Rewarded Videos in Action: How Engaging It Is With the Audiences
Rewarded video advertising has become especially popular in recent years. But what is it, and what to serve it with? Rewarded video ads are an ad unit where users are offered something valuable in exchange for their viewership. Basically, “Watch this ad and get something cool in return.” The value provided by rewarded video ads can range from in-app currency, a different life, a free hint, access to locked features, coupons, or anything else a user finds enticing.
You have definitely come across this kind of advertising in a mobile game app. Mobile games may contain videos offered to players after completing a level or task. Players can earn extra lives, in-game currency, or power-ups by watching the video, enhancing their gaming experience. Advertisers can leverage this opportunity to showcase their brand or promote relevant products to a highly engaged audience.
Users may also be able to watch a rewarded video before accessing premium content on a streaming platform. For instance, a user interested in watching a popular TV series could be presented with a short ad to unlock the episode. Advertisers can use this engagement by targeting viewers based on their interests and demographics, ensuring their message reaches a receptive audience.
These are only two examples of how advertisers can use rewarded video ads. In fact, there are many more types of this advertising. In this article, we will analyze each of them.
Benefits of Rewarded Video Ads
Rewarded video ads are beneficial to advertisers, publishers, and users. Advertisers can use them to boost viewability and click-through rates. Publishers can provide a better ad experience to users. And users get free stuff in exchange for 15 -30 seconds of their time.
Rewarded videos have been shown to have significantly higher completion rates compared to other ad formats. According to a study by AdColony, rewarded video ads achieve an average completion rate of 90%. This high completion rate indicates strong user engagement and attentiveness to the ad content.
Rewarded videos also create a positive association with brands. According to a survey by OpenX and The Harris Poll, 79% of respondents agreed that rewarded video ads make them feel more positive about brands. Moreover, a study by Unity Technologies found that rewarded video ads generate 4.5 times higher brand recall compared to other ad formats.
Moreover, rewarded videos can be a lucrative monetization strategy for app developers. According to Unity Technologies, rewarded video ads generate 71% of all in-app ad revenue, making them a valuable source of income for developers. Moreover, a study by Google found that developers implementing rewarded videos witnessed a 20% increase in average revenue per daily active user.
How Popular Are Rewarded Video Ads?
Rewarded video ads have emerged as the prevailing ad format in the gaming industry, with more than 80% of developers incorporating them into their games. According to the Meta Audience Network advertising report, an equally substantial number of developers consider rewarded videos to be their most effective form of advertising. This comes as no surprise, given that rewarded video ads have been proven to boost revenue by up to 40%.
When it comes to player experience, these ads have garnered positive feedback. Around 32% of players find them useful, 27% find them interesting, and 12% find them enjoyable. Only 24% of users consider rewarded video ads intrusive, while nearly 70% of players express a fondness for this format. Remarkably, rewarded video ads enjoy popularity across all game genres, including casual games (85%) as well as hardcore and mid-core games (76%).
Types of Rewarded Video Ads
There are several types of rewarded video ad formats, including interstitial, pre-roll, post-roll, and native. Here are some common types:
- In-App Rewards
Users are offered rewarded video ads in exchange for in-app rewards such as virtual currency, extra lives, power-ups, or unlockable content within a mobile app or game.
- Content Access
Users can watch a rewarded video ad to gain access to premium or exclusive content, such as articles, videos, levels, or features within an app or website.
- Time-Based Rewards
Users are presented with rewarded video ads to reduce waiting times or access accelerated progress within an app or game. For example, they can watch an ad to skip a time-based countdown or unlock immediate benefits.
- Loyalty Programs
Brands or retailers offer rewarded video ads as part of their loyalty programs. Users can watch ads to earn loyalty points, discounts, coupons, or exclusive offers.
- Virtual Goods or Enhancements
Users have the opportunity to watch rewarded video ads to receive virtual goods, enhancements, or special items that enhance their experience within a game, virtual world, or augmented reality application.
- Knowledge or Tips
Users can watch rewarded video ads to gain knowledge, tips, or tutorials related to a specific subject, such as cooking recipes, DIY projects, fitness routines, or educational content.
- Offline Earnings Multiplier
In a lot of games, players continue earning currency or items. Rewarded video ads propose to double offline earnings by watching an ad. With this type of rewarded video ad, you can make this possible. All players need to do in return is watch one whole ad.
Rewarded Video Ads Revenue
People often ask, “How much do rewarded video ads pay to publishers?”. It's important to note that revenue generated from rewarded video ads can vary based on several factors, including the platform, app or website, target audience, ad placement, and the overall effectiveness of the advertising campaign. Specific revenue figures can vary widely depending on the context and industry.
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