuity of habit with the native iPhone call experience, while allowing for the superior capabilities of Cisco Spark.

TAKEAWAYS

Cisco’s tests on iOS 10 integrated with Cisco networks have yielded the following results:

  • Up to 8 times faster roaming
  • 90 percent reduction in web browsing failures
  • Up to 66 percent more reliable calling
  • Management overhead can be reduced by 50 percent

iMESSAGE FOR BUSINESSES

iMessage (Image via Silicon Angle)

iMessage has opened its doors to developers, and with it, billions of dollars in market potential. Forbes recently commented: “The launch of the iMessage platform will mint a new generation of billionaire entrepreneurs and become the most valuable social platform in the west over the next five years.”

With a billion active iOS devices worldwide, the iMessage app store has 100 times the distribution footprint compared to the App Store when it launched in  2008. The iMessage store allows for Sticker Packs and iMessage Apps for free or purchase. Aside from creating branding opportunities for celebrities and a whole new platform for social gaming, the iMessage app store opens the door for companies to create extension of their existing apps which utilize iMessage. By integrating internal business apps with internal iOS apps, companies can simplify communication by keeping everything on the same thread.

iOS 10 FOR BUSINESSES

Utilizing the latest software will only improve business processes. iOS 10 provides numerous opportunities for businesses to create more efficient business processes and consolidate business communication on personal devices. It also opens the door for a bevy of future possibilities for businesses to take advantage of as the software evolves. Bring it up at the water cooler and you could change your company for the better.

How iOS 10’s Open Functionality Can Take Your App to the Next Level

When it comes to mobile app development, iOS is the preferred platform. The lack of device fragmentation on iOS, along with the consistent quality of hardware and the more spend-happy userbase, makes it the number-one platform for generating mobile revenue. During Apple’s September Announcement, Craig Federighi began his iOS 10 demo by proclaiming it the biggest release of iPhone software in Apple history.

A week into its release, it has become apparent that iOS 10’s openness marks a revolution for iOS apps and functionality. Apple has opened up many internal apps to developers, including Siri, iMessages and Maps.

DEVELOPING FOR SIRI

iOS 10 Siri Payment (via idownloadblog.com)

Apple was very excited to announce Siri is officially open for third-party app extensions. The Siri API is currently limited to six kinds of applications: ridebooking (i.e. Lyft), messaging, photo search, payments, VoIP calling and workouts. Machine learning allows iOS 10’s Siri to build a contextual understanding of its user and decide when it should handle a voice query by itself, or shuttle it off to a third-party app.

When you ask Siri to bring you Chinese food, it will use Seamless, Yelp or your go-to delivery app to offer options. Users can have Siri book a taxi, pay a friend, and help manage a workout. The integration gives Apple more access to both how people use language to interact with their iPhone, and how they use their apps. Apple is taking their analytics to the next level while giving developers the ability to integrate voice control without having to invest in voice recognition and query interpretation.

App developers must take note in building their new apps and updating existing apps. SiriKit details how app developers can code for the program.

IMESSAGE EXTENSIONS

Apple gave iMessages its biggest overhaul ever in iOS 10. What was once a fairly traditional SMS system is now opening its doors to third-party developers for integration. This dramatically beefs up iMessage’s capabilities to allow personal payments and more. The new iMessages resembles WeChat, a popular app in China with versatile functionality.

The advantage to the user is the ability to keep all conversation on a single thread. The ability to pay friends without having to leave the app is very convenient and makes sense, considering most payment apps send a text to confirm anyway. iMessages comes with its own app store which offers categories including games, stickers, productivity, lifestyle, travel and more. Users can play chess, pay a debt, make a drawing, and even book movie tickets with Fandango all without leaving iMessage.

The upgraded iMessage opens up a world of social possibilities for mobile gaming. In a sense, it’s a new gaming platform within the iMessage. iMessage also has added the ability to send drawings and have added a ton of new stickers to the app store.

The API framework for iMessage can be found on Apple’s Developer website.

APPLE MAPS

Apple Maps has been opened up to developers. Like Siri, extensions in Apple Maps can allow you to book an Uber, make reservations at a restaurant and more.

