Rewarded - Mystic Media Blog

Mobile app marketing is an elusive and constantly evolving field. For mobile app developers, getting new users to install games is relatively cheap at just $1.47 per user, while retaining them is much more difficult. It costs on average $43.88 to prompt a customer to make an in-app purchase according to Liftoff. An effective advertising strategy will make or break your UI—and your bank. In 2019, in-game ads made up 17% of all revenue. By 2024, that number is expected to triple.

2020 was a year that saw drastic changes in lifestyle—mobile app users were no exception. What trends are driving app developers to refine their advertising and development tactics in 2021? Check out our rundown below.

Real Time Bidding

In-app bidding is an advanced advertising method enabling mobile publishers to sell their ad inventory in an automated auction. The technology is not new—it’s been around since 2015 when it was primarily used on a desktop. However, over the past few years, both publishers and advertisers have benefited from in app-bidding, eschewing the traditional waterfall method.

In-app bidding enables publishers to sell their ad space at auction. Advertisers simultaneously bid against one another. The dense competition enables a higher price (CPM) for publishers. For advertisers, bidding decreases fragmentation between demand sources since they can bid on many at once. In the traditional waterfall method, ad mediation platforms prioritize ad networks they’ve worked with in the past before passing it on the premium ad networks. In-app bidding changes the game by enabling publishers to offer their inventory to auctions which include a much wider swath of advertisers beyond the traditional waterfall.

Bidding benefits all parties. App publishers see increased demand for ad inventory, advertisers access more inventory, and app users see more relevant ads. In 2021, many expect in-app bidding to gain more mainstream popularity. Check out this great rundown by AdExchanger for more information on this exciting new trend.

Rewarded Ads Still King

We have long championed rewarded ads on the Mystic Media blog. Rewarded ads offer in-game rewards to users who voluntarily choose to view an ad. Everyone wins—users get tangible rewards for their time, publishers get advertising revenue and advertisers get valuable impressions.

App usage data from 2021 only increases our enthusiasm for the format. 71% of mobile gamers desire the ability to choose whether or not to view an ad. 31% of gamers said rewarded video prompted them to browse for products within a month of seeing them. Leyi Games implemented rewarded video and improved player retention while bringing in an additional $1.5 million US.

Facebook’s 2020 report showed that gamers find rewarded ads to be the least disruptive ad format, leading to longer gameplay sessions and more opportunities for content discovery.

Playable Ads

Playable ads have emerged as one of the foremost employed advertising tactics for mobile games. Playable ads enable users to sample gameplay by interacting with the ad. After a snippet of gameplay, the ad transitions into a call to action to install the game.

The benefits are obvious. If the game is fun and absorbing to the viewer, it has a much better chance of getting installed. By putting the audience in the driver’s seat, playable ads drive increased retention rates and a larger number of high lifetime value (LTV) players.

Check out three examples of impactful playable ads compiled by Shuttlerock.

Short Ads, Big Appeal

As we are bombarded with more and more media on a daily basis, finding a way to deliver a concise message while cutting through the clutter can be exceptionally difficult. However, recent research from MAGNA, IPG Media Lab, and Snap Inc. shows it may be well worth it.

Studies show short-form video ads drive nearly identical brand preference and purchase intent as 15 second ads. Whereas short form ads were predominantly employed to grow awareness, marketers now understand that longer ads are perceived by the user as more intrusive, and they can get just as much ROI out of shorter and less expensive content.

Check out the graph below, breaking down the efficacy of 6 second vs. 15 second ads via Business of Apps.

Conclusion

Mobile advertisers need to think big picture in terms of both their target customer and how they format their ads to best engage their audience. While the trends we outlined are currently in the zeitgeist, ultimately what matters most is engaging app users with effective content that delivers a valuable message without intruding on their experience on the app.

