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Advantages Of Video Ads for Publishers: The Efficiency Of Rewarded Video

Updated 10 months ago • 2 min to read

Advantages Of Video Ads for Publishers: The Efficiency Of Rewarded Video

During the coronavirus lockdown, the average time spent on mobile apps and games increased by 20% compared to the pre-pandemic era. It is an excellent chance to start monetizing your product through mobile advertising, with rewarded video ads being one of the most efficient tools.

What is a rewarded video?

Rewarded video is a type of ad where the user receives a reward for viewing a video. For instance, the player is out of lives, and the game may suggest watching a short video in exchange for an extra life. To get this reward, the user must finish watching the clip.
This advertising format offers a fair exchange for both sides – the user gets the desired prize, whereas the advertisers get the views they need. The viewers can be rewarded with in-app currency, premium content, and free use of paid features.

This is how it works:

  • The game comes to the point where an ad comes up;
  • The user is offered to watch the ad and get a reward;
  • The player watches the ad to the end;
  • After that, the user gets an award.

A lot of users agree to such an exchange. According to the statistics from open sources, about 71% of mobile game users prefer watching rewarded videos to paying for goods or benefits; 62% of those do it regularly.

Benefits of video advertising for app owners

Rewarded video ads as a monetization tool are suitable for literally any type of gaming application. However, they have proven to be most efficient in free-to-play mobile games.
Here is what app owners get when using rewarded videos:

  • Increased in-app purchases. The video ads prompt your users to buy in-app goods as they get the chance to try premium features;
  • Increased ad revenue – video advertisements provide the highest CPM (cost per mile) rates for the publishers;
  • Improved user engagement and retention. More than half of the users prefer watching videos in exchange for various bonuses that allow them to spend more time playing their favorite game. As a result, the app displays better engagement and retention rates;
  • Optimized user experience due to the fact that ad viewing is voluntary. In contrast to other, more disruptive advertising formats, it is the user who decides whether to keep playing or not.

How to start monetizing your app with videos right now

Using rewarded video advertisements in your application is a great way to provide a high number of quality views which, in turn, will increase the revenue of your product. By offering your players valuable rewards in exchange for video views, you will reach excellent rates of engagement and a number of clicks.

The Adsgard team offers you an extensive library of rewarded video formats and templates that are organically embedded into applications. Apart from that, you get hold of the wide range of possibilities provided by classic types of video ads with support of different formats, transcoding, related ad display, etc., along with the integration with trusted partner video platforms and other benefits.

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