Gaming apps with rewarded video ads generate 10%-15% more five-star reviews

With 80% of mobile time now spent in-app and games presenting the largest app sector, Facebook Audience Network commissioned a study into the mobile gaming sector to find out more about advertisers, gamers and developers across three regions: Europe, North America and East Asia. Conducted by 2CV Research, the report debunks three common myths in the sector.

Advertising in gaming is set to grow 97% over a five-year period from 2014 to 2019, but as the market becomes more competitive, developers have been wondering how to sustain momentum.

According to the findings of the report, one of the leading myths in in-app advertising is that people hate adverts. Instead, 73% of gamers said they were happy with the ad-funded app gaming model. It appears that most gamers accept that free gaming apps represent a value exchange.

However, distracting adverts can be a real problem for consumers. It all comes down to ad relevancy and targeting. In order to minimise disruption, advertisers have to be committed to invest time and resources into finding more sophisticated means of targeting.

The report says that both variety in ads, but also familiar brands can help a game app appear more trustworthy.

Beyond targeting, there’s advertising choice. Indeed, ads which allow gamers to engage are said to provide a better user experience. Rewarded video ads were 53% more likely to be viewed positively than interstitials, and gamers were 23% more likely to buy a product advertised.

Additionally, games with rewarded video ads generate 15% more five-star reviews, whilst those using native ads generate 10% more five-star reviews.

However, the report urged developers to start thinking about their monetisation efforts early on. Over half of developers (53%) were found to not be considering monetisation until they had begun development. Another 23% were waiting until the late development stages.

Choosing the right format is also an important consideration. Hence, it pays to remember that gamers are 23% more likely to make a purchase when rewarded video ads were used compared to other formats. And gamers are also 18% more likely to make in-app purchases after seeing rewarded video ads.

According to the report:

Rewarded Video makes gamers feel good; they feel smart for being able to gain additional benefits in the game without having to wait or pay. This positivity reflects on both the game and the advertiser: they feel positive towards the game for giving an alternative to making in-game purchases and they have positive associations with the brand who is advertising as they are the one “helping them out” – as long as it is relevant and not the same ad they have seen before