Rewarded Ads Trend: Comprehensive Insight into Current Developments

Exploring the growing trend of rewarded ads, this article discusses their efficacy and impact on businesses and consumers in today’s digital landscape.

In the ever-evolving world of digital advertising, Rewarded Ads have emerged as a powerful trend that’s reshaping the landscape. These ads, which offer users incentives in exchange for their engagement, have seen a significant surge in popularity among advertisers and app developers alike.

This article delves into the rise of Rewarded Ads, exploring their benefits, how they work, and why they are becoming an integral part of the advertising strategy for many businesses. Whether you’re an advertiser seeking innovative ways to boost user engagement, or a curious observer of digital marketing trends, this comprehensive insight into Rewarded Ads will provide you with a thorough understanding of this burgeoning trend.

Rewarded Video Ads Explained

Rewarded video ads are a form of advertising that’s gaining traction across various apps and games. They offer incentives, like virtual goods or in-app currency, to the user in exchange for viewing an ad. This model represents a win-win situation, providing users with benefits and giving brands the opportunity to engage with them.

Key Concepts:

• User Engagement: Rewarded ads typically demand the user’s full attention, ensuring maximum engagement.
• Incentives: They present users with tangible rewards, adding value for the user and encouraging further interaction with the app.
• Voluntary Participation: Unlike traditional ads, rewarded video ads are typically opt-in, which means users choose to view them.
• Brand Exposure: With features such as rich media and fullscreen mode, users receive an immersive experience, resulting in better brand recall.
• Monetization Strategy: For developers, these ads can provide a significant source of revenue, thereby contributing to app monetization.

This form of advertising has swiftly become a useful addition to an app’s monetization strategy, a means of user engagement, and a tool for facilitating brand awareness.

Rewarded Video Ads Statistics for 2023

Looking ahead to 2023, experts predict significant growth in the use of rewarded video ads. A study by eMarketer forecasts that mobile in-app advertising will reach an impressive $240 billion globally. Moreover, a substantial chunk of this figure will stem from rewarded ads, indicating immense potential in this sector.

Key Points:

• Mobile in-app advertising expected to hit $240 billion worldwide in 2023.
• Huge gains predicted in rewarded video advertisements, contributing significantly to the above figure.
• User preference for rewarded ads seen to drive this growth, with around 75% of app users favoring rewarded video ads over other ad formats.
• Rewarded ads significantly enhance user engagement, with an average user session length increasing by 35%.
• Emerging markets are targeted for the surge in rewarded ads, with significant usage in regions such as Asia-Pacific and Latin America.

Therefore, understanding the dynamics and potential of rewarded video ads becomes critical to marketers who aim to tap into this viable segment.

Rewarded Video Ads Placements

There exists a wide array of placements for rewarded video ads within a mobile game environment. Notably, the best kind is the one that doesn’t disrupt gameplay, but rather supplements and enhances it. Here are five common placements for these ad types:

1. “Out of Lives” Ads: These occur when a player depletes their resources or “lives”. A rewarded ad offers a chance to regain a life and continue the game session.

2. Daily Reward Multiplier: Here, rewarded ads are associated with daily gifts or bonuses. Watching an ad can double or triple the gift amount.

3. Multiplier at the End of the Game: Similar to the daily reward multiplier, this placement offers the opportunity to multiply collected coins or points after completing a level.

4. In-Game Boosters and Hints: These ads are presented as an option to gain extra game boosters, hints, or other game resources, providing a beneficial edge during gameplay.

5. Ads in the Game Store: Another effective placement is within the game store itself, where players can watch an ad to get a discount on virtual goods or even acquire them for free.

The strategic placement of rewarded ads contributes largely to their success, granting game developers both monetization and user engagement.

“Out of Lives” Ads

“Out of Lives” ads are incorporated into a game when a player runs out of lives to continue their gameplay. This strategy creates an urgency in the players, encouraging them to watch a short video ad to gain extra lives and continue playing.

