Why reward-based advertising rocks

Mukhtar Oyewo

Why reward-based advertising Rocks

Co-Founder

In a 2011 study by eye square and Google, they found that Google AdWords had a

Advertisers & publishers are constantly challenged

to get audiences to engage.

Yet while audiences are looking at ads, this does not always translate to engagement or affinity

for the format.

What can help turn this tide?

reach of 85% but a dwell time of on 1.9s (0.6 seconds less than the corresponding digital ad).

Slide courtesy; Exploring the Role of Value in Mobile Advertising, is a continuation of Millward Brown’s 2013 U.S. AdReaction Report: Marketing in the Mobile World.

Can the Rule of Reciprocity change this?

T H E R U L E O F R E C I P R O C I T Y

R E Q U I R E S T H AT

ONE PERSON TRY TO REPAY what the other person

HAS PROVIDED

- ROBER T C IALDIN I


We see reciprocity play out at a primal level. Slide courtesy; Exploring the Role of Value in Mobile Advertising, is a continuation of Millward Brown’s 2013 U.S. AdReaction Report: Marketing in the Mobile World.

Is it possible for brands to apply reciprocity in advertising to break through and build lasting brand recall?


Executive Summary

The Value Exchange Equation is the activation of the rule of reciprocity in advertising. It can expand an audience’s brand recall and help create an enduring relationship with the brand.

1

Consumers presently reward brands that deliver on that value exchange with their loyalty.

2

Reward-based advertising is an answer to the value exchange equation. It opens the door of consumer receptivity and brand engagement.

3

Reward-based advertising succeeds when the advertising execution is timely, chosen & relevant and the reward is predictable, tangible & chosen.

4

Publishers need to offer meaningful value in exchange for user ad interaction.

5


Reward – based Advertising

involves incentivizing end users with virtual rewards for interacting with advertisements


Annie needs more coins to build on her land in Triple Town.

She can BUY coins with real money.

She can coins by engaging with ads in Rubiqube’s ad

Marketplace. OR

How it works


Annie CHOOSES to watch The Avengers trailer and earns 59 Pet Points.

Power of Choice


Rewarded audiences have increased interactions with brands

15% 17%

12%

20% 18%

14%

36% 34%

28%

21%

26%

19%

Clicked/interacted with ad

Searched for brand Looked for brand in a online store

Visited brand's website

Considered purchasing brand

Visited brand's social page

Have Not Participated in Reward-Based Advertising Engaged in Reward-Based Advertising

+9*

Which of the following actions have you taken as a result of seeing an ad?

+19*

+11*

+16*

+8*

* Statistically significant difference between control and exposed group at a 90% confidence level; ^Never Participated in Reward-Based Advertising n=384; Engaged in Reward-Based advertising n=500.

+5*


Campaigns tested on a reward-based platform, had significant increases in all measures of brand effectiveness

59%

14%

37% 42%

31%

77% 72%

63% 63%

53%

Aided Brand Awareness Mobile Ad Awareness Message Association

Control Exposed

Brand Favorability Purchase Intent

+13*

+63*

+26* +21*

+22*

* Statistically significant difference between control and exposed group at a 90% confidence level; ^N=5 campaigns

Reward-based platform Campaigns Tested


Reward-based advertising has created a currency that acknowledges the value of consumers time & attention

Tangible rewards are clear way to provide value within the ad experience and open the door to meaningful consumer engagement.

Rewards change the context and open my mind to what they have to say.”

If there is a reward attached, I’ll sit through to see what it is.”

Rewards put the exposure of the brand in a positive light instead of something forced.”


Customers most desired TANGIBLE and flexible rewards

Preferred Rewards

1. Gift cards 2. Coupon or discount of your choice 3. Tickets for Events 4. Points towards contest entries 5. Donations to Charity 6. Virtual Currency 7. Access to ad free environment 8. Access to free videos or songs 9. Access to free games 10. Access to exclusive content


Execution Best Practices

do:

• Offer choice in ad exposure. When possible, let audiences select when they want to watch your ad.

• Consider timing and placement. Wait for a natural break in browsing to serve the ad.

• Serve audiences personally relevant ads.

• Pair a reward with creative. Rewards are boosters that can break through the clutter.

don’t:

Interrupt. Ads shouldn’t distract or derail users from their mobile goal.

Bombard users with ads. Audiences are aware of the value of their time.

Serve a random ad. An irrelevant ad is a wasted impression.

Use intrusive formats unless context is highly relevant.


don’t:

Consider a reward to be something that is currently free. Audiences don’t consider access to content or an ad free environment be a desirable reward.

Expect a reward to compensate for poor creative or low brand equity.

Vary reward schedule, users appreciate predictability.

Be a bully and dictate the reward. Audiences want to select their reward.

Reward Best Practices

do:

Provide tangible rewards. Gift cards and coupons are best.

Offer consistency. Audiences like to know when they are getting a reward.

Offer users a reward that is flexible and has an element of choice.


• Increased Lifetime Value

• Improved Monetization impact

• Insights to optimize customer experience.

• Improved brand recall

• Post-ad action

• Increased ROI

• Improved user experience

• Freedom of choice to view ads

• Reward aspiration

Impact of Reward-based Advertising

End Users Publishers Advertisers


Now thats a wrap