Updated: May 1, 2025
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Incentivized ads are a powerful tool for engaging users by offering rewards in exchange for specific actions. This type of advertising has become increasingly popular among advertisers looking to boost app engagement and conversions.
By partnering with incentivized advertising networks, brands can tap into this effective strategy and see significant returns on their investment.
Incentivized advertising networks provide advertisers with the tools they need to create compelling, customized ads that resonate with their target audience. Leveraging advanced techniques such as custom creatives, precise user targeting, and real-time bidding, these networks help drive substantial gains.
In fact, studies reveal that users are almost five times more likely to make an in-app purchase after engaging with incentivized ads, showcasing their effectiveness.
The benefits of incentivized ads go beyond just increasing purchases; they also play a critical role in boosting app retention. When users engage with at least one incentivized ad within the first week of installing an app, retention rates can massively improve. This makes incentivized ads not just a conversion tool but also a powerful method for retaining users and reducing churn.
So, which incentivized advertising networks should you consider for your next campaign? With numerous options out there, choosing the right network can make all the difference in achieving your advertising goals.
Read on to discover the best incentivized advertising networks that can help you maximize your ad performance and drive success.
Incentivized ads are marketing tools that offer users a reward or incentive in exchange for completing an action. They often appear on shopping or gaming apps. And they’re sometimes referred to as sponsored, rewarded or value exchange advertising.
Incentivized ads can result in direct conversions for advertisers. And statistics show that users are over 25% more likely to convert when rewarded this way.
Examples of incentivized ads include percentage discounts, upgrades, or even virtual currency in exchange for actions like installing an app. Most often these will run on a CPI basis, which can be cheaper than non-incentivized ads app installs. Incentivized advertising began in the gaming vertical. And it’s a substantial marketing activity that makes up around 90% of gaming ads.
Many advertisers favor using high-quality incentivized ads to drive traffic and gain interest in an app. Gaming, music streaming, social media and retailing are some of the most popular areas for incentivized advertising.
When it comes to incentivized ads, there are several types that advertisers can leverage to engage users and drive desired actions. Each type offers unique rewards and experiences, from in-app currency to exclusive content, encouraging users to interact with the ad.
Understanding these different formats can help advertisers choose the most effective approach for their target audience and campaign goals.
Some common types of incentivized ads include rewarded video ads, offer walls, and in-app surveys, each providing users with specific incentives like virtual goods, discounts, or premium features. These formats not only enhance user engagement but also improve retention by offering valuable rewards.
In this section, we will explore these types in more detail to see how they work and why they are effective:
Incentivized ads offer a unique approach to digital marketing by providing users with rewards, such as discounts, in-app currency, or exclusive content, in exchange for engaging with an advertisement. This model not only captures the attention of potential customers but also encourages active participation, making it a win-win for both advertisers and consumers.
The benefits of incentivized ads extend beyond mere engagement; they foster higher user retention and brand loyalty by creating a positive association with the brand. Additionally, advertisers gain valuable data on consumer behavior, which can be leveraged to refine future campaigns and enhance targeting strategies.
Boosting app installs in a short period of time is much easier through incentivized app installs. Rather than spending time targeting specific segments, incentivized traffic lets marketers boost app installs en mass in a simple and effective way.
Using incentivized traffic to gain large volumes of app installs in a short period is less expensive with a CPI model over others. New app users will be downloading the app in exchange for an incentive, giving marketers a clear metric to work from.
One study showed over 90% of people paid attention to incentivized ads when they interacted with them. Plus, irrespective of the vertical, once people engaged with an ad, brand perceptions rose by around 40%.
The same study showed that when consumers were exposed to incentivized ads they were 150% more likely to visit a brand’s website.
One of the great benefits of this format is that users can opt-in to see incentivized ads. And when they do, incentivized ads won’t interrupt the flow of their app. So, if they’re using a gaming app, for example, the incentivized ad won’t impede their experience of the game. But it will bring benefits to advertisers in the form of app-monetization.
