Incentivized Advertising Boosts Customer Loyalty

The online display ad market is growing increasingly competitive as more merchants buy these ads and as the inventory of available ad space grows. Marketers have been turning to the most advanced ad formats, especially online video, to capture consumer attention. Some marketers are going a step further and engaging consumers with incentivized advertising.

Most incentivized advertising campaigns promise consumers  a reward for interacting. SocialVibe recently ran a survey on this marketing strategy and analyzed consumer reaction. In this survey, consumers who were playing online games such as Zynga were given the opportunity to take a survey in exchange for a reward such as virtual currency or free music access. Participants had to deliberately opt in to this experiment which related directly to the game they were playing. In this way, the experiment was measuring brand engagement.

The top-​level findings show that consumers' perception and purchase intent is significantly impacted when they receive something of value in exchange for their attention:

  • Those who interacted because of incentive and then paid attention to brand: 48%
  • Those who interacted because of incentive and brand equally: 31%
  • Those who interacted because of brand only 12%
  • Those who interacted because of incentive only 9%

This study also found that brand influence extended well past this specific engagement. Researchers say that incentivized engagement leads to a 161% increased likelihood that consumers will visit a brand’s website. And consumer behavior was also modified in the bricks and mortar world as well. Consumers who completed the incentivized brand engagement were 36% more likely to look for the brand in stores.

Based on these findings, it seems more marketers might be looking into incentivized campaigns.

[Source: Incentivized Advertising. KNDimestore and Social Vibe. 2011. Web. 27 Sep. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.