At Tapjoy, we’re dedicated to exploring monetization best practices that help freemium app developers maximize revenue while providing the best possible experience for their users. In this guide, we take an in-depth look at one of the most tried-and-true methods of freemium monetization: The offerwall. We’ll explore the key reasons why offerwall monetization is so compelling, including how it can help developers maximize the revenue potential of their apps and drive deeper user engagement.
An offerwall is quite literally a “wall” of offers that are presented inside an app, allowing users to scroll through and select their choice of rewarded ads or offers to complete in exchange for virtual currency or other in-app rewards. It has remained a mainstay of app monetization since the early days of freemium because the value exchange model works so well for both advertisers and users, and is a natural complement to an app’s existing gameplay.
In this guide, we’ll explore three key benefits of offerwalls. Let’s get started!
One of the most valuable and obvious publisher benefits of an offerwall is the ability to unlock higher eCPMs and boost overall revenue.
While offerwalls are higher friction than rewarded video, the value is clear: a Tapjoy study revealed that publishers who monetized through offerwall and rewarded video combined posted an average quarterly ARPDUV (average revenue per daily unique viewer) that was consistently more than 2x greater than those who monetized through rewarded video alone.
Dual channels of monetization, therefore, unlock a “sweet spot”, allowing publishers to realize the highest possible value of every user: rewarded video offers low-friction and high volume, but lower value to both player and publisher; offerwall, on the other hand, is higher friction but geared at users who are willing to provide deeper engagement for a greater reward.
One of the age-old fears of ad monetization is whether it will cannibalize an app’s IAP (in-app purchase) economy. This fear is perhaps greater for publishers considering an offerwall integration since the payout is inherently higher. Care must be taken to strike a balance between executing exchange rates that entice the user, without de-valuing the app’s economy.
However, when exchange rates are optimized, the offerwall can in fact act as a great tool to encourage IAP. The idea is that rewarded ads give users “a taste” of the value they can unlock through IAP, making them more likely to purchase them in the future.
To investigate this theory, Tapjoy measured the average spend per user – both seven days before and seven days after a user’s first offerwall engagement – for 8 different high-DAU iOS and Android apps during Aug-Sept, 2017. Across all apps studied, user spend increased after they engaged with the offerwall. The average weighted increase was 172%, with the individual increases per-app ranging from 39% to 268%.
Another key benefit of the offerwall is that it is a 100% user-initiated, opt-in ad format. Unlike interstitial video, which is usually served automatically to the user during transition points in the game, the offerwall is only activated if the user chooses to do so.
Offerwalls also empower users to pick and choose the ads that appeal to them most, while scaling their reward accordingly to the value of the offer. For example, watching a video may be worth 100 coins, while filling out a survey is worth 500.
Providing users with a way to unlock higher value rewards encourages deeper engagement within the app, which in turn increases the odds that a user will stick around. Smule found this to be true for users of their hit app Magic Piano. Players who completed an offer through the Tapjoy offerwall were 14% more likely to become long-term users, in comparison to the control group. For more information on Smule’s experience, take a look at page 14 of our offerwall guide.
Tapjoy is the industry’s leading offerwall expert for a reason: We make it easy for publishers to set up, customize and optimize their offerwall, all from a centralized dashboard. The UI is clean, user-friendly, and can be tailored to match the look and feel of your app.
Part of the Tapjoy Maximum Impact Platform™, developers are empowered to make the most of every user through advanced segmentation and predictive LTV analytics. These capabilities allow publishers to more intelligently monetize their users through advanced features, such as custom exchange rates, targeted permanent currency sales, and contextual in-app messaging.
For more information, take a look at Tapjoy’s mobile monetization strategies.