Have you ever found yourself craving an extra life in Subway Surfers or a power-up in Angry Birds? Imagine the app offers you just that if you’re willing to watch a short video, answer a survey, or sign up with your email. If that sounds familiar, then you’re already aware of the concept of an Offerwall.
In this blog, we’ll understand what Offerwalls ads are, how they contribute to user retention and monetization strategies, as well as the challenges associated with their implementation.
What is an Offerwall?
The Offerwall is an app monetization strategy that rewards users for completing specific tasks. It is an ad format that allows users to watch ads, complete surveys, and take other actions in exchange for in-game rewards.
An Offerwall is a dedicated section inside a mobile app displaying many advertising offers. These ads appear as a ‘mini-store’ and reward users in exchange for completing an action.
Also Read: Mobile Ad Formats, Benefits, and Best Practices!
How does an Offerwall work?
The Offerwall ad format is a unique way to monetize your app through in-app ads. It acts as a marketplace for both advertisers and users. Advertisers, who aim to boost their reach, create offers, and with the help of an ad mediation platform, these offers are linked to various apps. These apps seamlessly integrate the offers into their interfaces, enabling users to complete tasks and earn rewards.
Users can watch a video, take a survey, complete a level, start a premium trial, level up a subscription, make a purchase, or register a username to get one or more lives, in-app currency, time limit extension or a temporary ad-free experience as a reward.
For developers, Offerwalls offer a smart method to generate income from their mobile app or website. Each time someone finishes an offer or task, they get a commission from advertisers.
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What are the benefits of Offerwall ads?
Offerwalls are beneficial for both developers and advertisers. It enhances user engagement and retention of the app. Offerwall ads provide developers with an additional revenue opportunity beyond traditional advertising models like banners or interstitial ads.
Advantages of Offerwall ads for user engagement and retention
Enhance the user experience
Whereas traditional mobile ads can interrupt users, Offerwalls put the user in charge. They must opt into and initiate ads that interest them the most. This increases users’ in-app experience by boosting app flow and increasing access to freemium content.
Increases user engagement and retention
Offerwalls help developers increase the users’ average session length by engaging them with daily tasks to complete, which keeps them interested and improves their experience with the app. The increased user engagement, in turn, increases user retention. When users have an opportunity to earn valuable in-game items or virtual currency, they are more likely to continue using the app or game.
Seamless Integration
Seamless integration with the gameplay experience is a key advantage of offerwalls in mobile game marketing. By allowing ad content to blend naturally into the gameplay, users find it more enjoyable to interact with ads, especially when offered simple tasks for rewards. This integration provides advertisers with access to valuable users who are actively interested in engaging with ad content and are motivated by incentives to do so.
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Advantages of Offerwalls in Supporting Monetization
Offerwalls provide players with various incentives and rewards, which encourage them to come back to the game and keep playing. When players feel invested in the game due to these rewards, they are more likely to remain loyal to the app. This increased loyalty boosts the app’s retention rate and revenue. Additionally, these engaged users are more likely to make in-app purchases and opt for premium upgrades, which further enhances the app’s potential for monetization.
Encourages more in-app purchases
Offerwall ads motivate users to make purchases by introducing them to additional app features they may not have explored yet. When users engage with these ads and complete certain actions, they often end up making in-app purchases right away to access the showcased features.
Monetize non-paying users
Offerwalls allow developers to maximize their earnings from the players who are less likely to spend on in-app purchases. However, they engage with ads if they receive a valuable reward in return.
Cost-effective strategies
Advertisers can generate revenue from their campaigns by paying for user interactions. They are charged only when users complete specific actions, like downloading an app or completing a purchase, making this advertising model cost-efficient.
Targeted Advertising
Targeted advertising in Offerwall ads involves customizing ad content based on the specific demographics, interests, age, or behaviours of users. This ensures that users see ads relevant to their preferences, thereby increasing engagement and conversion probability. By delivering targeted ads, advertisers can optimize their campaigns to reach the most interested audience, maximizing the effectiveness of their advertising efforts.
