Although the gaming industry is not new, it is constantly evolving, and not just in the number of offers or the growing number of players.
Driving this evolution and completely changing the landscape of the industry itself is the business model known as GaaS, or Games as a Service.
Simply put, GaaS is the new way to monetize the gaming industry.
It works. Just take a look at the likes of Candy Crush, Fortnite, and World of Warcraft.
It is now clear that this model also includes a winning strategy when it comes to customer engagement and retention.
Marketers are starting to recognize this And looking for ways of how to implement successful components of GaaS into their marketing strategies.
What they found is that brands need to start by rethinking their content marketing strategies and giving customers more choices.
Keep reading this blog post to find out more.
What is the Games as a Service (GaaS) model?
Games as a Service (GaaS) are related to those games that lack initial acquisition costs but instead rely on in-game purchases or subscriptions to make a profit.
Basically, GaaS is a recurring revenue model.
Monetizing video games is a strategy to engage players and make them come back for more. The key to all of this is providing great content – consistently and often.
Updates can arrive daily, weekly, or monthly, depending on the game.
GaaS games can be accessed from the cloud, making them available to anyone, anywhere, anytime, which is another way to keep players interested and engaged.
In-game purchases and various billing options It attracts players of all types as there is something for everyone.
For example, once in the game, the player can make an in-game purchase such as a shield for his character.
Winning subscription services
Another monetization strategy is to ask for payment or sign up to level up in the game.
Updated payment and subscription options can appear at various points during the game now that the player has gained experience and wants to continue playing.
For example, games will offer volume-based billing while other games will require a fixed monthly price.
With this business model, games can be launched online and, with the help of GaaS, keep consumers engaged for longer, while retaining them far beyond what was possible in the past.
It can also prevent the consumer from getting bored with the game By constantly upgrading and adding new content.
GaaS also allows brands to spend more of their marketing money where potential customers are already on hold, thus improving their experience and long-term retention.
gaming industry (Bigger than the film and music industries together) is in growth and shows no signs of slowing down anytime soon. Thanks to GaaS, you don’t have to.
How the GaaS model is changing the gaming industry
The games-as-a-service model is dramatically changing the game industry, affecting both consumer sales methods and game developers’ goals and strategies.
No longer focus on selling copies of the game on a large scale.
The focus has shifted to identifying ways to maximize those recurring revenue Once players have already entered the game.
Benefits for consumers
Consumers receive a higher ROI and gain confidence in committing to the game, knowing that it continues to offer new content and options and won’t fade away within a year.
With a free-to-play model, consumers can decide if they like what they experience, and then choose to purchase additional items or features or choose a billing or subscription option.
With new content added on an ongoing basis-Can’t you love him?
Benefits for developers
For developers, benefits include the ability to stay on one project for longer, which can reduce development costs from having to build sequels or move on to other new projects.
Once the game is released, they continue to offer updates or downloads (DLC) instead.
With revenue streams from in-game purchases, developers are finding Motivation to improve and update the game as you progress.
Benefits for gaming companies
An advantage for game companies is that they no longer need to invest heavily in creating a game initially.
Once launched, they can use CRM systems to collect and analyze data, so that the game can be modified to benefit the players.
In other words, The game can evolve along with the knowledge they gain about the players themselves.
The gaming industry is competitive, and you can expect that competition to rise in the coming years.
Change and innovation are improving the gaming industry for everyone involved, and it can only increase with this competition.
4 GaaS Lessons Marketers Can Learn From
With new ways to monetize the gaming industry, GaaS is a winning strategy for customer engagement and retention.
But building and retaining an audience for the long-term is the goal of marketers everywhere, not just those in the gaming industry.
So, what can marketers learn from the GaaS model?
The ultimate goal of marketers has not changed, which is to define your target audience and Finding ways to convert them into returning customers.
It basically boils down to creating the right content for the right audience at the right time.
Staying up-to-date with the latest trends in the market is also a point of focus, and Games as a Service are not just to watch but to learn from.
Here are four lessons from GaaS that marketers can learn from to increase consumer engagement and retention.
Microtransactions are what they sound like – a customer pays a low fee in a quick transaction, usually to unlock a new feature, level up, or purchase virtual items.
While low fees may not seem profitable, consider the number of microtransactions that can occur by looking at the number of players and the time they spend on the gaming platform.
For example, the game Fortnite generates a lot of its revenue from microtransactions, which allows them to keep the game free to attract more new players to enter it.
By offering something for free, consumers gain experience with a game or brand, and thus, Willing to continue the relationship by making small purchases again and again.
