A Rewarding Strategy: How to Use Incentivized Advertising Effectively

By Jairene Cruz-Eusebio Best Practices, Digital Marketing

You've probably heard the saying, "the only constant thing is change." This is especially true in business. In order to stay ahead of the competition, it's important to always be on the lookout for new ways to attract customers. Whether it's utilizing new marketing channels or offering unique services, keeping your business fresh and relevant is essential for long-term success. Of course, attracting new customers isn't always easy.


incentivized ads


But there is one sure-fire way to gain new customers, whatever industry you might be working in, and that's incentivized advertising.


Table of Contents

What are Incentivized Ads and How Do They Work?
Types of Ads Used for Rewarded Promotions
Strategies for Incentivized Ads
Benefits of Using Incentivized Ads
Potential Pitfalls of Using Incentivized Ads
Advertising Networks that Offer Incentivized Ads


Whether you are in the service industry, retail, wholesale, e-commerce, digital services, apps & software, and more, incentivized advertising can do you a lot of good. But what is this type of advertising? And can you use it to grab potential customers' attention?


What are Incentivized Ads and How Do They Work?

If you're like most people, you've been incentivized to do all sorts of things in your life. From children being rewarded for good grades with a trip to the ice cream store, to employees receiving a bonus for meeting their sales goals, incentives are a powerful tool for motivating people. In the world of online advertising, incentives are also used to encourage people to take specific actions, such as clicking on an ad or making a purchase.


Rewarded ads, or incentivized advertising, are a type of advertising where the viewer is rewarded for opting in to watch the ad. These are simply offers given in exchange for some type of engagement from the customer. The key is that these ads incentivize customers to take some sort of action that they may not have taken otherwise, such as watching a video, downloading an app, signing up for a subscription, and more.


These ads can be in the form of videos or even just a few seconds of commercial content. The best results for rewarded ads come from those that are used in an entertainment, game, or shopping app. In these types of apps, people tend to spend a lot of time, and when the rewards are perceived as generous, viewers are more likely to engage with the ad.


Rewarded advertising is a great way for advertisers and marketers to reach consumers while they are engaged and spending time on their favorite apps and websites. Incentivized ads offer an opportunity to connect with potential customers in a more personal way, and rewarded ads have been shown to result in higher conversion rates than traditional forms of advertising.




Types of Ads Used for Rewarded Promotions

There are no escaping ads. They're on TV, on the radio, in our social media feeds, and even in our dreams. But have you ever wondered why some ads are more effective than others? The answer, in many cases, lies in incentive-based advertising.


Incentivized ads are designed to tap into our natural desire for rewards by offering us something in exchange for our attention or engagement. For example, we might be offered a discount on a purchase if we watch a short video ad. Or we might be given bonus points that can be redeemed for prizes if we interact with an ad on social media.


Incentivized ads can be highly effective because they combine two of the most powerful motivators: the desire for rewards and the fear of missing out. When we're offered a chance to get something valuable in exchange for our attention, it's hard to resist. And when we see others receiving rewards that we could be getting ourselves, it encourages us to take action.


Now, let's talk about all popular and high-performing ad formats for incentivized advertising.


Offer Wall

Offer walls are a great way to get people to take action that you want them to. By offering something of value in exchange for completing an offer, you can increase conversions and get people to do things that they otherwise may not have done.


For example, you could offer a discount on a purchase in exchange for filling out a survey. Or, you could offer a free ebook in exchange for signing up for your email list. The possibilities are endless!


The main difference advantage of offer walls is that people can choose the offer they want to complete. In short, they have a choice as to which offer to complete and what rewards they want to receive for completing the task. This is usually available in mobile apps.


content locking


Content Locking

Content locking is a method of advertising where visitors are required to perform an action, such as taking a survey or watching an ad, in order to unlock the content. This can be an effective way to generate leads or promote products, and it can also be used to incentivize people to take action.


When we say content locker, it means the content will be locked until the user completes one task. It is very similar to offer walls, except content lockers are often used on websites instead of apps.


Video Ads

When it comes to advertising, there's no shortage of options available. But if you're looking for a truly unique way to get your message out there, video ads are the way to go. Not only are they more engaging than traditional ads, but they can also be used to incentivize viewers to take action.


