What is a rewarded platform?
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Rewarded platform

What is a rewarded platform?

A rewarded platform refers to an online platform or application where users are incentivized or rewarded for completing certain actions or tasks.  Examples of rewarded platforms include loyalty programs, cashback websites, survey panels, and mobile apps that offer rewards for completing tasks.

How do rewarded platforms work?

Rewarded platforms often offer rewards such as points, virtual currency, discounts, gift cards, or other perks in exchange for specific activities like completing surveys, watching advertisements, playing games, shopping through affiliate links, or engaging with sponsored content.

The concept is based on the idea of gamification and incentive-based marketing, where users are motivated to participate in various activities in exchange for tangible or intangible rewards. 

How to measure rewarded platforms:

Rewarded platforms are measured in a variety of ways depending on the desired outcome of the client. Broadly speaking, the goal is engagement and/or new customers. Specific examples include:

  • User Engagement: Higher engagement indicates that users are actively participating in the platform's activities and are likely to continue using it in the future. Examples include the number of active users, session duration, frequency of interactions, and retention rate. 
  • Conversion Rate: The conversion rate measures the percentage of users who complete desired actions – such as completing surveys, watching ads, or making purchases – out of the total number of users who engage with the platform. A higher conversion rate indicates that the platform is effectively motivating users to take action. 
  • Retention Rate: Retention rate measures the percentage of users who continue to use the platform over time. A high retention rate suggests that the platform is providing value to users, encouraging them to return and engage repeatedly.
  • Revenue Generation: For platforms that monetize through advertising, affiliate marketing, or other revenue streams, metrics such as advertising revenue, affiliate commissions, first-time deposits, and overall revenue per user are important indicators of financial performance.
  • Cost per Acquisition (CPA): CPA calculates the average cost incurred by the platform to acquire a new user who completes a specific action or task. Lower CPAs indicates that the platform is acquiring users efficiently and cost-effectively.
  • Return on Investment (ROI): ROI measures the profitability of the platform's marketing and user acquisition efforts. It compares the revenue generated or value created by the platform against the costs incurred to operate and promote it

Why are rewarded platforms important to marketers?

A rewarded platform delivers results in the form of new users, market insights, sales, revenue, and awareness. As a result, for businesses that need measurable results, rewarded platforms deliver a quantifiable return on investment. 

Who needs to know what a rewarded platform is:

  • App marketing manager
  • User acquisition manager
  • Performance marketing manager
  • App developer
  • Digital marketing manager
  • Paid search specialist
  • Affiliate manager
  • Marketing analyst

Use rewarded platform in a sentence:

“The new mobile app functions as a rewarded platform; offering users virtual rewards in exchange for completing surveys and watching sponsored content.”