Through microtransactions, players buy exactly the content they like, keeping them engaged and loyal to the game.
Microtransactions is a way to monetize a game long after its launch and a way to market the game beyond its initial strategy. With them, customers stay engaged, which means they stay longer.
For marketers, finding such ways to keep customers engaged by providing what they want would be a winning strategy.
2. In-game advertising
In-game advertising has proven to be a huge hit for many brands.
Game developers benefit too, as ads create another revenue stream beyond in-game purchases and subscriptions.
However, this form of advertising requires a new way of thinking and a new way of presenting information.
Ad placement, timing and ad format They are all strategic pieces of the same puzzle.
For example, the look and placement of an ad can be a video that appears on the loading screen or tucked into the game at a certain strategic point.
Another popular option is the video bonus. Players receive in-game rewards only for watching a video.
Currently, most gamers see advertising as part of the overall experience rather than a nuisance. The key, however, is to make ads Attractive, informative, visually appealing and unobtrusive to your gaming experience.
Players also tend to remember these ads, or at least part of them.
Marketers should take note of this and continue to develop strategies to focus on the best ad placements, be it in the gaming industry or otherwise.
As a result of all this, GaaS platforms open up new possibilities for advertising.
Marketers need to expand possibilities, look for new markets and new ways to reach the target audience.
And if you’re not already thinking about placing an in-game ad, take a second look.
3. Customize Subscription and Payment Options
The GaaS model provides players with a variety of ways to access additional content, from subscription services to various payment options.
Recurring subscription fees, starting with a free-to-play (F2P) model, give players access to premium content.
A game subscription service makes games exclusive to a particular platform (for example, Microsoft Game Card and Xbox).
Still another option is the Seasonal Digital Pass, which is best for those fully committed to the game. The pass fee becomes like a bank account, which players can “indulge” in during the year.
Passing can increase customer loyalty By offering exclusive features The content is only for those who hold one of these digital seasonal passes.
A variety of billing options are also available in Games as a Service Model. These include volume-based billing, tiered billing, and fixed billing.
By understanding the target audience and precisely targeting buyer personas, GaaS models can deliver customized payment strategies that appeal to multiple consumers.
4. Content Creation Flexibility (It’s All About Content!)
Content needs persist in the GaaS business model, and the right content can make a huge difference when engaging and retaining customers.
In the past, marketers were tasked with creating content around a product (game) launch, and this is where the majority of revenue was generated, usually within the first few weeks after release.
With the GaaS model, marketing efforts extend even further, requiring a constant supply of new content.
Game earnings in the first few weeks after launch now represent a small percentage of the total, and in-game content is the real revenue generator.
Marketers in the game industry stay up-to-date with the latest product development as it happens, sitting side by side with developers to gain knowledge before big changes.
Armed with this knowledge, they can build a roadmap or plan Content Development And finding ways to share the news.
By doing this, players feel appreciated and excited about what is going to happen.
For players who have left the game, these marketers also have a plan to lure them back. By keeping them updated about any changes and additions to the product, they remain curious and aware so that they can come back one day.
While creating content to retain your customers and attract those who have left, you also need to expand your marketing strategy to attract new players. GaaS marketers excel at this too.
Another strategy to increase revenue is to constantly add new content and demand payment for players to access it. In other words, They monetize new content instead of focusing on old content.
For example, Fortnite releases seasonal content that players can purchase, keeping players active and in anticipation of what this new content will be each season.
D2C Marketing wins in the gaming industry
Many brands are already finding ways to win players over and turn them into loyal customers of their own products.
Just look at Mountain Dew and how they connect with the gaming industry.
Players buy their products, then go to their dedicated storefront (e-commerce site) and enter codes in exchange for exclusive game add-ons or virtual currency.
The brand goes one step further, offering a drink geared specifically toward gamers with a customer loyalty program attached.
Another direct-to-consumer example is the Butterfinger brand’s strategy of creating a mini-game and showing it on Twitch for a limited time.
For them, this is an interactive game promotion.
Conclusion: GaaS model can provide new ideas for marketers
Marketers can benefit from learning about the business model that is taking the gaming industry by storm, with it being the Games as a Service (GaaS) model.
By customizing subscription and billing options, facilitating in-game microtransactions, optimizing in-game advertising, and consistently delivering quality content, the games industry has found a way to effectively retain customers while still acquiring new ones.
The key, fundamentally, is engagement and at the heart of this engagement strategy Content experiences.
To learn more about how to improve content experiences, check out our blog post!