Game monetization—especially the various ways developers generate revenue from their games—is a crucial aspect of any game developer's business model. While the gaming industry now offers a range of monetization approaches, many web game developers still rely heavily on ads to generate income. However, to truly maximize sales and revenue, integrating in-app payments (IAP) into your strategy can be a beneficial move. In this article, we’ll explore the importance of in-app purchases, why they can help increase conversions and revenue, and how Xsolla’s payments solution can help you implement this strategy effectively.

What are common game monetization strategies?

When building or refining a browser game, consider how players will pay for in-game content. From there, you can develop a monetization strategy that ensures players enjoy the experience while still being able to purchase content. Like other types of games, web games can follow different monetization models. The two most common models for web games are freemium and premium, each offering a different approach to generating revenue. Freemium model Freemium games are typically free to play, but developers offer additional ways for players to spend money. This could include in-game ads, microtransactions, downloadable content (DLC), or season passes. Players can enjoy the game for free but can purchase extra features, skins, or bonuses to enhance their experience. Premium model Premium games require players to make an upfront payment to access the game. Once purchased, players usually have access to all content and features. However, many premium games still include optional DLC or cosmetic micro-transactions for players who want to customize their experience further. Monetization strategies with these models In-game advertising and in-app purchases can apply to both models, but they function differently:

• In-game advertising. Banner ads, interstitial ads, video ads, and offerwalls are all popular ways to generate revenue. Players see promotional content during gameplay, and developers earn money from ad impressions or clicks.

• In-app purchases (IAP). Allow developers to sell additional content or virtual goods inside the game. Players can purchase extra levels, skins, or premium features that enhance their experience.

Certain game genres actually tend to generate a higher share of revenue through in-app purchases. According to Statista, engagement-driven genres, such as strategy and RPG games, often see most of their revenue come from IAP. This also applies to casino games, which are heavily based on player transactions. By incorporating IAP into these types of games, developers can better capitalize on the high engagement levels and boost their revenue.

Why in-app purchases matter for web games

While ads are a popular monetization method, relying solely on ads might not be the best strategy to boost your game’s profitability. In-app payments are critical for increasing conversion rates, average ticket size, and ultimately, sales. Xsolla’s data: In-app purchase pay-off Our experience and data demonstrate the power of integrating in-app payments (IAP) into your web game’s monetization strategy. Developers who implemented IAP saw significant growth between January and June 2024. Source: Xsolla Data Here are some key insights:

• Sales Growth: Increased by 10.2%
• Average Ticket Size: Increased by 10.8%, reaching up to $16.80
• Conversion Rate: Increased by 6.7%, reaching 80.7%

When we look at the types of games that benefit most from IAP, RPGs lead the charge, making up 53.8% of the titles utilizing this strategy. Games in the Simulation and Strategy genres also see substantial revenue from IAP, with these genres accounting for 15.4% of developers using this approach. This highlights the effectiveness of incorporating IAP, especially when combined with other monetization strategies like ads. Diversifying your revenue streams can not only drive stronger sales but also nurture higher conversion rates across different game genres.

Optimizing in-app purchases: How Xsolla can help

With Xsolla Payments, you have access to advanced tools and features that simplify the payment process and optimize your monetization strategies. From offering a broad range of payment options to creating a seamless and localized payment experience, we provide everything you need to drive sales and increase player retention. If you’re new to in-app purchases, here are some expert tips to help boost your game’s payment conversion rates and sales: 1. Enable local payment methods for your players Offering a range of local payment options is essential for maximizing conversion, especially in regions where local payment methods dominate. In markets like Brazil, India, China, and Indonesia, more than 60% of payments come from alternative local methods, so integrating these options increases the likelihood of successful transactions. Xsolla Pay Station supports over 700 payment methods across 200+ geographies, ensuring you can cater to players' preferred payment methods and increase conversion rates. Plus, our PayRank smart algorithm surfaces the most relevant payment methods for each customer based on their location and shopping preferences, making the payment process even smoother. Learn more about how PayRank works in this article. 2. Offer a localized experience Providing a personalized, localized experience for players can significantly improve satisfaction and increase sales. Offering language support and local currency options helps make players feel more comfortable during their purchase journey. Our payments solution also enables you to accept payments in over 130 currencies and present payment options in 25+ languages, ensuring a seamless experience for players worldwide. Localizing payment interfaces not only boosts player trust but also encourages more frequent purchases. To learn more about how local pricing can boost your sales, read our article. 3. Streamline the payment flow A smooth, intuitive payment flow is key to reducing friction and boosting conversions. Simplify your checkout process by limiting unnecessary fields — for example, ask only for essential details like ZIP codes for tax calculations or CPF in Brazil. The less a player has to fill in, the quicker and more likely they are to complete the purchase. If you're ready to incorporate in-app payments into your web game monetization strategy, Xsolla has you covered. With our extensive payments solution and expertise in the gaming industry, we are the ideal partner to help you boost sales and revenue. Schedule a meeting with one of our experts today to learn how we can help level up your web game business.