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What is offerwall monetization for apps?

Laiba Tariq

June 5, 2024

15 min read

Content

cover offerwall

What do 15% of the top 100 grossing apps on the Play Store have in common? They all use offerwalls!

Chances are that you’ve already experienced an offerwall within one of your favorite apps if you’ve had to watch a video advertisement, take a survey, or simply register a username for yourself. But on the app publishing side, there’s a whole new story. 

If you’re new to offerwall ads and don’t know what they are, this ultimate guide will help you. Read on to learn what an offerwall can offer you, how to implement it, and much more in this blog. 

What is an offerwall?

An offerwall is an app monetization strategy that’s prominently popular within mobile app games. The offerwall functions as a platform, allowing users to engage with 3rd party tasks, offers, and advertisements for in-app rewards. 

Basically, it’s a wall in your app with a handful of offers to choose a task and be rewarded for it!

If you’ve ever played mobile games like Candy Crush or Rush Royale, you’ve already bumped into an offerwall strategy. Some popular cases of offerwalls look like these: 

  • Watch a 30-second video to gain an extra life,
  • Play a branded third-party mini-game within the app before you can get to the next level,
  • Take a quick survey to get extra coins or gems,
  • Complete a “hard” level for extra points or leveling up.

Of course, these aren’t the only ways offerwalls are optimized, but this surely gives you an idea of how offerwall is integrated into apps. 

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How does an offerwall work?

Imagine offerwalls as a tiny market within your app. Found mostly in high-traffic parts of your app (the main menu, between two levels, or in-app purchase store), offerwalls pop up at users when they need a virtual benefit within your app.

This can be an extra hint, undo, extra life, gems, or any other virtual currency of importance. When a user is motivated and engaged with your app, they will opt for those rewards. And as soon as they do, you’ll get some fresh ad revenue straight into your pocket.

Offerwalls work best based on two basic principles, and we’ll talk about that now:

User interaction

When users access an offerwall within an app or game, they are presented with a selection of offerwall tasks, offers, or ads to choose from. Users have the freedom to browse through the available options and select those that align with their interests or preferences. Once a task or offer is chosen, users proceed to complete it according to the specified instructions. 

Reward system

Once you’ve successfully had the user interact and complete a task, it’s time to reward them with the promised incentive. Rewards are typically distributed instantly or after a short verification process to ensure task completion. 

Common rewards can include: 

  • In-app currency — Unlocks features or makes purchases within the app or game,
  • Premium content — Exclusive levels or items,
  • Virtual goods — Discounts on in-app purchases, or redeemable gift cards.
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How to monetize your app with offerwall rewards

Offerwall monetization is a charmer for many app and game developers. But how do you start? And what do you do?

In-app purchases

Integrating offerwalls can effectively drive in app purchases by providing users with a taste of premium features. When you allow users to earn rewards through simple tasks or offers on the offerwall, you incentivize them to explore and engage with premium content or features that may otherwise require a direct purchase. 

To maximize revenue without undermining sales, you can implement strategies such as offering exclusive discounts or bonuses for direct purchases, as well as rewarding users with in-app currency or special items through offerwalls. 

Interactive advertising

If you’re not sure if traditional ads will keep your users engaged, it’s time to welcome interactive advertising into your app. Often shown as playable ads or interactive videos, interactive ads allow users to have a memorable experience as they can interact with the ad itself. 

In other words, less pushy and more interesting. 

The benefits of interactive ads extend to increased user engagement and potential revenue generation, as users are more likely to interact with ads that offer interactive elements or experiences. 

Premium subscriptions

Offerwalls can be used to promote premium subscriptions through trials or unlocking special subscription-only content. By integrating offers that reward users with trial periods or exclusive access to premium features, developers can incentivize users to explore the benefits of a subscription. 

Conversion tactics such as offering extended trial periods or bundling subscription rewards with other offerwall tasks can help convert users from free to paid subscriptions. 

Banners

Integrating banner ads within or around the offerwall can increase visibility without being too intrusive. Placing banner ads strategically within the offerwall interface ensures that they are noticeable without disrupting the user experience. 

While banner ads may not offer the same level of engagement as other ad formats, they still contribute to revenue generation by providing additional opportunities for advertisers to reach users.

Full-screen ads

Full-screen ads can be treacherous waters to navigate but with the right approach, your boat will float. All you have to do is carefully consider the placement and timing of full-screen ads so they’re not causing disruption and user dissatisfaction. 

Full-screen ads are best when they’re being offered in between levels with some nice space apart. Or you can offer them as a chance to redeem an extra life or get extra coins for that next purchase!

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Benefits of using offerwalls

Offerwall monetization is one of the most popular choices for freemium apps, all because of the benefits they yield. If you’re not sure what offerwall ads can do for your app, here are the three main benefits of using offerwalls:

Increases user engagement and retention

Offerwalls are powerful tools for enhancing user engagement and retention within apps. They provide clear incentives for users to engage with the content by offering users a variety of tasks, offers, and rewards.

This engagement is further amplified by the prospect of earning rewards, which motivates users to continue engaging with the app or game over time. 

Additionally, the interactive nature of offerwalls fosters a sense of accomplishment and satisfaction as users progress through tasks and accumulate rewards, strengthening their connection to the app or game and increasing retention rates.

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Boosts revenue by monetizing non-paying users

Some people believe offerwall monetization doesn’t game when it comes to boosting revenue (pun intended) as other types of monetization do. For those people, I have a statistic: Games with an offerwall monetization strategy receive an ad revenue boost of 10–40%. 

