A Complete Guide to HTML5 Game Monetization

Often, I get asked what if AppLixir provides HTML5 Game Monetization. My answer has always been – Yes, we do!

But what is Monetization? In this post, I will try to cover what Monetization is, types of monetization and specifically – Rewarded Video Ad Monetization.

Monetization refers to the process of generating revenue from an asset, business, or service. It encompasses various strategies and methods for generating income, such as selling products, charging for access to content or services, advertising, subscriptions, etc.  Game Monetization, in particular, refers to the strategies and methods used by game developers and publishers to generate revenue from their games.

Game monetization strategies often combine several of these methods to maximize revenue. Here are some popular monetization options for HTML5 Games:

1. Banner Advertisements: this type of monetization involves display ads, video ads, or sponsored content in the game.  Various ad networks and platforms are available for HTML5 games.
2. In-Game Purchases: this involves selling virtual goods, characters, skins, or other in-game items.  You can use a variety of payment processors to handle transactions.
3. Rewarded Video Ads: Rewarded video ads are a type of advertisement where users are given some sort of reward, like in-game currency, items, or extra lives, in exchange for watching a video advertisement.

Banner Advertisements

Banner ads are one of the most common forms of online advertising and are used as a monetization method by many websites and apps, including games. Here are some pros and cons of using banner ads as a form of monetization:

Pros:

1. Easy Implementation: Many ad networks and platforms can help you easily implement banner ads.
2. Passive Income: Once implemented, banner ads can generate income without extra effort.
3. Wide Reach: Ad networks often have numerous advertisers, enabling your ads to reach a wide audience.
4. Cost-Effective: Banner ads are often more cost-effective than video ads or sponsored content for advertisers.
5. Non-Intrusive: Users often find banner ads less annoying compared to pop-ups or interstitial ads.

Cons:

1. Ad Blindness: Many users have developed “ad blindness” and tend to ignore banner ads, which can result in lower click-through rates and less revenue.
2. Lower Revenue: Banner ads generally have lower click-through rates and generate less revenue compared to other ad formats like video ads or native ads.
3. Space Consuming: Banner ads take up space on your screen or game interface, which can detract from the user experience.
4. Ad Blockers: Many users have ad blockers installed, whicadoh can prevent your banner ads from being displayed.
5. Relevance: It can be challenging to ensure that the ads displayed are relevant to your audience, which can affect the click-through rate and overall effectiveness of your ads.
6. Negative Perception: Some users have a negative perception of ads in general, and banner ads in particular, which can affect their opinion of your game or app.

In Game Purchase

In-game purchases are a popular monetization method for many games, especially mobile and free-to-play games. Players can purchase virtual goods, characters, skins, power-ups, or other in-game items using real money. Here are some pros and cons of using in-game purchases as a form of monetization:

Pros:

1. High Revenue: Large, engaged player base and willingness to spend on in-game items can generate significant revenue.
2. Increases Engagement: Attractive in-game items can lead to more frequent and prolonged play.
3. Flexible Pricing: Offering a range of items at different prices caters to casual players and ‘whales.’
4. Enhanced Experience: Well-designed in-game purchases can improve the gaming experience by allowing customization, unlocking new levels, or gaining a competitive edge.
5. Freemium Model: Offering the game for free can attract more players, while still generating revenue from those willing to pay.

Cons:

1. Pay-to-Win Risks: In-game purchases can lead to a ‘pay-to-win’ scenario, causing frustration and a negative game perception.
2. Player Backlash: Some players may be deterred if they feel pressured to spend money.
3. Regulatory Issues: Certain regions have regulations concerning in-game purchases, especially for children, requiring awareness and compliance.
4. Payment Processing: Setting up a secure, reliable payment processing system can be complex and may incur fees.
5. Balancing Issues: Offering in-game purchases can complicate game balancing, necessitating a fun and challenging experience for both paying and non-paying players.

Rewarded Video Ads

Rewarded video ads are a type of advertisement where users are given some sort of reward, like in-game currency, items, or extra lives, in exchange for watching a video advertisement. Here are some pros and cons of using rewarded video ads as a form of monetization:

Pros:

1. High Engagement: Rewards encourage players to watch the entire ad, resulting in higher engagement than other ad formats.
2. Positive Perception: Players who choose to watch an ad for a reward often perceive it more positively than other ad formats.
3. High Revenue: Rewarded video ads typically have higher eCPM and generate more revenue than banner ads.
4. Non-Intrusive: Players choose to watch the ad, making it less intrusive than interstitial ads or pop-ups.
5. Increased Playtime: Rewards like extra lives or in-game currency can encourage longer playtime.

Cons:

1. Limited Inventory: The limited availability of rewarded video ad inventory may not suit all games or apps.
2. Ad Network Dependence: Working with an ad network offering rewarded video ads may involve fees or revenue sharing.
3. Game Balance Effect: Offering rewards for watching ads may require game design adjustments to maintain fairness and challenge.
4. Frequency Limitations: Over-reliance on rewarded video ads can cause player fatigue and reduced engagement.
5. Ad Quality: Low-quality or irrelevant ads can negatively affect the player’s perception of your game.

Why Choose AppLixir Rewarded Video Ads?

1. Maximized Revenue: With high eCPM and targeted ad placements, AppLixir ensures you tap into the most lucrative advertising opportunities.
2. Positive Player Experience: Our rewarded video ads are designed to be non-intrusive and user-initiated, guaranteeing a seamless gaming experience that keeps your players coming back.
3. Customizable Rewards: You have the freedom to decide what rewards to offer, making sure they align perfectly with your game mechanics and keep your players engaged.
4. Global Ad Inventory: Our extensive network of advertisers means your game benefits from a diverse range of high-quality, relevant ads that engage your audience globally.
5. Data-Driven Insights: Leverage real-time analytics to make informed decisions. Track player engagement, ad performance, and revenue generation all from a single dashboard.
6. Easy Integration: With our straightforward SDK, you’ll have AppLixir up and running in no time.