Mobile app users who complete more rewarded ads are also more engaged, according to Tapjoy, the mobile and app advertising platform.
In addition to engagement, retention and in-app spend are also higher.
Rewarded mobile ads are those which offer users something in exchange for their time, such as in-game lives or currency.
The report is the first to take a closer look at the impact of the number of ad completions to drive engagement. Tapjoy analysed ten high-volume apps over 30 days for this study.
It found that users who complete 20 or more rewarded adverts were 89% more engaged. They also showed 76% higher retention and a whopping 705% higher in-app spend than users who did complete just five or fewer ads.
“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.”
In addition, the report found that users who completed between 6-10 ads during their first two weeks spent almost three times as much on in-app purchases compared to those completing 0-5 ads. Overall, ad engagement was the strongest impact factor on in-app spend.
The same trend is true for the average number of user sessions. These increase the more ads a user completes. Users who complete 6-10 ads show an average number of monthly sessions that’s 48% higher than those completing 0-5 ads.
In addition, the report found that retention was correlated to ad completion with around half of users who completed 6-10 ads more likely to be active in an app after 30 days.