Do rewarded ads have a negative impact on in-app purchases? It’s a topic mobile experts have debated for years. The theory goes something like this: Why would users spend real currency on in-app items and services when they could get the same thing by simply completing offerwall offers?
That might be true for some platforms, but at Tapjoy, we’ve created an offerwall designed to complement the in-app purchase ecosystem — not cannibalize it. We’ve spent years working with our partners to create a balance where multiple monetization revenue streams can coexist. Today, publishers consistently report that the Tapjoy Offerwall increases overall revenue. Some have even told us that IAP increased after implementation. Even in cases where IAP revenue has decreased, the net gains have superseded any losses. After analyzing our own data, we’ve reached the same conclusion: The Tapjoy Offerwall complements IAP monetization. But don’t just take our word for it. See what our partners had to say below.
One fact that’s overwhelmingly supported by our own data and our partners testimony is that users look for and expect the Tapjoy Offerwall experience in apps today. In our recent study, 88% of our users say they like having rewarded advertising options alongside IAP. Nearly half of those surveyed also said that if a mobile game removed its offerwall, they would stop playing entirely.
Caroline Lee, Marketing Producer at A Thinking Ape, came to the same conclusion. “We didn’t see any drop-off in IAP revenue,” she said. “We’ve been pleased with the new revenue it has unlocked for us. By speaking to players, conducting surveys, and reading user forums, I am confident that our users gain a lot of value from the rewarded ads and appreciate the additional source of premium currency — which is the main thing for us.”
According to Gear Games CEO Artyom V. Shumsky, having the option of going from in-app purchases to offerwall rewards helped the studio retain users that otherwise may have lost interest. “Even if some users have switched from IAP to offerwall, we think they would have left otherwise anyway and have made their revenue back through ad revenue,” he says. “It’s much lower friction to interact with a game than it is to hand over cash.” View the customer success story of Gear Games and the Tapjoy Offerwall.
The Tapjoy Offerwall is a powerful mobile monetization tool, but that doesn’t mean rewarded video and in-app purchases don’t have their own roles to play. Our data shows that offerwall revenue doesn’t negatively affect rewarded video revenue while significantly increasing overall revenue. When it comes to user experience, players have come to expect seeing all three in the mobile ecosystem, and like having choices.
“At one time, we only showed the offerwall to those who didn’t make IAP — same with rewarded videos — but we found that all three are part of the entire ecosystem”, Francois Daoud at Ludia Games told us. “People like these products, including in-app purchasers. Now we show it all to everyone. We now have very little concerns around IAP.”
“When we launched the Tapjoy Offerwall, we also made a point to explore all the optimization features,” Rose Agozzino at Ludia Games added. “We customized the interface design and tested different entry points. We also fine-tuned the exchange rates per country, and ran a number of currency sales,” she explained. “With a few simple tweaks, you can really make it work for your game.”
IMVU’s Head of Monetization Darren Markovitz told Tapjoy that there’s actually “a positive correlation between the offerwall and IAP.” As he put it, “Rewarded Ads give users a taste of everything the full IMVU experience has to offer. Any app that offers valuable add-ons would likely see the same results. The offerwall primes them to come back for more.”
“The monetization strategy strongly depends on the game. You have to keep in mind that our main titles are targeting a young audience with a lot of spare time, but they don’t have a lot of money to spend on IAP. Using analytics and tracking user reviews, we’ve discovered that there are a lot of users who prefer to spend infinite time grinding for one crystal, our hard currency, instead of paying $0.99 for 100 crystals.
“We decided to try to offerwall format in Blocky Cars. We created a placement and an engaging pop-up message, then deployed a version with offerwalls for 20% of our Google Play audience. After three weeks, analytics showed that we hadn’t experienced any drop in IAP at all. So IAP stayed at the same level while we received some extra revenue from offerwalls. Then we tried A/B testing with different offerwalls and finally decided to keep Tapjoy’s as it performed better than the competitor’s.
“So yes, we’ve been afraid too, and it’s okay to think that players might leave your game or that your game balance will be ruined by free currency. A/B testing, smart deployment, and a little bit of analysis is all you need to find out the truth. Listen to your players and if it’s suitable for your particular game, try offerwalls. Thankfully, the integration process is easy as pie.”
Ready to start your own Tapjoy Offerwall journey? Our mobile strategists are happy to help.