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New Study Shows Reward-based Mobile Advertising Improves Brand Engagement and Loyalty With Consumers

A new study shows that mobile consumers seek value from brands in exchange for their time, which increases customer engagement and loyalty.

A new research report, “Exploring the Role of Value in Mobile Advertising,” was conducted by Millward Brown in partnership with SessionM to explore the role of value and rewards in mobile advertising.

Joline McGoldrick, Research Director at Dynamic Logic – Millward Brown’s digital practice -- said in a press release that consumers want brands to provide valuable and rewarding ad experiences, and the study helped break down exactly what that means.

"The findings present marketers with a tremendous opportunity to deliver mobile ad experiences in line with consumers' expectations, enabling them to effectively break through to mobile consumers," McGoldrick said.

According to the study, consumers use a value exchange equation to assess mobile advertising and they are more likely to engage when brands offered them tangible value in exchange for their time and attention.

"Mobile advertising experiences that create a more balanced consumer experience -- ones that respect time and provide a useful outcome -- open the door of receptivity and have a positive impact on the brand," Jayne Dow, Director of Qualitative Research and Digital Innovation at Firefly, Millward Brown's global qualitative practice, added. "This simple truth has powerful implications in improving the perception and effectiveness of mobile advertising."

Reward-based mobile advertising is one answer for the value exchange equation. Here are some other specific findings from the report:

Rewarded audiences are over twice as likely to interact with brands. After seeing an in-app ad, 34% of rewarded users clicked or interacted with an ad, compared with only 15% of mobile users who had not participated in reward-based advertising.

Receiving a reward expands a consumer's consideration set. After seeing an in-app ad, 26% of rewarded users considered purchasing a brand, compared with 18% of mobile users who had not participated in reward-based advertising.

Not all reward-based advertising is created equal. When using a reward-based advertising strategy, there are some things to keep in mind – 92% of mobile users said its’ important they choose the reward they receive, and 68% of users prefer to know for certain they will get a reward, rather than be surprised. Users also prefer rewards that are tangible and have an element of choice in how they're spent.

"Engaging consumers on their mobile devices has been a clear challenge marketers have faced with no clear solution," Deborah Powsner, Vice President of Marketing & Consumer Insights at SessionM, explained. “Our study with Millward Brown not only reveals the impact of reciprocity within the mobile space, but more importantly why and how it can work effectively. Our advertisers have experienced success when leveraging this approach and we're excited to present the opportunity for every brand to transform their relationship with consumers."

Millward Brown conducted both quantitative and qualitative research for this study. Quantitative research surveyed two groups: 500 members of the general mobile population and 500 members of SessionM's audience. Respondents for the qualitative research included 25 members of SessionM's audience. Qualitative research was conducted through one week of blogging on IdeaBlog and 12 one-hour interviews.

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