PARTNERSHIP WITH CISCO AND IMPROVED COLLABORATION

Apple and Cisco announced their partnership in 2015 and have introduced major updates in iOS 10. The major initiative was to improve collaboration. When connected to a Cisco network, iOS 10 optimizes WiFi connectivity, sensing the fastest WiFi network as AP signals diminish on the closest router. Cisco also has improved business app prioritization, allowing businesses to enhance performance on critical apps. Cisco’s research has shown roaming is 8x faster on iOS 10, voice over WiFi & Spark is 66x more reliable, and there is a 90% reduction in web browsing failures. Learn more directly from Cisco.

TAKEAWAYS

Apple is pursuing the Android way of thinking and opening up their software to developers. With Apple’s internal apps more accessible than ever, mobile app designers are being given the resources to build upon Apple’s impeccably designed OS. The new and improved Messages app makes the most immediate impact on the user, coming with its own app store which begs unlimited possibilities for integration with everything from business to gaming apps. Siri’s redesign is significantly smarter using machine learning. And extensions using Siri will allow Apple more analytics, which will ultimately benefit developers looking to improve their apps.

Overall, iOS marks a major step forward for the platform and is a gift to developers. If you have an iOS app or are planning on building one, it’s time to take a good look at what iOS 10 can do for you.

The Next Generation of Apple: What Does It Mean for App Development?

On September 7th, 2016, Apple announced their new line of products for the coming year. Per tradition, the company kept the audience on its feet with a flurry of new features and partnerships which can’t help but excite anyone interested in tech and mobile development. Given the bevy of announcements, here is a rundown of what’s important for app developers.

THE APPLE APP STORE REIGNS SUPREME

Tim Cook kicked the presentation off, reminding the audience of Apple dominance. The Apple App Store accrued 140 billion downloads in the year, a 106% year over year growth and more than double the global revenue of their closest competitor: the Google Play Store.

NINTENDO BRINGS MARIO TO THE MOST POPULAR GAMING DEVICE IN THE WORLD

Gaming is not only  the most popular category in the App Store, Apple devices are the most popular gaming devices in the world. Cook brought in perhaps the greatest game designer of all time: Shigeru Miyamoto (creator of Mario, Donkey Kong, Zelda, Star Fox and many more Nintendo classics) to introduce the new forthcoming Super Mario Run, the second Nintendo game on a mobile phone after Pokemon GO. Mr. Miyamoto emphasized the accessibility of the iOS platform and delineated gameplay mechanics which emphasize competitive, social-focused arcade modes in which you can challenge your friends’ high scores.

Apple later announced Pokemon GO is coming to the new Apple Watch Series 2. Pokemon GO has accrued over 500 million downloads and Pokemon Trainers have walked over 4.6 million kilometers playing the game. Pokemon GO for Apple Watch will emphasize allowing users to spend less time looking at their screen, and more time being social in their walks.

APPLE WATCH SERIES 2

Apple Watch Series 2 via TechRadar

Apple Watch became the #2 biggest selling watch brand in the world within a year of launch. The new Apple Watch Series 2 is waterproof and features apps which improve your golf swing, remind you to breathe and more. The emphasis from the trailer was on the Apple Watch as a fitness device for optimizing workout efficiency. Apple proclaimed the new Apple Watch as the ultimate device for a healthy life. Those in the fitness app development business are in luck as the Apple Watch opens up a ton of possibilities.

App developers will love the additional dual core processor, which is up to 50% faster than the previous Apple Watch, the new GPU 2x faster graphics performance, and the 2nd generation display with 1000 nits. The device offers all kinds of opportunities for internal apps and developers.

IOS 10

As of Tuesday September 13th, iOS 10 has officially been released. After a summer in beta, the new operating system is here with a smarter keyboard which cultivates contextual clues through machine learning to improve auto-correct, enhanced Continuity, and a smarter Siri. Best of all, iOS 10 opens up Siri, iMessage and Maps for app developers, allowing them to create app extensions which incorporate these tools. This means Siri can book your next Lyft, you can incorporate ePayments directly into iMessage, and you can make reservations at a restaurant directly through Maps. The ability to create app extensions on internal iPhone apps opens up a world of possibilities for app developers in designing both new and updating existing apps.

IPHONE 7 & 7 PLUS

iPhone 7 via 9to5mac.com

The reviews are in for the iPhone 7 and 7 Plus and they are impressive. While the screen size stays the same, the headphone jack is gone, and the camera is beefed up. iPhone 7+ features a dual camera system which allows for true 2x optical zoom without loss of image quality.

