Tapjoy studies have shown that mobile gamers prefer rewarded ads to interstitials 4-to-1. It’s a valuable insight for advertisers and developers alike when it comes maximizing ad revenue, but rewarded ads also have the potential to impact other parts of the user experience and your game’s performance overall.To ensure a healthy portfolio, it’s critical that developers understand the additional impact rewarded ads have beyond ad revenue. This includes their effect on metrics like in-app purchase conversion rate, average user spend, 30-day retention, and daily session count. To find out more, we conducted an in-depth analysis of eight different high-DAU apps across iOS and Android for several varying timeframes to find out how users behave when exposed to rewarded ads compared to those who aren’t.Higher IAP conversion ratesWe studied new app users during a one month period and segmented them into two different groups: Those who engaged with at least one rewarded ad and those who never engaged with an ad. We then compared the IAP conversion rates (or percentage of users that made a first time purchase) for each group.On average, users who engage with rewarded ads are 4.5 times more likely to make in-app purchase versus those who do not.7 out of the 8 of apps studied demonstrated higher conversion rates among those who engaged with ads versus those who did not.In the case of two of the apps studies, we found that users who engaged with an ad were over 9 times more likely to make a purchase.Higher average spend per userWe measured the average spend per user in each app for seven days before and seven days after a user’s first rewarded ad engagement.In all 8 apps studied, user spend increased significantly after they engaged with an ad. The average weighted increase in user spend was 326%. Among the apps studied, the boost in average spend per user ranged from just shy of 200% to over 500%.Increased 30-day retentionWe measured the 30-day retention rates of users who engaged with 1-6 rewarded ads during their first week of using an app. Three types of rewarded ad formats were studied (rewarded video, full-screen interstitial, and offerwall placements) and measured against the average 30-day retention benchmark for all apps.Players who complete just one rewarded ad in the first week — whether a video, full-screen interstitial or an offerwall engagement — have a retention rate of at least 50%, compared to the benchmark of 13%.Rewarded video has the most profound effect on retention of any ad type. 30-day retention steadily increases with each video view, ranging from 53% to 68%, which is 3.5-5 times greater than the benchmark.Higher average daily session countWe measured the average number of user sessions per day — both seven days before and seven days after a user’s first rewarded ad engagement — for each high-DAU app.In all cases, users engaged with apps more frequently after completing a rewarded ad.All 8 apps studied demonstrated a lift in the average number of user sessions among those who completed an ad.The average weighted increase in user sessions across all apps was 34%.What does this mean for developers?4 key monetization strategies became abundantly clear following our research:Make rewarded ads easy to find – To increase visibility, consider adding a button to your app’s home screen or storefront, or utilize in-app messaging or push notifications to promote rewarded offers. Tapjoy’s Native-to-Earn, Message-to-Earn, and Push-to-Earn features make it easy for developers to add and manage these additions right from the dashboard.Explore currency sale promotions – Try running limited-time offers in which your players earn more currency than usual for every rewarded ad they complete. These currency sales can drive serious spikes in revenue. With Tapjoy, it’s easy to personalize your currency sale with custom branding and to control the payout ratio.Introduce ads early – Getting users to interact with ads early in their gameplay increases the chance that they will continue to engage with or make a purchase in your app. Rewarded ads introduce players to the mechanics and benefits of your in-app currency, so it’s important to make ads visible and easy to access during the player’s first few sessions.Integrate multiple rewarded formats – Integrating multiple formats — such as rewarded video and offerwall combined — provides developers with the best opportunity to monetize their users and maximize revenue. Diversifying formats not only unlocks higher eCPMs, but it provides players with the freedom to pick and choose the rewarded offer that appeals most to them.

