Study: Ad completion key to engagement, spending

Rewarded advertising may have a bigger impact on consumer engagement than many brands have previously thought. That, according to new data which shows that the more app users complete rewarded ads, the more they spend and the more they return to those apps.

by Kristina Knight

Tapjoy has released data from the new Maximum Impact Report: Exploring the Effect of Rewarded Ads on User Value, and the key findings shouldn't surprise. According to the research the more rewarded ads an app consumer completes, the higher their spend rate and engagement.

Breaking the numbers down, they found that app users who complete 20 rewarded ads showed 76% higher retention rates and 89% higher engagement. Even more compelling, these users showed a more than 700% increased in-app spend ratio.

"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."

Other interesting findings from the Maximum Impact Report include:

• App users completing between 6 and 10 in-app ads within their first 2 weeks of downloading spend about 3x more than those completing fewer than 5 in-app ads
• Users completing between 6 and 10 in-app ads a 48% higher retention rate than those completing fewer ads
• Nearly 50% of those completing between 6 and 10 in-app ads 'were likely active' on the app 30 days post-download

Additional findings from the Tapjoy report can be found here.

Tags: advertising trends, appvertising trends, ecommerce, loyalty marketing, mobile marketing, Tapjoy