Rewarded video ads are a popular way to boost app engagement and increase user retention. They are also the most favored advertising format for gamers who want to make in-game progress. But along with improving gamers’ in-app experiences, rewarded video ads are powerful for advertisers and publishers. So they are a win-win-win option for all.
Top Rewarded Video Ads Platforms
If you’re a developer, publisher, or advertiser, this comprehensive review of rewarded video ads is for you. With the benefits of better retention and engagement on offer, you will want to understand how this format works before considering how it could benefit you and your campaigns. Plus, finish up by reviewing our comprehensive list of dynamic companies that you could approach for support in this area.
What are rewarded video ads?
Rewarded video ads are a type of incentivized advertising that rewards users for watching a promotional video. Rewards can include virtual currency, in-app discounts, extra lives, or the chance to unlock new gaming levels.
Since 50% of gamers prefer rewarded video ads to paid and freemium mobile ads, they remain a popular format for mobile video. This is likely because rewards help users to make in-game progress and stay engaged on apps. And when they do it benefits advertisers and publishers with better engagement, retention, and higher revenues.
For developers and advertisers, rewarded video ads offer a win-win situation. Users engage with the content willingly, leading to higher completion rates compared to traditional ads. This user engagement translates to better ad performance and higher revenue for the developers, while advertisers gain access to a more attentive audience.
From the user’s perspective, rewarded video ads can be a welcomed addition. Instead of being interrupted by ads, users have the control to watch them at their convenience, knowing they will gain something valuable in return. This dynamic not only improves user satisfaction but also encourages a positive interaction with the advertised brands and products.
What are the benefits of rewarded video ads?
Rewarded video ads provide significant benefits for both users and app developers. For users, these ads offer a straightforward and engaging way to earn in-app rewards, enhancing their overall experience without feeling intrusive. This model of advertising respects the user’s time and choice, making interactions with ads more positive and less disruptive.
For app developers, in-game rewarded video ads generate 40% of revenue, therefore presenting a lucrative revenue stream. These ads typically result in higher engagement and completion rates because users willingly choose to watch them. As a result, developers can monetize their apps more effectively while maintaining a satisfied user base, fostering both user retention and increased app profitability.
Featured Rewarded Video Ads Platforms
Users prefer the format
According to the IAB, over 80% of users prefer this advertising format. It’s also the most popular advertising format for game developers. To stand out from the competition, marketers should consider building user experience into their rewarded video strategy. This should start with a focus on audience identification. Then, appropriate targeting to ensure ads are well placed as part of the user experience.
Better engagement
Because users can only claim their rewards when they watch an entire ad until the end, advertisers can glean many benefits from rewarded video ads. Users have to watch entire ads to the end to get their rewards. For example, Sydney-based game developers Not Doppler maximized engagement through well-placed ‘double-rewards’ variable ads in their game – ‘Earn to Die 2’. And this led them to a 38% higher than average engagement rate after implementation.
Higher retention
Rewarded video ads hold the power to increase mobile app retention by 4X, a study by IronSource revealed. Gamers who watched an FSI (Full-Screen Interstitial) rewarded ad in the first week of app use had a 53% retention rate, which is more than 300% over the average.
Increased conversion rates
Users who engage with rewarded video ads are 4X more likely to make an in-app purchase than those who don’t. And since the ad format is user-initiated, CTRs tend to be much higher too.
Focused UA (User Acquisition)
Users are more willing to watch videos in their entirety when they know they’ll get a reward for it. And since they’re a user-initiated format, video rewards are non-skippable. This offers significant value for advertisers looking to increase their visibility and gain new users.
Increased ad revenues
With a boost to In-App Purchases, higher usage, and better retention, rewarded video ads have the potential to boost revenues by over a third. For example, when Avid.ly introduced rewarded video ads into one of its games, users bought in-app items almost 20% more often. Plus, total revenues grew by 40%.
Why should you partner with rewarded video ads platforms?
