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Positive Side Effects Of In-App Reward Advertising

ABSTRACT Giving free game items to mobile users through in-app reward advertisements could generate a sampling effect and increase the probability of users making in-app purchases. By analyzing field data on user-level game-app usage behavior, the current researchers found that users who were offered a free game item as a reward more likely would purchase the game item. Existing users who already had purchased game items also made more subsequent purchases after experiencing the free game items than they had in previous game play without these incentives. The study identifies the moderating role of users' engagement level in the game on sampling effects.