Benchmarking Mobile Esports Revenue

Intellectual property owners like ePlay earn revenues from mobile games in 3 key ways -

1. In-App Purchases (IAP) - digital items, level-up, and skins

2. Advertising - video, banner, and interstitials

3. Esports - Paid Competitions and Tournaments

Implementing esports into a game is a powerful revenue source, in addition to increasing retention and engagement. According to a leading mobile esports tournament provider, developers that implement esports competitions and tournaments directly into mobile games are generating USD$0.92 in average daily active user (ARPDAU) for esports competitions and tournaments - top games earn as high as USD$1.59 ARPDAU for esports competitions and tournaments. Esports competitions and tournment revenue is a new and separate source of revenue on top of IAP and mobile ads.

The marketing benefits of esports from streamers, tournaments, competitions, and prizing help drive IAP revenue; and retention and engagement which increases ad revenue. At the same, 2019 industry benchmarks indicate that esports revenues for some mobile games could generate more revenue per daily active user than either mobile advertising or IAP.

"Competitive mobile eSports competitions and tournaments allow game developers to generate revenue, without disrupting the player experience. As opposed to in-app purchases or advertisements which interrupt the gameplay, competitive tournaments monetize based on players opting into a paid match." - Evan James

So, the next time somebody asks how does esports make money, you can let them know that mobile game competitions and tournaments can make about $1 per day / per user from those players that pay to compete for cash prizes of over $500,000 per day.

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