As you’ve seen in the guide so far, rewarded video ads have a long list of benefits that result in win-win-win scenarios for developers, advertisers, and users. So why would you need to engage with a rewarded video ad company then?
Whether you’re a publisher or advertiser, you’ll gain huge benefits by working with a company. Some of the more vital aspects you may want to look out for when reviewing our list of some of the best rewarded video ads companies include:
- Broad expertise in the effective placement of rewarded video ads
- Scalability, providing advertisers with appropriate access to developers and vice versa
- Integration with in-app stores, boosting IAPs in the process
- Audience targeting and segmenting strategies that gain appropriate engagement
- Innovative ads designed to enhance creative execution
- Higher retention and engagement levels
- Increased revenues of between 20-40%
How can you increase revenue of rewarded video ads?
By offering users a reward in return for watching a full-screen video ad, marketers create a value exchange that enables the monetizing of rewarded video ads. When users know the reward they’ll receive, for instance, in-app currency to progress with their game, they’ll need to agree to the terms outlined. After they’ve completed watching the video for the allotted time, they’ll need to then pick up their reward.
As you could imagine, because of the high number of clicks on this ad format, the average eCPM for this exchange is high. So, we’ve outlined more below:
How much do these types of ads pay?
In a recent report, IronSource suggested advertisers could expect eCPM rates to come in at somewhere between $10 to $50 per 1,000 impressions. They also suggest that, out of all the different types of mobile video ads, rewarded video ads offer the highest eCPMs.
The US holds the largest market share for rewarded video ads. To help illustrate current rates, we’ve split out some average eCPMs you could expect to pay across Android and iOS.
Average eCPMs on Android and iOS (US)
| Android - eCPMs on Rewarded video ads | iOS - Average eCPMs on Rewarded video ads |
|---|---|
| Average Android eCPM - $10.16 | Average iOS eCPM - $16.33 |
| Facebook - $22.62 | Facebook - £32.32 |
| AdMob - $13.46 | AdMob - $15.12 |
| BidMachine - $13.57 | BidMachine - $13.57 |
Source: Udonis
What are the best practices of rewarded video ads?
Successful video ads tend to show some of the following attributes during high-performance campaigns:
- Prioritize ad placement: Successful ads will enhance gameplay through strategic placement and avoid distracting users or interfering with their experience.
- Reward gamers with in-game tips: Gamers want to find ways to progress through a game or enhance their experience. And great ads offer help or tips on gameplay which will encourage them to stay around for longer.
- Mediate ads from third-party users: Users get put off if they see too many ads flying around. Successful marketers include ads from third parties but make sure they don’t interfere with gameplay or activity.
- Offer users a surprise or unexpected rewards: Users who didn’t expect to get a chance to claim a reward during gameplay are more likely to come back and stay for longer.
- Use advertising filters: As an integral part of their in-game playability, users also expect to receive relevant offers. So advertisers often use filters to understand their target audience before designing their rewards.
How can you run successful rewarded video ads?
So, it’s clear that including rewarded video ads in your app can bring you rewards. But how can you run a successful ad campaign that generates the results you want?
To give you more detail, we’ll explain how rewarded video ads work and show you the best ways to engage with them.
How do rewarded video ads work?
Users have to agree to any rules of engagement before they initiate rewarded video ads. But they must also agree to view the whole video without skipping. Once initiated, ads usually appear as unskippable, full-screen interstitials in both video ads and interactive or playable ad formats.
With this opt-in and user-friendly approach, users experience less intrusion than in other forms. For developers and advertisers, rewarded videos can apply to almost any kind of app. In general, they’re most often used in free-to-play mobile games with rewards appearing at strategic points in gameplay.
So, if you want to start showing rewarded video ads in your next campaign, consider the key points you should consider as part of your efforts:
Target your users
Advertisers should maximize the benefits of rewarded video ads by ensuring ads get in front of the right audiences. Rewarded video advertising companies can help with reviewing existing customer personas and then matching them with appropriate app developers.
