September 3, 2013

Case Study: The Effect of Presenting Ads as Rewards in Mobile Games

Today I would like to feature an article by Steve Weiss which shows under which circumstances monetization of mobile Ads can increase user motivation. Ads are commonly seen as motivational obstacles but the following case study shows figures like a 90% increase in playing time through personalized ads and linkage to in game milestones.     

LESSONS FROM PAEDAE’S MONETIZATION CHALLENGES

The following article is written by Steve Weiss, the Chief of Marketing Officer at PaeDae: a leading mobile monetization company. 

The challenge of monetization is about more than dollars and cents – it is about continuously enhancing the user experience.  Many developers steer clear of monetization solutions, fearing that they will turn off users and cause drops in retention and engagement rates.
However, when ads are presented as personalized they can have favorable implications for user experience and engagement. Below, I will share some data that demonstrates a positive correlation between the implementation of such ads and an increase in overall engagement.
In order to provide some context, PaeDae is a premium ad network that leverages a “reward ad spec” to help app developers monetize. One of the biggest contributors to our success is our commitment to ensuring that reward ads look native, and blend seamlessly into a user’s overall game or app experience.
During the process of gathering engagement data from our network, we conducted a split test around the usage of rewards and their effects on engagement. We used two different cohorts – one was shown rewards upon reaching specific milestones, while the other was not shown any rewards during the app’s life cycle.

First of all, we observed a 90% overall increase in minutes played by users who were shown at least 1 reward. Secondly, we found a 61% increase in overall retention, or instances in which a user played multiple sessions after the install. Finally, there was a 21% increase in overall plays per install when a user was shown a reward. These statistics demonstrate that effectively targeted rewards will incentivize a user to invest more of his or her time and resources into a particular app.
The takeaway here is that with proper user testing, rewards and other types of native, branded ads can raise overall user engagement rates and generate incremental revenue.
This case study aims to shed some light on monetization as a means to heighten user engagement rather than detract from it. Understanding and utilizing this type of advertising allows the developer an opportunity to further connect with users and earn their loyalty.