In this piece, Taproom’s David Cremades goes into maximising revenue potential through brand integration in mobile games 

Written by David Cremades, CEO at Taproom

In the ever-evolving landscape of mobile gaming, the integration of brands offers a tantalizing proposition for publishers seeking to enhance user acquisition and engagement. While many brands or licenses may settle for a minimum guarantee payment, some may opt to share in the product's success by participating in revenue sharing arrangements. However, this approach brings both advantages and challenges to the table.

On the one hand, negotiating revenue sharing agreements can potentially reduce the upfront costs associated with brand integration projects. By lowering the minimum guarantee, publishers can alleviate the initial financial burden, making the venture more accessible. Yet, on the other hand, revenue sharing arrangements may complicate user acquisition campaign management. Ensuring that marketing expenditures remain recoverable from generated revenue becomes paramount under such agreements.

One of the primary benefits of revenue sharing is the heightened level of brand involvement in joint initiatives. Brands are incentivized to actively engage in promotional activities, as their financial stake in the product's success aligns their interests with those of the publisher. This increased engagement can lead to more collaborative and impactful marketing campaigns, leveraging the brand's existing channels and assets to reach target audiences effectively.

Moreover, revenue sharing agreements present an opportunity for brands to leverage their proprietary channels and assets as part of the partnership. Including brand-specific actions across various channels not only enhances brand visibility but also facilitates direct access to the brand's core audience. After all, where better to reach the target audience than through the brand's own channels?

However, while revenue sharing agreements offer enticing prospects for mutual success, they also come with their fair share of complexities. Balancing the interests of both parties and ensuring equitable revenue distribution require careful negotiation and agreement structuring. Additionally, tracking and reporting revenue generated from the game becomes essential to maintain transparency and foster trust between stakeholders.

In essence, revenue sharing agreements in brand integration projects can be a double-edged sword. While they offer the potential to reduce upfront costs, increase brand involvement, and leverage brand-owned channels, they also introduce complexities in campaign management and revenue distribution. Nevertheless, when executed effectively, revenue sharing arrangements can unlock new avenues for collaboration and mutual benefit, driving success in the competitive mobile gaming market.

In conclusion, publishers and brands must approach revenue sharing agreements with careful consideration and strategic foresight. By prioritizing transparent communication, equitable terms, and aligned incentives, both parties can maximize the revenue potential of brand integration projects while fostering long-term partnerships built on trust and mutual success.