Rewarded advertisements - also known as "value exchange" ads - allow users to earn in-app currency or unlock premium content in exchange for watching videos or engaging with other types of advertising content.
The question is, do they work? You better believe it.
In a recent analysis of ten high-volume apps, Tapjoy found a strong, positive correlation between the number of ads completed during a user's first two weeks and their subsequent app engagement, retention and in-app spend during the following 30 days.
The more ads a user initially completes, according to TapJoy's "Maximum Impact Report: Exploring the Effect of Rewarded Ads on User Value," the more they eventually spend, the more often they engage with the app, and the more likely they are to be an active user after 30 days. In fact, users who complete 20 or more rewarded ads demonstrated 89 percent higher engagement, 76 percent higher retention, and an incredible 705 percent higher in-app spend than users who complete just five or fewer ads.
If you are an app deeloper looking to boost revenue and engagement, value-exchange ads might just be the ticket.
"While other studies have previously demonstrated a positive link between rewarded ad conversions and key engagement metrics, such as total user sessions, retention and spend, today's report is the first of its kind to show just how much ad engagement can influence the value of a user," said Ben Chen, SVP & GM, Developer Relations at Tapjoy.
"These findings negate the notion that ads take away from the user experience or distract the user from engaging with the app, or that rewarded ads may cannibalize in-app purchases. Rather, it shows just how important it is to expose users to ads early and them offer frequent opportunities to convert."
Digital marketing executive with proven experience in all aspects of search engine optimization (SEO), performance-based advertising, consumer-generated/social media, email marketing, lead generation, Web design, usability, and analytics. - 20-year Internet marketing veteran, currently serving as the Digital Marketing Campaign Manager at Antenna Group (formerly Chicago Digital). - Former Editor-In-Chief of Website Magazine, and a regular speaker on Web technology digital marketing strategy - Author of several books on digital marketing Including Web 360: The Fundamentals of Web Success; Affiliate 360: The Fundamentals of Performance Marketing; Domains 360: The Fundamentals of Buying & Selling Domain Names, and SEO 360: The Fundamentals of Search Engine Optimization.