Critical aspects to keep in mind for this ad placement are:

• Timing: The ad should pop up promptly when the player has no lives left, capitalizing on the player’s high motivation to continue their game. Delaying this could result in loss of player interest.
• Reward: The ad should clearly state the reward—a new life—in exchange for watching it. The clear declaration of incentive can significantly affect the likelihood of players choosing to interact with the ad.
• Non-intrusiveness: Ensure that players are not forced to watch the ad; they must have the option to close the ad and exit the game if they so choose. This maintains the game’s user-friendly reputation and respects the player’s control over their gaming experience.
• Friction points: It’s essential to minimize friction points during ad serving, such as buffering, poor video quality, or delays in delivering the promised reward. These technical issues could sour the player’s view of the game.

Daily Reward Multiplier

The concept of Daily Reward Multiplier lies in its ability to provide users with incremental advantages every time they engage with an advertisement. This incentive scheme enhances the user’s gaming experience and contributes to more active user engagement.

Key Points:

• 1. Increased Engagement: The more users engage with advertisements, the larger their rewards. This multiplier effect incentivizes daily user engagement.
• 2. Enhances User Experience: By choosing to view an advertisement, users can get several times the rewards than usual, making the gaming experience more enjoyable and rewarding.
• 3. Advertisers’ Benefit: Increased viewing of ads can lead to higher click-through rates, benefiting the advertisers.
• 4. Developers’ Advantage: This model provides the twin benefit of higher revenue through ads and increased user retention, as players are likely to return daily for their rewards.
• 5. User Retention: The anticipation of daily increased rewards provides a compelling reason for users to return to the app daily, promoting user retention.

Multiplier At the End of the Game

The multiplier ad concept at the end of the game offers users an increase in their play-time earnings. One ideal method to boost user engagement, this approach frequently entices gamers to sit through an ad to magnify their points, coins, or other game currencies, elevating the gaming experience.

Key points:

• 1. Multiplier ads are activated post-play.
• 2. They offer a higher in-game currency or points for the session.
• 3. Users typically engage with the multiplier ad for reward amplification.
• 4. Effectively enhances the overall user experience, generating higher cumulative benefits.
• 5. Requires careful balance to prevent diluting the value of in-game rewards.
• 6. Popular strategy across various game genres.

In-Game Boosters and Hints

Within the gaming environment, placing rewarded video ads that offer in-game boosters and hints can serve as a significant real-time aid for users stuck at challenging levels or missions. This strategy provides immediate value to the users, encouraging them to engage with the ad.

1. Immediate Assistance: This ad placement offers users a quick solution to their in-game problems, unlocking a booster or providing a hint when a user needs it most.

2. Increasing Engagement: Such ads can encourage users to continue gameplay by offering a way to overcome difficult sections, maintaining user engagement and potentially increasing play sessions.

3. Value Exchange: Users receive a tangible, immediate reward in the form of a hint or boost, making interaction with the ad more appealing.

4. Personalization: It’s crucial to place such ads where they are most relevant, aligned with user’s gameplay and style, ensuring the experience feels personalized and more valuable.

Remember that the aim is not just to boost ad engagement, but to improve the overall user experience, keeping users engaged and achieving a successful balance between ad monetization and user satisfaction.

Ads in the Game Store

Integrating rewarded video ads into the game store can prove beneficial for both game developers and players. It happens when players get a chance to watch an ad in exchange for some in-game currency or item discounts in the game’s virtual store.

1. Game Store Visibility: These ads often appear subtly, placed alongside purchasable items. If used tactfully, they can enhance visibility without compromising user experience.

2. Lure to Make Purchase: The offer of complimentary in-game currency or a hefty discount can encourage hesitant players to explore the store and make purchases.

3. Frequency Management: Crucially, determining optimal frequency of these ads prevents oversaturation, maintaining a balance between user enjoyment and profit generation.

Discount for In-App Purchases

Implementing discounts for in-app purchases through rewarded ads can significantly increase user engagement and boost revenue. Users, in their desire to maximize their gaming experience, often look for ways to unlock special features, gain premium content, or enhance their gameplay.

