What Are Rewarded Video Ads?

How Do Rewarded Video Ads Work?

The most effective rewarded video ads fit seamlessly within the user flow of an app – that is, between levels or when the user needs rewards most. Ads should never appear in a way that is disruptive to a user’s in-app experience. 

Users are often able to earn rewards such as coins, extra lives, in-app content, or points in exchange for watching an entire video ad. This means they don’t skip it – as might be the case for interstitial video ads. 

This is how it works:

1. A user interacts with an app.
2. This user needs a power-up or extra in-app currency (a reward).
3. The user opts in to watch a rewarded video in exchange for this reward. The rewarded video ad often concludes with an end card, which directs the user to install the game.
4. The user receives their reward after viewing the rewarded video.

What Are the Benefits of Rewarded Video Ads?

Rewarded video ads offer mobile publishers and advertisers various benefits – not to mention the app user. 

For advertisers, these benefits include:

• High ROAS, conversion rates, positive brand experience: The opt-in model of these ads and their enticing rewards attract attention from quality, motivated users. They drive higher return on ad spend (ROAS), conversion rates, and a more positive brand experience than other ad formats. 

• Loved by mobile gamers: Rewarded video ads enhance user interaction and session duration by offering benefits such as in-app currency or premium content – without disrupting the in-app experience. This is why mobile gamers love this ad format. 

Mobile publishers – and also app users – can benefit from these types of ads in the following ways:

• Top eCPMs: The cost of advertising with rewarded video is constantly rising compared with other ad formats – this means that publishers enjoy the highest eCPMs.

• Low churn rate: Rewards extend the duration of an app session and reduce churn. These ads allow apps to monetize without disrupting the user experience – they instead enhance it. Users voluntarily watch ads in exchange for rewards.

• Enriched in-app experience: Users enjoy rewarded ads, as they exchange their time instead of money to access items that facilitate gameplay and progress or unlock premium features. Users can get a taste of the “premium experience” with their in-app currency. Users who have become engaged users after enjoying the rewarded video ad experience might also choose to spend real currency on in-app purchases to unlock more features.

Conclusion

Rewarded video offers publishers, advertisers, and users a win-win solution that boosts engagement, retention, and monetization in a nonintrusive manner. Advertisers have to pay a high price – but with the confidence that they will enjoy good results.

The low barrier of entry – watching a video – ensures that users are less likely to churn than with other ad formats – and they are rewarded for their time.