Imagine someone is on their lunch break, so they grab their phone to play one of their favorite mobile games. They’re making moves, collecting all the coins, and right when they think they’ve got it…
GAME OVER
Now they want more. They have to beat the level, but they ran out of lives.
Then, an ad pops up.
They can watch the video ad in exchange for 5x lives.
They immediately click ‘YES,’ enjoy the ad, and get back to playing.
Just like that, your brand boosted its engagement all because of rewarded video.
So, what is rewarded video?
Rewarded video gives users rewards in exchange for watching videos or playable ads while using an app or game.
In a nutshell, users keep using your app while you advertise features to them. It’s a win-win for everyone.
Not to mention, “rewarded video ads can boost ad revenues by 20-40%.” If you’re looking to change up your advertising tactics, then rewarded video is exactly what you need.
What Does a Rewarded Video Experience Look Like?
Users are already in an app using the platform. They could be playing a game, streaming music, or tracking their workout. Think of any of the apps on your phone.
As they use the app, a video ad pops up and gives them an offer. They can opt-in to watch the video ad, typically 15-30 seconds long, and retrieve a reward at the end.
But why would they need a reward if they’re already using the app?
If users opt-in, the reward will enhance their experience on the app. Like the example above, if a user runs out of lives, they can watch the ad and receive more lives to continue playing immediately after watching.
If users opt-out, they may have to wait a certain amount of time before getting more lives.
How Does Rewarded Video Benefit Brands?
Rewarded video can work for any industry and is a new way for brands to showcase their product creatively. Plus, your users will love it.
Extend User Engagement
When users opt-in to rewarded video, they have to watch your entire ad before receiving their reward. This format has such an impact that 53% of users said they continued playing a game for longer after receiving their rewards.
So user engagement increases, and so does their retention. They want those rewards, so they keep coming back for more!
Expand Your Reach
What do people do if they like your product? They tell their friends!
They want to talk about all of your app’s cool features, and people typically try new things if someone they trust recommends it.
This is New User acquisition, made easy.
Specifically to gaming apps, 60% of gamers find their next game through ads. Turning curious browsers into actual users.
Increase Your Revenue
Even though users can get rewards for free, brands can still use rewarded video for advertising in-app purchases.
If your app has a feature you want to promote, then your rewarded video can give a reward that has to do with that feature. Users get to try it out, and eventually, many will pay for those upgrades to have the best experience on your platform.
It’s been found that users that opt-in and receive their rewards are 6 times more likely to buy app features. So all of that free interaction can turn into real purchases.
The Benefits of Rewarded Video For Users
Basically, users get to continue using their favorite apps for longer, and 50% of them prefer rewarded video games to other types of mobile games.
So let’s look at what the hype is all about.
Cost-Efficiency
Users don’t have to pay if they don’t want to. They can choose between paying for more perks or giving their time for free by watching ads.
Variety Keeps Things Interesting
Brands can offer an array of rewards to their users depending on their goals. The variety makes it fun for users and gets them even more excited about your app.
Some reward ideas include:
- Extra lives
- Extra points [XP]
- Special discounts
- Virtual currency
- Level-up
It's Their Choice
The nice thing about rewarded video is it puts users in control of how they want to participate. Users can simply hit the button, watch the ad, or press the exit button and continue on their way.
Now Is the Time To Use Rewarded Video
Rewarded video is growing amongst brands because of the overwhelming response it receives from users.
You’ve probably engaged with rewarded video yourself. If you have, why was it so appealing? What did you like about it?
Start recognizing these trends. It's growing in popularity for a reason.
Are you still unsure? Well, 46% of mobile developers said rewarded video “is the most effective ad format for generating revenue,” and 76% of game developers said they’re “the most successful ad format.”
Give it a try with your app. It’s worth the time…and the increase in profit.
What kind of rewarded video will you give your audience?
For more video and playable tips and news, check out our blog!