Key points about this mechanism include:

• 1. Potent stimulant: Offering discounts through rewarded ads stimulates in-app purchases by providing users with a sense of obtaining more value for their money.
• 2. High engagement: Users are more likely to watch ads that offer discounts for in-app purchases, engaging them further into the app.
• 3. Enhanced user satisfaction: A successful purchase following a discount triggers a sense of achievement in users, thereby increasing satisfaction and app usage.
• 4. Revenue boost: Higher engagement and in-app purchase rates lead to an overall increase in revenue.
• 5. App Loyalty: Discounts can result in higher user retention and loyalty, establishing a long-term user base.

Examples of Rewarded Video Ads Integration in Top Mobile Games

To effectively illustrate the concept, let’s delve into some prominent examples drawn from the gaming industry:

1. Clash Royale: Supercell’s popular strategy game utilizes rewarded ads to distribute free chests to players. Viewing an ad provides a direct reward, promoting engagement and extending gameplay.

2. Candy Crush Saga: This sweet adventure offers players extra lives or moves in exchange for watching an ad. This integration keeps players invested for longer durations and enhances their overall gaming adventure.

3. Fortnite: Epic Games’ cultural phenomenon gives gamers the option to earn V-bucks, the in-game currency, through rewarded ads. This makes an appealing offer for those wanting to acquire new gear or access premium content.

4. Pokémon GO: Through rewarded ads, players are able to earn PokéCoins which can be used for in-app purchases such as pokeballs, eggs and more. Thus, creating a win-win situation for both developers and players.

These examples display how rewarded ads can be seamlessly integrated into games’ design and reward system, maintaining a balance between monetization and user experience.

Rewarded Video Ads ECPMs in Different Countries

The evaluation of eCPM (Effective Cost Per Mille) or the estimated earnings per thousand ad impressions varies greatly from country to country. This divergence in eCPM is influenced by factors such as the buying power of consumers, mobile penetration rates, as well as advertisers’ demand.

1. High-value markets: eCPMs are significantly higher in countries with robust economies like the United States, the United Kingdom, Germany and Canada. This is largely due to the increased buying power of consumers in these regions.

2. Emerging markets: While eCPMs in growing economies such as India, Nigeria, and the Philippines may currently be lower, growth projections indicate an upward trajectory. This reflects the increased mobile penetration rates and growing consumer affluence.

3. Variable eCPMs: Countries like Russia, Brazil, and South Africa have variable eCPMs, influenced by factors such as seasonal advertiser demand and local consumer trends.

Understanding these variations is indispensable for advertisers to optimize their ad placements and ensure the most effective monetisation strategy.

Rewarded Video Ads: Best Practices

To optimize the impact of rewarded video ads, consider the following best practices:

1. Clear Entry Point: Users should seamlessly negotiate the ad viewing process. Keep icons and call-to-action buttons noticeable, with intuitive placement ensuring easy interaction.

2. User Experience in Design: Ads designed in tune with the game or app aesthetics enhance the overall user experience. Interruptions should be minimal, and ad viewing voluntary.

3. Display Rewards: Maintain transparency with users about the rewards. Use visuals or a simple text message informing them about the potential gain from watching the ad.

4. Value for Users: The reward should resonate with the users’ needs. It may include virtual currency, points, game boosters, or exclusive content access.

5. Balance In-App Purchases and Ads: Avoid excessive reliance on either in-app purchases or ads. A balanced approach maintains user engagement and monetization.

6. Player Segmentation Strategy: Customize ads according to user behavior. Segmentation based on user data promotes a personalized experience.

7. Respect User’s Choice: Avoid pushy tactics in encouraging ad viewing. Let users decide whether they want to engage with ads. Remember, user experience always comes first.

How to Create a Clear Entry Point for Ads

Providing clarity and enticing visuals are core in creating a distinct entry point for ads. Implement the following strategies:

1. Visual Cue: Use graphical elements that are noticeable yet blends smoothly with the app’s overall design. This could be an icon, an arrow, or a button carefully placed so that it naturally catches the users’ eyes.

2. Contextual Placement: Position the entry point strategically within the app experience where it’s relevant and has the highest chance of gaining attention. This could be after completing a task, at the start of a game level, or at a break point within the content.

3. Clear Text Label: Accompany graphical cues with a concise text label such as ‘Watch for Rewards’ or ‘Earn Bonus’. This helps users understand what they stand to gain from interacting with the ad.

