Tapjoy: the higher the conversion rate of an ad, the more the user spends
The more a mobile user consumes rewarded advertising, the higher their engagement, retention and spending in the app become. This is stated in the study of the Tapjoy mobile advertising platform.
The report compared two groups of users. Some viewed up to 5 rewarded ads, the second — from 20 such ads.
Among active consumers of rewarded advertising, engagement and retention were 89% and 76% higher, respectively. In addition, the members of the second group spent 705% more in the application than the participants of the first.
The study also compared the costs of IAP in the first two weeks after installing the application. Users’ spending after viewing 6-10 rewarded ads amounted to about $1.23.
And those who watched less than 5 ads spent only $0.43.
“Our results refute the view that rewarded advertising spoils the impression of work or reduces in-app purchases. On the contrary, the study suggests that it is important to present ads to the user as early as possible,” said Ben Chen, general manager of Tapjoy.
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