Changing Landscape of Game Design and Monetization Amid Privacy Changes

Changing Landscape of Game Design and Monetization Amid Privacy Changes

Recent changes in the privacy policies of Google and Apple are already creating enormous waves in the game design and monetization market. Advertisers relied heavily on the Identifier for Advertiser’s (IDFA) ability to earmark relevant and premium users. Changes in the policy disrupted entire ecosystems on which the mobile gaming industry previously relied on, thus requiring changes to the way games undergo design and development.

Think about it. When game developers lose the ability to help advertisers create targeted ad campaigns and solely rely on a generic distribution strategy, they must introduce changes to how they aim to monetize this audience base.

Impact on Monetization and Game Design

When Apple launched iOS 14.5 in April, users who did not opt in for IDFA tracking will not get targeted ads. This means a considerable loss in revenue for publishers and game developers since most of them rely heavily on running in-app ads. Some publishers tried to resolve this by coming up with a higher volume of ads served. However, this will have a significant impact on user experience.

To date, the best option, particularly for hyper-casual game publishers, is by adopting a game design that comes with a mixture of in-app advertisements with in-app purchases. Still, it remains a tricky strategy, as it would need to have a perfect balance of ads served without disrupting the game’s fairness and integrity.

Shift to Hybrid Games

One of the fastest-rising game mechanics is hyper-casual games. Still, many hardcore gamers remain a target for most publishers because they tend to become highly engaged and committed to their status and game level. Whereas casual gamers often play just for the pure fun and entertainment of it.

With the changes brought by tech giants, more and more developers are now going hybrid when designing their games. They now think about what features they can add to gain an attractive and broader audience within a single game. It’s typical now to see hardcore tactical games, which usually focused on exploration, expansion, exploitation, and extermination, to feature different combat layers or introduce mini gameplays under the same title.

We can also see the same hybridization in a lot of games’ overall design and aesthetics. Traditionally, hardcore games usually come with hyperrealistic and detailed art presentations. Casual games, on the other hand, would often have a more cartoon or 2D animation aesthetic. Now, several games are now aiming to strike a balance between these design elements.

The hybridization of game design and development is rising to appeal to a broader audience, which can help game publishers find a workaround for the new privacy policy.

Rise of CRMs

Another challenge for game publishers, particularly casual games, is their inability to re-target most players. This is where the use of CRMs come into play. Publishers must consider how they are going to interact with their existing and potential players. Through analysis, CRMs can help publishers decide what they can offer or promote to increase retention and drive revenue growth as players keep playing every single day.

Game publishers and developers must remain agile with their strategies because the recent policy change is just the beginning. More changes will surely happen in the future as user privacy remains a rising concern. 

AlgoriX is shaping the game design and monetization industry and can help you navigate these recent changes. Learn how we can help. Contact us now! 



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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.