When it comes to graphics, the display is now 25% brighter with a wider color gamut. The new A10 fusion processor is 40% faster than the A9 and features a graphics processing chip that is 50% faster than the iPhone 6 counterpart. While it has increased processing power, it also has extended battery life – the longest battery life ever in an iPhone.

The possibilities for mobile game developers are endless, as seen in this demonstration by Heather Price, co-founder of ThisGameStudio:

HOMEKIT & IoT

Having made major strides in the phone, watch, TV, music streaming and soon original content areas, Apple is naturally moving toward the connected home. HomeKit is the first time home automation has been integrated with a major platform. HomeKit will allow users to adjust lights in their house, check on locked doors, open their garage and more. HomeKit will now accept virtually every major brand creating home automation devices, and it works on over 100 products coming to market.

Apple also made several announcements, including their educational investment in ConnectEd, introduction of real-time collaboration through iWork, a partnership with Nike with the Apple Watch Nike+, and more. With such a density of announcements, it’s an exciting time to be an iOS developer.

Game Design Techniques: Significantly Increase Ad Revenue with a Sharp Core Loop

Due to the budgetary, software and hardware limitations of mobile games, developers must hook audiences with a well-built game incorporating layers of psychological strategy. The core of any mobile game is the Core Loop. The Core Loop is the main facet of gameplay. It’s the beating heart upon which all progress is precipitated. In sports games, it’s the matches. In Angry Birds, it’s launching the birds to destroy the pigs. In Candy Crush, it’s the levels. The Core Loop is the obstacle that users willingly take on with the intention of overcoming in exchange for a feeling of accomplishment. While retention techniques can reinforce that feeling and can add to the experience, no game can survive a poor Core Loop. In some cases, a great Core Loop doesn’t need any sort of extravagant retention technique. Flappy Bird, which took 3 hours to make, can accrue $50,000 a day in ad revenue purely off the Core Loop.

THE BASICS

A good Core Loop for a mobile game generally entails a simple, enjoyable, repetitive action which triggers a reward when executed properly. This reward is something in-game which triggers a dopamine rush for the user. The rewards can be anything from gaining points, getting lives, advancing levels, power-ups, unlocking characters and items, and so forth. These rewards are tiered and the dopamine rush should vary depending on the level of accomplishment. For instance, the main action of Fruit Ninja is slicing fruit. Slicing one fruit triggers a dopamine rush, but clearing a level of fruit triggers a larger dopamine rush, and getting on the high score list triggers yet a larger one, etc. Retention tactics can dictate how these rushes are tiered, but the action which produces the rush is the most important thing: the Core Loop.

LOOPING

Rule number one of the Core Loop for mobile games is to actually loop. After one loop completes, another loop begins. The user completes a level and begins at the next level with their score intact, or they fail to complete the level and begin at the start of the same level with their score reset. Even rewards apps for retail stores rely on Core Loop to hook users. Console games are monetized through retail, so they can craft larger budget, more intimate single-player experiences, but mobile games are generally monetized through the Freemium model, which means ad-revenues will make up the bulk of their profits. Ads come at the end of the Core Loop, so the more loops per user, the better. Thus, mobile developers generally invest in simple but rewarding, well-crafted, repetitive gameplay systems.

PROGRESSION AND REPETITION

Pac Man Level 1 Vs. Level 2 via GitHub

While a Core Loop must loop, it also must instill a sense of progression. If the user doesn’t feel like they’re making progress, they will likely quit. Users want the satisfaction of accomplishment, and both satisfaction and accomplishment require a sense of finality. Arcade games are popular on mobile devices because they thrive on repetition. Level 2 of Pac-Man is not much different from Level 1, but it is different, and that minor difference instills a sense of progression; the sense that a new challenge must be conquered with skills accrued in past gameplay experience. Memories unconsciously become technique. In games like the aforementioned Flappy Bird, the goal is simply to get a high score. There are no levels, but a sense of progression is still built purely through how one’s high score builds. If the high score weren’t displayed, Flappy Bird would still have a Core Loop, but nobody would play it since one couldn’t measure one’s progress. It wouldn’t feel like a game. The beauty of high scores is they represent a single player game with a social release, which is also great for social media promotion.

