Is it just a closed loop of game companies paying eachother or are they getting money from somewhere else?
In: Economics
Mobile game maker here, I’ll try to explain to some extend (sorry for my english).
First thing after you create your free mobile game is to find people downloading your game. Most common thing to do is to “buy” players, you pay money for the ads to appear on any other game or platform, and it will cost you money for each download you get, we will call this Cost per Install (CPI)
But each time an Ad appear in our game, we also got money from the Ad Network (Admob, Ironsource,…). The money, of course are from anyone who paid to get users. So basically it’s a loop with Ad Network tries to improve their AI to be more effective (reach the right people), and game makers try to encourage player to watch more Ad (or IAP) so our revenue from each user higher than CPI
We game makers also use players data but not for sale, just to track and improve our game based on the data we have so our game will have better retention rate
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