Broaden your revenue strategy
Although offerwalls alone may not fully monetize your app, they can be highly effective when used as part of a hybrid monetization approach. By combining offerwalls with in-app advertisements and in-app purchases, you can broaden your revenue streams and ensure complete monetization for your app.
High eCPM
eCPM, short for effective cost per mille, refers to the revenue a publisher makes from displaying 1,000 ad impressions within their app. The higher the users’ engagement level with the ads, the greater the eCPM tends to be.
Offerwalls help to generate high eCPMs for the publishers as they target users precisely based on the engagement and commitment of the user to the app. This makes advertisers invest more in ad units as they trust the user will be more likely to engage with their offer.
Also Read: What is eCPM and How to Increase it for High Revenue?
Offerwalls help with Cross-promotion
Offerwalls allow developers to promote other apps within their apps. For example, introducing a video ad for another game while a user is playing a game can help them discover something new to play.
Additionally, if a developer owns multiple games, they can promote their own apps or products within their current app. This strategy can be highly effective, as it allows developers to take advantage of the existing user base of one app to increase installs or purchases for another app or product.
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What are the challenges of working with Offerwall ads?
Risks of losing users by sending them to other apps
The cross-promotion of another app is one of the main advantages of Offerwall ads. However, it can also be a challenge because users may be tempted to leave your app to explore the promoted app. This challenge can be addressed by employing effective re-engagement tactics within your app.
Reducing the in-app purchases
Some developers are concerned that offering too many free benefits will negatively impact the in-app purchase. However, if handled with the right balance, offerwalls can actually encourage purchases by allowing users to experience some premium features. If users enjoy these features, they’re more likely to make a purchase.
Poor user experience
If Offerwall ads are not seamlessly integrated and content is not updated regularly, users may become disinterested, which, in turn, will impact user engagement negatively. Then, instead of enhancing the user gaming experience, this could worsen it. Therefore, implementing Offerwall ads requires the right strategy.
Also Read: Rewarded Ads and Their Benefits to Game Publishers!
How can you maximize your Offerwall revenue?
Segmenting Users
How do you decide what reward to offer when users respond differently to different rewards? By understanding your users’ behaviours and preferences, you can design your offers more effectively, ultimately boosting engagement, retention, and revenue. Segmenting users into distinct groups enables you to match them with the most suitable offers. Once you know what your users are interested in, you can pick rewards that they’ll find appealing. So, think about using a system that divides your users into different groups based on their interests.
Seamless experience
Offerwall ads are beneficial for both publishers and advertisers, but they must be relevant to the app and enhance the gaming experience for users. When designing Offerwall ads, ensure that elements such as color scheme, language, and images are seamlessly integrated so that they feel like an integral part of the app.
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Run multiple offers and measure the impact
To understand what users respond to, try experimenting with various Offerwall campaigns. Create different campaigns for the same segment of users and evaluate how they’re working. This approach will help you better understand your users and plan the best action to improve engagement.
Include special offers
Hosting special limited-time offers with double or triple rewards for completing tasks boosts user engagement and retention. These time-sensitive deals create a sense of urgency among users and tempt them to complete the task in the given time frame.
Update your content often
It is always a better idea to attract users’ attention by offering them new ads every time they visit the app. If users see the same ad too often, they’ll stop paying attention. Updating your Offerwall with new content will help increase user engagement and retention.
Conclusion
In conclusion, offerwalls present a powerful opportunity for developers to monetize their apps while enhancing user engagement and retention. By using various strategies, such as seamless integration, special offers, and targeted advertising, developers can maximize their revenue potential while providing users with valuable rewards and incentives.
However, it’s essential to understand challenges such as the risk of losing users to other apps and maintaining a balance between free benefits and in-app purchases. With careful planning and execution, offerwalls can become a valuable tool for developers, driving success and satisfaction for both developers and users alike.
