Today the ad offer network Offerpal Media announced that it would launch a display ad network. This would allow Offerpal's clients to use the company as a total monetization solution, rather than simply for direct payment and ad offer services. The network is designed to let Offerpal's advertising partners gain immediate access to social network audiences, through the company's current network of social gaming partners.
"Social gaming has high engagement metrics. Users come back so often, practically every day, that advertisers have to follow the eyeballs. If [social gaming] is where the users are, this is where advertisers need to be," said Offerpal Director of Marketing Matt McAllister.
Offerpal plans to offer CPA, CPI, CPM, CPC, and Cost Per Install plans to make its ad network fit the needs of as many different types of advertiser as possible. Much like Super Rewards's recently announced Integrated Monetization Platform, Offerpal's new display ad network is designed to let developers use Offerpal as a one-stop shop for all of their monetization needs.
The special feature Offerpal hopes sets its product apart from other advertising solutions is its optimization engine, previously used to help efficiently match users up to the ad offers most demographically suitable to them. Offerpal hopes that the optimization engine will match up players with the banner ads they're most likely to click, which will help developer better monetize users uninterested in obtaining virtual currency.
McAllister says that Offerpal has built the new banner ad solution up quickly, over the course of the past few months. The idea was to prevent Offerpal's development partners from having to turn to competitors, like RockYou, for display ad services. He thinks that display ads will ultimately be a supplemental revenue stream for most partners, since virtual goods can generate revenue from users more efficiently.
Ads Return To Social Gaming
Still, only about 3% of a game's users ever purchase virtual goods in most games, leaving a remaining 97% that goes unmonetized in games without display advertising. Although McAllister thinks display ads can't match the sheer revenue generated by virtual goods, he still believes that display ad revenue for most social games can be "considerable." He believes display advertising will be increasingly important to social games this year, since the recession is ending and ad spending is on the rise.
"I expect to see, through consolidation, more companies that combine offers, display ads, and direct pay. You've seen this with AdKnowledge. I would expect that trend to continue," said McAllister. "We expect that a lot of the advertisers on our display networks will be the actual game developers themselves. We expect them to be buying installs."
McAllister also expects that in the near future, more social game developers will begin integrating with single companies for all of their monetization needs rather than doing multiple integrations with many different payment services, ad offer networks, and display ad networks. He feels that social developers desire simplicity in the monetization process, so they can focus on maintaining their games and cut down on user confusion.
"It's one check they have to collect, one reporting dashboard to rely on. It's also a much better user experience as well," said McAllister. "We encourage developers to go ahead and do tests, but it's really not a good experience to leave [numerous ad offer networks] on indefinitely. People get confused, things look similar, they can't find things they found before. People may send customer service tickets to us on an offer they filled out through Super Rewards."
Join us for App Conference – October 18-19, 2012 in Santa Clara