An Incentive Ad is a type of digital marketing, that is especially used in the field of mobile advertising.
The incentivized ad model rewards users in exchange for completing certain actions such as installing an app, completing a video ad view or engaging with an app (completing a tutorial, creating an account etc.) The reward is typically a virtual currency or a game item, an upgrade or discount on a product or service.
The counterpart to this advertising model are non-incentivized ads. These try to promote mobile apps without the exchange of a reward meaning that engagements result from an initial interest of a user.
Nevertheless the biggest advantage of Incentive Ads is that they enable publishers to generate large quantities of installs in a short period of time. Combined with advanced targeting methods, this can be a powerful tool for marketers to address a fairly relevant user base and to drive installs for their app very quickly.
Another advantage of incentive ads is that they are extremely cost-effective, as cost-per-install (CPI) for rewarded installs is significantly lower than for non-rewarded CPIs.