Vero Wiedemann01 December

What are Rewarded Ads and how do they work?

Rewarded Ads are an innovative advertising strategy in the field of mobile applications. They distinguish themselves by offering users a unique and beneficial advertising experience. But what exactly are they and how do they operate?

In essence, they are a type of banner ad that rewards users for their active participation, either by watching a promotional video, interacting with a brand or completing a specific action.

Rewarded Ads have found fertile ground in a variety of application categories, with a primary focus on the gaming industry. However, its usefulness has extended to media applications, training, dating and more. They are particularly well suited to environments where users are looking for an immediate benefit in exchange for their time and attention.

They work intuitively, starting with a strategic invitation for users to view an ad in exchange for a reward. Participation is voluntary, as users have the choice to accept or decline the offer. If they accept, a short video advertisement is played, and at the end, users receive the promised reward.

Another even more interactive way in which these ads work is what is known as “Offerwall”, which consists of a wall on which different offers defined by certain brands appear in exchange for the user performing certain actions.

So, in that offerwall, for example, there may be a food brand that offers a discount on the purchase of a hamburger or a Fintech application that offers a cashback. The extra of this proposal lies in the fact that the user has several possible actions and chooses the most convenient and convenient one.

What are the benefits of using Rewarded Ads?

The implementation of Rewarded Ads offers advantages for users, app developers and advertisers alike.

For users:

Users obtain tangible rewards, such as extra lives, virtual in-game coins, power-ups, among others. This approach not only provides a positive user experience, but also encourages active interaction with the advertising.

For developers:

For developers, these types of ads are an effective way to monetize their applications without interrupting the user experience. Rather than relying solely on in-app purchases, rewarded ads allow you to generate revenue while keeping users engaged.

For advertisers:

Advertisers benefit by reaching an engaged audience. Users who choose to view Rewarded Ads are more willing to pay attention, which increases the effectiveness of the advertising.

Types of rewards

The most common rewards include:

• Resurrection: Provide extra lives or the ability to continue from a specific point in the game.
• In-game money: Provide virtual coins or special rewards to advance in the game.
• Easily level up: Allow users to advance levels or unlock hidden levels.
• Enhanced experience: Offer upgrades to the game experience, such as additional speed, improved weapons or exclusive items.

What is needed to implement them?

Its effective implementation requires consideration of several aspects, such as the choice of the right ad network and the integration of ads in a non-intrusive way. Here are some key steps:

Choice of Ad Network: Select a reliable ad network compatible with Rewarded Ads, such as Google AdMob, Facebook, or BidMachine.

Seamless integration: Ensure that ad integration is subtle and does not disrupt the user experience. Strategic location is crucial.

Ad network optimization: Use ad network optimization features to maximize ad revenue and visibility.

Are rewarded video ads really effective?

The effectiveness of Rewarded Ads is not just a perception; it is backed by data and tangible results that have transformed the way apps generate revenue. Let’s examine why these ads have become so influential:

• High user participation

Rather than being an unwanted interruption, these ads offer users the option to participate in exchange for valuable rewards, leading to significantly higher participation rates.

• Retention and engagement

Users, motivated by the rewards, tend to visit the application more frequently. This strategy not only generates advertising revenue, but also improves loyalty.

• Monetization of non-paying users

For those users who are unwilling to make in-app purchases, Rewarded Ads offer a valuable alternative. Instead of using the application despite the ads, users can use it because of the ads, changing the dynamics of monetization.

• High advertising revenues

These advertisements have proven to have exceptionally high click-through rates and customer retention. This effectiveness translates into higher advertising revenues than many other advertising formats.

Best practices for the use of Rewarded Ads

1. Strategic Placement: The placement of ads within the application is crucial. Identify moments or points of natural interaction where offering rewards makes the most sense. For example, when a user runs out of lives in a game or messages in a dating app.
2. Offer attractive rewards: The effectiveness of Rewarded Ads is directly related to the attractiveness of the rewards offered. Make sure the rewards are sufficiently valuable to users.
3. Custom Ad Filters: Adjust filter settings so that rewarded video ads are targeted to users who are most likely to engage and convert.
4. Track relevant metrics: Constantly track metrics such as eCPM, click-through rates and user retention. Use analytical tools to evaluate ad performance and make informed decisions.
5. Uninterrupted user experience: Although Rewarded Ads are a form of advertising, it is crucial that they do not abruptly interrupt the user experience. Make sure that participation in ads is optional and that users have the option to continue without seeing ads if they wish.
6. Constant content updates: Keep content and rewards fresh to avoid user fatigue. Regularly update value offers to maintain interest and participation.

Trends for 2024

By 2024, several trends are on the horizon in the world of Rewarded Ads. These trends reflect not only technological changes, but also evolving user preferences and expectations. Here are some key areas to keep in mind:

Increased customization:

Ad personalization is a growing trend. Instead of showing generic ads, Rewarded Ads are expected to become more personalized based on user preferences and behaviors. Advertisers will need to invest in technologies that allow them to segment audiences more effectively.

2. Augmented reality integration:

Augmented reality is a technology that has gained ground in a variety of applications, from gaming to shopping experiences. Rewarded Ads are expected to leverage it to deliver more immersive and engaging advertising experiences.

Gamification of advertisements:

These ads already have an intrinsic connection to gaming, ad gamification is expected to intensify. Advertisers will look for creative ways to turn ad viewing into a fun and playful experience for users.

4. Interactive video ads:

It will be advisable to offer users the possibility to participate directly in the ad experience. This allows them to feel that they have an active role in the story of the ad.

5. Advertising in messaging applications:

With the continued growth of messaging apps, Rewarded Ads are expected to become more integrated into these spaces. Rewards could include premium emojis, featured messages or access to exclusive features.

6. Greater transparency and user control:

As privacy becomes more critical, advertising platforms are expected to provide users with greater control over the collection and use of their data. Transparency in advertising will be essential to build user trust.

We should not forget that staying on top of these trends can give app developers and advertisers a significant advantage in the competitive world of mobile applications.

Frequently Asked Questions

1. How are Rewarded Ads different from other types of mobile advertising?

In that they stand out for their “reward for participation” approach. While other types of ads can be intrusive, Rewarded Ads offer something valuable to users in exchange for their attention, creating a more positive experience.

What are the most effective rewards?

The most effective rewards are those that are directly related to the user’s experience in the application. Extra lives, in-game currency, character upgrades or items that facilitate progress in the game are popular options.

3. Is this format only for gaming applications?

Although games have been pioneers, their use is expanding to other categories of applications. Media, messaging, fitness apps and more are using them to improve user retention and generate revenue.

4. How can I prevent Rewarded Ads from negatively affecting the user experience?

Location and relevance are key. Place them at natural times of application. Also, make sure the rewards are meaningful and relevant to the user.

5. What impact does personalization have on your effectiveness?

It is significant. Displaying ads that align with user interests and behaviors improves the likelihood of engagement and satisfaction.

How can I measure the effectiveness of my Rewarded Ads campaigns?

Metrics such as participation rates, completion rates and impact on user retention are key indicators. Use analytical tools to evaluate performance and adjust your strategies as needed.

7. Are they suitable for all applications?

While they can be adapted to a variety of applications, it is crucial to consider the nature and dynamics of your application so that the ads make sense and don’t come across as invasive.

8. What are the risks of relying too much on Rewarded Ads?

Relying exclusively on this format can make monetization vulnerable to changes in user preferences. Diversifying monetization strategies is advisable to reduce risks.