Is there a difference between incentivised, rewarded and value exchange advertising?

Value exchange advertising is unlike rewarded and incentivised, in fact it is in a league of its own. Value exchange perks are derived from a brand's existing products, services and promotions in place. Therefore it specifically targets the viewer who has an interest in the brands products or services to claim the perk, this leads to the curation of a quality viewer from the onset.

The answer should not be so complex, and it isn't. But first let’s go back to the basics, starting with the table within this article, outlining how they each impact publishers, advertisers and users accordingly.


Value exchange advertising is unlike rewarded and incentivised, in fact it is in a league of its own. Value exchange perks are derived from a brand's existing products, services and promotions in place. Therefore it specifically targets the viewer who has an interest in the brands products or services to claim the perk, this leads to the curation of a quality viewer from the onset.


Incentivised and rewarded advertising do not lean on the brands existing promotions or products and services, instead they offer to viewers an extra game life, or other in-app mobile game rewards. The issue with that, is that the viewer is less than likely now to be interested in the brand advertising, as their motivation for engaging in the advertisers content stems from wanting more in-app game rewards.


What marketers, advertisers and brands may overlook is the valuable opportunity to align their value exchange video with their existing promotions. Value exchange video marketing provides them an opportunity to align two touch points or actions to create a synonymous message to the viewer and drive leads/ sales conversions to their business. Whether the message is that of education, marketing a new product and giving away discounts for it or even raising awareness to their CSR initiatives.


Incentivised advertising, traditionally, came from the demand advertisers had to get their digital campaigns working for them using their ad budgets. It focused on a Cost-Per-Action model which on paper gave advertisers the figures that they wanted, but these figures did not always translate to ROI. As the element of engagement is not enforced, it fosters a more short term approach. Looking at their focus CPA, like achieving an app install does not necessarily mean that the user has engaged with the video nor will use the app, let alone make in-app purchases. Furthermore, the handing out of gift cards did not actually forge any brand affinity between the viewer and the advertisers themselves.


Rewarded advertising, which focuses on the Cost-Per-View, on the other hand is fiercely successful. For instance, the premise of giving users an extra life for instance by watching an in-app ad(Figure 1) is actually preferred by users. According to Facebook, 71% of gamers said watching video ads is their preferred way to “pay” for in game content A Facebook Audience Network study reveals just how huge gaming advertising potential is: Mobile game in-app advertising revenues are expected to be $51.4 billion by 2020.


But a downside to rewarded advertising is that, as the reward is given predominantly through in app games, it is difficult for the advertiser to forge a relationship with the user redeeming the reward, given that the interaction is only between the publisher and user. Advertisers might also disagree with the ad destination being confined to gaming apps.


How value exchange advertising differs from incentivised and rewarded advertising is simple, it solves a few challenges that incentivised and rewarded advertising face:


  1. The destination being confined to mobile gaming apps and publisher sites

  2. No relationship forged between the advertiser and viewer

  3. Targeting the ‘right’ viewer for to match your advertising purpose

  4. Transparent ROI to media spend

With value exchange advertising, the destination is not confined to a gaming app, nor only a fixed publisher site, instead it runs across different destinations earned, paid, owned media. A relationship is made between the advertiser and viewer through custom branding.


A value exchange places viewers in control of their ad experiences. Viewers are now empowered to decide on whether they want to engage with advertisers to get ‘video perks’, whether VIP experiences, discounts, prize competitions or even charity donations. Also by brands being able to offer more specific perks to their industry, they are able to target relevant leads.


Lastly another advantage as noted by Mitchell Reichgut, CEO of Jun Group, “value exchange ads are always viewable, resistant to fraud, and immune to ad blocking because people actively choose to open them.” Now advertisers are given the power to take control of their digital marketing.


Why should marketers and advertisers use value exchange?


According to Unity Technologies, 71 percent of users said watching video ads is their preferred way to access in-game content, and 66 percent of respondents want more opportunities to earn rewards through ads. Music apps, such as Spotify and Pandora have had major success with value exchange.


Video marketing is very powerful, in a 2018 internet trends report by Kleiner Perkins, they have detected a correlation between product and price discovery, and how it is often video-enabled(figure 2). As the study touches on how USA consumers view YouTube before purchasing products. This is mirrored in a Hubspot study that 68% of customers want to learn about new products and services through a short video. Aberdeen group noted that 49% of companies using video marketing grow their revenues faster than those who do not.


Lastly, value exchange advertising helps advertisers to get viewers interested in watching their creative. As Google has reported, “46% of video ads running across the desktop and mobile web are not even viewed”. By offering viewers a ‘video perk’ relevant to them and engaging, this can reduce wastage of marketing and ad dollars on unseen ads.


Vieworks has offices in London and Singapore and created the platform as a solution to maximise video marketing performance with a user centric focus on "video perks".


To learn more about how you can achieve viewer engagement and grow faster, visit Vieworks at https://www.vieworks.io/ or email info@vieworks.io

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