SESSION LENGTH

Session length is a vital aspect of the Core Loop. The Starbucks Test entails that the user should be able to have a meaningful experience with the game in the time it takes the barista to make them coffee. A concise session length will get users coming back often in the empty pockets of their day.

DUAL LOOP

The Dual Loop is an advanced game development technique that can deeply enhance gameplay. At the end of the first loop, the Dual Loop technique offers the user the option to stop their session and enter into a mini-loop which enhances the next loop, which is a continuation of the first. When you play Clash of Clans, you can battle, which is the main loop, but you can also collect resources or build and train your army in between battles. The dual allows the user to add quick 30-second interactions which pass the Starbucks Test and increase their investment in the competition.

One of the best ways to enhance your ability to develop a Core Loop is to play and analyze other games. A well-designed Core Loop can lead to mobile gaming success on minimal budgets, and massive success on larger budgets.

Monetizing IoT: How the Internet of Things Builds Fortunes

A man sits in a restaurant and orders “The John Candy Burger” (a double cheeseburger with four strips of bacon and a fried egg) through a touch screen embedded into the table. As he gives the waiter his order, his smartwatch vibrates. He checks a push notification which tells him he should not order “The John Candy Burger” based on information gathered from a sensor in his body which has been monitoring his blood pressure and cholesterol among other notable health measurements in a constant stream of data for 15 years with infallible predictive capabilities. It tells him this specific cheeseburger from this specific restaurant will increase his risk of a heart attack on his daily run by 8%. He doesn’t understand how, but he accepts it the way one accepts that the earth is round and the Great Pyramid of Giza existed in 2540 BC.

In the above fictional example, the Internet of Things took the man’s order, evaluated the average nutritional content of the burger based on data gathered through sensors embedded into a smart grill, and transmitted it to the smartwatch where it analyzed nutritional content in the context of over 15 years of health data gathered on the man to inform him on the potential risk of his decision. The Internet of Things is bigger than money. It’s a new world where planes don’t crash and  smartphones can tell their users the location of the nearest empty parking spot to minimize travel time and ensure the city is maintaining optimum functionality. A pregnant wife is gently guided through a safe 9-month path to the newest addition to her family. The edges of the world are being smoothed out by data. The Internet of Things is leading the human race toward new levels of efficiency, productivity and effectiveness.

“Show me the money”

As a major technological evolution takes place, many businesses are looking to monetize it. Although the world has yet to see the full impact of the Internet of Things, it has already revolutionized process improvement for everything from manufacturing to health care, product enhancement, and safety. For the developer eager to enter a burgeoning field with infinite possibilities, here are some of the common techniques for monetizing IoT applications.

ONE-TIME PAY + FREE APP

The most basic monetization method entails creating a simple product with everyday applications, like Jawbone and the Phillips Hue Connected Bulb for example, and offering the equipment for purchase which works in conjunction with a connected app for iOS & Android. This method is most effective for products where the manufacturing cost to market ratio is kept low.

SUBSCRIPTION-BASED

One of the major issues with the IoT is the amount of data generated regularly by their devices. The amount of data and possibilities are so staggering, it’s vital to understand and decide upon relevant metrics and analysis tactics. For developers, it means that the cost of maintaining many IoT apps calls for a constant stream of revenue. Companies like Audi offer a hotspot subscription, ranging from 6 to 30 months, for Audi Connect, their hotspot navigation system utilizing Google Earth and Voice to offer real-time alerts, weather and traffic. In some applications, data plans will likely emerge as a another way of tiering subscription-based purchases.

WHITE LABEL SERVICES

Perhaps the most profitable and complex option, monetizing IoT applications through white label services entails having the foresight to identify the future of the technology and the necessary human & financial resources to act upon it effectively through the creation of a template offering which businesses can rebrand as their own. Jasper Technologies created the Connected Car Cloud as a cloud-based turnkey solution for developing smart-cars with real-time diagnostics, safety, security, and more.

Acquired by Cisco for about $1.4 billion in March, Jasper is one of the big success stories of IoT monetization and a model for future innovators looking to capitalize on the business opportunities brought about by the Internet of Things.

Learn more about IoT through this awesome article with advice from early adopters via Computer World.

