Consumers prefer their apps free and their adverts rewarded. That’s according to a new study by Tapjoy, which examined the answers of over 2,600 US consumers in April 2017.
54% of consumers said they preferred the freemium app model versus paid apps (14%) or advertising-supported apps (32%). The percentage of those favouring free apps and content is even higher among gamers (60%) who spend nine hours a week playing games.
In addition, a whopping 80% of US consumers prefer opt-in ads with reward options, such as in-app currency or game lives. More frequent players are more likely to receive rewards.
Rewarded ads are also better for developers and marketers, since 75% of US consumers are likely to view a video ad in exchange for in-app currency or premium content access – as long as the ad isn’t too long that is.
Video formats are generally favored among app users when it comes to mobile ad formats. Indeed, 63% of respondents agreed that they preferred video rewarded ad types. Mobile app install ads (10%) and playable ads (9%) ranked second.
Shannon Jessup, chief revenue officer of Tapjoy, explains:
“Mobile apps have completely flipped the script between brands and consumers, and consumers now have much more control than ever before. As this study shows, consumers want to download apps for free, but they are more than willing to watch videos in order to unlock content within those apps. We have seen this trend played out across our platform as well, as we’ve experienced a 120% year-over-year increase in rewarded video views between April 2016 and April 2017.”
51% also said they’d be willing to view four or more video ads in a day to gain rewards, whilst a third of respondents would increase that to six or more videos a day to gain reward access.
But when it comes to engaging consumers, humourous content is clearly the better choice (44%), followed by story-telling (28%), product demonstrations (26%) and special effects (24%).
The types of ads consumers are more interested in include Movies & Entertainment (55%), Food & Restaurants (46%), Retailers (25%), Fitness & Healthcare (22%) and then Local Services (19%).
The findings may help app developers and app marketers make informed choices about the content and formats they choose for their mobile app campaigns.