Apr 10, 2025

The pay behind play: Evolving content monetization Mobile gaming is a lucrative industry, projected to reach $270 billion by 2032. Surpassing the combined value of the video and music industries, mobile gaming’s growth is moving full steam ahead. Its ubiquity has transformed how we play and, crucially, how we pay. Forget one-time purchases; gamers today transact frequently in a free-to-play world. Yes, you heard it right – gamers are spending money. They’re investing in their experiences, and in return, they demand choice, affordability, and seamless convenience. Think minimal friction and maximum value. At Coda, we partner with publishers to deliver precisely that. Publishers are cashing in smartly But it’s not all about ads. While ads are lucrative – PwC projects the advertising revenue of the entertainment and media industry to hit $1 trillion in 2026 – they break the immersion and flow of the experience. Instead, game publishers should focus on the combination of in-game ads and in-game purchases. Some of the most popular in-game purchases include paying for customizable ‘skins’, in-game credits, and currency. Loot boxes have also soared in popularity, especially amongst ‘ whales ’, synonymous with the more famous term ‘high roller’, despite regulatory efforts to clamp down on them. While the average basket for mobile games is relatively small, the frequency of purchases is high, as is the volume of gamers for popular titles. We’re talking tens, if not hundreds, of millions of players worldwide. As gamers pay to unlock new worlds and levels, the possibilities for gamers expand, and publishers rake in new revenue. It’s about the gameplay, and more Monetization now extends beyond the game itself. Reaching audiences on third-party platforms is crucial, particularly in regions like Southeast Asia, where 70 percent of the population is either underbanked or unbanked. By being creative about content monetization, publishers and creators are discovering more ways to engage with their audiences. Some even use monetization to reward customer loyalty and keep consumers returning for more. For example , Fortnite, one of the world’s biggest gaming success stories, starts free for users, with options later given for small in-game purchases such as limited edition skins. These extras have proved so popular that 69% of players choose to make more purchases. Another success story is Genshin Impact, where limited edition ‘banners’ generated on HoYoverse achieved record revenue. The monetization trend isn’t confined to gaming. Even dating apps like Tinder offer premium features to paying subscribers, promised increased visibility (hopefully more right swipes! ), and an extra shot at finding love online. Here’s the underlying principle: give end users a reason to spend money with you. Opportunity breeds competition Let’s face it: this lucrative landscape breeds fierce competition. Publishers are vying for every dollar, even challenging app store giants like Apple and Google over commission fees. Fortunately, that’s not the end game. At Coda, we offer alternative monetization solutions, navigating complex cross-border payments and providing significantly more favorable commission rates. Our agility and global reach resonate with publishers and end users alike. Direct fan relationships are key for some publishers. They want control, not payments processed through third parties. White-labeled solutions offer that direct connection, building stronger, longer-lasting relationships with fans that extend beyond the walls of the app. Influencers are essential. They promote games, new content, and even offline events to their massive audiences. This makes content more accessible and varied, boosting engagement. Plus, it gives creators more ways to earn, like ads and sponsorships. And fans are spending real money to support their favorite creators with digital gifts on livestreaming platforms and popular apps like TikTok. What’s next? Two interconnected catalysts drive end users toward spending more in the digital economy. First, it’s the demand for elevated entertainment experiences. Second, it’s the expectation that technology is empowering and must be used to facilitate engagement. Publishers looking to cash in on these two trends must crack the psyche behind how end users pay. There’s no doubt that pay has truly transformed the world of play over the years. With innovations for content monetization creating endless options for content publishers to engage with their fans worldwide, the possibilities for expanding the relationship between publisher and consumer are only beginning to be explored. Ultimately, the most successful monetization strategies will generate revenue and prioritize enjoyable player experiences that keep them coming back for more – striking the right balance is where today’s gaming companies can hit the jackpot. Abhi Sharma is the Chief Financial Officer at Coda, a global leader in out-of-app monetization and commerce solutions, where he leads Coda’s financial strategy. He joined Coda in 2021 and brings extensive experience in finance and investment to his role. With a background spanning tech-focused M&A, growth capital, and economic consulting, Abhi brings a wealth of experience from firms like Arma Partners and Catalyst Investment Partners. He holds a Master of Business Administration from Harvard Business School and a Bachelor of Arts in Economics and Mathematics from Pomona College.