The Secret to Monetizing Mobile Games: Retention

In the Freemium era, retention is perhaps the most important measurement of a mobile game’s success. While console games are sold in boxes, rely on marketing, and profit primarily from sales (in addition to ongoing online content/purchases), the bulk of mobile games are free and must begin generating revenue after they have been installed. In-app purchases and advertising revenues make up the vast majority of revenue. The average in-app purchase is made 12 days after first launching an app. During that time the user is likely generating revenue primarily through in-game advertising.

The great FTP (Free-To-Play) game monetization expert Nicholas Lovell (a consultant on Angry Birds Go—the very first FTP game from the conception on) breaks down the FTP game design process into a pyramid of three games which play off of each other: Core Loop, Retention, and Superfan games.

FTP Pyramid Via Game Sparks

CORE LOOP: The Core Loop is active gameplay: playing matches in Madden, clearing a level in Candy Crush, catching a Pokemon and battling in Pokemon GO. The Core Loop is the heart of the game. Without an engaging Core Loop, a game has nothing on which to build.

RETENTION: The Retention Game revolves around the Core Loop and is everything that instills the user with a sense of progression toward an overarching goal to keep them  coming back. It is the scoring mechanisms, the levels, the mechanics which establish progression (commonly the game maps), the narrative in Single Player games like Grand Theft Auto and Assassin’s Creed, the achievement system, and the leaderboards. Retention reinforces positive feelings and a sense of accomplishment from the Core Loop experience. Without an effective Retention game, users will not see any point to the game and will not receive an sense of accomplishment or progression toward a greater goal, and the Core Loop will seem insignificant and fade out.

SUPERFAN: The Superfan gameplay mechanics are catered to those who have developed a significant relationship with the game. They are premium subscriptions, extravagant in-app purchases, add-ons for  game’s die-hard fanatics.  Many mobile games are designed for casual play and no Superfan game, while other high-budget multiplayer games, like Clash of Clans and Pokemon GO, have very established brands and use Superfan methods to capitalize on their fervent fandom.

While having an addictive Core Loop is the most important building block, Retention reinforces positive feelings about the game, instills a sense of progression toward both immediate goals and overarching goals, and ensures users are feeling rewarded by the time they put into gameplay. Core Loop will get them in the door, while Retention will keep them in the house and lubricate their wallet.

Here are four of the best guidelines for developing retention, including specific methods, for mobile games:

SEDUCE THE USER WITH AN INTRODUCTION

In the highly competitive market for mobile games, games must engage from the introduction. Games with bland introductions will not retain users. An investing opening cut scene, an aesthetically appealing title screen and awesome music/SFX will pay off when they seduce users from the outset to play on and enter the Core Loop.

MAKE THE GAMEPLAY ACCESSIBLE

If a game is too easy or too hard, it won’t be worth the user’s time. It’s important to specify a game’s audience, decide what level of gamer they will be, and make it accessible to them.  Tutorials can help introduce game concepts, but when they are too long or restricting, they hurt more than they help. Offering users tips and tricks during loading screens and through push notifications are a clever way of increasing accessibility to new users without infringing on the Core Loop.

REDUCE AVERAGE LENGTH OF SESSION

The STARBUCKS TEST has become common terminology in game developer circles. If the user can’t have a meaningful experience in the time it takes for a barista to make your drink, then the game loop is too long. In mobile games, which are primarily played in the pockets of time where the impatient smartphone owner must wait, it’s vital to have a short Core Loop which the user can complete quickly and come back to throughout the day.

INSTILL A SENSE OF PROGRESSION

While some games, like Flappy Bird, are simple and fun enough to succeed on an arcade level with only high scores, most mobile developers are unable to achieve the same level of competition and must instill a sense of progression in order to retain the user. Whether it’s unlocking new levels or characters or progressing along a game board, the game must congratulate the user frequently in order to reinforce positive feelings about the game. Many games enlist achievement systems in order to give the user tangible goals with rewards outside of the main objectives of the Core Loop.

Read more on Achievement systems here via Gamasutra

Learn more about retention in the YouTube lecture below by Lovell. At 1:11:00, Lovell explains how prototyping the retention game outside of the Core Loop to see if it still feels effective is a great way of testing how effective retention methods.

Ultimately, the two biggest factors which will lead to uninstalls for mobile games are boredom and frustration. The game designer must battle these factors both in the immediacy of the Core Loop and the overarching retention strategies.