Use rewarded video to complement IAP
Studies show that introducing rewarded video ads has little to no detrimental impact on IAPs in 70% of cases. As a result, many more games now use rewarded ads as a way to complement their IAPs. Rewards can also introduce premium features and encourage users to play for longer.
To increase sales further, consider offering discounts for in-app purchases as a reward in your videos.
Integrate ads smoothly
Most rewarded videos will appear in games. So, advertisers and publishers need to work together to ensure a seamless experience for the users. Rewards need to be relevant and useful to gameplay but also appear at points that won’t intrude on players’ enjoyment and experience of the game.
For example, some good ad positions can include:
- Daily Rewards Multipliers: App owners can increase retention by offering more incentives in return for watching several videos per day. These multiplier ads are often best placed at the start menu or at the end of the game.
- Out of Lives Ads: Games in the casual category offer users a chance to buy extra lives when they need them. And when users get the opportunity to ‘watch another video for another life’, they see ads in a more positive light. In turn, this can lead to higher retention scores.
- Out of Action/One More Try Ads: This is a good option if your app game isn’t based on the need for more lives. Ads should give players the chance to reset and try again without losing any progress made up to that point.
- Booster Ads: App developers can gain higher engagement rates by placing ads during critical points of gameplay or during app interactions where they’re needed most.
Use static end cards
Advertisers tend to gain higher engagement rates when they add static end cards to video ads. Users get to see what’s on offer and URLs are clickable. Make sure any video formats support the use of static end cards.
What are the challenges of working with rewarded video ads?
While rewarded video ads offer numerous benefits for app owners and marketers, there are also several challenges that need to be addressed to make the most out of this advertising model.
Understanding these challenges can help in creating a more effective strategy that maximizes the potential of rewarded video ads without compromising user experience or app performance.
Let’s explore some of the key challenges associated with implementing and managing rewarded video ads.
Balancing ad frequency
One common challenge is the balance between ad frequency and user experience. Showing too many ads can frustrate users, leading to app abandonment, while too few ads may not generate enough revenue to be worthwhile.
Ensuring relevance & quality
Another challenge is ensuring the relevance and quality of the ads presented to users. Low-quality or poorly targeted ads can diminish the user experience, making the rewards feel less valuable and potentially driving users away.
Marketers must work closely with ad networks to ensure that the ads served are both high-quality and relevant to their audience.
Technical integration
Integration and technical implementation of rewarded video ads can also be a hurdle. Ensuring that the ads function seamlessly within the app and do not disrupt the user experience requires careful coding and thorough testing.
This process can be time-consuming and may require ongoing maintenance to address any technical issues that arise.
Measuring effectiveness
Measuring the effectiveness of rewarded video ads is another challenge for app owners and marketers. While it’s clear that these ads can increase engagement and revenue, determining the precise return on investment (ROI) can be complex.
Marketers need to utilize advanced analytics tools to track user behavior and ad performance accurately, which can be both resource-intensive and technically demanding.
Regulatory compliance
Finally, staying compliant with advertising regulations and user privacy laws is crucial but can be challenging. Different regions have varying regulations regarding user data and advertising practices, and non-compliance can lead to significant legal issues.
App owners and marketers must stay informed about these regulations and ensure that their ad practices are always in line with the latest legal requirements.
Partner with top rewarded video ads platforms
Rewarded video ads have proven to be an invaluable tool for app owners and marketers, driving higher engagement and user satisfaction. By offering users tangible in-app rewards for their attention, these ads foster a positive experience that can lead to increased user retention and loyalty. This mutually beneficial relationship not only boosts app profitability but also enhances the effectiveness of marketing campaigns.
For those considering implementing rewarded video ads, partnering with top rewarded video ads platforms ensures the best results. Leading platforms offer robust solutions for integrating these ads seamlessly into apps.
Working with reputable platforms provides access to extensive networks, advanced analytics, and optimization tools, maximizing the benefits of rewarded video ads for both app owners and marketers.
Have a review of our complete list of rewarded video ad companies and discover for yourself how they could support your app marketing needs.