For supplementary reading on mobile marketing, check out our blog on the Top Mobile Ad Platforms You Need to Know for 2021

The global gaming market is estimated at $152 billion, with 45% derived from mobile games. The mobile game market is constantly evolving, new tactics and even platforms, like Apple Arcade, are being introduced. As a mobile game developer, being dynamic and staying up on the latest trends is of the utmost importance. Staying on top of these trends will help make a more engaging and profitable mobile game.

Keeping this in mind, below are the top freemium tactics of 2020:

RETENTION IS (STILL) KING

Mobile game developers must remember that freemium games begin and end with a good retention strategy that keeps users engaged.

Daily Tasks: Set-up daily tasks that pass the Starbucks Test. One of them can be opening the app on a daily basis. These should be fairly simple to complete and offer a reward, encouraging users to integrate gameplay into their daily lives.

Rewards Pack on User Birthdays: Give users some kind of bonus on their birthday to enrich their personal relationship with the game.

Challenge Dormant Users: After 3 days, give users a special, temporary challenge to reengage them with the app. Temporary promotions can be an effective way to instill a sense of urgency in the call-to-action and trigger users to open the app.

Promotion Before Subscription/Free Trial Ends: Tempt the user to sign-up or to extend their subscription by offering a temporary promotion 24-48 hours before their free trial/subscription ends.

When it comes to measuring retention, check out the model retention rates below from The Tool (Performance-Based Mobile ASO):

Day 1 Retention – 40%
Day 7 Retention – 20%
Day 28 Retention – 10%

Retention can also be tracked hourly instead of daily where Day 1 Retention will be the percentage of users who returned within 24-48 hours from the install. Here’s how it might look in analytics systems such as devtodev (via The Tool):

OUTSTREAM VIDEO ADS

Outstream Video is a new type of video ad unit, referred to sometimes as “native video”, designed for targeting mobile users.

Outstream Video ads do not require placement within a Youtube video. They play with the sound off on mobile screens when more than 70% of the ad is visible. The user can tap the ad to turn the sound on and restart the video from the beginning, or they can continue scrolling. When less than 70% of the ad is visible, the video pauses.

Advertisers such as the Hong Kong tourism board have had great success using Outstream Video ads, delivering 30% incremental reach with a 40% lower cost per completed video and 85% lower CPM.

REWARDED ADS PAY OFF

When it comes to monetizing a mobile game through advertising, rewarded ads remain at the top of the food chain. A recent survey of app publishers asked what their most successful monetization method was. Rewarded Video Ads won with 75% of the vote.

By offering users some kind of in-game reward, such as an extra life, a bonus item, or a new avatar, app developers can improve UI and engagement while encouraging ad views without bothering the user. Rewarded ads remain the ad unit with the highest earning potential.

LOOT BOXES

A loot box is a randomized box of in-game prizes. Users pay for an in-app purchase, but there is no guarantee of whether it will contain gold or pennies, the user has to make the decision to purchase in exchange a random reward. While this tactic is somewhat controversial in Europe where Belgium and the Netherlands have cracked down and labeled it gambling, it remains a popular tactic. Loot boxes are particularly effective for Whales, wealthy mobile game users who will readily pay to improve their performance in the game.

SELL YOUR DATA

The collection and sale of data is a massive industry. If your app offers the technical means to collect user-generated data such as geolocation, it may be worth it to acquire user consent to license that data.

Applications like Waze & Foursquare receive community-generated data from their users and effectively leverage it to monetize their applications. Waze licenses data to businesses placing location-based ads, whereas Foursquare licenses point of interest geolocation data to Google & Apple for their first party GPS apps Apple Maps & Google Maps.

CONCLUSION

It is important to keep in mind that monetization is the icing on the cake—without an engaging game that hooks users, there will be nothing to monetize. However, making key decisions in the development process with the monetization strategy in mind will *literally* pay off in the long run.

Check out our previous blogs on Mobile Game Monetization for an overview of the fundamentals.

Tag Archives: Rewarded

Top Mobile Marketing Trends Driving Success in 2021

Maximize Profits with the Top Freemium Tactics of 2020