For example, you could offer a discount or free shipping for anyone who watches your ad all the way through. You could also include a call to action at the end of the video, encouraging viewers to visit your website or sign up for your mailing list.


Whatever you do, make sure your video ad is creative and eye-catching — otherwise, you'll just be wasting your time (and money).


Video ads are most effective in software apps, and it is also the most common as it is very effective in not just encouraging leads, but also in spreading brand awareness.




Interactive Banner Ads

Banner ads can be placed on websites or apps where customers frequently engage. When customers click on the banner ad, they will be taken to a landing page where they can learn more about the promotion and earn rewards. 


Interactive banner ads are more captivating because audiences are allowed to interact with the ad. Interactive banner ads are a great way to incentive people to take action. By requiring users to interact with the ad in some way, you can increase the likelihood that they'll take the desired action.


For example, you could offer a discount for users who click on the ad or provide additional information about your product or service. You could even include a game or quiz to make the experience more enjoyable. This encourages sign-ups and downloads more than video ads.


Interstitial Ads

Interstitial ads are a great way to incentivize people to take actions that you want them to take. For example, you could offer a discount for people who watch an ad before they continue to the next page on your website. You could also use interstitial ads to get people to sign up for your email list or like your Facebook page. The possibilities are endless!



Strategies for Incentivized Ads

In today's world, it seems like everything comes with a price tag. Even our attention is constantly being bought and sold by advertisers. However, there is a new type of advertising that is beginning to emerge, and it may just be the solution to our Attention Economy woes. Incentivized ads are a new way for companies to get people to pay attention to their products and services.


Rather than simply paying for someone's attention, incentivized ads offer people a reward for viewing or interacting with an ad. This can take the form of discounts, points, or even cash. And, because people are more likely to pay attention to something when they are being rewarded for it, these types of ads have the potential to be much more effective than traditional advertising.


There are a few different ways that companies can use incentivized ads.


Providing Discounts

One popular method is to offer discounts on products or services that are being advertised. For example, a company might offer a 20% discount on a product if you view their ad. This tactic not only gets people to pay attention to the ad but also entices them to purchase the product that is being advertised.


In-game prizes

In-game prizes can be a great way to incentivize or reward players for watching ads. By offering prizes that are relevant to the game, players are more likely to be interested in watching the ad and less likely to skip it.


Additionally, by making the prize something that is difficult to obtain through normal gameplay, players are more likely to value it and be willing to watch an ad in order to obtain it. Of course, there is always the risk that players will become frustrated if they feel that they are being bombarded with ads, so it is important to strike a balance.


However, used wisely, in-game prizes can be a powerful tool for increasing ad engagement.


in-game prizes


Loyalty Programs

Another way to use incentivized ads is to offer points or other rewards that can be redeemed for prizes. This approach is often used by loyalty programs, online retailers, and games with their own currency. For example, you might earn 10 points for every ad that you view. These points can then be redeemed for gift cards, coupons, game items, or other prizes.


Loyalty programs are a great way to promote offers, products, and services. By offering points or rewards for customers who make purchases or take actions, businesses can encourage customers to keep coming back.


And, since customers are more likely to take advantage of deals and promotions when they feel like they're getting something in return, loyalty programs can be a win-win for both businesses and consumers. Just make sure to keep the program simple and easy to understand — otherwise, you might end up confusing your customers more than you're motivating them!


Contests and Sweepstakes

Are you looking for a surefire way to get people to try your products or services? If so, you may want to consider using contests and sweepstakes as an incentive. After all, who doesn't love the chance to win something?


By offering prizes, you can increase the likelihood that people will take notice of your brand and be tempted to give your offerings a try. Of course, you'll need to make sure that your contests are well-designed and that the prizes are worth winning. But if you do it right, using contests and sweepstakes can be an effective way to get people to sample what you have to offer.


Refer a friend bonuses

Friend referrals are a great way to incentivize audiences to try offers, products, and services. After all, what better way to get someone to try something new than by getting a recommendation from a friend?


