Reward Based Advertisement solltest Du kritisch betrachten!  – OMR Briefing #9
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Reward Based Advertisement solltest Du kritisch betrachten! – OMR Briefing #9

Marketing is splitting our society in two. And that’s never a good thing. What do we mean? For quite some time, the most exciting
platforms, like Spotify and its ilk, have stopped inundating
paid users with ads, while the rest of us had to sit through them. Here is the standard argument
for the practice from Scott one of our keynote speakers in March: As brand building gets
harder and harder pre-broadcast because wealthy young people opt out of the advertising industrial complex, advertising has become
a tax of the poor and the technologically
illiterate pay. The topic goes even deeper
in the mobile sector. It’s not that people with less disposable income have to watch more ads, but now they also receive certain rewards when they watch them. There are apps like goldesel and lovoo, marketers like vungle, adcolony,
applike, tapjoy and some others. For who users say, “ok I am willing
to watch an ad for a reward.” The practice is known as
Reward Based Advertising and is its own field
in the mobile sector. The business model is users
watch an ad and then receive credit, which they can redeem
for some type of virtual goods, i.e. being able to write someone or getting a virtual weapon for a game,
or what have you. I am well aware that the practice has been used in the stationary world as well. I wanted to underscore that it’s booming
in the mobile world, in which we live. You see it all the time, people sitting around, watching ads to get something for free later. It’s insane! The worst part is that many people
don’t seem to value their time all that much. That’s what marketers from the sector
are saying at least. There is a study that says 80% of all users are willing to engage with a video ad if it means they’ll get a reward. For our part, we have already reported on the next stage of development,
where the practice is heading. For example, Welect, a Dusseldorf-based company, works together with the public transit system. If you watch an ad for certain amount of time, you’ll get a subway ticket for free. And once you get that ball rolling,
there’s no telling where it’ll stop. The latest to throw their hat in the ring,, the video streaming
offshoot of, is on the receiving end of all kinds of hype at the moment, especially amongst kids and teenies. What is doing now is letting users give their stars,
i.e. the people they follow on the platform they can now give them gifts
if users watch an ad. The generated income is then split between the platform and the respective stars. Word around the campfire is that the practice nets some stars a 5-figure payday per month. Why are companies now
engaging in such practices? Obviously, they want to ensure viewability, they want to avoid ad blockers and apparently many younger target audiences are nearly impossible to reach
without reward based advertising What can we learn from all this? Or do we believe in reward based advertising? Not entirely. Obviously, in certain sectors with low-priced consumables or in apps, we think it is a viable strategy. But on the whole, for people who already don’t have much money, we don’t believe making a hard sell
on ad engagement is not a viable strategy in the long run. I think it is better to reach people with ads when they have just finished an activity and have time for an ad. There is a reason that the logout page on GMX was the most expensive digital ad space in Germany. Companies like Outbrain, Taboola,
Ligatus and Plista have built massive businesses around the practice of suggesting content
at the end of articles, where people see
and are very receptive to their ads, because users don’t know
what else to do with their time, so they click an ad. With that in mind,
this video is now over. If you’re not sure what
you should do with your time subscribe to our channel and check out the rest of our videos. Thank you. Bye. Check out more videos here.

About Ralph Robinson

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2 thoughts on “Reward Based Advertisement solltest Du kritisch betrachten! – OMR Briefing #9

  1. Wie kann es eigentlich legal sein, das Apps wie Goldessel usern versprechen schnell an Geld zu kommen. Aber in Wirklichkeit, sitzen kinder deshalb stunden lang am handy und wasten ihre Zeit.

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