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BizReport : Mobile Marketing : August 02, 2017

Rewards key to increasing in-app purchases

Mobile revenue from in-app purchases continues to ramp up, and part of that increase could be due to rewards. Tapjoy has released new data which shows that mobile users who engaged with rewarded ads are more likely to make in-app purchases, up to 4.5x higher.

by Kristina Knight

That is likely because rewarded ads are relevant to the consumers' interests - either opening new levels of a mobile game or in earning rewards that can then be used to make mobile purchases, either physical or digital. And, while the average increase in in-app purchases was 4.5x, two apps that Tapjoy studied showed an increase of 9x higher for users engaging with rewarded ads.

"Some app developers fear that giving their users the option to earn currency through rewarded ads will reduce the likelihood of IAP or negatively impact user spend. Our data shows that not only do developers have no reason to worry about such cannibalization, but rewarded ads are actually conducive to IAP," said Benjamin Chen, SVP & GM, Developer Relations at Tapjoy. "Our hypothesis is that rewarded ads serve as an initial introduction to an app's in-game economy or premium content. Once users get a taste for it, they want more - and they're willing to pay for it."

Tapjoy also found that mobile users are more likely to spend in-app, in general after engaging with a rewarded ad. On average, those who engage with rewarded ads first spend 326% more in-app than those who do not.

Tags: advertising trends, in-app purchasing, mobile marketing, rewarded ads, tapjoy

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