And friend referrals are especially powerful when it comes to offers, products, and services that provide value or have the potential to save money. Word of mouth is very powerful, after all. That's because people are more likely to trust a recommendation from someone they know and trust than an advertisement or other marketing message.


So if you're looking for a way to get more people to try your offer, product, or service, consider using friend referrals to give it a boost.


Exclusive Access to Products or Services

There's nothing people love more than feeling like they're part of an exclusive club. And what better way to give your audience that feeling than by providing them with exclusive access to products and services?


Whether it's early access to a new product release or a VIP experience at an event, giving your audience exclusive access is a great way to get them to try out your offers, products, and services. Not only will they feel special and valued, but they'll also be more likely to take advantage of what you have to offer.


So if you're looking for a surefire way to incentivize your audience, give them the chance to feel like insiders by providing them with exclusive access.


Cashback or cash rewards

And finally, some companies are now offering cash rewards for viewing or interacting with their ads. This approach has the potential to be extremely effective, as people are always looking for ways to make extra money. However, it is important to note that this type of incentive must be properly managed in order to avoid abuse.



Incentivized ads have the potential to be a game-changer in the world of advertising. By offering people rewards for their attention, these ads have the potential to break through the clutter and actually reach people. And, as more and more companies begin to use this type of advertising, it is likely that we will see even more innovative and effective uses of this technology.


Benefits of Using Incentivized Ads

Incentivized advertising is a form of online marketing that rewards users for taking certain actions, such as watching a video or clicking on an ad. While it may seem like a simple concept, there are actually a number of benefits that businesses can enjoy by using incentivized ads.


More effective than traditional ads

For one, these ads tend to be more effective than traditional banner ads. Studies have shown that people are more likely to pay attention to an ad when they are given some sort of incentive to do so. This means that businesses are more likely to reach their target audience with this type of advertising.


Better targeting

In addition, incentivized ads can be customized to target specific demographics. For example, if a business is looking to reach people in a certain age range or location, they can create an ad campaign that specifically targets those individuals by promoting on apps that have tha kind of audience.


This allows businesses to use their advertising budget in a more efficient way, and ensures that they are reaching the people who are most likely to be interested in their product or service.


Builds brand loyalty

Finally, incentivized ads can help businesses to build brand loyalty. When people are given rewards for interacting with an ad, they are more likely to remember the brand and come back to it in the future. This can lead to repeat customers and long-term growth for the business.


Provides favorable brand impressions

Incentivized advertising also provides favorable brand impressions. In a study conducted by Nielson, it was found that people who were exposed to incentivized ads had a more favorable impression of the brands that they saw. This is because these ads create a positive association with the brand in the mind of the consumer.


Best for app installs

In addition, incentivized ads are particularly effective for app installs. In a study conducted by AdColony, it was found that incentivized ads resulted in a nine percent higher conversion rate than non-incentivized ads.


This is likely because people are more likely to try out a new app if they are given some sort of incentive to do so. Incentivized ads provide an easy way for businesses to get their app in front of potential users and increase the chances that they will download it.


app installs


Incentivized advertising is a powerful tool that can help businesses to achieve their marketing goals. When used correctly, it can be an incredibly effective way to reach new customers and build brand loyalty. As such, it is definitely something that businesses should consider incorporating into their marketing strategy.


Potential Pitfalls of Using Incentivized Ads

Incentivized ads can be a great way to get people to take notice of your product or service. However, there are a few potential pitfalls that you should be aware of before you launch your next campaign.


First, incentivized ads can backfire if the offer is not attractive enough.

If people feel like they're not getting a good enough deal, they may be turned off by the entire concept. Make sure that your offer is compelling enough to get people to take action.


Second, incentivized ads can also create a false sense of urgency.

If people feel like they need to act immediately in order to get the incentive, they may end up making a hasty decision that they later regret. Be clear about the Terms and Conditions of your offer so that people know exactly what they're getting into.


Thirdly, incentivized ads may encourage people to unsubscribe from your list or delete your app later.

If people only signed up for your list or downloaded your app because of the incentive, they're not likely to be engaged, long-term customers or users. Make sure that you're providing value outside of the incentive so that people stick around even after the offer expires.


