Subway Surfers · B2C · endless runner mobile game
Let players watch an ad for a reward instead of paying
Ads bring in 80-85% of revenue; still the top game in tier-2 and tier-3 countries
What they did
What happened
- Stage
- scale
In their words
What Subscription Apps Can Learn About Monetization From Gaming — Mathias Gredal Nørvig, Subway Surfers
David BarnardWow.
Mathias Gredal NørvigSo it's a mix of interstitials and rewarded videos.
David Barnard… are doing this. But how do you think about that mechanic and how do you think about that not breaking the game or alienating users? Like you said, you kind of already alluded to it that if you could play for an hour and never see an ad that maybe that's too much, or 10 minutes or 5 minutes is too little. How do you think about not completely breaking the experience with those rewarded ads and what maybe subscription apps can learn from that?
Mathias Gredal NørvigI think the conversations we have around monetization regards the fairness. When is it fair to require payment and whether payment is then through a reward video, or a subscription, or a premium feature, or an in-app purchase. There is no right answer. Especially when you have a player base like us of between 100 and 150 million people every month, we know that we're not talking to a player persona, we're talking to all types of players at all times in all markets. And that means that for me, what the ads allow us to do is to also be available and support markets that would not traditionally have subscription apps or use in-app purchases. So tier two, tier three, where most other big brands would not advertise and therefore not have a lot of downloads, we are still the most downloaded games in those territories.
Mathias Gredal NørvigBut specifically for the US and for tier one for Europe and for the higher earning countries, of course, we would like to have a share of wallet and to know that if you're paying in all your other games and you think, well, it's nice over here that it's free. We would love to share with you the characters or the unlocks that would convert you and share, take part of the salary payments here in the business of SYBO. So from that point of view, it is definitely an ongoing conversation. Where do we have the real estate on screen to show a banner or launch a reward video, and where do we actually allow if you've spent money in the game to remove some of the interstitials. And whether that should be permanently or whether that should only be for a period of time to say, well, if you paid, then you won't have any distractions that you haven't chosen yourself. And those types of balancing acts are ever ongoing.
Jacob EitingYou used the word fair, which is I think what a lot of developers do implicitly when they're thinking of pricing, they're trying to be like, "Okay, what is a fair price?" In this case, you're not talking about dollars for software, you're talking about attention and exchange for software as well as blending that into dollars, which is really challenging. And one of the reasons that app developers have avoided this, I think one is the market has …
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More from this episode
- Move the game to a new city every three weeksGuest credits it with keeping the game fresh for 13 years; no numbers
- Keep the core game free and unlimited, and never lock content behind paymentTop-5 downloaded game every year since 2012; 1M installs a day
- Have a small in-house team post 5-10 videos a day riding pop culture trendsViral hits of 75M-100M views on salaries only; guest says it lifts app store featuring
- Let anyone use the game in their videos, and repost the cool onesCreators, including a K-pop star, make unpaid content; the game became a meme format
- Put a few hundred dollars behind posts already going viralTens of thousands of dollars total; helps hits spread to other platforms
- Ask players' age, show kids only child-safe ads, and block gambling and gun adsVery few complaints across a billion ad impressions a month
- Swap characters with other hit games, with no money changing handsBrings back lapsed players and boosts both games; Crossy Road got the bigger bump
- Sell day and season passes next to the subscription for occasional usersHost cites it as working; no numbers
Tags: ads-monetization, rewarded-ads, interstitials, hybrid-monetization, tier-2-markets