With video ads, rewards go both ways
How in-app rewarded videos get people to play more games and engage more with ads.
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For years, advertisers, some media publishers and game developers may have been worried about how people feel about advertising. However, according to a recent study we conducted, nearly 3 in 4 of today’s mobile gamers will happily accept in-game ads if it means they can enjoy those games for free, proving that ads are simply not as universally disliked as some marketers may have feared. And, because more than 800 million people play at least one Facebook-connected game every month, these findings are relevant to all advertisers keen to build their brands on the Facebook Family of Apps & Services.
The study focused on gaming because it is one of the most common activities on mobile, dominating mobile app stores.1 The gamers we interviewed reported spending 3.6X longer on games than the next largest app category, and 54% of them said they had played a game on a phone or tablet in the last month. Gaming advertising potential is no less impressive: Mobile game in-app advertising revenues are expected to be $51.4 billion by 2020.2
As for gamers, they’re actually far from the stereotype sometimes depicted by the non-gaming industry media: 55% of the gamers we spoke to were women and 1 in 3 were over 45 years old. So when we listen to gamers, we’re hearing from our broader advertisers’ audience.
Anything for a free game
Most gamers we talked to said they would rather see advertisements than pay for games: 57% of gamers who haven’t paid to avoid ads are fine with seeing advertising to keep the game free. Among those in the US, this number goes up to 70%. The study reveals that people take a sophisticated approach to ads. They understand that the exchange of their time and attention for access to entertainment or service benefits all parties — them, the app developers and advertisers.
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I’m fully aware that because I’ve downloaded a free game, I’m going to have ads.
— Mobile Gamer
A rewarding exchange
People understand there is a transaction going on when watching rewarded in-app ad videos — they receive something of value in exchange for watching a video ad. Rewards can include an hour of ad-free listening in a music app, an extra life in a gaming app or access to gated content on a news app.3
Rewarded video ads can also make people feel good and trigger a behavior known as reciprocity. When people feel they have gotten something for free, they are more likely to give something back, in this case in the form of purchases. Surveyed mobile gamers who watch rewarded videos said they are more likely to spend money on micro-transactions in the game and are more inclined to buy the products advertised.
Advertising doesn’t ruin the experience for mobile gamers but freedom of choice is important. Having the ability to decide whether to engage or not in watching the ad resulted in a 10-15% uplift in a game’s app store rating, the study found. People will watch ads if they choose to and often will reward advertisers for it.
Advertising can please
Ultimately, people feel positive towards the game for giving them an alternative to making in-game purchases. They have positive associations with the advertising brand and see it as “helping them out” — as long as the ad is relevant and one they haven’t seen before.
Advertising can create a virtuous circle. The more money developers make from in-app advertising, the more they invest in improving the apps, leading to a larger, more engaged audience for advertisers. On average, people playing games with ads play for 10% longer per session than those who pay to have them removed.
Surveyed mobile gamers said they find rewarded video ads “useful” as compared to other ads formats. They also mentioned that new, relevant and scam-free video content served by a familiar brand makes them feel good about watching ads.4
Any annoyance gamers experience with in-game advertising, if any, is short lived, the study shows. Not all ads are created equal, however. The study also showed that people perceive rewarded videos as interesting, trustworthy and high quality, compared to banner or video interstitial ads, perceived as intrusive and disruptive of the mobile gaming experience.
How mobile gamers perceive ads
What it means for marketers
Mobile gamers don’t mind advertising.
Sophisticated audiences appreciate there is a transaction taking place, so there is no need to disguise it. Focus on making your ad relevant and creatively engaging. To read how you can bring your ideas to life, visit Creative Hub or download our white paper: Why creativity matters more in the age of mobile.
Reach more people with in-app mobile game advertising.
Mobile games are a high-potential platform for brand advertising in addition to direct response marketing. Find out how to extend your campaigns and monetize in-game ads beyond Facebook with Audience Network. Get inspired by these Success Stories.
Rewarded video ads benefit gamers, app developers and advertisers.
Through Facebook Rewarded Video, marketers can take advantage of a value-exchange offer that benefits consumers and brands. Build long-term value by reaching people with a user-initiated, full-screen, immersive experience that is more likely to turn your users into customers.
Source unless otherwise specified: Facebook IQ Source: “Mobile Games Research 2017” by 2CV (Facebook Audience Network-commissioned qualitative research via focus groups in Germany, UK, US and South Korea; quantitative research from online interviews among 6,000 mobile gamers, 345 developers and 100 advertisers in China, Germany, Japan, UK, US, and South Korea. Interviewed mobile gamers in the qualitative study played mobile games daily and download multiple game versions annually. Interviewed mobile gamers in the quantitative study played mobile games at least once a month), June 2017.
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