Incentive-Based Ads and In-App Advertising: What You Need to Know

Some marketing experts predict that in-app advertising and incentive-based ads will become an increasingly common way for businesses to market their products and services to consumers. Today, there are 2.32 billion smartphones being used worldwide; by 2020, that number will top 3 billion. And as smartphones become increasingly ubiquitous — as though they aren’t already — companies should consider capitalizing on in-app advertising methods to attract and incentivize new audiences.

In-App Advertising

One of the benefits of in-app advertising is that ads can be much more interactive, engaging, and aesthetically appealing than those on websites — many web ads simply aren’t optimized for mobile interfaces, making them appear out-of-place in mobile browsers. In-app ads, on the other hand, perfectly fill smartphone screens or occupy unused banner space.

Additionally, it’s often easier to target in-app mobile ads than it is to target ads on websites (or through more traditional methods of advertising. In-app ads often have a more captive audience than web ads; in many cases, they cannot be skipped over overlooked. Of course, it’s important to design in-app ads so that they feel as unintrusive as possible. Finally, in-app ads tend to have higher click-through rates, which means audiences are more likely to view your website.

Incentive-Based Advertising

Of course, ads are still ads, and as mobile users adjust to in-app advertising, companies will need to innovate in order to engage new audiences. One of the ways some companies are doing so is by rewarding users who watch advertisements with incentive-based ads, which offers viewers something in return for watching a video or taking a quick survey, like in-app credit or unlockables. These interactive ads are increasingly seen in mobile games: for example, if a gamer wants to proceed to the next level on a free app, they may need to watch an ad to do so — which many users would prefer to do rather than spend money.

Incentive-based advertising can be especially effective in mobile apps that appeal to your target demographic, so consider which users download and play which games before investing in this marketing strategy. And again, it’s important for your ads not to detract from the user experience of an app. Although this form of advertising may not seem very profitable, the sales you eventually generate from targeted, incentive-based ads could well outweigh the costs.