The Rise of Web Stores in Gaming: A Game-Changing Revenue Strategy
Editor’s note: This content was originally published on Game Makers, where our Chief Marketing Officer Gil Tov-Ly was invited to talk with Joseph Kim about the rise of web stores and their impact on publishers’ revenue.
Watch the episode below or continue reading for the highlights.
🎧 Listen on Spotify, Apple Podcasts, or Anchor
How it Works
Mobile web stores enable game developers to manage payments from their players directly rather than using the existing built-in app store payment mechanism.
The gaming industry is witnessing a significant shift in how studios monetize their games, with web stores emerging as a powerful alternative to direct app store purchases. Here’s what every game executive and product leader needs to know about this transformative trend.
🔑 Key Trends and Numbers
- In just three years, Tov-Ly suggests over 65% of top-grossing mobile game studios have launched their own web stores
- Some game studios are reporting up to 40% of their revenue now coming from web stores
- Studios implementing web stores have seen 20-30% increases in total revenue
- Appcharge, a leading web store platform, has reached a $200M annual revenue run rate in just 2 years
💰 Economic Benefits
- Higher Margins: Studios keep ~95% of revenue from web store purchases vs. 70% through traditional app stores
- Expanded Revenue Opportunities: Players often spend more when given additional purchasing options
- VIP Player Focus: Web stores are particularly effective for games with high-value players (whales)
- Market Size: The in-app purchase market ($110B currently) is expected to grow to $200B by 2030, with web stores potentially capturing 10-20% of that market
🎮 Best Practices for Success
- Game Genre Matters: Games with significant spending differentials between average and VIP players (like casino games) see better web store adoption
- Trust Building: Ensure web stores maintain a professional look and feel aligned with the game’s brand
- Player Experience: Focus on seamless integration and clear value proposition for players
- VIP Strategy: Consider making web stores exclusive to VIP players initially to build momentum
🛠️ Implementation Considerations
- Build vs. Partner: Studios can build in-house (requiring significant resources) or partner with specialized providers
- Feature Requirements:
- Payment processing and fraud prevention
- Multiple currency support
- Local payment methods
- Tax compliance
- User authentication
- Analytics and tracking
🚫 Current Limitations
- Most regions still restrict in-app links to web stores
- Studios cannot actively promote web stores within their games
- Platform constraints on payment provider choices remain
- Geographic regulations vary
🔮 Future Outlook
- Alternative app stores (like Epic Games Store on iOS in the EU) are beginning to emerge
- Regulatory changes may enable more direct player relationships
- The industry is moving toward a multi-channel distribution and monetization model
- Web stores are becoming the “new norm” rather than just a trend
💡 Strategic Benefits Beyond Revenue
- Direct Player Relationships: Build stronger connections without platform intermediaries
- Marketing Control: Ability to run direct promotional campaigns
- Data Ownership: Better understanding of player behavior and preferences
- Flexibility: More control over pricing and promotional strategies
- Player Engagement: Web stores can become an additional meta-game element for engaged players
For game studios considering web store implementation, it’s crucial to understand that success requires more than just technical implementation – it needs a strategic approach to player communication, value proposition, and long-term relationship building. As the industry continues to evolve, web stores are becoming an increasingly important part of a comprehensive monetization strategy.
