2024 Web3 Gaming ARPU and ARPPU Report by Helika

What Is ARPU and ARPPU in Web3 Games and Why Is It Important?

ARPU refers to Average Revenue Per User and ARPPU refers to the Average Revenue Per Paying User. Through these metrics, developers can monitor their player base, identify high-value players, and gain insights into the health of their game economy.

Key Takeaways

• Web3 games offer utility for in-game items beyond the game itself as well as digital items ownership, which enhances retention and engagement by players. 

• The Average Revenue Per User (ARPU) is highest for trading card games (TCG).

• The Average Revenue Per Paying User (ARPPU) is highest for role-playing games (RPG). 

• Learn more about these metrics and how they differ across Web3 and Web2 games in this report by Helika.

This report looks into Average Revenue Per User (ARPU) and Average Revenue Per Paying User (ARPPU) data specific to Web3 gaming in 2024. 

We look into how these metrics reflect the unique challenges and opportunities of blockchain-enabled games. With the rise of tokenized economies, play-to-earn models, and decentralized player ownership, Web3 games are redefining how developers generate revenue and sustain engagement.

Understanding monetization metrics like ARPU and ARPPU serve as important benchmarks for developers to evaluate how well their games monetize with their players and also how to play their user acquisition (UA) strategy. 

Why ARPU and ARPPU Matter for Web3 Games

Web2 developers traditionally have only been able to monetize their players through in-app purchases, in-app ads or subscriptions. Web3 games unlock diverse and innovative revenue streams through tokenization, reward mechanisms, receiving NFT royalties, staking fees, dynamic tokenomics, NFT minting, and other blockchain-enabled features.

By understanding ARPU and ARPPU, developers can refine their user acquisition campaigns and adjust gameplay mechanics to retain high-value players.

• Monetization of Web3 Players: ARPU and ARPPU demonstrates how well developers are monetizing their player base across diverse methods, including NFT sales, token staking, and on-chain transactions.

• Identifying High-Value Players: ARPPU helps developers understand the spending behavior of paying users, critical in Web3 games where "whales" often contribute significantly to the economy.

• Game Economy Health: Both metrics reveal the balance between free-to-play players and paying players, offering insights into how well tokenized assets and monetization mechanics resonate with users.

ARPU in Web3 Games

In this section, we analyze the Average Revenue Per User (ARPU) for Web3 games across the Helika platform. Unlike traditional Web2 games, which primarily monetize through in-app purchases (IAP), in-app advertising (IAA), subscriptions, or paid versions, Web3 games introduce additional and diverse revenue streams. Due to tokens’ programmability, Web3 games can introduce additional layers on how they monetize and reward their users, including NFT royalties, marketplace fees (for games operating their own marketplaces), staking fees, tokenomics, NFT minting, and more.

These additional layers make calculating ARPU in Web3 gaming more complicated compared to Web2. This highlights the multi-faceted monetization strategies in the Web3 gaming ecosystem and the evolving nature of these metrics.

In Web3, Player Incentives Go Beyond Just the Game

Web3 games stand out by offering utility for in-game items beyond the game itself – whether it's the speculative value of NFTs or the ability to engage in DeFi activities such as staking, which further enhances player "stickiness" and engagement within the ecosystem. Unlike Web2 games, where the game loop is the core focus. Web3 players are motivated to participate and invest in rare NFTs for both gameplay benefits and speculative value.

For developers, this Web3 monetization strategy enhances retention and engagement by encouraging players to stay active and maximize their rewards. By aligning player incentives with monetization opportunities like marketplace fees and NFT royalties, Web3 games create a sustainable ecosystem that benefits both users and developers.

ARPPU in Web3 Games

ARPPU (Average Revenue Per Paying User) measures the average amount of revenue generated by players who make purchases within a game. Unlike ARPU, which accounts for all users, ARPPU focuses exclusively on the paying segment, providing insights into spending behavior and monetization effectiveness among active spenders. This metric is crucial for understanding how well a game monetizes its most valuable users.

Web3 games are unique because they actively incentivize users to play and engage with the ecosystem. Unlike traditional Web2 players who often drop off at monetization points, many Web3 users are used to engaging with tokens already – paying gas fees to take action within ecosystems. To these players, there's a much lower mental barrier when it comes to spending tokens as they understand that there are multiple ways in which they will be rewarded for their spend.

For example, when games offer NFTs that provide additional rewards based on their rarity, Web3 players often purchase these NFTs, not just for gameplay benefits but also for the potential to speculate and earn even greater rewards in the future. This behavior underscores the distinct engagement and monetization dynamics within the Web3 gaming ecosystem.

There is a large difference in the ARPPU for Web3 games compared to web2 games. The Web2 ARPPU figures are based on data from gameanalytics.com

Estimated ARPPU of Web2 Game Genres

Top 2% Quantile:

The 2024 Web2 ARPPU data from GameAnalytics.com for the Southeast Asia region covers genres such as Action, Strategy, RPG, and Casual (TCG data is unavailable) and focuses on the 2% quantiles. These top-performing quantiles represent "rare" levels of achievement that require exceptional effort, resources, and optimization to reach. While these figures highlight the best-in-class benchmarks, they do not necessarily reflect broader industry trends or the average game performance.