Fourthly, it can cause adverse selection.

Adverse selection is when the people who are most likely to take advantage of an offer are not the ones who are most likely to sign up for it. This can create a situation where only the people who are looking for a freebie end up taking action, which is not ideal. To avoid this, be clear about what you're offering and who it's for.


Finally, lower lifetime value.

One potential downside of incentivized advertising is that it can lead to customers with lower customer lifetime value. In other words, people who only take advantage of the offer and never become engaged with the product or service. This can be problematic for businesses, as it means that they're not getting the most value out of their investment.


While there are some potential pitfalls to using incentivized ads, overall they can be a great way to reach new customers and promote your product or service. Just be sure to keep these things in mind so that you can avoid any problems down the road. With a little planning and forethought, you can create a successful campaign that drives results without alienating your audience.


Advertising Networks that Offer Incentivized Advertising

If you're interested in incorporating incentivized advertising into your marketing strategy, there are a few different ad networks that you can use. Incentivized ads are often offered as part of a larger ad platform, so be sure to check with the networks that you're already using to see if they offer this type of advertising.




Some of the most popular ad networks that offer incentivized advertising include:


Want to get more people to download and try out your app? Then you need to NativeX! They provide incentivized variations of a number of their mobile ad formats to app developers and advertisers. The Lightning Play Video format provides fast load times and high-quality video and audio playback with the option of incentivizing app users to use it.


The option to incentivize ads exists in various native ad formats, such as Discovery Walls, which include multi-offers within them, and a wide range of different Interstitials advertisements. NativeX makes it easy for companies and marketers to reach their target audience with their mobile-centered approach.


Plus, their users love getting rewarded for completing simple tasks like watching an ad or downloading an app – it’s a win-win!



As any good advertiser knows, mobile is where it's at. And when it comes to advertising on mobile, no one does it better than Tapjoy. Tapjoy is the world's leading Incentivized Ad Network, helping brands and app developers make serious bank.


You may be wondering if TapJoy is a good option for you. After all, the company was one of the hardest hit by Apple's ban on incentivized downloads and installs a few years back.  But TapJoy has since utilized a new approach to incentivize ads that allows for promotions on various devices.


With Tapjoy's data, technology, and expertise, you can drive peak performance and get results that can't be beaten. So if you're looking to boost your mobile success and make some serious dough, there's no better platform than Tapjoy.


Super Rewards (now RhythmOne)

RhythmOne provides a win-win service for advertisers and app developers by displaying incentivized video ads in their apps. By opt-in to watch videos, users are exposed to well-known brands through engaging videos. In exchange for watching the videos, users are rewarded with virtual currency or other content.


Offerwalls that provide incentivized rewards for trying out other apps, completing surveys, watching videos, and more are also available. Consequently, RhythmOne creates a valuable interaction between users, advertisers, and app developers.



Kiip's 'Moment Targeting' is designed to place relevant brands in front of users at the precise time they are most likely to engage, creating a positive association with the advertiser. This service is tailored to advertisers, providing them with an efficient way to reach their target audience.


App developers also benefit from Kiip's services, as they are able to offer their users real rewards, video content, and currency. The customizable experience allows developers to create an engagement that feels natural for their users. Ultimately, Kiip's goal is to create a win-win situation for both advertisers and app developers.


Final Thoughts on Using Incentivized Ads for Promotions

If you're looking for a way to effectively promote your apps, products, or services, then incentivized advertising may be the answer. By offering rewards to users for viewing or interacting with ads, you can increase the likelihood that they'll take notice of what you're promoting.


Just be sure to structure your incentivized ads properly so that they're effective and don't end up costing you more than they're worth. With a little planning, you can use this powerful marketing tool to great effect.


Thanks for reading all the way to the end! We hope you found this information helpful and that you'll keep Brax in mind next time you need help with an incentivized ad promotion. We're experts in desktop and mobile advertising, and we're confident that we can help you increase subscribers and app installs quickly and easily.


So please don't hesitate to contact us — we'd be more than happy to chat with you about your needs and see how we can help. And in the meantime, be sure to book a free demo so you can see our platform in action!


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