5 Ways Rewarded Video Ads Drive Publisher Revenue

Rewarded video ads are a form of digital advertising that allows users to voluntarily watch a video in exchange for some form of reward. This reward could be in-game currency, extra lives in a game, premium features on an app, or other virtual incentives. Unlike traditional ads, rewarded video ads provide a positive user experience by giving something of value in return for the user’s attention.

For example, imagine a mobile game where a user is offered the chance to watch a short 30-second rewarded video ad in exchange for receiving bonus points or unlocking a special feature. This mutually beneficial exchange makes rewarded video ads a popular choice for both advertisers and publishers.

How Do Rewarded Video Ads Work?

Rewarded video ads work by incentivizing users to engage with the content in exchange for a reward. The process generally unfolds in a few simple steps:

• Ad Trigger: The ad is triggered when a user reaches a certain point in an app or game, or when a publisher opts to show the ad in a designated area (e.g., a pause screen in a game or a "reward" button in an app).
• User Interaction: The user is presented with the option to watch the ad in return for a reward. In most cases, this requires the user to click on a prompt that says something like "Watch Video for Reward."
• Video Playback: Once the user agrees to watch, the video ad is played. The video typically lasts anywhere from 15 to 60 seconds, depending on the format.
• Reward Delivery: After watching the ad, the user receives the promised reward, such as in-game currency, virtual goods, or access to premium features.
• Ad Reporting and Monetization: The publisher receives payment based on the ad performance, which is typically measured in CPM (Cost Per Mille, or cost per thousand impressions) or eCPM (effective Cost Per Mille, which takes into account all revenue sources, including rewarded video ads).

By incorporating rewarded video ads, publishers can engage users in a way that is non-intrusive and mutually beneficial.

Rewarded Video Ad Best Practices

To ensure that rewarded video ads are both effective and well-received by users, publishers should follow certain best practices. Here are some key guidelines for maximizing the potential of rewarded video ads:

• Interstitial Ads: Rewarded video ads should be interstitials, meaning they appear at natural breakpoints during gameplay or app usage (such as between levels in a game or when switching between pages in an app). This ensures the ad is shown when the user is most likely to engage with it and minimizes disruption to their experience.
• User-Initiated Ads: Ads must be user-initiated. This means the user should have the option to choose whether or not to engage with the ad. Forced video ads are less effective and can create negative feelings toward the app or game. Ensuring that the user actively clicks to initiate the ad is essential for maintaining a positive user experience.
• Video Must Automatically Play: Once the user clicks to watch the rewarded video, the ad should automatically play without requiring any additional interaction. This eliminates any friction and ensures a seamless experience for the user.
• Video Length: The length of the video ad should be between 15 and 60 seconds. This is the optimal range that balances providing enough time for advertisers to deliver their message while keeping users engaged and avoiding frustration. Anything too long may lead to user drop-off, while shorter ads may not be as effective in communicating the brand's message.
• Non-Skippable Ads: Rewarded video ads should be non-skippable once the user has selected to watch them. Since the user has agreed to watch the video in exchange for a reward, it's important that they complete the ad to ensure the publisher gets paid. Additionally, non-skippable ads allow advertisers to deliver their message without interruption.

By following these best practices, publishers can optimize the effectiveness of their rewarded video ads and create a more positive experience for their audience.

Key Benefits of Rewarded Video Ads for Publishers

Rewarded video ads provide a wide range of benefits for publishers, including:

• Enhanced User Engagement: Rewarded video ads offer users a choice, which makes them feel more in control of their experience. This voluntary engagement leads to higher retention and overall satisfaction.
• Increased Revenue: With rewarded video ads, publishers can generate additional revenue from users who are willing to engage with ads in exchange for rewards. This model is especially beneficial for mobile games and apps that rely on in-app purchases but want to offer non-paying users a chance to access premium content.
• Non-Intrusive Advertising: Since the user opts into the ad, it creates a non-intrusive experience. Unlike pop-ups or banner ads, rewarded video ads don’t disrupt the user’s activity, leading to less ad fatigue and a more favorable view of the advertising experience.
• Higher eCPM: Rewarded video ads generally have higher eCPMs compared to other ad formats because they tend to generate higher engagement rates and offer advertisers a more engaged audience.
• Global Reach: Rewarded video ads can be used in both apps and games across different regions, helping publishers monetize their content on a global scale.

By taking advantage of these benefits, publishers can create a more sustainable revenue model while providing users with a rewarding experience.

5 Ways Rewarded Video Ads Drive Publisher Revenue

Higher User Engagement Leads to More Ad Views

Rewarded video ads increase user engagement by offering something of value in return for watching the ad. This voluntary engagement leads to higher view-through rates (VTR), which can result in  more impressions and greater revenue. Higher engagement rates also improve the overall effectiveness of the ads, leading to better performance for advertisers and higher eCPM for publishers.

Monetizing Non-Paying Users

Not all users will make in-app purchases, especially in free-to-play games or apps. Rewarded video ads provide a way for publishers to monetize these non-paying users. By offering virtual rewards such as in-game currency or premium content, publishers can create an additional revenue stream without alienating their user base.

Increased Ad Completion Rates

Since users are voluntarily engaging with the ad in exchange for a reward, completion rates for rewarded video ads tend to be much higher than those of other ad formats. High completion rates are beneficial for both advertisers and publishers because they signal to advertisers that their message is being fully viewed, which leads to higher payments for the publisher.

Effective Cross-Promotion Opportunities

Rewarded video ads provide an excellent opportunity for publishers to cross-promote their own apps or games. For example, a game publisher can offer in-game rewards for users who download and install other games from the same developer. This strategy helps drive more traffic to other properties while generating additional revenue.

Rewarded Video and Monetization Mix: Maximizing Yield Through Engagement and Strategy

Rewarded video ads drive higher eCPMs through increased user opt-in rates and completion metrics. Publishers can leverage a range of monetization strategies—including direct deals, mediated ad networks, and programmatic channels—to optimize yield.

Conclusion

Rewarded video ads are quickly becoming a cornerstone of publisher monetization strategies. With their ability to enhance user engagement, increase ad views, and provide valuable rewards to users, they offer a powerful tool for driving revenue. By adhering to best practices and implementing the right strategies, publishers can harness the full potential of rewarded video ads to boost revenue and create a better overall user experience. Whether you're running a game, app, or website, incorporating rewarded video ads can open up new revenue streams while keeping users engaged and satisfied.

So, if you're a publisher looking to optimize your ad strategy, it's time to consider the power of rewarded video ads and explore the many ways they can drive your revenue to new heights. Ready to get started? Contact CPMStar to start using rewarded video ads and unlock your monetization potential.