Monetization Strategies for iOS Games

iOS games have exploded in popularity over the last decade. With over 1.5 billion active iPhone users worldwide, the iOS platform provides a massive opportunity for game developers. However, monetizing iOS games effectively can be a major challenge.

This article will explore the most effective monetization models and strategies for maximizing revenue from an iOS game.

In-App Purchases

In-app purchases (IAPs) have become the most common and lucrative iOS monetization strategy in iOS game develop. IAPs allow users to purchase additional content and features within the app. There are several types of IAPs that game developers should consider:

Consumable IAPs. These include virtual items that get “used up” or have a limited number of uses, such as extra lives, virtual currencies, power-ups, and more. These need to be purchased repeatedly.

Non-Consumable IAPs. These provide permanent benefits such as unlocking a game level or additional character. Users only need to purchase these once.

Subscription IAPs. These provide access to premium content or features for a specific period of time. Users pay a recurring fee to maintain access, creating an ongoing revenue stream.

Tips for IAP Strategy: 

1. Price consumable IAPs are low (under $5) to encourage impulse purchases.
2. Display IAPs prominently without being too intrusive or pushy.
3. Consider tiered pricing plans to upsell higher-spending users.
4. Run periodic IAP sales to boost revenues.

In-Game Advertising

Displaying ads within iOS games generates revenue per impression or click. Most mobile ad networks provide a straightforward integration using SDKs. There are several approaches to consider:

Banner Ads. These are rectangular image/video ads displayed in the game. They provide income without interrupting gameplay but have limited click-through rates.

Interstitial Ads. These full-screen ads display during natural breaks in gameplay. Higher interrupting but delivers more impressions.

Rewarded Video Ads. Users can optionally view 15-30-second video ads in exchange for virtual rewards. This value exchange results in very high completion rates.

When implementing in-game ads, strive for balance. Excessive frequency or intrusive placement damages the user experience. Monitor click-through rates and optimize over time.

Freemium Upsell Strategy

Freemium games give away a basic version for free while selling a premium version. The free version should deliver genuine value while subtly encouraging upgrades through messaging and intentionally limiting features/content. This enables converting a percentage of users into paying customers.

Elements of an effective freemium upsell strategy include:

1. Limited levels/characters/features in the free version.
2. Occasional popups touting benefits of the paid upgrade.
3. Dangle the “best stuff” like coveted gear or abilities, as paid exclusives.
4. Generous free trial period for the premium version.

Avoid being too aggressive with the upsell tactics. Gradually escalating prompts and messaging tends to convert better over the long run.

Paid Games

While many iOS games pursue free-to-play models with IAPs or ads, paid premium games can still succeed despite having an upfront cost. Some tactics to increase sales of paid games include:

Pursue Apple Feature Placement. Getting prominently featured by App Store editors can expose your game to millions of new potential buyers. Polished visuals and gameplay mechanics are key to getting Apple’s attention.

Lower the Price Initially. Launch your paid game at a discounted introductory price to boost initial downloads and traffic. After it gains traction, gradually raise the price to normal levels.

Offer Lite Version. Releasing a separate free lite version allows interested users to preview core gameplay before committing. Include prompts to upgrade within the lite version to maximize conversion rates.

Run Periodic Sales. Temporarily reducing the price during peak holiday periods or when releasing new content updates can spike sales and push the game up the top-grossing charts.

Cross-Promotion Networks

Cross-promotion networks allow free mobile games to cross-promote each other’s titles as an added value to monetize their user bases.

For example, Game A displays an ad banner for Game B within their app. In exchange, Game B shows a banner for Game A to their users.

This mutually beneficial approach only costs development time versus traditional paid user acquisition. As the number of network participants grows, so too does the audience reach for each game.

Major mobile cross-promo networks include:

1. ChartBoost. With ChartBoost, advertisers get access to over 800 million monthly game users.
2. Adscend Media. Focuses on rewarded ads for virtual currency.
3. PlayableAds. Interactive opt-in video ads demo app gameplay.

Cross-promotion networks provide a scalable monetization model for iOS games that lack the installation base or budget for paid advertising and marketing. The biggest risk is displaying ads for poor-quality games, which could disengage users. Curating network partnerships carefully mitigates this issue.

Optimize for Ad Networks

In addition to direct cross-promotion swaps, iOS games can earn supplemental revenue by displaying third-party mobile ads from networks like Google AdMob and Facebook Audience Network.

