What Are Rewarded Ads? – Explained

Rewarded ads allow users to interact with advertisements in exchange for rewards, commonly seen in mobile apps or online games. User interaction together with profits has remained a major concern among websites, app developers, and advertisers. Among the extensions of the ad format, there is one that has gained high demand over the last couple of years: rewarded ads. These ads are different from most of what is currently in use in the market because they create incentives for the users, making them engage more with the advertisements, and resulting in a better user experience. 

First of all, it is important to know what are rewarded ads and how they can help websites and app platforms. In the context of this blog, we will introduce the reader to the topic of rewarded ads, describe how they work, and explain why this strategy is becoming increasingly popular among advertisers and publishers. 

Paid ads, on the other hand, are advertisement banners that are clicked intentionally by a user to be paid. The rewards could be anything from virtual currency in the application to getting access to new content or unique features of the site in case it is a web-based application. Unlike other ad formats that are intrusive or disrupt the user experience, rewarded ads give users the choice to engage in a mutually beneficial exchange: they receive a reward while the publisher gains their revenue in the vicinity of the ad. 

They are most popular in mobile gaming, though they are getting used on other platforms through rewarded ads. For instance, a web user on a news website may select a particular ad with which to complete different premium articles or any other content. 

The mechanics of rewarded ads are simple and effective. Users are given the option to watch an ad or complete a specific action (such as filling out a survey or downloading an app) in exchange for a reward. After the user completes the required action, they receive the promised reward, and the publisher gets compensated by the advertiser for the interaction.

Here’s a typical flow of how rewarded ads work:

1. 1. User Trigger: A user encounters a prompt within a website or app, offering a reward in exchange for watching a video ad or interacting with another form of ad content.
   2. Engagement: The user chooses to interact with the ad, which typically lasts between 15 to 30 seconds for video content. Other types of rewarded ads might involve completing a task, such as filling out a survey.
   3. Reward Delivery: After the user completes the interaction, they receive the promised reward, such as virtual currency in a game, access to premium content on a website, or other in-app benefits.

Rewarded ads offer a host of benefits to both publishers and advertisers, making them one of the most effective ad formats in today’s digital landscape.

Since users voluntarily choose to interact with the ad in exchange for a reward, they tend to be more engaged and attentive. Unlike banner ads or pop-ups that users might ignore, rewarded ads command full attention as the reward hinges on completing the interaction.

For publishers, rewarded ads often result in higher revenue compared to other ad formats. Because advertisers are paying for guaranteed engagement, they are typically willing to pay a premium for the exposure. This results in higher CPM rates, translating to more earnings per user interaction.

One of the most powerful benefits of rewarded ads is their ability to enhance user retention. By offering valuable rewards in exchange for ad interactions, websites and apps can encourage users to return more frequently. For instance, a user might visit a website more often if they know they can unlock premium articles or exclusive content by watching an ad.

Rewarded video ads work by offering users value in return for their engagement. The user, while in an app or on a website, is presented with an option: he or she gets a reward for some form of engagement with the ad, usually in the form of virtual currency or access to premium content. Examples of this action might include merely viewing a video, answering a series of questions, or installing an app. 

Once the user has executed the action called for, the promised reward is paid, and the publisher is paid by the advertiser. It typically consists of three steps: user trigger, which is the prompt to engage; engagement, which is the actual interaction with the ad; and reward delivery, which is the receipt of the incentive. This format adds value to the users’ experience in return for interaction with ads and will drive higher engagement rates.

While rewarded ads are most commonly associated with mobile apps, they are becoming an increasingly popular option for websites looking to enhance monetization. Websites that provide content behind paywalls or subscriptions can benefit from this ad format by offering users the option to unlock premium content through ad engagement.

Additionally, rewarded ads for websites can help publishers achieve better fill rates and higher CPMs, much like their app-based counterparts. With the ability to offer valuable content in exchange for ad engagement, websites can see improved monetization without compromising the user experience.

• Guaranteed 100% Fill Rates: It means no wasted advertising spaces on newspapers, magazines, billboards, television, radio, or any other media form. In rewarded ads, there isn’t a single position for an ad that won’t be taken, so no opportunity for making money slips through our fingers. As previously stated, full-fill rates indicate full potential!
• Earn 30% Higher CPMs: Gain 30% MORE for each ad impression! That is why advertisers adore rewarded ads, as they provide more engagement from users. The truth is that more of anything equals more money, and the fewest amount of attention is the least amount of money. This high-impact ad format is the best way to make the most of your ad dollars.
• Seamless UX Integration: Concerned about inconveniences your users are going to face? Well, don’t fret because the JustBaat UX team is here to help! Our ads are designed to be integrated directly with your design team to ensure they fit seamlessly into the platform; users will remain happy and your revenue will rapidly grow!
• Supercharge Your Inventory: Are you a company that already has ad placements? Boost their output! Rewarded ads provide for the conversion of the existing ad inventory into a money-making tool. It is important to get more value out of every impression, i.e., it has to be achieved without reducing the quality of the user experience.

Rewarded ads offer a unique and effective way to engage users while driving revenue for publishers. By allowing users to choose when and how they interact with ads in exchange for rewards, this ad format enhances the overall user experience and offers higher engagement and revenue potential.

Whether you’re a publisher seeking to maximize monetization or an advertiser looking to capture user attention, rewarded ads provide a win-win solution. As their adoption expands across websites, we can expect them to play a pivotal role in the future of digital advertising.