In today’s digital world, rewarded gaming has become increasingly popular, with gamers seeking unique experiences that not only entertain them but also offer rewards. This has led to a rise in the number of rewarded gaming companies that incentivise their players with gift cards, in-game rewards, and more. However, generating revenue can be a challenge for such companies, especially when they are relying solely on traditional advertising and in-app purchases.
Rewarded gaming companies face several challenges
Rewarded gaming companies face numerous challenges beyond just attracting and retaining players. One of the main obstacles is creating a sustainable revenue stream to keep the business profitable. This is particularly challenging because players are drawn to rewarded games because they can earn rewards without spending money.
According to a report by Business Wire, the global mobile gaming market is expected to reach $209.12 billion by 2026. While this may seem like a lucrative market, the competition is fierce, and the cost of user acquisition is high. The report states that the cost of acquiring a loyal player in North America is as high as $4.96, with similar high costs in other regions.
This means that rewarded gaming companies need to generate significant revenue from their players to offset these lofty acquisition costs. Which leads to their next challenge... ads.
Ads be gone
The good news is that a survey by Tapjoy found that 76% of mobile gamers prefer to watch rewarded video ads in exchange for in-game rewards, such as extra lives or currency. While this is a positive for rewarded gaming companies, here’s the bad news: there is still the challenge of finding the right balance between the number of ads shown and the rewards offered. Showing too many ads can lead to a poor user experience and lower engagement while showing too few ads can impact revenue.
Additionally, the rise of ad-blockers presents a significant challenge for rewarded gaming companies that rely on advertising as a main source of revenue. Ad-blockers prevent players from seeing ads, which can result in a significant drop in revenue for the company. This underscores the importance of finding alternative revenue streams that do not rely on traditional advertising models.
Players need more
Unity Technologies found that players are most likely to stick with games that offer regular updates and new content. This indicates that rewarded gaming companies need to consistently provide new and exciting experiences for their players in order to keep them engaged and coming back for more.
According to Business of Apps, the average retention rate for mobile games is only 25.3% after the first day and drops to just 5.7% after 30 days.
Plus, with fast growing competition, rewarded gaming companies must compete with a vast number of other gaming companies, all vying for players' attention and time. This competition puts pressure on rewarded gaming companies to constantly innovate and offer new and exciting gameplay experiences and rewards to stand out from the crowd.
If these companies do not embrace these challenges and find long-term solutions, players may quickly lose interest if the rewards are not enticing enough.
A new way for rewarded gaming companies to win
Kindred is a game-changer for the rewarded gaming industry. By integrating the Kindred SDK into their games, rewarded gaming companies can offer their players more unique ways to win! Players will have the opportunity to earn savings while playing their favourite games. This provides an additional incentive for players to continue playing the game, which ultimately drives user engagement and increases retention rates.
Furthermore, partnering with Kindred provides rewarded gaming companies with an additional revenue stream that is independent of traditional ad formats and in-app purchases. The commission earned on each players’ purchase, made through the Kindred extension, provides a sustainable source of incremental revenue that can help rewarded game companies expand their offerings and grow their businesses.
Our partnership with GameStake is a great example of how we've helped rewarded gaming companies increase their revenue. By using Kindred's SDK, GameStake – a play-to-earn gaming platform – saw a 6.8% increase in ARPMAU (Average Revenue Per Monthly Active User).
To emphasise this impact, if a partner had an ARPMAU of $1.35 and increased it by 6.8% with Kindred, they would earn an extra $2.2 million annually on a base of 2 million users.
What sets Kindred apart
Unlike other platforms, Kindred offers seamless integration into the user experience. There is no impact on the game's UX or any other revenue streams, making it an ideal and quick solution for rewarded gaming companies – with the rewards lasting a lifetime. Kindred also offers a high level of user engagement, providing players with an additional win that is not only entertaining but also saves them money while they shop online.
The innovative solution we provide is especially crucial in the current digital landscape, where players are becoming increasingly resistant to traditional advertising formats. By partnering with Kindred, rewarded gaming companies can offer their players something unique and valuable, leading to increased player engagement, higher retention rates, and additional revenue streams.
In conclusion, the challenges faced by rewarded gaming companies are significant, but they can be overcome with innovative solutions. Kindred offers a disruptive solution that not only drives user engagement and increases retention rates but also provides a sustainable source of incremental revenue. By partnering with Kindred, rewarded gaming companies can offer their players something unique and valuable, leading to increased player engagement, higher retention rates, and additional revenue streams. Don't miss out on the opportunity to set your rewarded gaming company apart from the competition. Contact us today to learn and get started.