What Is an Offerwall?

How Does an Offerwall Work?

An offerwall ad unit is quite literally a wall of offers. It’s initiated by app users when they are in need of in-app rewards. Whether they need an extra life to survive another level in a game or to purchase a premium in-app feature, users can select an offer or task from an offerwall to complete in exchange for these rewards. 

These might be some common examples of tasks users are asked to complete:

• watch a video
• reach a certain level in a game
• make an in-app purchase
• register an account

Why Do Publishers Integrate Offerwalls?

This is how an offerwall works from a user’s perspective – but how does it work for mobile developers and publishers?

Offerwalls are designed to increase ad revenue and engagement for app publishers. But not all apps are suitable for offerwall integration – these are particularly suitable:

• Apps with a suitable, strong, and valuable in-app currency; the more valuable users think the currency is, the more likely they are to complete tasks in the offerwall
• Games which demand higher and longer engagement – and rewards to progress in gameplay – such as midcore, RPG, or hardcore games 
• Apps with nonpaying users: Publishers can then monetize a wider user base of those willing to make in-app purchases and those who aren’t

Are Offerwalls Good?

Mobile offeralls offer advertisers and publishers several benefits, which is why they are commonly used as an ad solution. Here are the key reasons why offerwall ad units are so popular in the industry:

1. To Enhance UX

Since users can choose whether they want to opt in to offerwall campaigns, which means that this ad format doesn’t disrupt the in-app experience. Offerwalls in fact enhance an app’s UX, since nonpaying users have a chance to enjoy an app’s premium features.

2. To Boost Conversion Rates

Offerwalls are among the only formats that show more than one ad at the same time. This increases the chances that a user will find an offer suitable for them and convert. 

Many publishers want to ensure that their users are not disrupted when enjoying the app. This is why offerwall designs are made to match the look and feel of the app they are integrated into. They A/B test to discover the best designs to ensure offers are more likely to convert. 

3. To Boost Ad Revenue

Offerwalls allow publishers, as previously mentioned, to monetize their nonpaying users, and thereby increase ad revenue. Users acquired through offerwalls typically generate higher revenue by making in-app purchases or engaging with other ad formats.

4. To Lift IAP Revenue 

It’s not just ad revenue that increases when publishers integrate offerwalls; users are also more likely to make an in-app purchase. Once nonpaying users can use their rewards to get a taste of an app with its premium features, they’re often more willing to pay for the features with their hard cash.

5. To Scale an App – with Quality Users

Advertisers benefit from offerwalls in numerous ways. Not only can they showcase their app inside an offerwall – they can enhance the visibility of their app in this wall of offers. 

Users who opt into offerwalls are typically users who want to progress in the game, meaning that gaming advertisers can count on offerwalls delivering them high-quality users with high retention rates. Session durations for these gamers are longer because of offerwall ads because when users need coins, they can retrieve them from offerwall tasks and get back to playing. 

How Do You Monetize with an Offerwall?

Offerwalls mainly monetize with a cost per action (CPA) or CPE (cost per engagement) model.  

These models also benefit advertisers: If an advertiser knows its users well and can predict which completed level or action may convert their user into a loyal one, then they can focus some of their UA budgets to pay only for users who will complete the given level/action.

If publishers want to efficiently monetize their app with an offerwall, they can optimize where the offerwall appears in their app. Homepages are, of course, the best places for an ad placement. These placements increase overall player engagement and users because this is where the most traffic is. 

Having said that, offerwalls aren’t a foolproof monetization solution for a number of reasons

• Users tend to find offerwall campaigns less relevant and personalized, meaning it is sometimes difficult to retain these users.
• Each offer has limited space for creatives, which discourages users from being able to find out more about the advertised app – without first heading to an app store. This decreases conversion rate and restricts publishers from maximizing revenues for their ad space.
• Users are often overwhelmed by the volume of offerwall tasks. This can result in users churning before completing an offer.
• Offerwalls allow all kinds of apps to advertise in them. Users may therefore associate an app with spammy or low-quality offers, leading to a loss of trust and brand safety.

There are, however, other rewarded ad units out there that have been designed to counter these shortcomings. 

Conclusion

Advertisers benefit from offerwalls in that they deliver installs – however, they should still monitor post-install metrics to see whether the installs won have resulted in quality audiences. 

Publishers who have an in-app economy and want to integrate an offerwall ad unit should make sure they’re showing offerwalls in a nondisruptive but visible way to users that won’t be alienated by them – especially, nonpaying users, who the app won’t otherwise be able to monetize easily.

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