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Reward Based Mobile Ads Are What Work

Posted on 6.23.2013

Digital advertisers have been relatively cold over the years toward mobile advertising; at least those mobile ads which weren't targeted geographically or behaviorally. As the industry matures however, the digital ad community is learning more about what motivates consumers and the savviest are paying close attention.

According to a new research report from mobile loyalty platform SessionM and Millward Brown, the role of value and rewards in mobile ads is proving essential. The new report, Exploring the Role of Value in Mobile Advertising, is a continuation of Millward Brown’s 2013 U.S. AdReaction Report: Marketing in the Mobile World. The initial AdReaction study found that although there was on average low favorability toward mobile advertising, brands had an opportunity to break through by offering more tangible value in their marketing content. That’s exactly what’s beginning to happen.

"Through the AdReaction Report we know that consumers want brands to provide valuable and rewarding ad experiences, and this study helped us break down exactly what that means," said Joline McGoldrick, Research Director at Dynamic Logic, Millward Brown's digital practice. "The findings present marketers with a tremendous opportunity to deliver mobile ad experiences in line with consumers' expectations, enabling them to effectively break through to mobile consumers."

This new report reveals a “value exchange equation” that consumers use to assess mobile ads, finding that consumers were more likely to engage with brands that offered them tangible value in exchange for their time and attention.

Specific findings from the report include:
• Rewarded audiences are over twice as likely to interact with brands. After seeing an in-app ad, 34 percent of rewarded users clicked or interacted with an ad, compared with only 15 percent of mobile users who had not participated in reward-based advertising.

• Receiving a reward expands a consumer's consideration set. After seeing an in-app ad, 26 percent of rewarded users considered purchasing a brand, compared with 18 percent of mobile users who had not participated in reward-based advertising.

Perhaps most importantly however, as it relates to what type of mobile ads work is that 92 percent of mobile users reports its important they choose the reward they receive, and 68 percent of users prefer to know for certain they will get a reward, rather than be surprised. The research report also revealed that users prefer tangible reward and have an element of choice in how they’re spent.

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