The Identifier for Advertisers (IDFA) removal could have an impact on the monetization in games. So, we are here to show you “How To Boost Monetization In Games Using Email Marketing”.
Monetization means ways to create money from different actions or processes. These could include getting views on YouTube, or putting advertisements in your website.
Similar, monetization in games means a process video game publisher uses to generate income from a video game product.
Table of Contents
- IDFA removal will soon become a problem for monetization in games
- Mobile game developers are not obtaining enough marketing permissions on their users.
- Mobile game developers are not using email marketing even though it’s a very effective marketing channel.
- There are tools on the market that removes the friction of getting people to deliver an email permission.
IDFA will soon be gone
There has been much debate in the press surrounding Apple’s recent decision to introduce new privacy measures.
And the negative impact this will have on advertisers in general and in-game monetisation in particular.
This could have a serious impact on game developers who rely on advertising to help generate their income. But, as history shows, wherever there is upheaval, there is opportunity.
I came from the digital agency industry and moved into mobile gaming some 5 years ago. The more I learnt about the mobile game market the less I understood about this industry.
This industry’s obsession with spending money on getting people to download their games. It also gives almost no thought about encouraging the player to give their permission to allow marketing communications.
Everything is mostly centred around the app and the device, instead of the users.
Permissions are more valuable than you think
By ignoring the issue of marketing communications permissions, when the app is deleted or the phone has been changed or lost, there is a significant chance that the user is lost for good.
This alone makes life difficult for game developers / publishers, but add in this issue of Apple removing the IDFA the resulting impact on ad revenues and life because significantly harder.
It seems to me that a renewed focus on the customer and getting their permission to send them marketing messages forms part of the post IDFA world solution.
Even though it sounds very old school, email communications can be incredibly powerful and, more importantly, they can be virtually cost free.
This is especially the case within the casual gaming sector where a majority of players are female and over 35. It is this audience that tends to respond very well to emails
Earlier this summer, Hubspot posted a blog analysing the effectiveness of emails over other forms of communications and the results might surprise you
- There are 3.9 billion daily email users
- Mobile ‘opens’ account for 46% of all email opens.
- 35% of business professionals check email on a mobile device.
- 73% of millennials prefer communications from businesses to come via email.
- Marketers who use segmented campaigns note as much as a 760% increase in revenue.
- 35% of marketers send their customers 3-5 emails per week.
- 78% of marketers have seen an increase in email engagement over the last 12 months
- 80% of business professionals believe that email marketing increases customer retention.
- 59% of respondents say marketing emails influence their purchase decisions.
- 59% of marketers say email is their biggest source of ROI.
Read the full article
Will my users churn?
There is no doubting that asking players to agree to marketing communications often leads to friction and ultimately drop out. This especially true when doing so via a mobile phone.
However, those that do agree, do so because they are interested. And because they are interested, they will have a greater chance of engaging with your messaging.
If they are engaging with your messaging, you can remain connected with your audience should they stop connecting with your game for some reason. Not only that, they can track it – did I mention that it was virtually free?
Don’t think that this is some sort of pipe dream – it is more than achievable. I can back this up from my own real experiences where my old studio created games and converted 60%+ of all downloads into email permission by giving them rewards.
What can you do with email permissions?
What can email permissions be used for in mobile gaming businesses?
- First of all it’s almost free to send emails
- You can use it to improve retention and engagement by creating email flows the first days after the user has been onboarded
- You can use it to reduce churn and reach them years after giving their permission no matter if they have your app installed or not.
- Growing an email permission database will be a good and cheap launch pad for new games
It can be used to run campaigns and announce updates, tournaments and more.
- Like with the Advertiser ID, emails can be used to create lookalike audiences on channels like
- Facebook to reach people who are using your app.
The simple math
Say your game gets 10m downloads and you convert just 10% into email marketing permissions. This means you will have the opportunity to contact 1 million people next time you launch a game that you can reach for less than $1000.
I’m not saying that emails will cover up for the IDFA. Not at all. But if I was running a gaming business I would certainly start thinking about alternatives.
Some important questions to ask are:
“How can I get as much information from my users when I have their attention?”
“How can I give them whatever it takes to have them deliver an email permission so I can reach them again at a low cost also after the app has been deleted?”
Solutions like Pointvoucher Business and Versus Systems can help you deliver rewards and lower the friction for getting people to sign-up in your game. And ultimately also boost a range of other KPIs like engagement, retention and ARPDAU that will help your mobile gaming business become profitable or simply just earn more