4. Easy Access: Ensure the entry point is readily accessible at different stages of the app use. It should not require extensive navigation or multiple steps to reach.

Remember, the aim is to make the ad experience a seamless part of the app journey while clearly indicating the rewards enticing enough for users to opt-in voluntarily.

Consider User Experience in the Design of Rewarded Ads

Ensuring a positive user experience in the design of rewarded ads necessitates a delicate balance. It’s crucial that the ads do not interrupt or devalue the overall gaming experience.

Here are a few key points to achieve this:

• Ad Placement: Place ads at natural transition points within the app to minimize disruption of the user flow.
• Timing: It’s essential to choose an appropriate time for ad display. During pauses or breaks within the game, users are usually more open to interfacing with ads.
• Transparency: Clearly communicate the rewards users will get before they view the ad. This helps to create a sense of value and fairness.
• Relevance: The ad content should align with the user’s interests as closely as possible. Using machine learning algorithms can help in delivering personalized ad content.
• Ease of Exit: Users should have the option to close the ad without difficulty. Forcing users to watch an ad to completion could lead to frustration and app abandonment.

Remember, a well-designed and strategically placed rewarded ad enhances the user experience rather than detracts from it, making it a seamless part of the gaming flow.

Importance of Displaying the Reward

It’s crucial that the user knows what they are receiving in exchange for watching an ad. A clear display of the reward facilitates this. It reinforces the value proposition, primes user expectations, and drives watch completion rates.

Key points to consider while displaying the reward:

• Clarity: Be explicit about the rewards. Use clear visual cues and simple language to describe the benefits. For instance, “Watch this ad for 500 coins” offers a clear picture of what the user stands to gain.
• Relevance: Ensure the reward matches in-game demand. Offering bonuses that aid the game progress, like extra lives, power boosts, or exclusive content, creates higher user interest.
• Timeliness: Display the reward before the ad plays. This provides context and incentivizes the viewer to complete the ad. Also, award the incentive immediately after the ad for instant gratification.
• Variety: A mix of rewards keeps the user engaged. Rotating between different rewards prevents user fatigue and maintains interest in the ads.

Remember, an effectively displayed reward could be the difference between a user skipping the ad or watching it in its entirety.

Making Rewarded Ads Valuable for Users

For users to be intrigued and interact more with rewarded ads, inherent value must be established. This value manifests in several forms.

1. Immediate Rewards: Instant gratification can motivate users to view ads. The reward has to be significant enough to match the user’s invested time, such as virtual currency or premium content.

2. Relevance: Tailoring the rewards to the specific user interests leads to a higher satisfaction rate and interaction.

3. Progression Benefits: If rewards aid user progression in the app, such as game power-ups, they will likely be more sought after.

4. Voluntary Engagement: Rewards should be offered without interfering with the user flow. Forced views generally result in less engagement.

Focusing on such factors can make rewarded ads a valuable interaction rather than a disruptive nuisance.

Balancing In-App Purchases and Ads

Balancing the use of rewarded ads and in-app purchases (IAPs) is a delicate art that targets maximizing revenue while providing a seamless user experience.

1. User Value: Provide substantial value to users through ads and IAPs. Don’t let ads overshadow the essence of the game.

2. Frequency Limit: Avoid overwhelming the user with ads. Frequency capping can be useful in maintaining this balance.

3. Non-Intrusive Ads: Position ads in such a way that they do not interfere with gameplay. Place value in voluntary ad interactions.

4. Coordination of Ad and IAP: Ensure that the ads do not compete with IAPs. For instance, refrain from providing rewards through ads that are similar to those obtainable via IAPs.

5. Deep Analysis: Understand player behavior analytics to identify patterns and preferences. Use this information to strike the right balance between ads and IAPs.

Striking the balance not only maintains user engagement but also drives app monetization.

Player Segmentation Strategy for Effective Ad Placement

To capitalize fully on the benefits of rewarded ads, developers need to deploy a detailed player segmentation strategy. This involves categorizing players based on particular characteristics, behaviors, and engagement levels.

1. Identifying Heavy Users: These are players who enjoy and engage with your game frequently. For them, in-app purchases are usually more effective than ads.

