Video advertisements are becoming more common and increasingly more effective within mobile apps. According to a recent study by the Mobile Marketing Association, 75% of spots served to on-the-go consumers happen in mobile apps. The study consisted of 500 million impressions from several data contributors including Hulu, Brightroll, and Videology.
One of the industries impacted most by mobile videos is gaming. Earlier this week, it was released that Tapjoy used mobile video ads to help its gaming client, Spacetime, acquire a significant number of new users for the game Battle Command. While Spacetime worked with several different clients in the video advertising sphere, the gamers referred by Tapjoy spent significantly more than other platforms while costing the business less. This may be due to Tapjoy’s new approach to a common business model. Unlike other platforms, with Tapjoy the advertiser only pays for the instances where the customer takes the action that advertiser wants, such as downloading the advertiser’s app. As a result:
- The developer gets an advertising revenue stream without the ads diminishing the value of the app
- The customer is not bothered with excessive advertisements, gets access to premium content, and can choose to learn about things that interest them
- Advertisers only have to pay for ads that go to individuals that are genuinely interested in their product
In Spacetime’s case, Tapjoy was the only platform they worked with who charged them only for people who actually finished watching the entire trailer for Battle Command.
“At just 2 cents per completed view, we could afford to get our video in front of lots of potential gamers,” Spacetime associate marketing manager Ari Sapriel wrote in a blog post. “More than 80,000 people viewed the trailer over a relatively brief time period, and we were pleased to discover that over 1,000 of them went on to install the app.”
The average cost per install is $2.17 in the US, but the team at Spacetime only spent $1.57 with Tapjoy, well below the average. More importantly, the players that Tapjoy brought in for less money ultimately turned into the higher spenders within the game, initially free to download but with options to make purchases within the app. Spacetime found that Tapjoy outperformed its competition, and gamers referred by Tapjoy were twice as likely to make an in-game purchase compared to people who organically discovered the app. In fact, 44% of Tapjoy-acquired players made at least 1 in-app purchase or completed an offer, and 27% made at least 2 in-app purchases or completed multiple offers.
“Overall, the revenue per install of Tapjoy players was a good 25% higher than any of the other networks we tested. Our primary objective in running this campaign was to acquire high-value users and drive bottom-line results, so we were very pleased with the installs Tapjoy delivered.”
Video advertisements are undergoing a transformation and are monetizing gaming industries and other industries alike who incorporate this rich media into their mobile advertising strategies. While Apple’s IOS system accounted for 80 percent of ad volume in the MMA’s study of mobile video ads, Android is certain to catch up.