It’s a well known fact that many app development companies purchase incentivized traffic in addition to premium traffic. But how exactly these companies monetize this type of traffic?
First of all, let’s give a definition for incentivized traffic with the following example:
- A user, while playing a game, needs specific in-game features like extra ammunition or internal currency.
- A user has the choice to either purchase extra features via in-app purchases or take an action (install another app) to be rewarded for it with extra features.
- Usually a user is being offered different apps as you can see on this image. There is a list of apps a user needs to install and what specific reward(s) he/she gets for each app.
- A user is clicking on a specific app and is transferred to this app’s landing page on an app store and installs it.
- The mandatory condition is that a user has to launch an app at least once. After doing that user may go back to the app he/she was using and get a reward.
- This specific app install is registered by an app store, which leads to an app’s ranking increase. This is the main reason for using incentivized traffic.
The previously mentioned user behaviour is very different for a regular app user who installs apps without any reward:
- Such behavior leads to very high CR index (a conversion ratio between an app’s landing page views and installs) due to the fact that an app user really doesn’t care about an app, the user only needs to install it.
- Retention index of such users is very low. It’s rarely higher than 5% during the first day after users install apps they get a reward for.
Let’s consider what actions may be taken to increase the retention index.
Take a look at two games to illustrate the point:
- A user can see a splash screen as the game is being loaded and then the game menu appears.
- A user can see a video demo or a simple and short tutorial for the game. The purpose of this demo or tutorial is to introduce user to the game downloaded.
In a situation when a user has downloaded a game, there is no real need to show the user an ad after the fact. It doesn’t make any sense, but it does make sense for an incentive app install. If we manage to get a user interested at the beginning of a game, the user installed for a reward and chances are the user will continue to play it. The trick is that it doesn’t cost anything for a rewarded a user to play the game, he’s gotten his reward already and it’s a matter of smart tactic to retain him as the game’s user.
This is one of the standard ways high profile game product owners manage to double benefit from incentivized traffic. This approach requires extra effort from an app owner during an app development phase and this is the reason why this tactic is rarely used, though it’s quite effective.