2. Casual Users: Casual players might not be willing to make in-app purchases. However, they often respond well to rewarded ads that can enhance their game play without any financial outlay.

3. New Users: Just as their name implies, these are users who’ve recently discovered your game. A strategic blend of both in-app purchases and rewarded ads can help to strengthen their attraction and commitment to your game.

4. Dormant Users: These users have lost interest along the line. Dormant users might respond well to rewarded ads, which can re-engage them by offering enticing benefits.

Analyzing these segments properly allows a more targeted and effective ad placement, thereby maximizing both engagement and revenue.

Avoiding Overuse of Rewarded Ads

Strategic deployment of rewarded ads is critical, as constant bombarding can lead to user fatigue and disengagement. Consider the following strategies to avoid ad overuse:

1. Timing: Align ads with natural breaks in gameplay to not disrupt user experience. An abrupt insertion can be off-putting and lead to app abandonment.

2. Frequency: Determine the optimal frequency of ads based on user feedback and data analytics. Too many ads can decrease engagement, whereas fewer, well-placed ads are often perceived as helpful and engaging.

3. Transparency: Make sure users are aware that an ad is about to play and clearly communicate the reward they will receive. Surprises are often unwelcome in this context.

4. Reward Value: If ads are overused, the value of rewards decreases over time. Therefore, design the reward system in a way that drives user engagement without overwhelming them with too many ads.

These strategies safeguard user experience, foster positive associations with in-app rewarded video ads, and maintain overall engagement with the app.

Exploring the Pros and Cons of Rewarded Video Ads

To fully appreciate the value and potential drawbacks of rewarded video ads, it is essential to examine both the advantages and the challenges associated with this advertising format.

The primary attraction of rewarded video ads is user engagement. These ads often offer real in-game or in-app incentives, making the viewer more likely to remain engaged and complete the ad. The perceived value also encourages users to voluntarily interact with these ads, potentially boosting overall satisfaction levels.

Additionally, these ads allow game developers and app owners to generate revenue without disrupting user experience. Given their voluntary nature, users can control their ad interactions, providing a less intrusive advertising model.

There’s also data – plenty of it. User interactions with rewarded video ads give companies valuable insights into user behavior, preferences, and patterns, assisting in future marketing strategies and game development decisions.

However, challenges also accompany these benefits. The balance between in-app purchases and ads can be delicate. Too many rewarded ads might detract users from making in-app purchases, affecting the overall profitability.

It is also crucial to avoid overusing rewarded ads within the app, as excessive ad saturation can lead to user frustration and app abandonment. Lastly, the design and content of the video ad must be appealing and suitable for the target audience – an aspect that warrants dedicated resources and continuous optimization to ensure success.

• User Engagement: Rewarded video ads often result in higher user engagement due to in-app rewards.
• Revenue Generation: These ads provide an extra revenue source without disrupting the user experience.
• Valuable Insights: Interaction data can guide future marketing and development strategies.
• Balance: Too many ads might reduce in-app purchases, affecting profitability.
• Saturation: Overuse of rewarded ads can lead to user dissatisfaction.
• Design and Content: These ads require continuous optimization and resource investment.

Engaging Users With Reward Videos

To ensure a high level of engagement with rewarded video ads, content creators should focus on the following aspects:

• User Relevance: Tailor the ads to suit individual user preferences. Utilizing user data for personalization can significantly boost engagement.
• Time Factor: Introduce ads at suitable points – for example, between game levels or sections, not interrupting user experience.
• Ad Quality: High-quality graphics and appealing narratives capture users’ attention and keep them engaged.
• Clear Rewards: Users should know what they earn from viewing ads. Clear, immediate rewards pique interest and get better interaction.
• Interactive Elements: Adding interactive components to ads encourages active user participation and holds their attention longer.

These strategies help developers strike a balance between monetization and user experience, driving engagement without frustration.

The Impact of Rewarded Ads On User Engagement

Rewarded ads play a critical role in influencing user engagement. Let’s delve into a few salient points:

1. Increase in Playtime: Rewarded ads have shown a significant impact on boosting average session lengths. With the promise of rewards, users are encouraged to interact with the ad and continue their gameplay, increasing overall game session time.