Time spent in apps always peaks during the holiday season. The key to making that uplift work for your user acquisition is tackling it from all angles - from optimizing existing channels to expanding into new ones. That way, you can generate the installs and ROAS you need to start the new year off right.That’s why we invited three ironSource experts to this edition of our Angles of Acquisition webinar series:- Noa Eckstein, Head of Business Operations at ironSource Luna, covered building holiday-themed creatives that spike IPM - Sarah Chafer, VP US Sales at ironSource Sonic, discussed how to set up an offerwall campaign that'll generate record ARPU - Jess Overton, Director of Demand at ironSource Aura, walked through setting up an on-device campaign at a time when everyone's buying new phones Read on for a summary of the webinar or watch it here: https://www.youtube.com/watch?v=CvewwdzvVBMConsumer insights during the holidaysTo kick off, Marketing Director at ironSource Lauren Baca set the scene with consumer insights during the holidays pulled from ironSource and M&C Saatchi Performance’s holiday marketing playbook:- 75% of consumers plan on purchasing clothes and footwear as gifts this year, making them the most popular gifts across all generations. - 65% of consumers plan to spend more or the same on holidays gifts this year compared to last year - 28% of consumers plan to start shopping in the fall and 27% of consumers plan to start shopping on Black Friday or Cyber MondayDownload the report for more data and insightsWith a better understanding of how consumers plan to shop and celebrate this season, Lauren passed the mic to our ironSource experts to break down some best practices for optimizing UA - from how to build holiday-themed creatives to making the most of a unique ad unit all the way to how to leverage a time when everyone's buying new phones.How to build holiday-themed creatives that spike IPMNoa explained that while the holiday season feels quite special, the marketing problems you face during the winter months are the same problems you face every other season - you need to find the best content and creatives, you need to optimize key channels, and you need to utilize your data better. The only difference? Your creatives get a holiday makeover.During the holidays, people tend to be their most emotional - it’s a time for nostalgia and thinking about friends and family. This emotion is a key ingredient to building high-IPM creatives - the goal is always to get users to go from seeing a creative to actually feeling something that encourages them to download, and the holidays are a time when that’s even more feasible.So if IPM has the potential to be so high, why wouldn’t you invest in building holiday creatives? Noa covered a few reasons why some studios might choose not to:- Holiday creatives can cost a lot to run and need more resources and attention to build, but may only run for a very short amount of time - Most creatives don’t end up scaling and often fail - it is more challenging to find the winning creative within such a short time period - Users who see a holiday-themed creative may expect to play a holiday-themed game, so you might need to adjust your gameplay or pay closer attention to user quality. - On the flip side, there are tons of data that show why you should invest in building holiday creatives, according to data from the ironSource Luna platform:- IPMs are significantly higher throughout the holiday season due to more engagement in apps and on phones (2021, US, iOS)- In fact, game installs surged 3x during the week of Christmas (2021, US, Facebook)- Advertisers test 2x the amount of creatives during the holidays, which means you don’t want to be left behindLooking deeper, Noa explained that building holiday-themed creatives can have a positive impact on your team and collaboration:- It’s an opportunity to refresh, prevent fatigue, and get creative in a unique way - Holiday elements trigger a lot of emotion leading to higher intent- You can create a really healthy dialogue between your creative team, UA team and product team as everyone works on holiday plansNext, Noa gave us some proof and walked through case studies. First, she presented a game studio that works with ironSource Luna that changed the sword in their playable ad to a Christmas tree, which had a huge impact on IPM during the holidays. It performed so well that the studio chose not to deactivate the creative after the holidays - and it remained the top-performing creative even two months after Christmas day. In another example, the holiday-themed creative was a top performer until the end of April.Last, Noa showed what happened when Luna tested three different Halloween-themed creatives for a game studio. For the first one, the Luna team took an existing high-performing creative and just put a Halloween theme on top of it. For the second one, Luna replaced a mermaid’s head with a pumpkin head and changed the pointer to a witch's hand. Neither of these variations are showing positive results yet - but that may change the closer we get to Halloween! For the third variation, Luna built a creative where the witch is playing the Halloween-themed game, which became one of the most successful creatives for this title and led to a 20% higher D7 ROAS.So how can you find this same success without heavy production?