Monetizing Web Games with Preroll and Reward Video Ads
In the competitive world of online gaming, game developers are constantly seeking effective ways to monetize their products. Offering games for free has become a popular strategy, as it attracts a wider audience and encourages higher adoption rates. Once users are engaged, monetizing through ads can yield significant revenue, often more than if the game was sold outright. Among the most effective and user-friendly monetization options for web games are preroll and reward video ads.
Both preroll and reward video ads offer unique benefits that can increase player engagement and revenue, without requiring direct payment from the user. Here’s an in-depth look at these ad types, their benefits, and how they can fit into a successful monetization strategy.
What is a Preroll Video Ad?
A preroll ad is a short video ad that plays before the main content begins, similar to commercials that air before a video or movie. In web games, preroll ads typically play before a game level or session starts, requiring the player to watch the ad in full before they can begin playing.
Preroll ads are generally brief, usually around 15–30 seconds, as they need to capture attention without overwhelming the viewer. Shorter ads also align with players’ limited attention spans, helping maintain engagement while ensuring the message is delivered.
Benefits of Preroll Video Ads
Preroll video ads are widely used because they offer guaranteed ad views and are simple to integrate into the user experience. Here are some of the main benefits of using preroll ads for web game monetization:
- Guaranteed Ad Views and Revenue
One of the primary advantages of preroll ads is that players are required to watch the ad before accessing the game content. This guarantees a high view rate, which translates into reliable ad revenue. Advertisers pay based on the number of completed views, so each ad view directly increases revenue. - Non-Intrusive Experience
Preroll ads play at the beginning of a game session or level, which tends to be less disruptive than ads that interrupt gameplay. Players expect some form of content before they start, so these ads fit naturally into the experience. - Higher Brand Recall
Since players must watch the entire ad, advertisers can achieve higher brand recall. The short duration and compulsory viewing make it easy for players to remember the ad’s message, which satisfies advertisers and encourages repeat partnerships. - Simple Integration
Preroll ads are straightforward to implement. Since they play automatically before gameplay, developers don’t need to embed ads within the game’s core mechanics, simplifying the integration process and reducing development time.
While preroll ads are effective, there are other ad formats that can further boost engagement and revenue, particularly when they offer a reward for watching.
What is a Reward Video Ad?
A reward video ad is similar to a preroll ad but with a key difference: players receive an in-game reward for watching the ad. This incentive can range from in-game currency and power-ups to extra lives or cosmetic items. Reward video ads encourage players to interact with the ad content, as they receive tangible benefits that enhance their gameplay experience.
Reward video ads are generally not skippable, ensuring high view rates and increased engagement. They offer a win-win scenario: advertisers reach their audience, players gain rewards, and developers earn ad revenue.
Benefits of Reward Video Ads
Reward video ads offer distinct advantages that make them one of the most popular ad formats in mobile and web gaming. Here’s why reward video ads are so effective:
- Higher Engagement and Retention
Reward video ads provide a sense of control and choice. Players can decide whether to watch an ad in exchange for rewards, creating a positive interaction. This user-initiated engagement leads to better retention and longer play sessions, as players feel they’re actively gaining value. - Increased User Loyalty and Satisfaction
Offering rewards like power-ups or in-game currency enhances the player’s enjoyment of the game. When players receive benefits, they feel more invested in the game, leading to increased loyalty. A positive ad experience also makes users more willing to watch additional ads, benefiting both revenue and user retention. - Enhanced Monetization Potential
Reward video ads can generate more revenue per view compared to standard ads because advertisers recognize the higher engagement and are willing to pay a premium. Additionally, players who watch reward ads may feel more comfortable making in-app purchases, further increasing revenue potential. - Encourages Non-Paying Users to Contribute
Many players may not make direct in-app purchases, especially in free-to-play games. Reward video ads allow developers to monetize these non-paying users effectively, as they contribute through ad views rather than purchases. This extends the game’s revenue potential by enabling all players, regardless of spending habits, to contribute financially.
Preroll vs. Reward Video Ads: Choosing the Right Format
Both preroll and reward video ads offer unique benefits, and deciding which to use depends on the type of game, the player base, and the desired user experience. Here are some factors to consider when choosing between preroll and reward video ads:
- Game Genre and User Flow
Some game genres lend themselves better to certain ad formats. For example, casual games with short play sessions may benefit more from preroll ads, which don’t disrupt gameplay. On the other hand, reward video ads are ideal for games with levels or challenges where players may want extra lives, power-ups, or other bonuses. - Player Preferences
Understanding player preferences is crucial. Casual players may tolerate preroll ads, but more engaged players may prefer the option to earn rewards by watching an ad. Conducting A/B testing or gathering feedback can help determine which format resonates best with your audience. - Revenue Goals and Ad Inventory
If reliable ad views are a priority, preroll ads can provide steady revenue with guaranteed views. However, if the goal is to maximize engagement and incentivize continued play, reward video ads may offer higher revenue potential and encourage longer sessions. - Balancing User Experience
While both ad types can be effective, overusing any format can lead to user fatigue. Balance is essential. Consider using a mix of both ad types or offering players the option to choose. For instance, preroll ads can be displayed at the start of a session, while reward ads can appear at natural breaks or after specific achievements.
Best Practices for Implementing Video Ads in Games
To maximize the effectiveness of preroll and reward video ads, developers should consider the following best practices:
- Strategic Placement
Place preroll ads at the start of a session, and insert reward ads at points where players may naturally want help or a bonus, like after failing a level or achieving a milestone. This keeps ads from feeling intrusive and enhances the gameplay experience. - Offer Meaningful Rewards
Ensure that the rewards offered through video ads are valuable to players. In-game currency, power-ups, or exclusive items are popular choices. The more meaningful the reward, the more likely players are to watch ads willingly. - Test and Optimize
Experiment with ad placements, reward types, and frequency. A/B testing can reveal the most effective combinations, helping developers fine-tune their ad strategy to maximize engagement and revenue. - Track Key Metrics
Monitor metrics like click-through rates, ad engagement, player retention, and session length. These insights can guide adjustments to ensure that video ads enhance, rather than detract from, the user experience. - Consider User Feedback
Gather feedback from players on ad formats and rewards. User input can provide valuable insights and help ensure that the ad experience aligns with player expectations.
Final Thoughts: Combining Preroll and Reward Video Ads for Maximum Impact
Preroll and reward video ads each offer powerful monetization options for web games. Preroll ads guarantee views and provide steady revenue, while reward video ads foster engagement, retention, and user satisfaction. By strategically combining both ad types, developers can create a balanced, user-friendly monetization model that maximizes revenue without disrupting gameplay.
As the web gaming industry continues to grow, optimizing monetization methods is essential for success. Both preroll and reward video ads offer proven paths to generating revenue, and integrating these formats effectively can enhance the user experience while supporting sustainable growth.
About AppLixir:
AppLixir specializes in rewarded video ad solutions for web, mobile web, and mobile games, helping developers monetize effectively with user-friendly ad experiences.
