In today’s increasingly crowded and competitive digital advertising space, publishers constantly seek new ways to engage with users and monetize their content. There are tons of ad formats in the market. Yet, one that’s often overlooked and underutilized is offerwalls.
Before rewarded video ads, the pioneer of opt-in rewarded advertising in mobile games was offerwalls. Offerwalls are mini-stores within a game that reward players for completing certain actions. It could be through:
- Surveys
- Mini-games
- Freemium signup
- Game downloads
- In-app purchase
However, since offerwalls require significant player engagement, the reward must be valuable enough, usually in the form of in-game currency.
It’s worth noting that offerwalls work best in games with a hard currency. Players always crave hard currency, making it a valuable reward that can increase engagement with the offerwall.
Offerwalls are particularly effective at engaging users who might otherwise resist traditional forms of advertising, such as display ads or pre-roll videos. Offering users a tangible reward in exchange for completing an action, offerwalls can incentivize users to engage with content in new and meaningful ways.
Why Publishers Should Consider Offerwalls
In a mobile app ecosystem where ad revenue is crucial for publishers, finding the right ad format can make all the difference. Here’s what publishers can achieve by implementing offerwalls this 2023.
Increased User Engagement and Retention
Offerwalls can be a powerful tool for increasing user engagement and retention. By offering users virtual currency or other rewards, publishers can create a sense of loyalty and incentivize users to spend more time in their app or game. This increased engagement can lead to higher retention rates and, ultimately, more revenue for the publisher.
Implementing a freemium, in-app subscription model is a smart approach for attracting users to your app without requiring immediate payment. This model offers users free access to the app, enticing them to explore its features while knowing that premium features are available for purchase via a subscription. Users are more likely to engage with the app and eventually convert to paid subscribers.
Additionally, integrating offerwall advertising into your app can lead to significant gains. Mobile gaming developers can experience an increase in app installs and better retention rates through offerwall advertising. Such impressive results can bring about a range of benefits for both mobile gamers and app developers, such as increased revenue and user engagement.
Monetization of Non-paying Users
Another benefit of offerwalls is the ability to monetize non-paying users. Many app and game users are not willing to spend money on in-app purchases, but they may be willing to complete actions in exchange for virtual currency or other rewards. This allows publishers to monetize a larger portion of their user base and generate revenue from users who may not have otherwise spent money on in-app purchases.
Offerwalls can also be a way to introduce non-paying users to the benefits of in-app purchases. By offering virtual currency or other rewards for completing actions, users may be more likely to see the value in in-app purchases and become paying users in the future.
Take note that TikTok effectively leveraged its in-app purchases and generated over $305 million in just the last quarter of 2022.
Additional Revenue Stream
For example, a mobile game publisher can partner with an offerwall provider and earn a percentage of the revenue generated from users completing actions in exchange for virtual currency. This could be a significant source of revenue for the publisher, especially if they have a large user base engaged with the game.
Future of Offerwalls for Publishers
The future of offerwalls is bright, with continued innovation and evolution to meet the needs of publishers. One area of growth is using rewarded video ads within offerwalls. Rewarded videos are short videos that users can choose to watch in exchange for virtual currency or other rewards. This allows publishers to monetize users who may not be willing to complete additional actions, such as surveys or app downloads.
Another area of growth is in the use of programmatic offerwalls. Programmatic offerwalls use machine learning algorithms to optimize the offerwall experience for each user based on their behavior and preferences. This can lead to higher engagement and revenue for publishers, as users are presented with more relevant and appealing offers.
The rise of blockchain technology is also affecting the future of offerwalls. Blockchain-based offerwalls can provide increased transparency and security for users and advertisers while also allowing for greater flexibility and customization for publishers.
As users become increasingly resistant to traditional advertising methods, offerwalls offer a unique and effective way to engage with users and generate revenue.
However, it’s essential to note that offerwalls should be used in moderation and with careful consideration for the user experience. Users may become frustrated or overwhelmed if they are presented with too many offers or if the rewards are not perceived as valuable. Publishers should strive to strike a balance between monetization and user experience to ensure long-term success.
Get expert advice from the AlgoriX team on the best ad placement strategy to take your monetization to the next level. Speak to our experts, or if you’re currently working with us, you can contact your account manager directly.