- Use real footage of real people that show pure emotion - Test holiday figures - snowflakes, witches, pumpkins - to spice it up - Give the pointer and buttons a holiday theme, like Santa Many advertisers are taking advantage of this time of year to increase performance, but you need to weigh that against the internal resources you have to build a new set of creatives. There are other ways to optimize your holiday strategy, such as with the offerwall - which leads us to our next angle.How to set up an offerwall campaign that'll generate record ROASNext up, Sarah Chafer discussed best practices for running offerwall campaigns during the holidays. First, she started with a brief background, explaining that the offerwall is a user-initiated, rewarded in app marketplace with three main constituents: developers use the offerwall to grow revenue, user retention, and app engagement, without cannibalizing IAP. Advertisers use the offerwall to reach a unique, quality audience that is looking for a transaction of some sort and will remain highly engaged in the app. Consumers engage with the offerwall for app discovery and brand discovery, all while getting further and deeper into the app they’re already using.So, how does this all work together - how do the advertiser and consumer come together in that moment or transaction? Sarah ran through a few of the most popular offerwall pricing models to help advertisers get campaigns started:Cost per engagement (CPE): Here, advertisers only pay when a user installs an app and completes a specific engagement event. This is all about getting users deeper down the funnel. Ask yourself, what do you want the user to do to remember the app and what would encourage them to use it again?Multi-reward cost per engagement (MR-CPE): In this pricing model, you pay in incremental steps as a user works towards completing a deep engagement event. This way, you can reward the user for completing more actions - not only installing and opening, but installing, opening and downloading a coupon or making a purchaseCost per action (CPA): You’ll pay when a user completes a quiz, action on a website, or purchases from a brand. This is the most common format during the holidays and it can be used in a lot of creative ways. Cost per install (CPI): You’ll pay each time a user installs your app, which is really about getting your app out there in the market and driving app discovery. Surveys: Pay when a user completes a survey to help you better understand user behavior - how they feel, what are their thoughts, what are they into, etc. Next, Sarah dove into best practices for mastering this ad unit during the holidays - saying that the most important thing to keep in mind is timing.There are tons of new devices entering the market - all the major players are releasing the latest versions of their best-selling devices and if you’re an early adopter of technology, you may already have one. Device sales increase heavily starting now and many will end up wrapped up as gifts. Starting with the offerwall now can help you be top of mind as new devices enter homes globally. Second, with holiday shopping starting earlier this year compared to last year according to our report, it’s important to remind users that the holidays are coming and that right now is the time to shop. You can provide this sense of urgency in your messaging, which we will discuss in the next section. Third, level up with currency sales and double down on rewards on key shopping days, like Black Friday and Cyber Monday. Consumers will be inclined to engage with an offer that gives them extra rewards. As an advertiser, you can double down on your bid - the reward is higher, the traffic is higher. In fact, we’ve seen around a 35% lift in conversions during previous currency sales. Once the timing is right, how do you get your creative to capture all the great offerwall traffic?Stay competitive with special promotions, also known as currency sales. We know that users are looking for deals - 40% said that rewarded ads influence their purchasing decisions according to our report. Whether you’re offering a sale or special package, get creative and switch it up frequently to stay fresh, unique and competitive. Going back to providing a sense of urgency, it’s important to be reminding users not only to shop but who to shop for. Include “gifting” and “holiday” in your messaging and add holiday-themed graphics to your creatives, which are consistent reminders that the holidays are coming. You can even call out someone in particular with phrases like - “for that someone special in your life,” or “for your pet” to get consumers thinking about their gift lists. The Tapjoy offerwall has a shopping tab, which gives consumers a better understanding of what our advertisers do by highlighting their packaging, merchandising, and best-selling products. Give the shopper an idea of who your brand is and what will be shipped to their home.Overall, the offerwall is an excellent touchpoint to reach high-intent users that will drive high ROAS. If you’re looking to expand your touchpoints even further, on-device advertising is a unique way to take advantage of the new phones entering the market - covered by Jess Overton.Setting up on-device campaigns when everyone's buying new phonesJumping off of Sarah’s point that there are tons of new devices sold, unboxed, and unwrapped this time of year, Jess shared that 51% of consumers plan to give a new device as a gift for the holidays. With each new device, consumers get access to new forms of entertainment - Jess even alluded it to the world’s greatest mall. Ultimately, how consumers decide to interact with their devices is a function of the apps they download and engage with.Jess shared that 95% of users that will be unboxing new devices this Christmas will be downloading apps in the first 48 hours. During those 48 hours, consumers will install 60% of the apps they’ll download for the lifetime of the device. If you look at your device's home screen and ask