Why incentivized advertising is the best approach for driving product awareness

Advertisers are always looking for effective ways to engage consumers, communicate their messages, and drive conversions. Mobile apps are the latest frontier, as they allow marketers the opportunity to stay in-touch with shoppers throughout the day—whether they’re at-home, running errands, on break at work, or researching a new product while waiting in line.

While bombarding prospects with several mobile ads is likely to irritate them, research has shown consumers are increasingly receptive to the idea of incentivized advertising. In fact, up to 80% of shoppers have said they would watch a mobile ad in exchange for rewards or discounts from their favorite brand or retailer. Rewarded video ad spending grew by 139% (triple that of other video ad formats) from 2017 to 2018, and was estimated to reach $7 billion by the end of 2019—clearly it’s a comfortable format for marketers, and a lucrative one. 

What Is Incentivized Advertising?

Incentivized advertising rewards a person for opting in to view a video or advertisement. These ads can be utilized in a game format, on social media, or through a mobile shopping app. The best results stem from reward-based ads in entertainment, game, or shopping apps, where people tend to spend a lot of time, and when the rewards are perceived as generous.  

Offers from a favorite brand or retailer are amongst the top rewards given, but depending on the platform, advertisers may also offer 30 minutes of ad-free music streaming, an hour of free premium video content, an exclusive new Instagram filter, or three free articles on a premium subscription news service like the New York Times.

With Shopkick, an innovative retail rewards app, users receive “kicks” (rewards points) for taking several incentivized actions. Users can earn kicks at-home for interacting with branded in-app lookbook content, or for watching a branded video advertisement to completion. Users can also earn kicks by visiting a partnering retail location, by scanning a specific product on a shelf, or by making a purchase. These kicks are eventually traded in for the user’s choice of gift card.

This type of rewards-based mobile advertising is highly engaging and interactive, which is why many people prefer it over more static types of advertisement.

Why Incentivized Advertising Is Best for Product Awareness

types of incentivized advertisingThere are countless ways to familiarize consumers with a new product. You could utilize influencers to post on social media; advertise with Google; or hold special events, product demos, or giveaways. Though, increasingly, marketers are driving product awareness with rewarded ads for a number of reasons.

You reach a new audience who may be unfamiliar with your brand.

Some brands and retailers may have their own proprietary apps, yet, one of the benefits of partnering with a third-party mobile app like Shopkick is that you receive access to a new audience of prospective customers eager to engage with your brand, as Shopkick generally has a low audience-overlap with proprietary retail apps.  

You reach a receptive audience that has opted in.

When people opt-in and know they are being rewarded for their attention, they are more receptive to the message. Millward Brown analysis shows that mobile ads outpace online ads in terms of brand awareness (+2.7%), ad awareness (+11.3%), message association (+8.1%), brand favorability (+1.9%), and purchase intent (+2.8%). Analysts speculated that the larger canvas available with mobile advertising yielded these gains over online banner ads.

You are more likely to create favorable product impressions.

The mobile app platform is a dynamic medium, unlike television or a static website. When people are “gaming” on their phones, they’re engaged, focused, and experiencing feelings of fulfillment and achievement. In other words, viewers will be more receptive, engaged, and ready to take action. 

You can monetize certain actions to reach your awareness goals.

When Barilla wanted to build awareness, increase in-store engagement, and motivate sales of its new pasta product, the company relied on incentivized advertising. Customers were rewarded for engaging with in-app native video and lookbook content within Shopkick. The goal of the video was to grow awareness of Barilla Pronto Pasta, explain its unique benefits, and encourage consumers to seek out the product in-store. After consumers were made aware of the product and could see it in action through the video, they were rewarded for walking into a participating store and engaging with the product. As a result, half of video viewers purchased the product. By using Shopkick’s innovative video platform, Barilla was able to reach consumers who were in the context of shopping: such as product discovery and trip planning, and then connect that engagement to behaviors down the funnel such as aisle visits, product engagements, and purchase conversion.   

You achieve product awareness with positive ROI.

Nearly a third of marketers say that key performance indicators like viewability rates and return on investment were the top reasons they preferred rewarded ads. One study found that rewarded ad viewers were four times more likely to make an in-app purchase. Some conversion rates were up to nine times higher after engaging with a reward ad. App users spent four times more money on their purchases after engaging with the incentivized ad and their number of shopping sessions increased by more than a third. 

Offer Better Rewards for Ad Engagement with Shopkick 

Marketing is no longer a one-sided conversation. Customers have shown they prefer interacting with brands to receive information about new products, as well as helpful discounts. They understand that the more engaged and active they are, the more personalized their service can be. Mobile phones are the natural platform for incentivized advertising, as they go virtually everywhere with consumers and allow for immediate gratification. With Shopkick, brands and retailers can provide the incentivized advertising consumers desire to get the results they want.  

Marketing is no longer a one-sided conversation.

Shopkick is one of the top shopping rewards apps that allows brands and retailers to reward shoppers for their engagement. If you’re looking for an effective way to incentivize advertising and offer big rewards, continue reading our partners success stories or contact us to get started. 

Image courtesy of stationidea



Shopkick is the fun and easy way to earn free gift cards for the shopping you already do. Download the app now!

Why incentivized advertising is the best approach for driving product awareness



Shopkick is the fun and easy way to earn free gift cards for the shopping you already do. Download the app now!

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