Mobile trends

What Are Rewarded Video Ads? A Comprehensive Guide

DALL·E 2023-10-30 17.11.27 - Isometric illustration of a cute computer desktop showing a vibrant video ad. Surrounding the computer are kawaii-styled icons like stars, gift boxes,

Rewarded video ads have been making waves in the mobile advertising landscape, and for good reason. These innovative ads offer a unique blend of user engagement, monetization potential, and enhanced user experience. If you've ever wondered, "What are rewarded video ads?" you've come to the right place. In this article, we’ll delve deep into the mechanics, benefits, and best practices surrounding rewarded video ads.

Understanding Rewarded Video Ads

At its core, a rewarded video ad is an interactive, full-screen video advertisement that users can choose to watch in exchange for in-app rewards. Whether it's additional lives in a game, in-app currency, or access to premium content, the rewards cater to the users' immediate needs, making these ads particularly effective.

How Do Rewarded Video Ads Work?

The process is simple yet engaging:

  1. A user is presented with an opportunity to watch a video ad, typically during breaks or transitional moments in an app or game.
  2. The user decides to watch the ad, often enticed by a clearly communicated reward.
  3. After watching the ad, the user receives the promised reward, enhancing their in-app experience.

Why Are Rewarded Video Ads So Effective?

1. Win-Win for Users and Developers: While users enjoy benefits like extra game lives or premium content, developers and advertisers reap the benefits of increased engagement and revenue.2. Superior Monetization Potential: With leading advertising technology, rewarded video ads can deliver significantly higher eCPM (effective cost per mile) than traditional ads.3. Enhanced User Engagement: By offering users a way to access premium app features without making a purchase, they're likely to spend more time within the app, boosting retention rates.4. Immersive Experience: Displayed in a native full-screen format, these ads provide a high level of immersion, ensuring users are genuinely engaged.

Best Practices for Implementing Rewarded Video Ads

1. Transparency is Key: Always communicate the exact reward users will receive for watching the ad. Clear messages like “Watch a video for another life” can be particularly motivating.2. Offer Valuable Rewards: Ensure the rewards are of tangible value to the users. For instance, in a gaming context, offering hard-to-get game items can be a strong incentive.3. Maintain Ad Frequency: A calculated ad frequency ensures a good user experience and stable ad revenues. For casual games, it's recommended to have a frequency cap based on the user's in-game time.4. Test Thoroughly: Before rolling out rewarded video ads, test all elements, from the ad presentation to the conversion funnel, to ensure a smooth user experience.


While rewarded video ads have a plethora of advantages, there are challenges developers and advertisers may face. One of the major issues in mobile marketing is ad fraud. By understanding and identifying challenges related to ad fraud, advertisers can ensure genuine user engagement and achieve optimal results. It’s essential to be proactive and utilize strategies to prevent ad fraud, ensuring the legitimacy of user interactions.


One of the powerful tactics in improving user engagement is mobile app retargeting. When combined with rewarded video ads, retargeting can lead to impressive results. By creating a strategy that leverages retargeting, advertisers can re-engage lapsed users with compelling offers and rewards. It's an approach that can enhance the user experience, bringing them back to the app with relevant and timely content.


The success of rewarded video ads lies in the quality of user experience they provide. As the landscape of mobile advertising evolves, understanding the nuances of user experience (UX) becomes pivotal. A seamless UX ensures that users willingly interact with the ads, leading to higher conversion rates and satisfaction. Keeping the user at the forefront and crafting ads with a user-centric approach will be a key driver for success.


Technological advancements, particularly the rise of artificial intelligence (AI), have greatly impacted the realm of mobile advertising. AI tools and platforms can be utilized to craft compelling mobile ad creatives, making rewarded video ads more interactive and personalized. AI can analyze user behavior, preferences, and interactions, allowing advertisers to tailor ads that resonate more effectively with the target audience.


To determine the effectiveness of rewarded video ads, advertisers need to rely on specific metrics. Understanding how to calculate metrics like mobile ad conversion rate and mobile ad frequency can provide insights into the performance of the ads. Continuous monitoring and analysis ensure that ads are optimized for the best outcomes, aligning with the overall marketing goals and objectives.

The Future of Rewarded Video Ads

As mobile app usage continues to grow, so does the potential of rewarded video ads. These ads represent a harmonious blend of user engagement and monetization, making them a top choice for many developers and advertisers. With platforms offering advanced features and support for these ad units, the future looks promising.

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