2. Boost Retention Rates: Users are likely to return to the game if they know they have rewards waiting. This anticipation encourages them to keep coming back, thereby raising retention rates.

3. User Conversion: Rewarded ads have proven to turn casual users into committed players. By giving them a taste of the additional features or benefits the game offers provides an impetus to keep playing and explore further.

4. Foster Positive Experience: Ads are typically seen as disruptive. However, a well-designed rewarded ad doesn’t hinder the gameplay but enhances it by offering a positive user experience. This in turn fuels prolonged engagement.

Remember, the aim of rewarded ads should always align with amplifying user engagement. Careful strategizing is thus necessary to reap maximum benefits.

Comparing Effectiveness of Rewarded Ads to Other Ad Formats

While native, banner, and interstitial ads have had their time under the sun, rewarded video ads have risen as a powerful player in the online advertising sphere. This raise stems from their unique blend of high user engagement and potential revenue generation.

1. Engagement: Users willingly interact with these ads for in-game incentives leading to higher engagement and retention rate. Unlike banner or interstitial ads, rewarded ads are not a disruption but an added advantage.

2. Monetization: Advertisers are willing to pay more for rewarded ads due to the higher completion rate and longer view duration, thereby increasing eCPM and revenue for publishers.

3. Conversion: Rewarded videos tend to produce higher conversion rates. The user feels more invested in the product or service after earning a reward which leads to higher conversions than other ad formats.

4. User Experience: This format improves overall user experience. The voluntary interaction aspect and added incentives make these ads less intrusive and more likable.

5. Scalability: With rewarded video ads, advertisers have a likely chance of reaching a large number of users without the risk of ad fatigue, unlike banner or interstitial ads.

However, the effectiveness of rewarded video ads also depends on how well they are integrated into the game or app experience. This is a crucial fact for advertisers and publishers to consider while planning their ad strategies.

Understanding the Psychology Behind Rewarded Ads

Delving into the psychology behind Rewarded Ads elucidates why they are deemed highly effective.

1. Value Exchange Perception: Users view these ads as a fair trade-off. They willingly watch a short promotional video and in return, receive a tangible in-app benefit, fostering positive sentiment towards the advertiser.

2. Maintained Autonomy: The voluntary nature of rewarded ads empowers users, making them more receptive. Rather than feeling forced to view intrusive ads, they opt in according to their convenience.

3. Engagement Reinforcement: The rewards, such as in-game currency or extra lives, directly enhance user experience, prompting more frequent and prolonged interaction with the app.

4. Gratification at Receiving Rewards: When users receive rewards, their brains register a surge of dopamine, a neurotransmitter associated with pleasure and reward, triggering a positive emotional response which then gets associated with the ad and brand.

By comprehending these psychological elements, game developers and advertisers can better strategize their rewarded ad placements to maximize engagement, monetization, and overall user satisfaction.

FAQ

How much do rewarded ads earn?

Rewarded ads can potentially earn between $10 to $50 per 1,000 impressions, making them the highest earning category among all types of mobile video ads.

How much do AdMob rewarded ads make?

AdMob rewarded ads typically generate revenue ranging between $10 and $50 per 1,000 impressions according to recent analysis.

What are the benefits of rewarded ads?

Rewarded ads benefit app developers and users by escalating user engagement and retention, enhancing user satisfaction and loyalty, as well as boosting revenue and eCPM.

What is an example of a reward ad?

A reward ad is a type of advert where viewers, such as game players, receive incentives, like 20 additional lives, for watching a particular promotional video.

How do rewarded ads contribute to user engagement?

Rewarded ads contribute to user engagement by incentivizing interaction with app features, thus increasing both usage time and user loyalty.

What factors determine the cost of creating a rewarded ad?

The cost of creating a rewarded ad primarily depends on factors like the design complexity, duration of the ad, target audience demographics, advertising platform used, and the reach desired.

How are rewarded ads implemented into mobile games effectively?

Rewarded ads are effectively implemented into mobile games through strategic placement at non-intrusive points like at the completion of levels, offering enticing perks such as game coins, extra lives, or advanced features to engage players.