What is Rewarded Video Ad?
Rewarded video ads, a common advertising format in gaming, offer players rewards like in-game currency, extra lives, or premium content when they choose to watch a video ad.
This strategy enhances the player’s experience, while also enabling game developers to monetize their content and advertisers to reach their intended audience.
Rationale behind Rewarded Video Ad:
- For Users – it’s an opportunity to gain access to premium features, additional playtime, in-game currency, or other rewards without making a monetary purchase. Such type of rewards can enhance gaming experience or provide a needed boost to continue playing.
- For Game Developers – rewarded video ads offer an effective monetization strategy. While many games are free to download and play, developers still need revenue to maintain and improve their games. Rewarded video ads can provide this revenue without disrupting the gaming experience, as users opt-in to view the ads in exchange for rewards. This can also increase user engagement and retention, as users may play the game more frequently or for longer periods to earn more rewards.
- For advertisers – these ads provide access to an engaged and receptive audience. As user’s opt-in to view rewarded video ads, they’re more likely to pay attention to the ad content. This can lead to higher recall rates, brand awareness, and potentially, conversions. Therefore, rewarded video ads are a mutually beneficial model that satisfies users’ desire for rewards, developers’ need for revenue, and advertisers’ goal of reaching a captive audience.
How is it different from other models?
- Rewarded video ads don’t fall under the category of forced advertising. Users can choose whether or not to watch these ads; they don’t face any obligation to interact with them. This choice sets rewarded video ads apart from conventional pop-up ads or pre-roll video ads that play without user’s explicit agreement.
- Furthermore, the intention behind these ads isn’t to disrupt or detrimentally affect the user experience. The design of these ads ensures they blend into the user’s interaction with the app or game, offering additional benefits, unlike disruptive ads that can come across as distracting and irritating.
- While rewarded video ads do boost brand visibility and recognition, they don’t primarily serve as direct sales tools. They don’t aim for immediate conversion or sale, but instead aim to enhance user engagement and cultivate a positive relationship between the user and the brand.
- Finally, evaluating the success of rewarded video ads doesn’t solely rely on traditional advertising metrics like clicks or instant conversions. The increase in user engagement, retention rates, and positive user experiences also play crucial roles in determining their success.
How Reward video Ad is current used?
Let’s explore various instances of how rewarded video ads operate in different contexts:
- Ad-Free Experience:- Rewarded video ads (RVAs) can complement other ad types within an app. For instance, users could be given the option to watch a RVA to eliminate all other non-rewarded ads for a specific time frame.
- In-Game Currency:- Games often use in-game currency for players to buy items. A perfect use case is to provide players with currency for watching an ad, creating a value exchange that benefits both parties.
- Additional Lives:- Even in the absence of in-game currency, RVAs remain useful. In games where player ‘lives’ are a key resource, watching a video ad could reward players with an extra life.
- Retail Offers: Consumers value discounts on products or services. By making a short video watch a precondition for obtaining a discount, businesses can generate customer engagement effectively.
- Access to Premium Content:- Users can view an ad to gain one-time access to premium content, without needing a full subscription or payment.
- Special Features and Enhanced Experiences:- Developers may offer immersive gaming experiences to users who watch a video ad.
- Alternative to In-App Purchases:- Features typically requiring in-app purchases can be accessed for free by users willing to watch a video ad, providing monetization from non-purchasing users.
How much do you make with Rewarded Video Ads?
The amount of revenue you can generate depends on several factors including:
- User Base: The number of active users on your app is a major factor. More users mean more ad impressions, which can lead to higher revenues.
- Engagement Rate: How frequently and for how long users engage with your app also matters. Users who engage more frequently are more likely to view RVAs.
- Geographical Location: Advertisers pay different rates in different countries. Users from countries with higher average revenue per user (ARPU), will typically generate more ad revenue.
- Ad Fill Rate:- This term represents the percentage of ad requests that ad networks successfully fill. The more ads networks display due to a higher ad fill rate, the more revenue you can potentially generate.
- Quality of the Game/App: If your game is high-quality, users are more likely to engage with it and, by extension, the ads it hosts.
Feel free to check my post on how much you should expect to get in 2023
AppLixir
Looking for an effective way to monetize your app without sacrificing user experience? Meet AppLixir, a leading platform for rewarded video ads. We understand that user retention and engagement are key to your success. That’s why our solution focuses on a value exchange model, offering users compelling rewards for engaging with ads. Start leveraging the power of AppLixir and take your Web App to new heights. Visit our posts at https://applixir.medium.com/
