My research question to help me study the economic principle is: How do game developers incentivize advertisements?
A method developers use incentives in their game is in the way they use advertisements. As of 2017, around 75.5% of IOS and Andriod mobile games have in-app advertisements, in a mobile games industry that made $5.5 billion in 2016. A large portion of these games that use advertising also incentivizes that advertising.
Many games will give players the option to watch video-ads for in-game currency that often you would otherwise need to spend money to get, though the amount of currency you receive is usually low and there are often caps to how much you can get daily. By incentivizing the users to actively engage with the advertisements, it makes sure that the money spent to create those advertisements won’t be entirely wasted because the player doesn't see it, a constant worry for advertisers who put up banners in games. Further, the rewarded currency can allow quicker progression through games entirely designed to get you drawn in and addicted, then create a wall where, without said currency, further progression can take absurd amounts of time. This form of “freemium” game means the user will continuously watch more adds so they can more quickly progress without spending money.
Another way games try to create incentivize advertisements is by creating “offer-walls”. These are lists of entirely different apps that the app will reward the user for downloading. While seemingly harmless as the user could delete the app right after and still receive the reward, it creates false and misleading statistics for the advertised games which can be used by the developers to lure investors in.
https://www.wsj.com/articles/more-marketers-offer-incentives-for-watching-ads-1451991600 https://www.psychguides.com/interact/the-psychology-of-freemium/ https://www.appsflyer.com/blog/rewarded-advertising-2017-good-bad-ugly/ https://www.wepc.com/news/video-game-statistics/#gaming-video-content-market
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