Zero-to-Hero: How to Effectively Monetize Non-Paying App Users

Even after your app hits impressive download stats, glowing reviews, and builds a community that genuinely loves it, that doesn’t guarantee effective earnings. 

That’s just the reality – only about 5% of app users actually spend money on in-app purchases, meaning nearly 95% of your audience leaves potential revenue untouched. And monetizing with traditional banner or interstitial ads has its own limitations.

Yet, monetizing non-paying users isn’t mission impossible. In fact, there’s an engaging and user-friendly way that might just surprise you.

Why Won’t They Pay?

Before we dive into the solution – and we’re almost there – let’s decode why users are clutching their virtual wallets so tightly. Typically, non-paying users fall into a few common personas:

• The Casual Browser: They love your app but not enough to commit their cash.
• The Cautious Spender: They’re hesitant – unsure if spending offers enough bang for their buck.
• The Explorer: Always hopping between apps, never settling long enough to invest.

The root of their reluctance usually boils down to perceived value versus cost. Users either don’t see the immediate benefit or face friction in the decision-making process. 

Traditional monetization methods like subscriptions or premium features often trigger these issues. Subscriptions demand commitment – scary for cautious spenders. One-time purchases might appear low-risk, but they struggle to offer compelling, repeatable value.

The Trick Is to Reward Engagement

Rewarded engagement is a refreshingly user-friendly monetization model. Instead of being asked to reach for their wallets, users are being… entertained. Ok, but how does that work?

The concept has already been streamlined in platforms like adjoe’s Arcade and Playtime, boosting user engagement and transforming it into monetization.

Imagine casual browsers discovering popular and top-rated mobile games and apps they actually want to try, right inside your app. By continuously engaging with these offers, they’re rewarded with your app’s own currency or exclusive perks. 

It’s the social proof principle in action. When users see popular or trending games featured, they feel naturally inclined to try them and engage – especially when that engagement brings immediate, tangible rewards. This psychological loop turns hesitant users into enthusiastic participants who enjoy their interaction and feel rewarded rather than exploited.

The deal-breaker: these enjoyable interactions bring passive revenue to your app through CPI payments from advertisers. 

Fetch, America’s Rewards App, is an excellent example of how effective rewarded gaming can be. Fetch introduced Fetch Play, an integration powered by adjoe’s Arcade, which allowed users to earn Fetch Points by engaging with popular mobile games. Within just three months, Fetch saw incredible results: 1.5 million engaged users earned over 10 billion Fetch Points, app open rate increased by 5%, and customer lifetime value grew by 10%. 

Rewarded Advertising Works, but How? 

Unlike other app monetization strategies, rewarded advertising smoothly integrates into the user experience to bring:

• Engagement and Retention: Encourages repeat interactions, boosting engagement across the whole app and building effective long-term user retention.
• Incremental Revenue: Converts previously non-monetizable users into genuine revenue generators through scalable CPI payments, enhanced loyalty and user activity.
• User-Centric Monetization: Enhances user flow and experience rather than disrupting it.

How does this approach hit the sweet spot so effectively? The answer hides in user psychology. Those cautious spenders and casual browsers who usually hesitate to commit financially find rewarded engagement effortlessly appealing. 

Users are inherently attracted to instant gratification, gamification, and curiosity-driven experiences – rewarded gaming satisfies all these at once. Instead of seeing their time as “spent,” users feel like they’re earning rewards and being entertained by simply doing something enjoyable.

Research shows another powerful fact: Many mobile users are already gamers. Statista highlights that there are 2.7 billion mobile gamers worldwide, which means users recognize the value in being rewarded for an activity they already do weekly or even daily – playing games. Rewarded gaming taps into this behavior effortlessly, removing the friction and anxiety that might accompany traditional monetization models.

When you consider Arcade, it develops the effortlessness of this engagement further by using smart reward mechanics. Users are rewarded either based on the time they spend engaging with a game or by completing carefully mapped-out milestones. These are intentionally short-term and achievable, designed to encourage continued interaction and keep users active well into D90 and beyond. 

Real industry cases confirm the impact: Macadam leveraged adjoe’s Playtime solution, experiencing a 15% surge in eCPM, and as a result 30% higher ARPDAU.

Best Practices for Maximizing Rewarded Campaign Effectiveness

While rewarded advertising fundamentally works, these best practices will help optimize your results:

• Segment Users Based on Behavior: Show more rewarded ads to non-paying users while reserving highest-value rewarded opportunities for paying users. This targeted approach respects user preferences while maximizing revenue potential.
• Run Limited-Time Events: Drive engagement spikes with special campaigns offering double or bonus rewards. These short-term incentives increase frequency of use and create urgency to engage with your app – works like a charm.
• Strategic Ad Placement: Position the rewarded features prominently on your homepage or at the top of your navigation. Add additional placement at the end of conversion flows to increase both user reach and revenue.
• Use Notifications: Deploy well-timed push or in-app messages to remind users about available rewards or new games, reviving dormant users and building daily engagement habits.
• Experiment, Test, and Scale: Begin with smaller user segments to test effectiveness, analyze results, and then expand successful approaches to your broader non-paying user base.
• Balance User-Driven and Automated Ads: Incorporate both rewarded ads (user-initiated) and programmatic ads (automated) to create a comprehensive strategy that maximizes your monetization opportunities.

Reward Your Users, and They Will Pay You Back

Rewarded engagement is uniquely positioned to resolve the challenge of non-paying users. The hesitant browsers just need to be convinced in the value they receive from engaging and purchasing. And when they’re not ready to pay yet, rewarded mobile gaming and app engagement can turn them into revenue-generating fans of your app. Do you feel like it’s time to upgrade your monetization? Get in touch to see the potential.