Driving Revenue with Rewarded Video Ads: A 2023 Strategy Guide
Rewarded video ads play a pivotal role in the game's growth strategy. Users watch ads and get rewards in return. Rewarded ads are a win-win for users, developers, and advertisers, but how?
What is a Rewarded Video Ad?
Rewarded video is a kind of ad unit that offers a reward to the users in exchange for opting in to interact with an advertisement. It provides an opportunity for the users to engage with a payable ad for rewards within the app. In a reward ad funnel, there are four segments-
Why Use Rewarded Video Ads?
The mobile gaming market is growing rapidly. Amidst the increasing competition, developers are looking for a way to engage and retain users. Striking a balance between monetization and user experience is critical for the mobile game industry. In such a scenario, rewarded ads have become one of the most popular ways to achieve that balance.
Five Essential Practices for Rewarded Video Ads
Typically, users dislike in-app ads as they tend to interrupt user experiences. However, when there is an exchange value, the ads become less intrusive. As per research, 62% of video game players prefer rewarded video ads. As a result, the proper implementation of rewarded ads can provide a positive user experience. Advertisers can leverage? VDO.AI’s? less intrusive and ad insertion solutions that generate better revenue with high click-throughs, more purchases, and leads
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2. Target Ads
It is important to segregate users into different groups. The segregation is based on user behavior and how the users are interacting with the ads. The best way to target users is by identifying the ads a user would be interested in. Advertising filters can help cater customized ads to gaming app users.
3. Partnering with Ad Networks
Partnering with an ad network will open up a lucrative chance for game developers to fill in ad inventories. The developers can set minimum CPM for the ad spaces so the ads will not be shown until they meet the pre-determined price. As a result, fewer ads will be displayed with greater revenue for the developers.
4. Surprise the Users
According to human psychology -? people love surprises; developers should surprise the users who frequently visit the app. Offering mystery rewards boost engagement. The game developers need to understand that unexpected rewards not only increase user satisfaction but also create suspense in the users to unlock a high-value reward. They will not mind watching multiple ads to earn mystery rewards.
5. Performing A/B Test
It is crucial for the developers to run an A/B test for the different types of rewards that they are going to offer to the users. The testing will help the developers understand which rewards are attracting the users. A/B testing will also help them determine the optimal offerings to monetize the app. While running the test, they need to follow these metrics: duration of the ad, type of reward, ad placement, and quantity per session.
Final Thought
76% of mobile game developers find rewarded video ads to be the most lucrative revenue generator. The format protects the core ad experiences and effectively provides a hybrid monetization model through in-app purchases. Besides increasing engagement, rewarded video ads are capable of converting users into customers over time.
A rewarded video ad is an excellent way of increasing revenue and quality impressions. VDO.AI can help you amplify your in-app ad experiences by using its incentivized ad technology and running ads that are less intrusive and more appealing to users at the same time. Contact us here to access the power of in-app ads.