Feeling the heat of competition for audience attention, savvy advertisers have been exploring innovative new ad formats and ways of enhancing efficiency. First, we saw a transition from traditional banner ads to native ads, with ad placement and frequency optimized to deliver a better user experience. Then, rewarded video ads gave users the option to watch ads for in-app rewards, driving even better performance for both developers and advertisers. From this evolution of ad formats, we can see that ad performance generally improves as formats become more engaging. It follows that the future of advertising lies in more immersive ad formats that offer better experience.
By allowing users to opt in, rewarded video ads have already achieved outstanding results. But what if you could encourage users to opt in via interaction with the ad? That's where Pangle's playable ads come in.
The playable ad is a truly interactive ad format, because it allows users to play with ads rather than just tapping a button. By showcasing the highlights of a promoted game or app and letting users enjoy core functions in advance, playable ads give users a sufficiently immersive preview before directing them to a download page.
Since recently, with the decreasing creatives cost and more campaign efficiency, advertisers have grown confidence and spent more on playable ads, making it one of the most promising ad formats in the future.
Playable ads provide 3 key benefits: more valid conversions, higher LTV, and more accurate analysis.
Given that playable creatives are usually derived from a game or app itself, they make users more likely to learn about, play with, enjoy, and install the game or app. This can also maximize the retention and LTV of converted users, as they build up interest in the game or app while experiencing the ad. Data from Pangle suggests that playable ads significantly improve CTR*CVR, boosting user acquisition over a shorter time period and with a smaller budget.
Another potential benefit is that playable ads can generate finer-grained data that enables more accurate attribution analysis. Many advertisers are very subjective when it comes to analyzing and optimizing campaign creatives or strategies. By analyzing data from every interaction, including tapping, loading, playing, and converting, advertisers can more confidently optimize their creatives and campaign strategy.
What lies behind playable ads is a better balance between performance efficiency and content value. Users intuitively consider ads to be interruptive, and the quality of creatives varies a lot, especially when it comes to performance marketing. Playable ads have set a new standard in the market by merging ads, content, and user flow to deliver better experience and tangible value to users. Looking ahead, we see ad formats continuing to evolve into more valuable, more native, and less disruptive forms.