Could Reward Advertising Be The Trend Of 2020?

Marish Binuya Cheong

Editor with Genesis Global Singapore, revising and reviewing contents to improve viewers readability including content creation for publications.

Traditional advertising on street

“Traditional advertising is dying.” But digital forms like Reward Advertising are estimated to grow more than ever in 2020.

With traditional advertising, like TV and radio, ads are less targeted and provide only a one-way communication purely with the intention of showcasing products or services.

I mean, who doesn’t take a toilet break during TV ads?

Traditional Advertising VS Reward Advertising

Digital marketing: Reward advertising

Traditional advertisers are typically only looking to increase sales rather than providing value for its consumers, something that people actually yearn for these days. The essence of connecting and offering solutions to your audience’s needs and wants are absent. Furthermore, there is no clear understanding of your return of investment (ROI).

Many would frown when told about opt-in adverts, especially when it comes to apps. However, reward ads actually make consumers watch ads willingly, making them more likely to be a part of their community.

What is Reward Advertising?

AdColony’s Summer 2017 Publishing Survey reports that 75% of surveyed businesses claim that reward ads are the most effective method of monetisation, ahead of in-app purchases (63%) and interstitial ads (44%).

“87% thought that reward ads provided the best experience for users.”

Reward advertising allow users to unlock rewards or earn virtual incentives like points or coins, a reward for engaging with in-app advertisements. I’m sure you’ve heard about Shopee coins and how you can collect them just by simply logging in daily to redeem daily reward coins or play their in-app games to earn coins.

Platforms, such as V-MORE Asia, reward its consumers and followers when they view daily uploaded video ads – getting the best deals on offers and products whilst doing so. With a patented algorithm to track each customer, merchants are also ensured they are truly paying for unique views.

Example of reward advertising: V-more

How Effective Are Reward Ads in Driving In-app Purchases?

Some app developers fear that reward advertising will have a negative impact on user spend such as reducing the possibility of in-app purchases (IAP).

“A study has indicated that users who opted in to ads had a greater willingness to spend and were 4.5 times more likely to make an in-app purchase.”

The average amount of usage per user also increased by 34% daily so there is no need to fear. In fact, reward ads have shown to be helpful to IAP.

Consumers are getting smarter these days, and they have become the driver in this evolution of advertising and marketing, pushing mass marketers to adopt reward ads for 2 reasons:

  1. Consumers see the instant benefits of being rewarded to do something that they see often as an interruption on their media experience
  2. Reward advertising have been used by a large variety of digital media developers for years such as the gaming industry (apps and platforms)

Screenshot of reward advertising

Research also showed that 30% of marketers who participated in the group study referred that “viewability rates” and return on advertising spend (ROAS) were the top 2 key performance indicators delivered by reward ads. This is because the reward ad model is delivering the KPIs companies have been trying hard to achieve.


In conclusion, reward ads are some of the most powerful tools available in the market for retail and online businesses, and adopting it in e-commerce is a wise way to lure consumers to keep coming back. Once users get a taste of the app’s economy and exciting content, they want more, and the consistent usage creates a positive cycle of attracting more merchants and followers on board.