Report: 82% of mobile game devs say reward-based UA outperforms traditional channels

82% of mobile game developers say reward-based user acquisition outperforms traditional marketing channels.

This is according to Almedia's Rewarded Returns report conducted by Atomik Research, which surveyed 502 developers in the US and UK.

Reward-based UA strategies see players access games on alternative storefronts, before being recompensed with rewards such as Amazon vouchers for completing specific actions in a game. Those actions may include reaching a certain level, or acquiring in-game items.

94% of respondents said they were optimistic about the potential impacts of this UA method, with 77% disclosing that they have already run a reward-based campaign.

However, 64% of developers felt that the current UA landscape is challenging, especially in terms of regulations and performing tracking.

95% of those that have implemented reward-based campaigns reported a competitive advantage, with 59% planning to increase spending in the space through 2025.

Of those yet to deploy a reward-based UA strategy, 36% cited fraud concerns as the primary reason for hesitancy.

The report noted this compares to levels of fraud concern around traditional UA methods, while Almedia has observed figures falling.

Another challenge framed as "surmountable" was that 48% of developers are concerned that high acquisition costs can outpace player lifetime value.

Overall, 59% of those surveyed want to expand reward-based UA efforts this year.

"Reward-based UA has evolved from a channel once viewed with scepticism into a sophisticated, data-driven approach which delivers exceptional returns for players and advertisers alike," said Almedia founder and CEO Moritz Holländer.

"The numbers show this isn't just another US trend, but a competitive advantage which is quickly turning into a non-negotiable part of mobile gaming advertisers' marketing strategies."