yourself, “when was the last time you downloaded a bunch of apps?”, it’s probably been a while. That’s the power of capturing a download at device activation.ironSource Aura partners with top device manufacturers and mobile carriers to deliver app discovery experiences directly to users on their devices so you can get your app discovered at key moments during the device lifecycle, whether it’s during device activation on Christmas morning or after a major operating system update. On-device marketing enables dynamic bidding and endless opportunities for optimization, which is largely impossible on traditional preload channels. Being able to meet users at moments when they're ready to discover and experiment with new apps along with first-class optimization capabilities means that on-device marketing is a channel that converts potential users into high-value customers.There are three things to keep in mind about running on-device during the holiday season. First, holiday-ify your creatives. Second, you can reach a range of demographics for your app and price accordingly. Third, sit back and watch that LTV rack up.Holiday-ify your creativesData shows that tailoring your on-device creatives to the audience and the placement can generate a significant uplift in performance. For example, you can add a holiday graphic or theme, such as a Santa hat, to your app icon on the device setup placement. Or you can show real people in the holiday spirit on the full-screen offer placement.Reach a range of demographics and price accordinglySecond, you need to ensure the bid for each demographic. This is especially important during the holidays, because you only get one shot. There’s only one Christmas morning, consumers only unbox your device once, which means you as the advertiser have to get your bids right the first time. So pay attention to price and understand which demographics are most important to your campaign.To paint a better picture, Jess broke down demographics of device activations last Christmas: the Boomer group is slightly less represented, with 15% activating new devices. 29% of activations came from Gen X, 25% from Millennials, and 21% from Gen Z. Bottom line? The on-device channel is a great way to get in front of hard-to-reach demographics, such as the older than 55 group. For Gen Z who are bombarded with ads, the on-device channel cuts through the noise and gives you a way to reach these users in a different mindset.Prepare for long LTVOn-device channels are a much slower burn in terms of LTV and app engagement. When you think about Christmas morning and setting up your new device, you might download a travel app, food delivery app, a few shopping apps, a bunch of games, but you’re not ordering food right away or booking your next trip on Christmas. Ultimately, you’ll see users start to engage more at D14 or D30, and this effect is even more significant during the holiday season. After all, we spend a lot more time on our phones and dabbling with apps.Having a multi-channel approach to your holiday advertising strategy is critical, and being well-informed on how to optimize all of those components is a huge benefit. If you’ve made it this far, you should have all of the best practices you need to drive high-performing creatives, create an offerwall strategy that converts, and leverage a time period high in device activations.

Aiming Inc. is a Japan-based game developer responsible for hits like Dragon Quest Tact and CARAVAN STORIES. They wanted to bring in more revenue from their newest hit, Charast Magical Academy a spin-off app of the hit game "CARAVAN STORIES, but had never used an ad monetization model - so the ironSource team helped them get started.ironSource’s Yusuke Toyoshima and Shuichiro Mine sat down with Aiming, to learn all about why they chose ironSource rewarded video and the Tapjoy offerwall, what they learned, and how they managed to boost their engagement rate 80% in the process.Choosing to work with ironSourceMine: This was the company’s first time using ad monetization, right?Saito: Yes. Aiming has a stance that when we see good market trends, we want to adopt and test it by ourselves - so it was only natural to start monetizing with ads. Originally, our company specialized in midcore games, but there were already many competing apps in the market. To generate a stable source of revenue, we decided to develop a hybrid revenue model (in-app purchase and ads) based on "CARAVAN STORIES," which already has a large fan base.Mine: Now you’re monetizing with ironSource and using Tapjoy’s offerwall - why did you decide to go with us?Sakaino: This was our first time integrating ads into our app, so we needed a platform that offered extensive support and a full suite of products. We compared companies from all over the globe, but ironSource was the only one completely that fulfilled our needs.Yusuke: We're glad you chose us! Sakaino: We felt the support immediately - the ironSource quickly responded and drafted financial projections for us.Mine: Publishers who integrate ads in their apps for the first time often don’t have enough information about performance benchmarks. Since ironSource has experience across all game genres in Japan and globally, we can provide our customers with practical ad monetization plans.Sakaino: There were other local options with good products for early-stage companies, but we wanted to get as much operational know-how as possible. That's why we chose ironSource - they offer a variety of report data with a UI that allows us to intuitively understand what’s important at first glance. There was a strong connection between Aiming’s attitude of "challenge new trends and accumulate know-how" and