Our game was dying at $0.03 ARPDAU. Then we added rewarded video. Seven weeks later, we hit $0.11—without losing a single percentage point of D7 retention.
I used to think monetization was a trade-off: squeeze players for cash and watch them churn, or keep them happy and stay broke. But the best-performing games have figured out something most developers miss—monetization done right actually improves the player experience.
Here's what separates games making $0.25+ ARPDAU from everyone else struggling to break even.
Monetization Models Overview
In-App Purchases (IAP)
- Consumables: Virtual currency, energy, boosts
- Non-consumables: Character unlocks, permanent upgrades
- Subscriptions: VIP passes, battle passes
Ad Monetization
- Rewarded video: Highest eCPM, player-initiated
- Interstitials: Full-screen between sessions
- Banners: Persistent, low revenue
- Playables: Interactive ad format
💰 Revenue Reality
Top-grossing mobile games generate 60-80% of revenue from just 2-5% of players (whales). Hybrid models that serve both paying and non-paying users capture more total revenue.
IAP Optimization Strategies
Price Point Testing
- Start with $0.99, $4.99, $9.99 tiers
- Add anchor prices ($99.99) to increase middle tier conversion
- Regional pricing for emerging markets
- A/B test bundle compositions
First Purchase Optimization
- Starter packs at 80%+ discount
- Time-limited first purchase offers
- Progressive discount for hesitant users
- Contextual offers based on gameplay
Ad Monetization Best Practices
Rewarded Video Strategy
- Place at natural break points
- Offer meaningful rewards (2x currency value)
- Limit frequency to preserve value
- Never force ads on payers
"The best ad placements feel like a feature, not an interruption. Players should want to watch, not tolerate watching."
Interstitial Placement
- After natural session breaks (level complete)
- Never mid-gameplay
- Cap frequency (max 3-4 per session)
- Skip option for engaged players
Hybrid Monetization
Combine IAP and ads strategically:
- Ads for non-payers, IAP for spenders
- Remove ads as IAP incentive
- Use ads to preview IAP content
- Balance LTV across player segments
Battle Pass Design
- Free tier with compelling rewards
- Premium tier at $5-10 price point
- 30-60 day seasons
- Achievable progression for casual players
- Clear value proposition (10x purchase value)
Monetize Smarter
ClicksFlyer helps game publishers maximize ad revenue with premium demand and optimized placements.
Learn MoreKey Metrics to Track
- ARPDAU: Average revenue per daily active user
- ARPPU: Average revenue per paying user
- Conversion rate: % of players who pay
- Ad LTV: Lifetime ad revenue per user
- eCPM: Effective cost per mille
Successful monetization balances short-term revenue with long-term retention. The best games create genuine value for players while building sustainable revenue streams for developers.