Guest post by Peggy Anne Salz at Mobile Groove.
Rewarded advertising isn’t new, but it is poised to have a new impact and potentially shape the future of gaming app monetisation.
Sensing this business opportunity, app publishers are doubling down on rewarded models to diversify revenue streams and wring more value out of engaged audiences. It's a smart strategy at a time when data warns CPIs, which hit their lowest levels ever, are out of sync with other key metrics across the funnel.
While Game Analytics reports time spent playing mobile games was up 62 per cent due to coronavirus lockdowns, the latest research from Liftoff shows a darker side to the data. Specifically, install-to-purchase rates from gaming apps are up to 2x the average cost of $40.40.
Unfortunately, high costs to acquire a player who will make an in-app purchase are matched by low conversion rates that have declined to 2.3 per cent. The upshot: players in self-isolation are spending loads more time in games, but their spending patterns don't match.
Publishers have a choice. They can fine-tune growth engines and loops to net highly-engaged users primed to make a purchase, from the get-go. Or they can focus efforts on adapting models to incentivise and monetise players. It's an approach that cashes in on players' keen interest in rewarded ad schemes, according to App Annie. Its ad monetisation report highlights massive opportunities in a market where players are warming to advertising in games.
But what are the best practices? What are the pioneering models that power a virtuous loop and unlock growth – and where are the pitfalls? What are the merits of approaches that reward consumers for time spent while compensating advertisers and publishers? Finally, why is personalisation destined to be the biggest "growth hack" of all and the most effective way marketers can make their game (and their advertising) habit-forming?
As inspiration for marketers during year-end strategy planning, I draw from a recent panel with four industry experts to provide actionable answers.
- Lomit Patel, Vice President of Growth at IMVU, a game/3D avatar-based social networking universe.
- Lenny Rabin, Vice President of Revenue and Business Development, Prodege. The Prodege platform, which Lenny helped design, offers advertisers the opportunity to connect their brands with a unique member base of 120 Million registered members globally.
- Jonas Thiemann, co-CEO of the applike Group and managing director of adjoe, an ad tech company, which has developed Playtime, an innovative time-based rewarded ad unit.
- Dan Beasley, Co-Founder of Viker, the London-based independent mobile studio focused on designing for retention and rewarding players in new and innovative ways.
Check out the list for a deep dive into the best practices from the panel.
Click here to view the list »