What are rewarded ads?

Rewarded ads are short advertisements that users can choose to view within applications or video games. By choosing to view these ads, users earn rewards such as virtual currency, extra lives or special bonuses. This format is based on user choice and encourages user participation, benefiting both users and developers and advertisers.

The idea is simple: users view a short ad in its entirety and, in return, receive valuable in-app or in-game rewards. These rewards can range from virtual currency and exclusive content to special in-game items.

However, rewarded video ads go beyond the traditional “watch and win” model. They transform the user experience, moving away from intrusive ads to offer a clear and transparent choice.

In this decision-based model, the user is not just a passive viewer, but actively participates in the advertising process, deciding when and how many times to watch ads with a specific goal: to earn rewards. This makes the advertising experience less intrusive and more organic.


Benefits for developers

For developers, rewarded ads are not only a monetization tool. They also help increase user retention, engagement and loyalty. Properly executed, they can transform the negative experience of viewing ads into a positive and desired interaction.


Benefits for advertisers

Advertisers get the full attention of users, which is not always the case with other ad formats. Unlike other types of ads that can be ignored or skipped, rewarded video ads ensure that the advertising message is fully seen and understood. This translates into higher completion rates and a more receptive audience, which enhances the transmission of the brand’s message.


Key facts about rewarded ads

71% of gamers prefer in-game video ads over paid in-app or in-app purchases.

54% of gamers choose rewarded video ads as their preferred video game advertising format.

62% of gamers regularly interact voluntarily with these types of ads.

62% of developers claim that user retention is maintained or increased with the introduction of rewarded video ads.

52% of mobile game developers report that rewarded video ads are the most profitable type of advertising within their games.


How do rewarded ads work?

Rewarded video ads operate on a simple but effective principle: they offer users a clear incentive to watch an ad. This format is common in mobile apps and games, appearing at strategic moments, such as between game levels or when the user needs additional resources.

Users choose to view these ads knowing that they will receive a specific reward upon completion. This could be bonus points, virtual currency or additional content. This choice-based approach not only ensures higher engagement rates, but also promotes a positive user experience.


Key benefits of rewarded ads

 

For users

Empowerment: The user decides when to see an ad. These ads never automatically play or force the user to watch them.

Assured reward: There is always an incentive, such as coins, extra lives or additional time.

Affordable access: This format reduces the need for in-app purchases, as users “pay” with their attention and time.


For developers

Increased user retention: Frustration level decreases because players can earn hints, extra lives or coins instead of quitting the game.

High engagement rate: 76% of mobile gamers in the U.S. prefer rewarded ads over other more intrusive formats.

Increased downloads: Free apps that monetize through rewarded ads attract more users.


For advertisers

Higher completion rate: Users are only rewarded if they view the entire ad.

Effective targeting: By opting to view the ads, users show interest in the content.

Audience satisfaction: This format, being optional and non-intrusive, generates a more positive perception of the brand.


From Playnewmedia, we offer a wide variety of options and games to make your in-game campaign a success.

You can also take a look at our success stories.

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