Skillz Blog

Monetizing the Next Wave of eSports: LA Games Conference

Our CEO and founder, Andrew Paradise, recently attended the LA Games Conference to speak on a panel about eSports monetization. The LA Games Conference is an annual event in which influential gaming industry decision-makers network and share ideas about the future of games and connected entertainment. Today we will cover some of the key insights from Andrew’s panel.

Typically, there are three elements to determine a game’s success: revenue, retention, and engagement. For the vast majority of game developers, ads and in-app purchases cannot generate enough revenue per install to be profitable. So it’s important to consider alternative monetization methods when developing a new game. This is especially true for smaller studios and indie developers.

One alternative to in-app ads or in-app Purchases (IAPs) is to monetize through competitive tournaments. At Skillz, we provide a platform that democratizes the industry for all game developers – namely, indie developers who don’t have the time and resources to create an internal tournament management system. Skillz offers free self-serve integration tools, end-to-end cross-platform tournament administration, player matching, anti-cheating and anti-fraud technology, payment processing, customer service, embedded video streaming, and much more. We aim to level the playing field by enabling game developers of all sizes to create the next big hit mobile eSport.

For a game to effectively monetize their game via in-app advertising, there needs to be a significant amount of DAU already in the game. And for games using IAPs, the vast majority of revenue comes from a small group of highly engaged players (whales), who are willing to make consistent in-game purchase. The reason both of these monetization methods pose challenges for Indie developers is that a lot of DAU is necessary to generate money. But for any game developer that has a limited initial budget, typically they grow their audience by reinvesting revenue generated into player acquisition campaigns. Therefore, indie developers often find themselves in a bit of a Catch 22; they need players to generate revenue, but they also need revenue to generate players.

Meanwhile, a competitive tournament engine, like Skillz, empowers Indie developers to monetize after reaching 100 DAU. Therefore, Skillz-powered games are able to generate meaningful revenue sooner, which can then be re-invested in player acquisition (or not). This is significant, as it empowers indie developers to grow their player audience, while simultaneously monetizing their game.

If you would like to learn more about how Skillz can help monetize your mobile game, then check out our Developers page for more information.