UPDATED 08:24 EDT / MARCH 07 2012

Gaming Android’s Ecosystem: Does In-App Marketing Pay?

Today, more and more platforms, including Facebook, operate with virtual currency to buy things, progress in the game or just to customize the application. It is projected that global mobile payment revenue will rise from $47.2 billion in 2011 to $998.5 billion in 2016, according to a study by Canadian-based provider of market intelligence services, IE Market Research (IEMR). Google Wallet and in-app payments system are part of a trend that’s catching more eyes among Android app developers, and it’s becoming a big focus for Google and the broader Android ecosystem.

Google’s in-app payments system is designed to integrate easily with applications that allow developers to offer users the ability to purchase content/extra services without leaving the application. Google’s pushing its in-app payments service to mobile game developers, which is considered as one of the biggest revenue generator in mobile business.

At the Games Developer Conference (GDC) in San Francisco, Google is setting up workshop and stall for developers to try and get some hands-on in the improved in-app payments features.

This new payment system will allow game developers to better monetize their applications especially for those who have a free application. The goal is to make cheap or free applications to attract users and later offer them other paid services. The payment system is complementary in hopes that in-app advertising revenue will grow tremendously in the future.

Google has released ​​developer documentation on Android and already some applications in rotation, like Tap Revenge 4, comiXology and poker game WSOP3. The search engine giant is now offering in-app payments in 17 more countries in eight currencies.

Google takes 30 percent of each transaction regarding app purchases in the Android Market (now Google Play). Hoping that this system is beneficial for developers and users, Google will extend its Google Wallet offering to more and more game providers.

AppMobi Launches Tools for the Social Game

HTML5 is the gaming platform of the future, and to extend HTML5 support for Android game makers, appMobi has launched the first public beta of directCanvas for Android, the firm’s HTML5 acceleration platform.  It was revealed at GDC this week as well.

With a single API JavaScript, directCanvas is part of the playMobi platform and gives game developers all the tools they need to create socially engaging and interesting games that run on iOS, Android and Facebook platforms.

“Today appMobi is extending the proven game acceleration benefits of directCanvas beyond iOS to the Android platform,” said CTO Sam Abadir. “With over 300 million devices in the field, and adding 850,000 new devices every day, the Android smartphone platform dominates the Apple iOS platform in size, yet we have seen very few hit Android games. We intend to change that.”

AppMobi will launch directCanvas on all flavors of Android’s platform, supporting all versions of the OS from 2.2 through to 4.0. It will have features like cross-platform in-app payments, analytics and social gaming tools, and directBox2D acceleration.

Does Gaming and In-App Marketing Pay? 

At the GDC 2012, Riptide president Brian Robbins talked about variety of revenue streams that developers can gain access to with some work in the session “Life in the Funds Lane.”

The fact is, most of the companies he was talking about need the right combo of marketing schemes, like offerwalls, to diversify and expand their revenue streams, but app developers are limited on different platforms for such mechanisms.

Robbins then went into what he called a ‘quick MBA’ talk about some realisms involving the cost of running a studio, cash flow and other bits and pieces that make up running a business.

“Raising $50,000 is relatively easy, but raising $100,000 is hard,” said Robbins. “You have to spend a lot of time meeting people and showing them your game, and dealing with a tug-of-a-war between different publishers and funders.”

He provided one example as how Apple’s killing of the offerwalls functionality is making it difficult for game developers, including Riptide itself, in finding funding for single platform development.

“Offerwalls were huge in 2011, and then Apple killed them, and that has put a huge crimp in available funding for freemium games,” said Robbins. “We have an offerwall in an iOS game for 2 months and we generated more from that offerwall than we have via IAP in six months.”

This is one of the reasons that game developers are releasing apps on multiple platform including Android, where offerwalls still being allowed.  It really highlights the ongoing differences between the two mobile platforms, and gives Android a key advantage in offering tools to game makers in particular.  It’s big business for the entire mobile ecosystem, and the more Android can facilitate revenue for developers, the more attractive their platform will be.


A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU