MAY 17 2013
Ad Format 101: Recent Trends For Publishers
Display ads, interstitials, offer walls, rewards-based videos - We've tackled each and why the recent trend in rewards based ads are proving more valuable to publishers and brands.
As paid apps face greater difficulties gaining market traction, the in-app advertising model continues to grow and currently represents a $7.3 billion business. Understanding the differences between ad format types can help you carve a larger piece of the expanding ad spend budgets.
The dinosaur of traditional online advertising having been around for over 20 years is the display unit - typically containing text logos, photographs or other static images. It is more often than not devoid of creativity; it stands out as an intruder on webpages; and it is mostly ignored by audiences. For publishers this translates potentially alienating audiences in exchange for very low eCPMs (effective cost-per-thousand).
Another format, interstitials, are when a new page is displayed before the expected content page for about 10 or 15 seconds, then to the content page. Ad networks typically pay higher eCPMs for interstitials than for banners because they take up the entire screen. Interstitial ads are best shown before or after the user takes an action requiring their attention and focus.
The next two ad types are categorized as "rewards based, where audiences receive virtual items or currency in exchange for engaging with advertisements. The first, offerwalls, allows users to earn points and items by signing up for exclusive offers. Each ad is clearly for a brand and provides a description of what action the user will be asked to take. They can be easily implemented within a game or app and at a key breakthrough moment - increasing engagement, CTR and average playtime while lowering attrition.
The fourth ad type which yields Publishers and Developers the highest eCPM, is opt in video advertisements, whereby audiences select to watch a short video ad directly inside the app or game and similar to offerwalls, presented at key breakthrough moments.
Various industry studies and reports illustrate how video and offerwall advertisements far outperform that of traditional, or image banner ads. One such report from Juniper "Messaging, In-App and Mobile Internet Strategies 2012-2017", showed that immersive and entertaining experiences to attract the attention of the consumer is essential for marketers wanting to take advantage of the massive increase in app usage. In- app and game video ads offer brand marketers one of the best ways to run engaging, immersive creative cross-platform. As a result, in game and app video has becomes a part of Brand's overall marketing mix bringing publishers ad sellout rates that are significantly higher than any other format due to their popularity.
The focus on relevancy and user context also gives reward-based advertising a leg up on traditional banner ads. Banner ads are often plastered across a variety of apps and games, which are often not relevant to the type of content that users are interacting with. Targeted reward based ads allow Publishers to monetize with advertising in a way that is non-intrusive and custom to an app’s content.