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Ahead of the weekend, MAW was privy to an exclusive first look at a new report from Tapjoy.

According to the provided report, rewarded advertising helps app developers keep users engaged longer.

Findings from the study reveal that rewarded advertisements can help boost app retention by about 4X or more.

The study, titled “Maximum Impact Report: The Impact of Rewarded Ads on App Retention,” also found that rewarded video ads are the most effective ad format among those studied for increasing retention for mobile apps.

Players who complete any rewarded advertising offer — an ad that gifts app players with virtual currency or premium content in exchange for their engagement — during their first week after downloading an app have a 30-day retention rate of at least 50 percent, compared to the benchmark of less than 13 percent for all app users, according to the report.

The study also showed that rewarded video ads have the most profound impact on app retention of any ad type.

Players who watched just one rewarded video during their first week had a 30-day retention rate of 53 percent — an increase of more than 300 percent over the average 30-day retention rate. For players that watch seven videos in their first week, the 30-day retention rate was 71 percent — more than 450 percent greater than the benchmark.

“Many developers believe they shouldn’t present ads to their players too early, for fear of scaring them off,” said Ben Chen, SVP & GM, Developer Relations at Tapjoy. “And that may be true for traditional, non-rewarded ads that only interrupt and often annoy players. But our data shows just the opposite: that ads — at least those of the rewarded variety — are incredibly helpful tools for deepening user retention.”

Want to know more? The full report can be downloaded here.

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