And so, one of the primary benefits of offerwalls is their ability to generate additional revenue by monetizing non-paying users. By integrating advertisements, sponsored offers, and other monetization opportunities within the offerwall, developers can create new revenue streams beyond traditional methods such as in-app purchases or subscriptions. 

Offerwalls also provide a non-intrusive way to monetize users, as participation is entirely voluntary and users have the freedom to choose which tasks or offers to engage with. This flexibility increases the likelihood of users completing tasks and advertisers achieving their objectives, resulting in higher revenue for you.

Versatility and seamless integration

Who wants to delve into something that doesn’t integrate well with your setup? The good news about offerwall advertising is that they’re super versatile and seamlessly integrate with whatever you have going on. 

They can be easily implemented into existing app interfaces, allowing you to customize the appearance and functionality of the offerwall to suit specific needs and preferences. 

What’s even better is that offerwalls can accommodate a wide range of tasks, offers, and rewards, giving developers flexibility in designing monetization strategies tailored to their target audience. 

Disadvantages of using offerwalls

Sometimes, things can go awry. And the case stays true when we’re talking of offerwall monetization strategies. It’s best to be aware of all the disadvantages that offerwall advertising can have, and I’ve compiled three of them below:

Ineffective at times due to market saturation

Offerwalls have a potential ineffectiveness in crowded markets where many apps employ similar offerwall strategies. As more apps integrate offerwalls into their monetization frameworks, users become desensitized to offers and tasks, reducing their engagement and effectiveness. 

Market saturation can also lead to a decrease in the quality and variety of offers available on offerwalls, limiting their appeal to users. And to combat this downside, you must innovate and differentiate your offerwall strategies to stand out in saturated markets. 

You can also look into diversifying monetization methods beyond offerwalls to help mitigate the impact of market saturation on overall revenue generation.

Dependency means damage to revenue

One significant limitation of relying on offerwalls for revenue is the risk of dependency. While offerwalls can provide a reliable source of income, relying too heavily on them for revenue generation can be detrimental in the long run. 

Fluctuations in user engagement, changes in advertiser demand, or shifts in market trends can impact the effectiveness of offerwalls as a revenue stream. Overdependence on offerwalls usually also limits diversification efforts, leaving developers vulnerable to revenue losses if the offerwall ecosystem experiences disruptions or declines. 

User experience concerns

While offerwalls can enhance user engagement and monetization, they also pose potential concerns regarding user experience. Some users may perceive mobile offerwalls as intrusive or disruptive, especially if they interrupt gameplay or navigation within the app. 

The complexity of certain tasks or offers featured on offerwalls can also deter users from participating, which can open up the Pandora box we all know as user dissatisfaction— the plague that takes down your app for good!

Moreover, excessive use of offerwalls can clutter the app interface and detract from the overall user experience.

Tip: Carefully balance the implementation of the offerwall to ensure it enhances (and not hinders) user experience.

How to maximize revenue from offerwall ads?

If you’re ready to monetize your non-paying users with an offerwall advertising strategy, it’s time for us to explore how you can maximize your revenue with it. Here are the 5 expert tips for offerwall monetization:

1. Personalize and segment your users

How do you feel when you have to go through ads that aren’t even remotely relatable to you? What’s a teenager going to do if they get an ad for back braces? Not fun, right?

That’s why you need to personalize and segment your users. Understand your users’ interests, demographics, and past behavior so you can tailor the offers displayed on the offerwall accordingly.

 This targeted approach increases the likelihood of users engaging with the offers, leading to higher conversion rates and ultimately, increased revenue.

2. Integrate offerwalls seamlessly

Seamless integration of offerwalls into your app is essential for enhancing the user experience and maximizing revenue. Ensure that the offerwall seamlessly blends with the overall design and functionality of your app. 

This means using consistent color schemes, language, and imagery to create a cohesive user experience.

3. Keep your offers fresh and intriguing

Seeing the same ad over and over can cause fatigue and user dissatisfaction— two things you absolutely don’t want! And so, it’s critical for you to keep switching your offers and ads to keep them fresh. 

Rotating the offers regularly and introducing new and exciting rewards ensures that users are continuously engaged and motivated to interact with the offerwall.

P.S. If you’re running low on ideas, consider incorporating exclusive deals and limited-time promotions to create a sense of urgency and encourage immediate action!

4. Clearly express your rewards

Clearly communicating the rewards offered through the offerwall is essential for maximizing user engagement and offerwall revenue. Use strong calls-to-action and compelling messaging to highlight the benefits of participating in the offers. 

In short, clearly state the rewards users can earn, whether it’s in-app currency, discounts, or other incentives. 

5. Analyze your performance

It’s important for you to record and analyze your offerwall performance using a ton of important metrics. Utilize analytics tools to monitor key metrics such as conversion rates, engagement levels, and revenue generated. 

Identify trends and patterns in user behavior to gain insights into what types of offers are most effective and which segments of users are most responsive. Use this data to refine your offerwall strategy, such as adjusting the selection of offers or targeting specific user segments more effectively

Let Adapty help you monetize today!

App monetization can seem daunting, especially when you don’t have the right tools to help you navigate with ease. If your sight is set on offerwall monetization, let Adapty help you set up your first-ever offerwall while you focus on putting your fresh ad revenue in your pocket. 

Plus, with Adapty’s Cohorts, stay ahead of your monetization strategy by keeping an eye on all the important numbers. Book your demo today and get started!

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