What are Rewarded Video Ads?

A rewarded video is a type of video ad that rewards users for watching full-screen ads in exchange for a particular in-app reward. Rewarded videos can benefit all three parties: publishers, advertisers, and users. Publishers earn more revenue, advertisers enjoy the increased engagement, and users receive in-app rewards. The typical length of video ads is 15-30 seconds non-skippable.

Rewarded Video Ads Benefits

Rewarded video ads are engaging, popular ads that offer consumers a bonus for choosing to watch them, such as extra lives, points, and virtual goods. They often command high average eCPMs and are an attractive format for both advertisers and publishers.

Due to their non-skippable nature, rewarded video ads tend to make lasting impressions for the advertisers, which increases engagement and retention. It’s important to note that post-install actions are often increased as well.

Rewarded video ads are initiated by the viewer inside a mobile app, meaning that they don’t intrude on the user’s overall experience until they are ready to receive their reward. Less intrusion often benefits the advertiser in the long run, as users tend to trust those who respect their time in an app and engage at a higher level.

More benefits include:

  • Lower prices for app users or fewer in-app purchases.
  • If the app is free as a result of rewarded video ads, this tends to mean more downloads.
  • There is a higher level of audience targeting as the user chooses to watch an ad — they most likely have some interest in the ad.
  • A user must view the ad right until the end to receive their reward; advertisers benefit directly from this.

10 best practices for rewarded video ads

1. Ad placement is critical to success

How you choose to implement rewarded video ads in-game will determine whether they positively or negatively impact the user experience. To define your ads’ best placement, consider what is most important to your users while using your mobile app. 

Developers can also place rewarded video ads in an app’s in-game store and on the home screen to maximize visibility. In addition to these options, you can prompt users any time a user has acquired in-game items and offer a boost. 

2. Give priority to the user experience

Rewarded video ads offer an opportunity to satisfy advertisers and users simultaneously. There is no need for this advertising format to sacrifice the quality of your user experience. Instead, your user experience should take top priority, and rewarded video ads should contribute to your users’ enjoyment of your app. The success of rewarded video ads relies on daily active users (DAU), retention, and user engagement. With this in mind, implementing ads that contribute positively to the user experience will produce the desired results from rewarded video ads further down the line.

3. Let users opt-in for rewarded video ads

Users with no interest in exchanging their time for in-game rewards should still be able to enjoy your game. It is smart to make rewarded video ads opt-in, allowing users to use your app according to their preferences. Allowing users to opt-in is also positive for advertisers as it increases the quality of ad impressions and conversion rates.

4. Test incentives for optimal results

Another critical factor that will impact the success of your rewarded video ads is the reward on offer. It is crucial to test different incentives and learn the optimal offering that will produce results and monetize your app. This testing should include the type of reward and quantity per ad. You should also consider which reward matches the ad placement

5. Boost in-app purchases with rewarded video ads

Marketers can use rewarded video ads to promote in-app purchases. This ad format gives many users who would not have made in-app purchases access to a superior experience, encouraging them to make future purchases. According to IronSource, users who have received a reward for watching a video ad are six times more likely to make in-app purchases. Marketing Dive found that users spend more than four times as much on in-app purchases after watching a rewarded ad. For this reason, you should use rewarded video ads as an opportunity to give users a taste of your most effective in-app purchases.

6. Give unexpected rewards to users

Marketers should also consider offering mystery rewards for watching rewarded video ads. This can offer a more satisfying user experience by building suspense and increasing satisfaction when a high-value reward is unlocked. If a user wants a specific prize, they might be willing to watch several ads to achieve their aim.

7. Segment users

It is essential to segment users into different audience groups depending on user behavior. For rewarded video ads, this includes segmenting users based on how often they are using your app. You can offer users that are frequently using your app less valuable rewards because they are more likely to remain engaged. Boosts to enhance what they have already purchased may be an effective way to encourage more in-app purchases. A high-value reward may encourage users to play more often and start making in-app purchases for users who infrequently use your app.

8. Use advertising filters

Improve the user experience by only showing ads based on your users’ interests. Filtering the types of ads you want to show users is also a great way to ensure their time is respected.

9. Mediate ads from third-party ad networks

Marketers can maximize revenue by mediating third-party ad networks with tools. This feature also has Ad Network Optimization which automatically mediates according to the most recent eCPM. This means the ad with the highest bid will be served first, whether it is part of the AdMob network or a third party.

10. Offer in-game hints

If you have a mobile game, another reward that may be useful to your users is in-game assistance. Depending on the nature of your app, you can also include this as a permanent option throughout the user experience.

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