According to MarketingDive, in-app conversion rates increase by almost 10 times for users who interact with incentivized advertising. Plus, shopping sessions increase by almost 3x after users interact with a promoted ad.
The same report also suggested app users were likely to spend more than 4x as much on in-app purchases after they’d engaged with an incentivized ad.
Both advertisers and publishers use incentivized ads to promote app installs and engagement. And they’ll look for certain features from an incentivized ad network to help them realize their goals.
Most incentivized networks provide access to a range of media partners, app developers, SDK networks and major global traffic platforms. But there are also other key features:
Publishers and advertisers may find it convenient to work with a single, self-serve platform that simplifies campaign management. This format makes it easy to customize and run your own ads, allocate traffic, manage reporting and analyse data, all from a single console.
Some incentivized advertising networks are available as ad-engine-as-a-service tools which can help users to design, deploy and test custom campaigns. Plus, with pre-defined APIs, users can remove the need to develop from scratch.
Some incentivized ad networks offer several targeting options for web and in-app ecosystems. These features allow advertisers to target users with different variables such as:
Real-time bidding gives advertisers the chance to focus on the most important inventory. And by expanding the potential to connect advertisers with a wide range of publishers, real-time bidding platforms can increase ROI.
Analysing and reviewing campaign results can enable better-informed decisions on how to manage campaigns. And most mobile incentivized ad networks support data management across a wide variety of attributes in all major verticals, from entertainment to news, and business to social apps.
Hiring an incentivized ad network can be a strategic move for businesses looking to maximize user engagement and acquisition. These networks specialize in creating ad experiences that reward users for their interactions, driving higher levels of participation and ensuring your brand reaches a broader, more active audience.
Incentivized ad networks bring expertise in targeting the right users and optimizing campaigns to achieve specific goals, such as app installs, sign-ups, or purchases.
By leveraging their advanced analytics and data-driven insights, businesses can enhance the effectiveness of their advertising efforts, improve conversion rates, and achieve a better return on investment. And they come with many benefits:
Incentivized networks can help to determine your customer focus by matching it to your brand. They can also use data to support audience development and help to increase conversations with consumers. User intent.
Many incentivized networks can help users to design and deploy custom ad campaigns using an ad-engine-as-a-service. By providing pre-defined APIs, users can launch and optimize customizable ad servers and avoid any development from scratch.
Ad targeting features enable users to manage user targeting and customize ads based on their own marketing metrics.
Programmatic advertising platforms help users to build active user bases using app install campaigns. Many of them work with CPI, CPA or ROAS models.
Incentivized traffic is the name given to paid bulk traffic that uses incentivized ads to target large download volumes and higher rankings in the App Store or Google Play Store. Also known as ‘burst campaigns’, incentivized traffic targets high install rates in a short period of time.
By offering incentives or rewards to the masses, marketers can increase download rates quickly. And there are pros and cons to this approach, which we’ll outline further in this post.
Incentivized ads eCPM rates, or effective cost per thousand impressions, represent the revenue advertisers earn for every thousand impressions of their incentivized ads.
These rates can vary widely depending on factors like ad format, user engagement, and geographic location. Understanding eCPM rates is crucial for advertisers looking to maximize their return on investment in incentivized ad campaigns.
Different types of incentivized ads, such as rewarded videos or offer walls, typically have different eCPM rates based on their engagement levels and conversion potential. Higher eCPM rates generally indicate more valuable ad placements and better-performing campaigns.
Let us dive into what affects these rates and how advertisers can optimize their strategies to boost eCPM:
Source: Vungle, Admob, Blognife
Advertisers and publishers run incentivized ads by integrating them into apps or websites to reward users for completing specific actions, such as watching a video or filling out a survey.
They use ad networks and platforms that offer tools for creating engaging ad formats, targeting specific audiences, and tracking performance. By strategically placing these ads at key points in the user journey, they can boost engagement, increase conversions, and enhance user retention.
Incentives are especially popular in mobile gaming and in particular with gaming affiliate programs. In-game prizes often help players to advance in their game or be rewarded with exclusive bonuses that keep them gaming or working with a gaming affiliate.
