Rewarded video ads:
Monetize your app with video ads

Rewarded video ads offer users a clear value exchange — users watch an in app video ad and receive rewards in return. Examples of rewards include in-app currency, premium content, etc. Rewarded ads are an excellent mobile video advertising strategy for apps looking to increase revenue and improve user experience.
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What is rewarded video?

Rewarded video is an ad unit that offers users a clear value exchange – users opt-in to watch a video ad and receive in-app rewards in return. They’re a win-win-win for users, developers, and advertisers. Users enjoy receiving free in-app content. Developers benefit from the industry’s highest eCPM rates. And advertisers get increased viewability and high click through rates.

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Monetizing mobile video ads:
How it works

Step 1: Offer

The user sees an offer for premium content in exchange for watching an in-app video ad.

Step 2: Watch

The user chooses to watch the video, and an enjoyable ad plays.

Step 3: Reward

The video ends. The user is returned to the app flow and earns their video reward.

What are the benefits of rewarded video ads?

Generate more ad revenue

How much do rewarded video ads pay? Rewarded video ads can increase your app revenue by 20% to 40%. Out of all the mobile video ads, rewarded video ads eCPM is the highest for app developers – the average rewarded video eCPM varies between $10 to $50.

Increase in-app purchases

Rewarded-based video advertising nudges non-paying users towards making in-app purchases by giving them a taste of the premium features they’re missing out on. Users who watch rewarded video ads are 6x more likely to make IAPs.

Improve user experience

Rewarded video ads are opt-in, meaning users get to choose whether or not they want to watch the ad. Unlike other ad formats which may disrupt the user, rewarded video contributes to a positive user experience.

Increase user engagement and retention

Users prefer to watch reward-based advertising rather than pay out of pocket for a premium feature. This allows them to continue playing your game for longer, increasing retention, in-app engagement, and lifetime value.

Strategies for increasing your rewarded video ad monetization revenue

Extend gameplay and add lives

Give users the opportunity to continue playing your game, even after they’ve failed. For example, ask users if they’d like to watch a video ad in exchange for extra lives, after they fail a level in your game. This lets them progress to the next level, which keeps them in your app and increases user retention and rewarded video ad revenue.

Provide game aid

If users are stuck on a difficult level and can’t figure out how to proceed, offer them the option to watch a video ad in exchange for a hint. Just place a small video icon on the side of your game at all times, and let users know that they can tap it for help.

Segment your users

Segment your users into two categories: loyal users who play often, and users who open your app once in a while. Give the latter segment big value rewards to tease them into coming back, and give your most loyal user lower value rewards. They’re already engaged and probably making IAPs.

Boost in-app purchases

Offer users a reward that’s similar to one of your best-selling in-app purchases. Users will end up purchasing that IAP since they’ll have gotten used to getting that premium content for free. Giving users a taste of premium content convinces them that your IAPs are worth the purchase.

Give random rewards

Spice things up, and don’t tell users what reward they’re getting. Set up a “Wheel of Fortune” or “Mystery Chest” and let users spin or unlock to collect random rewards. The mystery helps maintain suspense and keeps the thrill of the game lasting longer.

Mix up your ad units

It’s best to have a healthy mix of ad units, so be sure to also show users non-rewarded ads like interstitial ads, native display ads, interactive video ads, and more. If you offer users reward-based video advertising at every turn, you lower the value of the video reward – which can actually negatively impact user experience.

Rewarded video examples:
How top developers are exceeding KPIs with ironSource

PickCrafter boosts revenue by 165%

“ironSource offered a fast and seamless placement implementation within PickCrafter and the addition of rewarded video ads placements yielded significant engagement and revenue growth. From ad execution to reporting, ironSource has been a true and steady game monetization partner in every sense.”

– Chris Lewis, Co-Founder at Fiveamp

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Earn to Die 2 boosts engagement rate by 38%

“We always knew rewarded video mediation would be a smart way to approach monetization. We had to offer a variable reward that increased depending on the strength of the vehicle in the game, otherwise watching the video wouldn’t be worth our users’ time.”

– Jason Daskalopoulos, Senior Business and Marketing Manager at Not Doppler

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Big Fish doubles revenue

“After implementing rewarded video with ironSource, we saw double digit increase in revenue – both gross revenue across the entire game and also revenue coming directly from players who are engaging with IAPs. We saw those players actually choosing to spend more while they’re also experiencing rewarded video.”

– Jon Grande, Senior Director of Product Management at Big Fish

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Dots users ask for ironSource rewarded video ad unit

“We did a test where we actually took out ironSource’s rewarded video ad unit. But then we saw a lot of negative reviews in the Google Play Store. So we knew that users were very happy with the ad unit and it was incorporated well into the game.”

– Chris Calderon, Former VP of Marketing and Revenue at Dots

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The ad revenue generated per 1,000 ad impressions.

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The percentage of users who saw an ad and clicked on it.

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The ad revenue generated per 1,000 ad impressions.

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Lifetime value; the revenue a user generates throughout their lifetime within an app.

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The percentage of users who continue engaging with an app over time.

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Virtual goods users buy within apps, such as in-game currency, recurring subscriptions, etc.

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An ad unit which offers users opt-in to watch a video ad and receive in-app rewards in return.

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