Can you share your experience with monetization strategies in games, such as in-app purchases or ads, and how you balance profitability with player satisfaction?

I always try to implement In app purchases or Ads in such a way that they don't effect player experience negatively instead enhance it. Here is how I do it:
 

In-App Purchases:
I focus on offering in-app purchases that enhance gameplay without disrupting the core experience. This means providing optional content, like cosmetic upgrades or convenience features, rather than pay-to-win mechanics. I aim to create value that players feel good about purchasing while maintaining a fair and balanced game environment for everyone.

Ads:
For ad-based monetization, I ensure ads are non-intrusive and respect the player’s time. Integrating them as optional rewards, like extra lives or bonus currency, gives players control over their experience and prevents interruptions during gameplay. This approach helps maintain player engagement while driving revenue in a way that feels fair and optional.

Here’s how I approach monetization in games:

1. Player-Centric Design: Ensure monetization enhances gameplay rather than hindering it.
2. Diverse Options: Offer in-app purchases (IAPs), rewarded ads, and subscriptions for flexibility.
3. Rewarded Ads: Use ads that feel optional and rewarding, like extra lives or boosts.
4. Fair IAPs: Sell items or bundles that provide real value without pay-to-win mechanics.
5. Soft Currency: Balance earnable in-game currency with purchasable premium currency.
6. Progression Balance: Avoid excessive grind; keep gameplay engaging for free players.
7. Data-Driven Decisions: Analyze player behavior to fine-tune monetization strategies.
8. AB Testing: Experiment with pricing, ads, and offers to find optimal setups.
9. Transparency: Clearly communicate what players get when they spend.
10. Community Feedback: Adjust strategies based on player satisfaction and trust.

Monetization is about building value, not just revenue!

In my experience, effective monetization balances profitability with a positive player experience to avoid disrupting gameplay. Here’s how I approach it:

For in-app purchases (IAPs), I design items that enhance enjoyment without giving paying players an unfair advantage. Cosmetic upgrades, optional boosts, and exclusive content are examples of non-intrusive IAPs that support player choice and engagement. I focus on making these items desirable but not essential, so non-paying players can still fully enjoy the game.

When using ads, I prioritize formats that don’t interrupt gameplay, such as optional rewarded ads that offer bonuses in exchange for viewing. I avoid frequent or intrusive ads to maintain player immersion and prevent frustration. The goal is to keep the game enjoyable while providing value to players who choose to engage with ads.

Regular testing and player feedback help me fine-tune the balance, ensuring that monetization strategies feel fair and add value rather than detract from the player’s experience. This approach supports profitability without compromising player satisfaction.

The attention of players and their gratitude and trust towards your game should be seen as a currency in itself. 

Before you get to the monetization aspects you must ask yourself, "what is it that I provide players". What is your value proposition. If your game is fun, well-structured and fair then you can use specific monetization tactics to keep the game fair and true to its nature. Providing a good service/product is what builds up players trust in you as a developer. You can cash out on that by adding micro-transactions and ads. If those become unfair or are overdone then it is clear you need to provide more to the players than what you are asking of them to give you. 

There are various aspects that also play a role on how you should monetize a game. Typically if the game requires a one-time payment to access it is generally considered good to not have any ads or micro-transactions, if you want to keep a high rating. You can price the game higher by highlighting that fact. 

Free to download games on the other hand have more freedom in their monetization strategies. I prefer simple ads that trade time for convenience in a manner that is fair. The fairest example is to have a long-format ad button that the player can click on whenever they want to revive after failing (30 to 60 seconds is usually acceptable). Giving the player agency on whether they want to watch the ad or skip it is very important. 

For microtransactions in specific there are some good rules of thumb to keep in mind. 
There are far too many games nowadays that pop up notifications to the player right after the tutorial and before the main game even starts. You must show the player what the game plays like first before trying to sell them something. If they have no frame of reference for what you are trying to sell them and how buying that particular thing might benefit them, they will simply not buy it, you have given them no reason to. 

Keep the microtransactions as fair as possible. You don't want to create an unnecessary power vacuum in the game, or even worse, create one, just to cater to the microtransaction side of things. You should build the game with free to play players in mind first and make sure that the game is playable for them, and that they can reach the end without buying any microtransactions before adding those in. If you create artificial inconveniences to the point where buying the micro-transaction is inevitable or necessary to progress or stay competitive, players will eventually realize and you will get punished for it. 

Instead of selling power-ups, sell skins/cosmetics. This is a lot easier to implement, design around and sell as a developer. You are not creating power vacuums, you don't have to think how specific power-ups affect the balance of the game, you just sell the cosmetics and leave it up to the player to decide whether that is something they want to invest on. If you are a gracious developer and want to allow free players to get the chance to unlock specific cosmetics through gameplay, that is even better, as it only means players will become more invested in your game and play for longer purely by grinding/chasing after cosmetics in your game. 

Overall there are a lot of ways to monetize your game. You should always be aware of your audience, and your game. Provide value first and adjust accordingly. Work with your players, not against them. Don't sacrifice your integrity and ratings for short-term gains. 

Here’s how we approach monetization across different strategies:

• Direct Sale: Users pay an upfront price for full game access, ensuring immediate revenue.
• In-Game Ads: Ads in the form of banners, full-screen, and reward ads allow players to gain extra lives or rewards by viewing ads, creating value without upfront costs.
• In-App Purchases: We offer coin packs, boosters, and starter packs in the in-game store, enhancing the player experience.
• Subscriptions: Exclusive content, like battle passes, is accessible through monthly fees, encouraging ongoing engagement and revenue.

You can make money from a game without annoying players, you can:

1. Sell the Game: This is the most straightforward way. Players pay a one-time fee to buy the game.
2. In-App Purchases: Players can buy extra items or features within the game.
3. Ads: Short commercials can be shown during the game. 

The key is to be fair - Don't force players to pay to win or watch too many ads. Keep the game fun and enjoyable, and players will be more likely to spend money or watch ads willingly.

If you need any help there we are here to help you

I’ve worked on games across a dozen platforms, and monetization strategies vary based on the game and platform. For Play Store and App Store, I typically use in-app purchases (IAP) for cosmetics and in-game currency. For larger games, I recommend adding a seasonal battle pass.

As for ads, I always start with rewarded video ads since they’re optional and offer the highest payouts. Once the game has a solid user base, I experiment with interstitial and banner ads, adjusting based on eCPM and user analytics. If ads negatively impact daily active users (DAU), I reduce them. These experiments are usually tested with a small user group (10-20%) before full implementation.

For PC and console games, I follow two main approaches: I either release a free demo before launching the full game as a paid title, or I release the game for free and later add DLCs for revenue. In my experience, the first method tends to yield better results for PC and console games.

In my experience with monetization strategies, I focus on offering value-driven in-app purchases, such as cosmetic items or unlockables that don’t affect gameplay balance. These items should not be essential for a great experience rather they should be related to how the game looks.

For ads, I use non-intrusive formats like rewarded ads that players can opt into for in-game benefits. The key to balancing profitability with player satisfaction is ensuring monetization feels optional and doesn’t hinder the core experience, maintaining player engagement and trust.

Google and Unity are some ads services providers which I use quite often.