Mobile Game Monetization Methods for Bartle Types: Achieve Exponential Growth Through Social Gaming

The Mystic Media Blog is currently engaged in a series of articles examining each of the Bartle types and how to acquire, retain and monetize them according to their desires. Check out last week’s article on Killers. In this, our concluding article, we will explore Socializers.

Socializers are perhaps the most important Bartle type for generating growth in a userbase. The Internet makes it easier than ever for players to share their experience with other users. Socializers aim to form connections through interactions with other players. Like the Explorer, they are focused on the internal qualities of the world and its inhabitants, while Achievers and Killers treat other users and the world as external objects.

In multiplayer games, Socializers enhance the gaming experience for all of the Bartle types. Achievers see any addition to the userbase as competition,  an elevation of the stakes, enriching their accomplishments. Killers see them as easy prey. Explorers see them as eager to communicate, join and help them on their quests. Socializers see other Socializers as people with whom they can socialize. Thus, Socializers appease all Bartle types and can trigger major growth in the ecosystem.

When developing games, mobile developers are often hampered with budgetary constraints which entail a single-player experience. Some turn-based games are able to counter that norm on a relatively small budget. However, in single-player games, the importance of social integration is absolutely vital in the current app landscape. In a world where Yelp rules and people are bombarded with an inordinate amount of daily advertising, many consumers rely on references from friends, family and trusted content curators to decide what they should pursue. Not only having a social presence, but giving players the opportunity to share in a variety of methods is a tactic which will enrich retainment on not only Socializers, but all of your userbase.

Profile creation satisfies both the Socializers desire to create a persona and connect with other users, while offering opportunities to entice Achievers with an opportunity to share their achievements.

Offering a variety of methods of communication is key to retaining Socializers. A “Social Prod” represents the lowest form of communication, such as the “Poke” button on Facebook, in which one user offers another user the minimum acknowledgement.

A “Brag Button” which allows you to easily shares your score and/or a video of your game to social networks is another method of communication which makes social sharing easy and entices the Achiever to share.

Creating a chat interface will encourage users to communicate with one another and allow them to share in-game secrets. A chat interface can function as a social network or discussion board for your users to congregate. When properly designed, chat interfaces can even help solve some of your customer service problems. Users feel more of a connection to other users, so setting up a kind of mentor system in your game where experienced players are rewarded for helping out newbies can go a long way in enhancing the intimacy of the experience while saving game developers money on maintaining Customer Service.

The presence of both a user’s outside friends playing the game and a community of friends existing within the game validates the game’s role in the user’s life and increases the sense of intimacy in the same way inside jokes with friends do.

Social Treasures are game items which a user can only get from another player. Candy Crush limits daily play, but lets players give their friends lives which enable them to play for longer as social treasure. Strategies like Social Treasure create a courtesy economy which encourages users to get their friends to play.

Rewarded Social Sharing gives users in-game currency or bonus items in exchange for sharing the game or their high score on social media, a method for encouraging sharing while also potentially previewing in-game in-app purchases.

Via Game Development Stack Exchange

Leaderboards factor into a number of single player games as the primary form of social integration, but Leaderboards can be intimidating and useless to new users when experienced players lord over the top ten spots and don’t give up. Offering a micro-leaderboard for in-game or social friends and/or monthly leaderboards will ensure new users are actually encouraged to become competitive through leaderboards and don’t feel left out.

When it comes to monetization, Socializers are best used as a tool to grow a userbase and thus enhance competition, increasing advertising and in-app purchases. Each of the above tactics applies to monetization in the sense that social sharing is in itself a currency. Freemium games can offer subscription-based online integration with a monthly fee.

Erwin Andreasen and Brandon Downey created the “Bartle Test” without collaboration or input from Richard Bartle. The test classifies users with a “Bartle Quotient.” The Bartle Quotient is calculated based on answers to a series of 30 random questions and totals 200% across all categories, with no single category exceeding 100%. So you can be 100% Socializer, 50% Explorer, 30% Achiever and 20% Killer. In other words, each of the Bartle types represents an urge within the gamer, but no gamer is 100% one of those categories.

Everyone has an Achiever, Explorer, Killer and Socializer in them. By isolating each archetype and analyzing their behavior, game designers can ensure they are making fully-formed, well-rounded games with a variety of appeal. And any mobile app developer will tell you the best monetization method is a well-built app.