Plus, when it comes to gamified platforms, studies show that users who get a reward once they’ve opened an app are more likely to open the app again.
Loyalty schemes and memberships can increase customer loyalty and repeat purchases. And over 60% of surveyed responders say the best way to interact with customers is to reward them with new offers. So, offering an incentive to join a loyalty program via incentivized ads can lead to continued purchases.
The real benefits of a loyalty program come when users do something to encourage new members to join a scheme. And since referrals can generate up to twice as many sales, loyal customers can also be incentivized to promote membership amongst their peers, using incentivized ads.
Once a user joins a loyalty program, incentivized ads can continue to reward loyalty by offering early access or exclusive deals. And recent reports suggest there’s an increasing appetite for early access to sales, products or offers among consumers.
Advertisers can gain huge benefits from offering exciting competitions and sweepstakes through incentivized ads. For example, free prize draws and sweepstakes that offer exclusive or VIP experiences are great ways to promote incentivized app installs.
App marketers can offer free entry into a prize draw in exchange for a user installing an app.
While incentivized ads can be an effective way to boost user engagement, they come with several challenges that marketers need to navigate. One major concern is the potential for low-quality interactions, where users engage with ads solely for the reward, rather than genuine interest in the product or service.
Another challenge is balancing the reward value to avoid inflating customer acquisition costs, which can impact the overall profitability of a campaign. Additionally, incentivized ads may risk damaging a brand’s reputation if the incentives appear to be manipulative or overly aggressive, leading to a lack of trust among consumers.
Let us look at some more factors to look out for when working with an ad network for incentivized ads:
Running an incentivized ad campaign may not work for all types of apps. For example, utility apps are rarely interacted with beyond irregular checks. Since they’re most often used in a functional way, running incentivized ads isn’t likely to gain much attention.
A 2017 study showed users are over 25% more likely to convert after interacting with an incentivized ad. But the downside is the potential risk referred to as ‘adverse selection’, where users seek out rewards or incentives but don’t intend to install an app. And the report suggests the conversion rate is more like 13% in these cases.
The average user LTV (lifetime value) of incentivized ads tends to be low, and much lower than non-incentivized ads. Some marketers suggest organic or non-incentivized ads result in gaining users with a more genuine interest in using the app. And with this stronger user intent, they may be more likely to regularly use the app.
Engaging in incentivized advertising can bring huge rewards. Higher conversion rates, increased rates of in-app purchases and better user retention to name a few.
But it shouldn’t be embarked upon carelessly. Advertisers need to create well-thought-out strategies that incentivize users to stay loyal to an app and avoid the potential for short-lived, ephemeral usage.
We recommend taking a full review of our top list of incentivized advertising networks. By taking some time to select the right partner, you’ll be better able to deploy strategies that maximize the potential of incentivized ads. And you’ll be more likely to secure long-term user loyalty and retention.
More than an Ad Delivery Partner
More than an Ad Delivery Partner
Turns mobile into the medium of choice for brands
Turns mobile into the medium of choice for brands
Mobile Advertising the way it should be
Mobile Advertising the way it should be
Drive campaigns for post-install events
Drive campaigns for post-install events
Grow Revenues and Maximize Yields in Full-Stack Ad Ecosystem
Grow Revenues and Maximize Yields in Full-Stack Ad Ecosystem
Build a custom ad server in just weeks.
Build a custom ad server in just weeks.
Ad-Tech Solutions Global Leader
Ad-Tech Solutions Global Leader
More than an Ad Delivery Partner
More than an Ad Delivery Partner
Turns mobile into the medium of choice for brands
Turns mobile into the medium of choice for brands
Mobile Advertising the way it should be
Mobile Advertising the way it should be
Drive campaigns for post-install events
Drive campaigns for post-install events
Grow Revenues and Maximize Yields in Full-Stack Ad Ecosystem
Grow Revenues and Maximize Yields in Full-Stack Ad Ecosystem
Build a custom ad server in just weeks.
Build a custom ad server in just weeks.
Ad-Tech Solutions Global Leader
Ad-Tech Solutions Global Leader
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