Offerwall monetization can be incredibly effective for mobile developers. It provides an engaging opt-in monetization option for users, increasing ad revenue and improving overall engagement.
However, it isn’t a fit for every app. Offerwalls drive revenue by providing value, and they can’t do that if your game or app doesn’t leverage a few fundamental parts of traditional freemium app design. In this article, we’ll walk through some key questions every developer should ask themselves before committing resources to an offerwall integration.
One of the main benefits of a in-app offerwall is that it provides players with an extra avenue to further engage with the games they love when they may not wish to make an in-app purchase. Like many aspects of free-to-play games, offerwalls depend on a strong relationship between supply and demand. If interaction with your game’s core features doesn’t depend on some element of a virtual economy, offerwalls might not be a right fit.
If your game does include a virtual currency based economy, then offerwalls likely have a place in your core engagement loop. They are most effective when they serve as a source of currency that’s in particularly high demand. In freemium economy terms, this is typically referred to as a game’s “hard currency”.
Unlike soft currency, which players can typically earn through gameplay, hard currency is more valuable and is typically kept scarce to foster demand. It’s this high demand that motivates players to complete IAPs, but can also be channeled into providing value for developers through offerwalls and other kinds of rewarded ads.
Concerns over IAP cannibalization have been widely disproven by a variety of industry studies, including our own. In fact, offerwalls have been found, in many cases, to increase conversion rates and average spend per user by fostering greater levels of overall engagement. With that in mind, it’s still important to take a qualitative look at your user base and consider what it could mean to them.
Many games are solitary entertainment experiences, but some let players interact with each other, giving rise to organic community interactions on social media, subreddits, fan sites and Discord channels. Many developers come to depend on these communities for organic user acquisition and retention. Before adding an offerwall, ask yourself what impact it might have on your community dynamic.
It’s been our experience that when it comes to free-to-play titles, most communities would benefit from adding an additional currency source. Rewarded ad placements of any kind can often end up in blog posts and articles shared by experienced players in an effort to help newcomers.
Starting fresh with offerwalls integrated at launch is one sure-fire way to ensure that they’re well received. If you’re updating an existing app to include an offerwall, it’s a good idea to notify your community through patch notes and social media channels to make sure you get the word out.
While economies of any kind can quickly get complex, they’re fundamentally comprised of two things: sinks and sources. Sinks are any opportunity for players to spend currency, and sources are ways to earn it. It’s critical that these two are kept in constant balance in order to fuel engagement. Too many sinks and players might get frustrated. Too many sources and they won’t have anything to aspire to.
Adding an offerwall means introducing a potentially powerful source into your game economy, and so they perform best as part of an economy with an equal or greater number of sinks. These come in many forms, but can include any of the standard freemium economy drivers, including:
If your game or app offers players indefinite opportunities to engage meaningfully through hard currency transactions with assets like those listed above, then it’s likely a great fit for offerwall monetization. If you have only a limited number of ways for players to spend currency, consider adding more before finding ways for an offerwall to fit into your overall strategy.
The revenue generated by any rewarded ad placement is limited by the number of opportunities players have to engage with it. Furthermore, offerwall engagement increases the closer it is to moments in the user experience in which players feel the need for hard currency. If your game or app includes one or more high-traffic bits of UI where players can experience demand for hard currency without interrupting gameplay, then an offerwall is again likely to fit nicely into your economy at large. Some examples of ideal placements include:
Some of these placements drive higher conversions than others. Ideally, each offerwall will have multiple access points in order to maximize engagement. As with any monetization tactic, user experience comes first. If you can integrate an offerwall in such a way that players don’t feel distracted or annoyed by your placement then you’re in good shape for boosting ad revenue, engagement, and retention. Remember – offerwalls is are an opt-in experience for your users.
As offerwalls become more common across the in-app ecosystem, it’s crucial to ensure that yours provides a seamless and engaging user experience. That means ensuring full control over things like conversion rates, display frequencies, branding, and more.
If you replied “yes” to one or more of the questions, then we should talk! As the originators of the mobile offerwall format, we here at Tapjoy have spent more than 10 years perfecting the practice of offerwall monetization and helping countless developers use offerwalls to add a powerful new revenue stream to their business. Click the button below to get in touch with one of our monetization experts and learn more about offerwall monetization with Tapjoy!