Mobile consumers prefer opt-in mobile advertising over traditional digital ads. That’s according to new research conducted by Nielsen Media Labs for mobile video advertising platform Jun Group. It highlights the need for advertisers and the mobile ad industry to come together and find a more engaging solution that offers an exchange of value between the brand/retailer and consumer.
54% of consumers said they preferred incentivised or rewarded ads compared to 29% who didn’t. Value exchange ads allow consumers to opt-in to unlock any digital content. They are being used by publishers such as Google, Pandora, Twitter, Fox, Kik and Spotify.
For Mitchell Reichgut, CEO of Jun Group, the research findings prove that value exchange is the way forward in mobile advertising because it focuses on the consumer and not just the advertiser or brand. He adds:
“Advertising has traditionally been interruptive and that doesn’t work well on smartphones. This is quickly changing. Mobile gives audiences more control than ever and the industry needs to adjust quickly.”
In addition, the study demonstrated that customers exposed to rewarded ad units were more likely to enjoy the overall advertising experience (74%) compared to those viewing pre-roll or native formats.
As a major bonus, opt-in units also forego ad blockers.
In a separate study commissioned by Jun Group, Nielsen showed that the value exchange ad units outperformed Nielsen Digital Brand Effect Mobile benchmarks for both brand awareness and purchase intent.
Rewarded video ads drove brand awareness by 34.4%, which is 3.5x the Nielsen Digital Brand Effect Mobile benchmark. In addition, the ad units increased purchase intent by 26.4% which is almost 5x the benchmark.
Going programmatic has further benefitted the value exchange advertising industry,
Lastly, Jun Group found that despite the existence and performance of rewarded ad units, generally consumers are unaware that they exist. However, 75% of media buyers are likely to recommend the format.
Among gamers, rewarded video ads have long been the mobile advertising format of choice.
Indeed, research from Unity Ads found that 71% of mobile gamers chose to watch video ads in order to receive in-game rewards such as additional lives or tokens.