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 a short video ad in exchange for 5 extra lives. They immediately click ‘YES,’ watch the ad, and get back to playing. Just like that, your brand boosted its engagement all because of 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 using a platform—they could be playing a game, streaming music, or tracking a workout. As they use the app, a video ad pops up with an offer. They can opt-in to watch the ad (typically 15-30 seconds long) and retrieve a reward at the end.

But why would they need a reward?

If users opt-in, the reward enhances their experience. Like the example above, if a user runs out of lives, they receive more lives to continue playing immediately. If users opt-out, they may have to wait a certain amount of time or pay for premium currency to continue.

How Does Rewarded Video Benefit Brands?

Rewarded video works for any industry and is a creative way for brands to showcase products. Plus, users actually enjoy the interaction.

Extend User Engagement

When users opt-in, they watch your entire ad to receive their reward. This format is so impactful that 53% of users say they continue playing a game for longer after receiving their rewards. This increases both daily engagement and long-term retention.

Expand Your Reach

When users like an experience, they tell their friends. Specifically in gaming, 60% of gamers find their next game through ads. Rewarded video turns curious browsers into actual users through trusted, non-intrusive discovery.

Increase Your Revenue

Brands can use rewarded video to promote in-app purchases. By giving users a "taste" of a premium feature through a reward, they are more likely to buy the upgrade later. In fact, users who engage with rewarded ads are 6 times more likely to make an actual in-app purchase.

The Benefits for Users

Users get to continue using their favorite apps for longer without a paywall. It's no surprise that 50% of mobile gamers prefer rewarded video over any other ad format.

• Cost-Efficiency: Users can choose to "pay" with their time instead of their wallet.

• Variety: Rewards can include extra lives, XP, special discounts, or virtual currency.

• User Choice: The opt-in nature puts the user in control, making the ad feel like a fair exchange rather than an interruption.

Now Is the Time to Use Rewarded Video

Current trends show an overwhelming response to this format. 46% of mobile developers cite rewarded video as the most effective format for generating revenue, and 76% of game developers rank it as their most successful ad format.

What kind of rewarded video will you give your audience? If you're ready to start, check out our blog for more playable tips and news!