Rewarded Ads Increase Mobile App Retention By At Least 4X, Tapjoy Study Finds

Video ads are particularly effective at driving long-term retention

SAN FRANCISCO — May 12, 2017 — Rewarded advertising helps app developers keep users engaged longer. Findings from a new study by Tapjoy, the Maximum Impact Platform™ for mobile advertisers and app developers, revealed that rewarded advertisements can help boost app retention by about 4X or more. The study, titled “Maximum Impact Report: The Impact of Rewarded Ads on App Retention,” also found that rewarded video ads are the most effective ad format among those studied for increasing retention for mobile apps.

Players who complete any rewarded advertising offer — an ad that gifts app players with virtual currency or premium content in exchange for their engagement — during their first week after downloading an app have a 30-day retention rate of at least 50 percent, compared to the benchmark of less than 13 percent for all app users, according to the report.

The study also showed that rewarded video ads have the most profound impact on app retention of any ad type. Players who watched just one rewarded video during their first week had a 30-day retention rate of 53 percent — an increase of more than 300 percent over the average 30-day retention rate. For players that watch seven videos in their first week, the 30-day retention rate was 71 percent — more than 450 percent greater than the benchmark.

“Many developers believe they shouldn’t present ads to their players too early, for fear of scaring them off,” said Ben Chen, SVP & GM, Developer Relations at Tapjoy. “And that may be true for traditional, non-rewarded ads that only interrupt and often annoy players. But our data shows just the opposite: that ads — at least those of the rewarded variety — are incredibly helpful tools for deepening user retention.”

Other findings from the report include:

  • Two-thirds of players never use an app again after the first day they download it.
  • The more ads a player engages with during their first week, the higher their retention rate will be after 30 days.
  • Full Screen Interstitials (FSI) have a dramatic impact on players’ retention rates. Like videos, merely completing one FSI in their first week increased a user’s 30-day retention rate by 300 percent over the average. However, subsequent FSI engagements do not have quite the same impact as subsequent video views.
  • Retention rates also go up significantly for players who completed an ad through the Tapjoy Offerwall, an ad unit that presents a variety of offers from multiple advertisers to let consumers select which ads they’d like to complete.

“We’ve known all along that consumers love rewarded ads and that these ad types help improve the user experience,” continued Tapjoy’s Ben Chen. “And yet even we underestimated how dramatically rewarded ads can increase retention rates. Rewarded ads provide users with a great introduction to an app’s virtual economy and its premium content, so it helps users engage with the app on a deeper level. The key lesson that developers should take from this report is just how important it is to present players with rewarded ads during their first week of using the app.”

The full report can be downloaded at https://home.tapjoy.com/lp/maximum-impact/.

About Tapjoy

Tapjoy’s Maximum Impact Platform™ provides mobile engagement and monetization services for leading advertisers and app developers. Advertisers rely on Tapjoy’s diverse suite of rewarded Interplay™ ads including video and rich media to impact performance. Developers utilize our technology and mobile expertise to acquire and monetize users. The Tapjoy SDK is currently embedded in over 15,000 mobile apps, reaching 520 million monthly active users. A 2016 comScore™ study confirmed Tapjoy Interplay™ ads deliver an unprecedented 3x lift across all brand metrics. The company works with Fortune 500 brands and the Top 200 grossing app developers. Founded in 2007, Tapjoy is a global organization with more than a dozen offices worldwide and is headquartered in San Francisco.

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Media Contact:

Matt McAllister

Fluid PR & Communications

(510) 229–9707

matt @ fluidspeak.com

Tapjoy Contact:

Emily McInerney

Tapjoy VP of Marketing

(415) 766–6900

emily.mcinerney @ tapjoy.com

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