The Two Models of Monetization in Mobile Games — the AI version

Here’s a full evaluation of your blog post, including clarity feedback, structural recommendations, and proofreading with an edited version at the end.

✳️ Overall Evaluation

Strengths:

• The content is thoughtful and grounded in real-world experience.

• The contrast between the two monetization models is clearly drawn and insightful.

• The tone strikes a good balance between conversational and strategic, suitable for an industry audience.

Opportunities for Improvement:

1. Clarity & Flow:

• The intro is a bit meandering. It sets up too many concepts at once (retention vs monetization, top vs bottom line, lifecycle phases) without clearly orienting the reader.

• Several long paragraphs could benefit from clearer topic sentences and transitions.

• The two monetization models would benefit from cleaner structure and labeling.

2. Language & Tone:

• A few sentences are overly long or repetitive.

• Occasional informal or unclear phrasing (“more or less independent from gameplay” could be cleaner).

• Some jargon is assumed (e.g. “harvesting phase”)—consider briefly defining for broader reach.

3. Proofreading & Grammar:

• Typos: e.g. “models of of monetization”, “bases” instead of “cases”, etc.

• Several run-on sentences and awkward constructions can be improved.

✅ Suggested Structure (Improved Clarity & Scannability)

1. Intro: Reframe with a clearer thesis

• Introduce the central question: Is retention always more important than monetization?

• Preview your core argument: There are two models of monetization, and each implies a different relationship with retention.

2. Section 1: Why retention isn’t always king

• Define different success metrics.

• Discuss ROI tradeoffs and lifecycle stages.

3. Section 2: Two Models of Monetization

• Present models as clearly labeled subheaders.

• For each model:

• Define the monetization logic.

• Give examples.

• Explain implications for retention.

4. Conclusion: Strategic implications

• Reinforce that monetization approach should shape where you focus product effort.

• Optional: pose a strategic question to the reader.

✏️ Edited Blog Post (Proofread + Clarity Improvements)

The Two Models of Monetization in Mobile Games — and What That Means

No conversation about performance in mobile games can avoid the question of monetization. And alongside that, few discussions avoid the retention vs. monetization debate. With increased pressure on UA ROI, this conversation has only intensified.

A common belief is that no game can achieve commercial success without top-tier retention. But that’s not entirely true.

Yes, better retention improves performance. But the same can be said for monetization. And in many cases, a game can deliver strong business outcomes despite subpar retention — especially if monetization is efficient and aligned with the right audience.

There are three key reasons why retention isn’t always the dominant metric for success:

1. Success metrics vary by business model

Depending on your company’s goals and timeframe, “success” might mean $2M in annual EBITDA, $50M in yearly UA spend, or just $500K in total lifecycle revenue. Each of these targets reshapes the monetization/retention equation.

If you’re in a growth phase, retention may matter more. If you’re in a harvesting phase or operating at low scale, monetization efficiency might take the lead.

2. Your monetization strategy: Wide vs. Deep

Are you monetizing wide (a large % of users at low spend) or deep (a small % at high spend)? Both can result in similar LTVs:

• Game A: 5% D90 conversion × $20 ARPPU

• Game B: 2% conversion × $50 ARPPU

The path to these outcomes — and the role of retention in getting there — will differ dramatically.

This isn’t about choosing high or low retention. No one aims for poor retention. But focus matters. ROI on product/dev efforts changes depending on your monetization approach.

3. The Two Models of Monetization

Mobile games tend to follow two core monetization archetypes. Each one carries major implications for design, success modeling, and retention focus:

Model 1: Monetization Tied to Gameplay/Progression

Key traits:

• Monetization prolongs the core gameplay loop

• Spending is triggered by gameplay bottlenecks

• Monetization is capped by how often players reach key moments

Examples: Puzzle games, hypercasual, some resource management games

In this model, players spend to keep playing. For example, puzzle players buy extra moves or lives. Social casino players buy chips. The monetization opportunity is intertwined with core gameplay.

Because players can only spend at specific moments (e.g. “out of moves”), your ability to monetize is directly tied to how often players reach those moments. Therefore, retention and session count become critical.

Hypercasual games make this link even more direct: they monetize playtime itself via ads. Every second spent in-game equals revenue. Engagement is the key metric here — not just D90 retention, but total minutes played.

To maximize ROI, your product must expose players to monetization moments frequently and naturally. That means long-term retention is often essential to success.

Model 2: Monetization Tied to Item/Content Acquisition

Key traits:

• Players spend to acquire content (characters, items, etc.)

• Spending is often disconnected from immediate gameplay

• Monetization is frontloaded and less dependent on long-term play

Examples: RPGs, shooters, racing games

In this model, players buy items that enhance or personalize their experience — a sniper rifle, a rare character, a car. Crucially, the purchase moment is separate from core gameplay. A player can spend heavily without ever completing a level.

This decoupling means retention isn’t as directly tied to revenue. You may see meaningful D0 conversion with weak D1 retention — and still have a profitable game.

In these games, focusing on monetization over retention often makes sense. Well-designed offers, purchase flows, and content drops can significantly improve cohort ROI — sometimes more than tweaks to core loop retention.

Final Thought: The Content Treadmill is Real — But It Varies

Both models require a strong content treadmill. But the type of content is different:

• Gameplay monetization → level or loop-based content

• Content monetization → new items, characters, parts

The idea of perfect balance or infinite tuning is a design ideal — not a business reality. Monetization needs fuel, and your treadmill must match your monetization model.

So when thinking about monetization vs. retention, don’t ask which is universally more important.

Ask: What is your monetization model — and where does ROI really come from?

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