Is gaming industry still profitable?

RedTrack

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Hello, guys!

From time to time we notice some preconceptions about gaming vertical. So, together with ad2games we discussed 3 most common stereotypes in this vertical.

To read the full version of our quickstart quide with practical tips from ad2games, please visit our blog or our community: t.me/redtrack


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Last year the global games market reached $137.9 billion. That’s 10.9% higher than in 2017. Why is it happening? The growth of the industry is driven by extensive internet penetration, favorable regulations and constant emergence of new markets. Ten years ago it was children and teenagers who were playing online games. Today gaming audience has changed significantly. Various studies show that almost 50% of gamers are solvent adults.



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Online gaming niche is immense. It includes a huge set of sub-niches. Affiliates can work with virtual casino operators, exotic online platforms, innovative software vendors. But may also choose more accustomed formats like boards, cards, racing, specific kids or adults games and so on. The more choices you have, the better your chances to earn more in a competitive environment.

With more than 2 million gamers in the world, the gaming vertical is a real tidbit for marketers. Yet there are so many stereotypes and preconceptions that discourage newcomers from working with it.

Stereotype 1: Gaming vertical is intricate and difficult to manage


No doubts, gaming vertical isnt a super easy one. On the one hand, high conversion rates require creativity and strong analytical skills. On the other, this niche provides marketers with various products and services that significantly ease earning attainable commissions. One of them – affiliate networks. They help you to find publishers and manage affiliate campaigns quick and easy. Spoiler: not all of them are equally good. So, conduct a thorough research first to work only with trusted and secure one.

As to our new partner Ad2games, it has over 150 international brands in portfolio and 1500 live campaigns. Beside gaming offers, it can also provide you with high-quality traffic and serves you as a full-fledged traffic source. RedTrack and Ad2games entered into partnership to help gaming vertical newcomers and professionals overcome challenges of affiliate marketing:

find offers with high rates
make effective creatives
create campaigns
track and manage single or multiple campaigns


Stereotype 2. Gaming vertical is highly competitive and difficult to start


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To get a successful start, you should think carefully about the payment model. We advise you to сarefully read about all of them before joining the particular network. For example in A2dgames.com there are 5 payment models that are available for every affiliate marketer:

SOI (single opt-in) —you’re getting paid for every user that you added to the mailing base list with or without their confirmation.
DOI (double opt-in) — implies payment for adding users to your mailing base with their confirmation only.
CPP (cost per player) — a new player in the game – new payment.
CPO (cost per order) — you’re getting paid for every user that purchased the game.
Revenue Sharing models — you are given a certain percentage once a user paid for the product.

Stereotype 3. Gaming vertical isnt a profitable one


Today gaming programms rarely require any purchase from the customer. That’s why earning commissions can be a lot easier. High rewards are usually made due to high volumes. So, the chances are better for those, who have significant numbers of targeted traffic, social media followers or email subscribers.

As with all competitive verticals, there are marketers who make a fortune and those who are not so satisfied with their financial results. There are various factors that lead to such differences in affiliates’ profits. And to be honest, it’s almost never a vertical issue.


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Among factors that may reduce your profits are:

1. Low rates. Low commissions and short cookie durations are frequent cases in gaming vertical. So, choose wisely and think carefully about the strategy before starting working with any offer. By the way, client games usually have higher rates than browser ones.

2. Audience’s GEO. Keep in mind that cost per lead in the CIS region will be cheaper than in the USA.

3. Low product’s selling opportunities. The best way to understand if the game has market fit is to check how its competitor’s doing, search popularity and the quality of the game itself.

4. Fraud traffic. In 2018 about $51 million daily was lost to click fraud or $19 billion throughout the year. Can you imagine, how much is your personal loss can be?

5. Lack of tracking and analytical system. An essential tool to be sure you’re not draining your budget. Think -Test – Implement- Check – Analyze and all over again.

6. Poor promotion techniques. There are various promotion techniques that may help to promote your offer. To define which ones work better for your particular case, study competitor’s tactics, search for statistics in your niche and experiment with split tests.
 

Dandil

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Very interesting information, thank you. But what about earning money inside the game? I've heard that some people make new gamable characters and sell them. It's like a big business or something. Someone actually makes money this way?
 

BaronSamedi

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They really are, Dandil. That's no secret. There is a whole industry for this. Not so long ago I've even used this service. You see, I don't have much time for leveling my characters in Overwatch. And that's why I ordered Overwatch boosting and the company I ordered boosting it, made everything very fast and clean. And no, I didn't pay them tons of money. The prices were fair. Now I have two different heroes I can play with when I have free time (I don't have too much of it).
 

ewcapqoeke

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I have heard that people in China farm ingame currecy in paid membership online games and sell them to rich gamers in USA. In our city its almost impossible to buy game DVD except ordering from Amazon or purchasing it from Origin. The only shop of game DVD I knows selling pirated game DVD for nearly same price as original game DVD, so I preder to order DVD from Amazon.
 

ClarkkRW

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I truly think that game industry would be always profitable. Why? Simple, because people love to play games. And there are dozens of niches, where you can start developing a game for a needed segment of potential players.
 

ClarkkRW

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Some developers prefer to develop games after complete analyzing of market, and making some measurements about it. As we can see, the biggest part of gamers nowadays prefer to play online games, especially mobile versions of those. And if you are going to make any mobile game from existing PC version of it, you should definitely find game development team, for example like iLogos, who specializes on such porting of games. I play three games on my tablet from them, and what I can say for sure - they know how to create really interesting gameplay and game art scenes.
 

Disrop

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Yep, this niche is immortal.
gonna play mortal combat soon :D
 

HaBangNet

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it depend on which market, some market eg. china is very strict now aday on game app
 

RenderedElite

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The gaming industry will continue to grow as e-sports becomes more popular, this is something I am 90% sure of. Therefore, the entire gaming industry is profitable IMO. You can make money blogging about games, YouTube is an even more popular option, along with live streaming and competitive e-sports. Games only seem to get better, from their graphics to perfected gameplay. From PC games to mobile games.. there is probably more potential for profit in this industry than ever before.
 
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