Next Phase of Mobile Games - Interview with Tapjoy SVP, Chris Akhavan - Page 2
In migrating from browser-based games to mobile, game studio and Tapjoy client 5th Planet Games is one of many developers starting to realize that Free-to-Play is the new market opportunity. Free games require deeper levels of sophistication in how they're developed. The $60-buy-it-once model that was very successful for studios in the past needs to deliver both value and revenue another way. "Today's developers will need to invest more in understanding the performance of their user acquisition sources, in-game economies, user funnels, and the like to create better games and user experiences, and ultimately drive higher ROI," Akhavan predicts.
Done correctly, it can drive bigger profits. An engaging free game with the right monetization strategy at play can generate hundreds of dollars in virtual goods revenue. For monetization, developers and advertisers will join together through companies such as Tapjoy that offer an ecosystem for integrating ads that are personalized to consumer interests yet minimize disruption. And according to Akhavan and the folks at Tapjoy, the result will be a seamless, free-to-play experience that offers value and opportunity for all constituents. '"High-quality, free content for consumers, strong revenue streams for developers and a direct and engaging method for brands to target customers," Akhavan itemizes.
Developers who are unable to compete at this new level of sophistication will fall behind and risk becoming industry causalities, but overall the mobile games industry won’t suffer major hardships. "The winners will continue to reap massive rewards," Akhavan asserts, citing recent successes by companies like SuperCell and GungHo. "Despite the small pop to the 'mobile games hype bubble,' this dip in sentiment is a necessary step toward long-term, sustainable growth,." he concludes.
Note: Since the time of this interview Chris Akhavan is no longer with Tapjoy.