ironSource's push to "provide actionable data for publishers."Mine: At ironSource, we care about providing actionable data. In the long run, we think it is very important to understand the factors behind fluctuations - not be overwhelmed by the ups and downs of CPMs. Ad revenue is always important, but what’s most important for publishers is the success of the game itself. We provide data in a format and UI that every publisher can understand - not just the specific person in chargePerforming beyond expectationYusuke: How was the integration process?Sakaino: It took about two weeks to develop and integrate rewarded video and offerwall into our game. Since the dashboard was easy to understand, even for beginners, we were able to issue and set up placements in one day.Suzuki: From the planning phase, everyone on the team had a shared strategy of how to put ads into our game - so I think it went really smoothly.Mine: I feel that your monetization and game management teams work seamlessly together. For many publishers, this can be challenging - different teams usually have different goals and opinions.Sakaino: Since I joined the project, from the game planning phase to leading ad monetization, I think everyone, including the development team, shared a common goal.Suzuki: It may seem unusual to have someone in charge of ad monetization during the planning phase. Normally people tend to give higher priority to their own department, so perhaps our company's strength is the way that each department can share and coordinate all goals.Yusuke: How was the ad revenue performance?Sakaino: The result was much better than we expected. eCPM for ironSource rewarded videos was more than double our original estimation, and engagement rate reached 80% - even though our original estimation was 65%.Mine: Since the players are mainly from "CARAVAN STORIES," the user quality may be different from the other casual game players. If your game has been around for a while and has a certain income level, eCPM might be higher as a result.Sakaino: I think that’s right.Suzuki: Since the game story is a prequel about the lives of popular characters, fans are highly motivated to play.Mine: It's a successful app strategy for using IP (intellectual property).Sakaino: Tapjoy’s offerwall also performed better than we originally expected. Especially in the beginning, it performed better than the rewarded videos.Yusuke: Since Offerwall provides bigger rewards than rewarded videos, it’s particularly compatible with games that have many users who are willing to pay.Saito: In particular, Android has good KPI compatibility with the offerwall. Android users usually have a lower retention rate, but the offerwall increased revenue and stabilized it.Showing ads to domestic and global usersMine: Did you get any negative user feedback about ads?Sakaino: I don't think there were any noticeably negative reactions.Mine: The key to user-initiated ads like rewarded videos and offerwall is motivating the users to see the ads. "Charast Magical Academy" was designed to use ad monetization from the start, so I think it shows ads to users in the best way possible.Suzuki: Since we set the right rewards for both the offerwall and rewarded video, users connect with the ads and feel satisfied with them.Saito: The rewards we offer are valuable to users. To ensure that users who want to receive rewards don’t miss them, we added badges to places where there are ads that have not yet been seen, and added a jump button that auto-scrolls to that point. However, it seems that some new users thought that they couldn't progress in the game without clearing the ads, so now we only display badges for users who have progressed to a certain stage.Yusuke: I see.Saito: Impressions grew about 2.5x the normal rate during the offerwall's currency sale, but when we displayed the badge on the game screen and directed users to the ad page, it grew 8x - a huge revenue increase.Yusuke: It's a device that tells users that an offerwall event is currently being held.Sakaino: Also, Charast Magical Academy is only available on Japan’s app store, but some overseas fans download and play it. Thanks to the Tapjoy offerwall’s global support, it’s been great to be able to show global ads and rewards to overseas users.Yusuke: Global support is the Tapjoy offerwall's strength. There is no need to separate campaigns, and global ads are automatically displayed for access from overseas, to accommodate overseas users. Also, the offerwall is optimized with an algorithm to automatically display ads that users are interested in on the top of the list, so publishers can maximize their revenue without spending too much time and effort.Continuing to use ad monetization modelsMine: What are your plans for the future?Sakaino: We are satisfied with ironSource’s usability and profitability, and will continue to use both their rewarded video and the Tapjoy offerwall. For the offerwall, thanks to their global support and compatibility with Apple/Google’s regulations - we’re sticking with Tapjoy.Yusuke: That's great news for us.Saito: We plan to continue releasing games with an ad revenue model. Thanks to our new know-how from Charast Magical Academy, I'm including ads in all the proposals for our new games. Since it generates additional revenue and doesn’t discourage in-app purchases, there’s no reason to not use it.Sakaino: In the future, it would be nice to have a verification function that can segment users according to their in-app purchase status and level of loyalty, and optimize ads accordingly.Thank you to Mr. Sakaino, Mr. Suzuki, and Mr. Saito for participating in the interview. And congratulations on your half anniversary!