However, ad networks apply optimization policies based on metrics like retention and click-through rates. Low-performing games may have limited ad inventory or reduced revenue share.

Tactics for maximizing ad revenue include:

1. Place ads only between levels or other natural breaks.
2. Make ads opt-in rewarded exchanges for virtual currency.
3. Limit session length and ad quantity to avoid fatigue.
4. Test different ad formats and placements.
5. Set eCPMs floors to target high-value geo/demographic traffic.

Optimizing game design and ad integration for network policies yields more ad requests and more effective CPMs in the long term.

Sponsorships and Brand Partnerships

Developing sponsored brand partnerships represents an emerging monetization model for iOS games. Brands pay to have their products subtly integrated into the game experience.

For example, a major food and beverage brand may pay to have their products appear as branded power-ups. Players gain advantages from the branded items without feeling too overwhelmed by messaging.

Benefits of subtle in-game brand partnerships for developers include:

1. Generates revenue without interrupting core gameplay.
2. Enhances realism through branded products.
3. Helps fund development and operations costs.
4. This can lead to co-marketing opportunities.

Brand partnerships work best when the partner aligns naturally with the game. Fantasy RPGs can promote beverage brands, while casual cooking games can showcase real food brands.

The key is seamlessly integrating sponsors in ways that feel natural rather than forced or distracting. This maintains gameplay integrity while still monetizing the audience.

Live Operations

Leading iOS games increasingly rely on “live operations” to drive ongoing player engagement and monetization. Live ops refer to regularly updating games with new content, features, and events rather than remaining static after launch.

Recurring updates keep the gameplay feeling fresh while giving lapsed users incentives to return. Examples of live ops best practices include:

1. Daily/Weekly Challenges. Special levels, races, or objectives are only available for a limited time to drive routine engagement and habit forming.
2. Seasonal Events. Holiday-themed levels, virtual goods, or battle passes increase activity spikes around major celebrations.
3. Feature Updates. New modes, unlockable characters, or gameplay mechanics maintain long-term interest.
4. In-Game Events. Limited-time narrative storylines or gifting promotions encourage players to get online.
5. Tournaments. Contests focused on leaderboards or brackets between groups of players create competitive urgency.

While resource-intensive to maintain, iOS games with robust live ops strategies tend to generate much higher lifetime value from players through natural engagement and monetization.

Steady New User Acquisition

Even with great monetization mechanics, no game can survive without a steady flow of new users entering the ecosystem. Relying solely on organic discovery in the iOS App Store is generally insufficient. Developers should budget regularly for paid user acquisition efforts.

Paid Channels:

1. Facebook and Instagram Ads. Laser-targeted ads to relevant gamer demographics.
2. Google UAC. Keyword and discovery network mobile app install campaigns.
3. Influencer Marketing. Paying video game streamers to showcase iOS gameplay.

Organic Channels

1. ASO Optimization. Fine-tuning listing content for improved App Store SEO.
2. Social Media Marketing. Expand community engagement on Twitter, TikTok etc.
3. Apple Feature Promotions. Landing coveted home page placements and editorial highlights.

Diversifying across both paid and organic channels ensures the lowest cost and most consistent new iOS game installs. These players then monetize overtime via the in-game models detailed above.

Without ongoing UA efforts, even top-grossing games risk going stale eventually.

Conclusion and Next Steps

Succeeding with an iOS game in 2025 requires skillfully blending monetization models while constantly improving gameplay systems. Developers must analyze user data, run in-game economy experiments, and monitor industry trends closely rather than just setting it and forgetting it after launch.

For new iOS game developers, focus energy on nailing the fun factor first before worrying too much about monetization. As the saying goes, “If you build it, they will come.” Without compelling and satisfying core mechanics, even the most aggressive IAPs won’t save it.

Once confident in the quality bar, integrate a couple of conservative models, like rewarded ads and consumable IAPs. Collect user feedback and measure revenue metrics over the next several weeks. Double down on what works while pulling back on what doesn’t.

As the game finds product-market fit and takes off, keep doubling down on content updates, live ops events, and new monetization experiments. Consistently evolving the experience prevents player drop-off and powers financial success.

The iOS gaming gold rush shows no signs of slowing in the coming years. Hopefully, these monetization strategies will provide a blueprint for new developers to stake their claim in winning game designs uniquely tailored to the platform.

The real metaverse is mobile. Time to start building for it!