What are Rewarded Video Ads? Everything You Need To Know!

Video ad formats are becoming more and more essential in reaching consumption and revenue goals. Rewarded video ad is therefore a unique format of the various types of ads available to developers and advertisers of the apps.

We will take our reader deeper into the topic of rewarded video ad formats, highlighting the various advantages, disadvantages, measures for optimal implementation, and comprehensive comparison with other formats, for instance, interstitial ad formats. Whether you are an advertiser, a publisher, or an app developer, you will find all the information you need to maximize your profit from rewarded video ads in this blog. 

Rewarded video ads can be described as brief, unskippable videos that users watch out of their own free will to receive rewards. These can be in the form of in-app currency, extra lives, access to premium content, or special features of the app. It is a pretty popular format in mobile gaming, where players can choose to watch an ad to have some kinds of advantages or special perks.

Rewarded video ads boast a great number of advantages that put them in the ranks of one of the best ad formats due to user engagement and monetisation.

Rewarded video ads attract more attention because users choose to watch them in exchange for rewards, making the experience feel voluntary and more engaging.

Offering rewards encourages users to watch ads, which increases the total views and clicks, leading to higher earnings for app developers or content creators.

By offering valuable rewards like in-game items, rewarded ads keep users coming back, improving long-term engagement with the app or platform.

Unlike traditional ads, rewarded video ads don’t interrupt the user experience, making it a more pleasant way to earn money from ads.

These ads can be personalized to match user interests, making them more effective and increasing the chances of users interacting with them.

Following are certain best practices that one can use to maximise the effectiveness of rewarded video ads:

Of course, rewards given in exchange for playing out the video should be relevant and in demand by the user. On gaming apps, rewards could include in-game currency, extra lives, or exclusive content.

In-app design integration of rewarded video ad viewing. Rewarded ads work best when placed at natural points in the gameplay or when a user needs, say, an extra life, hence enhancing the user experience.

Collaboration with design teams—for instance, the JustBaat UX team—can help in optimising the ad experience for better engagement. The smoother and more integrated the ad experience, the better the user interaction will be, hence assuring better revenue potential.

Rewarded video ads come with many advantages; however, challenges about them are not unknown:

The one time too many might be when users are interrupted to view ads, which will fatigue them and make them uninterested, hence less effective.

Similar to other digital ad formats, best rewarded video ads are also prone to fraud where users would forcefully go through getting the reward without necessarily having to watch the ad in its entirety.

The monetisation and user experience need to balance perfectly. Over-monetization could lead to dissatisfied users. It may even result in abandoning the app altogether.

Tracking the effectiveness of rewarded video ads can be challenging. Accurately measuring user engagement and the ad’s impact on revenue requires advanced analytics tools and careful interpretation of data.

Following are a few of the key differences that one should consider in the rewarded video ads revenue as compared to interstitial: For one, the rewarded video ad lets the user choose whether to watch or ignore the ad, while interstitials are always forced upon users at certain points within app usage.

Rewarded video ads are generally opt-in and incentivised, so they have much higher engagement and completion rates than interstitial ads, which can be easily skipped or ignored.

Both could be profitable in their ways, but best rewarded video ads often drive higher CPMs because of the value advertisers attribute to a guaranteed view and engagement.

Both could be profitable in their ways, but best rewarded video ads often drive higher CPMs because of the value advertisers attribute to a guaranteed view and engagement.

The good thing with rewarded video ads is that they not only guarantee a full-fill rate but in many cases also come with a 30% higher rewarded video ads cpm, thus making them among the most lucrative ad formats.

At JustBaat AI, the UX team closely coordinates with publishing design teams to ensure frictionless user experiences. Hence, ads integrate with the app in a non-interruptive way.

Rewarded video ads will finally unlock the full potential of the available inventory toward greater user engagement and increased revenue for the publishers.

Rewarded video ads have been a game-changer in the digital advertising space. They are one of the most effective ways to engage users, boost revenue, and improve app retention. This ad format pays off by giving users real value in return for the time invested and the attention paid, hence outstanding results for both the publisher and advertiser.

Build relevant rewards, keep your ads short, and make sure the experience is seamless. By following best practices and optimisations in ad experiences, rewarded video ads will finally release their real value and drive huge growth to your app or business. Do you know about rewarded ads? The mechanics of rewarded ads are simple and effective.