Newzoo predicts the 2023 mobile market will surpass the milestone of 3 billion players. In-game transactions are strengthening their hold on the games market and still generate the most revenue on mobile by a wide margin. As mobile gaming continues to increase in popularity, there’s a growing market for games with IAP-driven revenue.
Turkey’s gaming market will surely join the world in this industry boom. According to research conducted by Allcorrect Games, 84% of all internet users in Turkey play mobile games on at least one device.
As more gamers enter the market in Turkey and beyond, user acquisition and retaining and monetizing existing customers naturally become more expensive and competitive. Developers’ best way to mitigate challenging times ahead is to acquire and leverage more data, expand monetization options, and retain users longer with personalized, high-quality user journeys. One of the most promising new revenue stream models is the web shop.
How developers can benefit from a web shop
Mobile developers can now comfortably and confidently sell through their branded store outside the third-party platforms. Web shops offer benefits that can help developers capture more revenue and retain more players, from creating tailored in-game sales funnels to customizing the look and feel of your store. In the current mobile market and for the foreseeable future, a mobile web shop will be essential for boosting LTV and ARPU.
Earn more from existing players
A custom web shop isn’t for converting new players. It’s an effective acquisition tool that helps retain current players and re-engage straying players with exclusive items, unique offers, and thoughtful promotions.
On average, a web shop visitor makes five purchases monthly and tends to purchase more than once when the offer’s value is clear. In addition, since there are no price limits constraining a developer’s web shop, it’s much easier to capture actively playing “whales.” If built correctly, web shops can generate about half of their revenue through offers with assets priced at over $100. So, with a high frequency of repeated purchases, no price limit, and a lower store commission fee to pay out, the incremental revenue opportunity of a web shop for developers is clear.
Experts, including Business of Apps, predict that “personalization will reign supreme.” Engagement is key to successful sales, so “static” stores that offer the same bundles day after day are far less effective. In particular, if a game business’ monetization strategy includes converting free-to-play gamers to paying customers, players will appreciate personalized offers that align with their behavior and profile. Developers need to collect and learn from analytics, then apply them to attractive regional deals or tie them to a user’s level of engagement and similar triggers.
Given new monetization freedoms like control over pricing and assets, developers and publishers should take proactive steps to create bundles, offers, and giveaways designed to retain players.
Capture more revenue locally than globally
A web shop is a universal tool that enables developers in Turkey to reach players worldwide, thus boosting revenue. A customized web shop makes it simple for developers to price according to regional income levels and offer popular payment methods for that area. Pricing bundles that are the same for all players ⏤ without regard to the local economy ⏤ is a quick way to lose potential customers.
Another web shop benefit is its multitude of supported payment solutions. While major credit card brands are a must-have in North America, developers must recognize other regions using alternative, local payment methods.
NetEase, one of the world’s largest video game and internet companies, used its web store to provide customer flexibility by adding local online payment solutions, including those that operate without credit cards. As part of their web shop’s integration, NetEase Games was granted scalable access to 700+ pre-integrated payment methods worldwide (focusing on Korea’s local payment methods), with access in 200+ countries.
With a custom web shop, developers can capture more revenue in pre-established regions, then expand their reach globally.
The advantage of analytics
Owning and controlling a branded web shop allows more data collection, which will help to market more efficiently and effectively to players. The more information collected, the more informed each decision will be.
Establishing sales funnels helps to filter out which advertising campaigns perform the best, at what point people become disinterested and abandon transactions, and identify different customer segments with data on how to market to them more effectively. Once identified, it is simple to direct potential customers to a web shop offer ⏤ without a laborious sales funnel. Reducing friction leads to more sales.
Analytics also simplifies the effort to group popular items into unique, more affordable deals or host giveaways that amplify engagement and player retention.
Customize with familiar branding
Customization goes beyond just pricing. There is power in the ability to brand a store to match the game players find most familiar and comfortable. When brand identity is consistent and intentional, shoppers appreciate the instant connection.
With a web shop, there is no longer a need to be constrained solely by third-party stores. The effort to make a web shop immediately recognizable strengthens brand identity, especially if gamers can find their favorite in-game store on the web and other platforms. Tilting Point’s hit game, Star Trek Timelines enjoys remarkable success. Tilting Point’s promotion of their catalog’s value and unique, time-limited offers in a Timelines game-branded shopping experience that is familiar to their top players.
Earn more with less store commission
Online stores infamously took up to 30% of a game’s revenue. A barrage of less-than-favorable press coverage helped reduce some rates to 15-20%. Developers beholding to these platform fees lost up to a third of their revenue before seeing the income in addition to the burn of local taxes and other expenditures.
However, following Apple’s update, developers can now use player contact information obtained inside the app to communicate with them directly. Now, developers can use community channels like Discord, Forum, and others to communicate the value of web purchases to players and nurture a growing trust in web shops.
A brighter future for gamers, developers, and publishers
Relieved of the pressure to sell items through Apple and other mobile distributors, developers can now consider the possibility of new, bigger revenue streams ⏤ with fewer fees ⏤ and keep more revenue from their transactions.
If you’re a game developer interested in controlling your mobile game monetization strategy and maximizing user engagement, consider talking with Xsolla. Our mobile game experts can help you discover the commerce platform-friendly way to sell direct to players and keep more revenue. Get started at our website.