Ads that users opt to view in exchange for an in-app reward—such as watching a video ad to gain an extra life in a game, read a news article, or access Wi-Fi at an airport—are known as “rewarded ads.” These ad experiences can enhance user engagement and provide a better overall app experience. According to a recent Google study, 50% of users indicated they would be less satisfied with their app experience if rewarded ads were eliminated.
More Satisfied Users, More Robust Ecosystem
Rewarded ads provide advantages to the entire advertising ecosystem, benefiting users, advertisers, and publishers alike.
- Users have control over their ad experience. By choosing to watch an ad (click-to-play) in exchange for an in-app reward, they access content that would otherwise require payment, leading to greater engagement.
- Advertisers benefit from a high-performing ad format, even in terms of classic video KPIs like completion rates. Rewarded video ads are highly viewable, and advertisers are willing to invest more in formats that drive higher user engagement.
- Publishers can increase their revenue with engaging ads. Rewarded ads allow them to diversify beyond an in-app-purchase (IAP)-only monetization model. While particularly effective for gaming apps, these ads also offer a promising alternative to traditional paywalls.
When approaching the creation of a reward system, consider carefully what would be most beneficial to users at that moment. Always ask, “Where is the optimal place for a user to see the ad so that it enhances—and doesn’t detract from—the user experience?”
- Avoid catching your users off guard: Seamlessly integrate the ad within the app’s content flow, ensuring it doesn’t surprise users. It should align with the current stage of the app’s content.
- Experiment with various incentives: Test out diverse reward options at different stages of the content to identify those that offer the most favorable experience to users.
Implement Rewarded Ads
Setting Up an Ad
When setting up an ad unit for rewarded video, there are two additional considerations to keep in mind:
- Sizes: Choose from all available sizes for interstitial ads: 320×480, 480×320, 1024×768, and 768×1024.
- Reward: By default, Ad Manager sets the reward to “1 reward” for watching a video ad. However, you can customize this by clicking to override the default. For instance, if the reward for watching a video ad is 20 extra lives in a game, you should enter a “Reward amount” of “20” and a “Reward type” of “lives.” Additionally, you can allow third-party ad networks to override these reward settings when using mediation.
Types of Ads and Rewards
You can select from various ad types for rewarded ads and configure different reward types.
1. Ad Types
- Video Ads: Choose between click-to-download video ads or non-skippable but closeable video ads.
- Interactive Ads:
- Playable Ads: These are click-to-download ads that let users try out a game within the ad unit. Afterward, users are given the option to download the app.
- Survey Ads: These ads ask users a question, and upon answering, users receive a reward.
2. Reward Types: Options include coins, extra lives, points, free experiences, or random rewards.
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