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Rewarded video ads: Earn revenue with video ads

Rewarded video ads are an essential part of a game’s growth strategy — users watch an in-app video ad and receive rewards in return. They’re a win-win-win for users, developers, and advertisers. But how?

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What is rewarded video?

Rewarded video is an ad unit that offers users a reward in exchange for opting-in to interact with an ad – a clear value exchange. These rewards come at times when they’re very much needed and take the form of in-app currency, premium content, etc. Rewarded ads benefit developers by increasing revenue, user engagement and retention, while advertisers gain significant exposure to their target markets.
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Video ad monetization:
How it works

How much do rewarded video ads pay on apps?

20%-40%

Increase in app revenue

$10-$50

Average rewarded video eCPM

What are the benefits of rewarded video ads?

For users
Enjoy a positive user experience

Rewarded video ads are opt-in, which means users can choose whether or not they want to watch the ad. The best part is that users only have to spend time, not money – they can get rewards as far into the game as they want without having to pay. And because they don’t disrupt the user, they contribute to a positive user experience.

For developers
Increase user engagement and retention rates

With rewarded video, users are able to progress faster and enjoy premium content for free. This leads to increased retention rate, engagement rate, and lifetime value. In turn, rewarded videos generate more revenue and increase IAPs – more money! Learn more about rewarded video monetization.

For advertisers
Optimize viewability and CTRs

The goal is for the user to watch through the whole ad. The best part of rewarded video ads is that the advertisers only have to pay for the ad when the user watches the whole thing. Rewarded video ads are like rocket fuel for advertisers, luring in positive experiences and valuable responses. Learn more about rewarded video user acquisition.

How to increase rewarded video ad revenue

Remove latency with progressive loading

Latency is a strong indicator of user experience. Exclusive to ironSource, progressive loading is a valuable way to ensure rewarded videos are delivered with zero latency. Our engine makes sure that the next rewarded video ad is ready at all times throughout the user’s session, including when an ad closes.

Use in-app bidding

Activating in-app bidding will strengthen the competition for each impression, make sure there is never money left over on the table for the placement, and increase accuracy on bids received in real time. With in-app bidding, it’s impossible to undersell the impression. ironSource’s LevelPlay is the first platform to provide instant access to in-app bidding to developers of all sizes. Learn more.

A/B test a variety of placements

Good placements will make sure your rewarded video is highly visible and accessible, and are key to a valuable user experience. This is why testing out multiple spots and placing your rewarded video at as many spots as possible is so important. ironSource is the only mediation platform with a full suite of A/B testing tools. Learn more.

Segment users

It’s important to segment users into categories based on user behavior and how often they are engaged. Give the latter segment big value rewards to tease them into coming back, and give the most loyal user lower value rewards. ironSource’s segmentation tool applies different ad settings to users based on segments. Learn more.

Rewarded video ad examples

Jam City sees increase in rewarded video impressions and fill rate

Kiel LeBaron, Monetization Manager at Jam City

“What we saw was an increase in impressions and an increase in fill rate and this is through rewarded video, mainly, not banners. That was a surprise to us”
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Big Huge Games boosts rewarded video ARPDAU 3x-5x

Mike Laub, Senior Product Manager at Big Huge Games

“ARPDAU increased 3x-5x and rewarded video revenue grew by 50% as a result of increased player engagement”
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Moonee doubles rewarded video user engagement from 20% to 42%

“In a mere 3 weeks, user engagement for rewarded video doubled, from 20% to 42%, and DEUs (daily engaged users) went from watching 2 videos a day to 3.3”
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Expert insights to supercharge your rewarded video strategy

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4 tips for choosing video rewards that increase game engagement and ROI

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