Mobile Marketing

How effective are ‘ads’?

Conventional wisdom would tell that this is particularly true when it comes to apps, and that people do not opt-in to ads.

Advertisements appear to be an effective counter-argument to this debate. Not only do they get consumers to watch ads, they also seem to make people more likely to part with their cash.

Rewarded advertisements allow users to make unlock rewards or virtual money in return for engaging with in-app advertising content.

Mobile marketers are raving about the successes of ads.

AdColony’s Summer 2017 Publishing Survey reports that 75 percent of surveyed companies claim that paid ads would be the most effective method of monetisation, before in-app buys (63%) and interstitial ads (44%).

87% thought that advertisements supplied the experience for consumers.

Creating engagement

So are rewarded ads in driving purchases that were in-app?

Mobile marketing platform Tapjoy analysed eight programs that have a high volume of daily users to realize how they socialize with ads that were rewarded. The study found that consumers who engaged with rewarded advertisements were 4.5 times more likely to generate an in-app buy.

Around all of the programsshowed a greater willingness together with the increase in spend being an average of just under 200%.

There appeared to be a positive impact on consumer engagement. Among people who had opted into at least one paid advertisement, the average amount of sessions per user increased across all of the apps analysed.

“Some program developers fear that providing their customers the choice to earn money through rewarded ads will lower the odds of in-app buys or negatively impact user spend. Our information demonstrates that not only do developers have no reason to be worried about these cannibalization, but rewarded ads are actually conducive to IAP,” said Benjamin Chen, SVP & GM, Developer Relations in Tapjoy.

“Our hypothesis is that rewarded advertisements serve as an initial introduction to a program’s in-game market or premium content. When users get a taste for this, they need more — and they are ready to cover it.”

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