February 22nd, 2019

Rewarded Video Ads Increase Engagement, Retention, and Revenue



Rewarded video ads let mobile developers monetize apps while maximizing user engagement and increasing IAP revenue. An opt-in delivery system enhances the experience by ensuring customers benefit from views while letting them choose when impressions are delivered.

What are rewarded video ads?

Rewarded video is an ad format that allows the audience to decide whether or not they want to watch a video in exchange for rewards such as in-app currency, bonuses, or other premium content. It can be integrated into mobile games and apps by publishers as a way to monetize their app. It is also a highly effective way for brands to engage with their desired audience through video.

The format can be deployed within your apps using a variety of methods — such as through offerwalls or native integrations — provided users are given the opportunity to opt-in to the viewing experience. This unique style of value-exchange advertising makes rewarded videos an ideal method for monetizing apps that benefit players, developers, and advertisers alike while ensuring the best possible user experience.

Why use rewarded advertisements?

Unlike most traditional forms of mobile advertising, rewarded video ads benefit the user and the publisher. The format encourages users to engage with in-app placements as a means of accruing virtual goods and/or currency, while its opt-in nature ensures interactions take place at a convenient time. Developers and advertisers benefit from standard app monetization features, which are maximized by regular interactions with retained users.

Developers and publishers that implement rewarded video ads have seen the following measurable benefits:

  • Increased engagement and session time – After a single engagement, a higher percentage of users are likely to spend more time engaged with the app due to the fact that they have accrued digital currency that permits engagement with premium content.
  • Increased ad revenue – Rewarded video doesn’t just increase overall ad revenue, it tends to provide one of the highest eCPMs for app developers and publishers, though rates depend largely on audience location. In the US, Tapjoy the format generates an average eCPM of $14.50. This is thanks largely to the fact that Impressions are delivered to users who expect to view content rather than being surprised by it.
  • Higher conversion and IAP spend – After gaining premium content, a higher volume of players are more willing to purchase in-game currency and bonuses due directly to the fact that they’ve been able to sample premium content and effectively qualify its value.
  • Better retention – Properly implemented video placements can become a core aspect of an game or apps primary engagement loop. When paired with optimal cooldowns, rewards can be used to foster scheduled engagement habits, leading to improved retention metrics across the board.

How can you implement rewarded videos?

The Tapjoy SDK contains comprehensive video advertising capabilities for developers, including interstitial and rewarded video formats. Developers and publishers looking to implement rewarded videos in their apps can take advantage of our plug and play solutions today and start generating more ad revenue.

Interested in bringing rewarded video ads to your mobile app? Get in touch with Tapjoy today! 

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