7 Tips on Maximizing Monetization of Your Web3 Games

The examples provided are generalized scenarios and may not apply uniformly across all Web3 games. Developers should adapt strategies to fit their unique game economies

Maximizing ARPU and ARPPU in Web3 games requires leveraging the unique features of blockchain, tokenomics, and community-driven ecosystems. Here are actionable tips:

1. Create Your Own Marketplace

• Direct Revenue Control: Operate your own in-game marketplace (eg: ProofofPlay Marketplace for Pirate Nation, etc ) to earn royalties and transaction fees on every trade involving NFTs, on-chain items and token swaps.

• Enhanced Player Experience: Provide players with a secure, game-integrated platform for trading assets.

• Marketplace Incentives: Encourage trading activity with promotions, discounts, or rewards tied to marketplace transactions.

2. Leverage Fees on Staking and Unstaking

• Transaction-Based Fees: Charge a small fee whenever players stake or unstake NFTs, either as a flat fee or a percentage of the transaction value.

  • Example: Charge a 1% fee for staking NFTs and a 2% fee for unstaking, with discounts for players who hold premium NFTs.

• Scarcity Creation: Staking locks NFTs out of circulation, reducing supply and potentially driving up their value and royalties received in the secondary market or in your own marketplace.

3. Introduce a Percentage of Rewards

• Revenue from Payouts: take a small percentage of the rewards distributed in staking to create an additional revenue stream. This fee structure is commonly used in staking systems to cover operational costs and ensure sustainability.

4. Enhance Tokenomics

• Demand Creation: Tie your ecosystem’s native token to in-game features, upgrades, or marketplace transactions to create demand.

  • Example: Players stake NFTs to earn tokens required to craft rare in-game items, increasing demand and token value or introduce token-burning mechanics for entering special tournaments or events, reducing token supply and increasing scarcity.

5. Optimize NFT Integration

• Rare and Dynamic NFTs: Offer limited-edition NFTs with unique utility, and allow players to upgrade NFTs through gameplay or purchases.

• Secondary Market Royalties: Encourage active trading by introducing desirable NFT features, earning royalties on every sale.

  • Example: Players stake NFTs, reducing available supply and driving up prices on the secondary market.

6. Gamify Engagement

• Leaderboards and Challenges: Use competitive elements like leaderboards to encourage spending on upgrades and items.

• Seasonal and Timed Events: Launch limited-time events with exclusive rewards tied to in-game purchases.

• Play-to-Engage Campaigns: Reward players for sustained interaction with tokens or NFTs that unlock premium content.

7. In-Game Benefits Through Staking

• Exclusive Access: Provide players who stake NFTs with access to premium areas, events, or mechanics, encouraging spending on complementary items.

  • Example: Staking NFTs unlocks exclusive dungeons, which require purchasing special gear to explore fully.

• Progressive Monetization: Offer special bonuses or boosts for staked assets, incentivizing players to stake and spend more.

Why This Strategy Works

This approach capitalizes on the unique features of Web3 gaming, combining marketplaces, staking mechanics, and tokenomics to create a robust monetization ecosystem. By leveraging multiple revenue streams, developers can maximize both ARPU and ARPPU while fostering long-term player engagement and ecosystem growth.

Conclusion

As Web3 gaming continues to evolve, understanding and optimizing key metrics like ARPU and ARPPU are critical for developers aiming to thrive in this competitive ecosystem. Helika is at the forefront of empowering Web3 game studios like Maplestory, Ubisoft and Parallel with analytics tools and insights, enabling them to unlock the full potential of their games. By providing actionable data and in-depth analysis, Helika helps developers identify monetization opportunities, enhance player engagement, and boost retention.

In addition, Helika’s Telegram Games Accelerator (TGA) offers emerging studios mentorship and access to free traffic, data and analytics. The TGA equips developers with the tools and insights they need to refine their tokenomics, design effective gameplay mechanics, and optimize their monetization strategies. Whether it's analyzing player behavior or crafting retention-focused campaigns, Helika is dedicated to supporting the success of Web3 gaming companies.

Partner with Helika to unlock the full potential of your Web3 game. Leverage TGA's mentorship and analytics to refine your strategy and achieve sustainable growth
 

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• Telegram Gaming Accelerator: https://x.com/TGAccelerator

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Disclaimer

This report is provided by Helika for informational and educational purposes only. The insights and findings presented in this report are for general reference and should not be considered a substitute for legal, financial, or professional advice. The report does not account for the specific objectives, financial situations, or needs of any individual or organization. It is not intended to be an offer, solicitation, or recommendation to transact in any digital asset, NFT, or in-game currency mentioned within.

The data and analysis presented in this report are derived from Helika’s aggregated data and may not represent the entire Web3 gaming industry. In addition, Web2 benchmarks may vary depending on regional contexts and methodologies. As such, the findings and comparisons should be interpreted with caution and are not guaranteed to apply universally.