Rewarded Ads has proven strategies that help boost revenue and user engagement. As per a report, it has been found that more than 60% of mobile gamers viewed the rewarded video ads in order to get a quality gaming experience, in the form of rewards or by getting boosters while playing the game.
It was also found that at least 70% preferred this form of advertising compared to others. So, let’s understand what makes Rewarded Ads so appealing and how it helps boost revenue and user engagement.
What are Rewarded Ads?
Rewarded Ads or Incentivized Ads are those types of advertising formats wherein the users (mostly in games) get rewarded in return for the time spent by the user viewing the ad.
Take, for instance, whenever one plays a mobile game, you will find ads popping up. After watching this approximately 30 seconds ad, one will get a reward, either in terms of extra lives in the game or in the form of any incentive required in playing the game.
These rewarded ad videos are usually between 15-30 seconds and cannot be skipped by the user. Alternatively, the user also has the option to opt-out of watching these ads.
Factors That Prove How Rewarded Ads Successfully Boost Revenue & User Engagement
· With Rewarded Ads Your App Can Rank Higher in App Stores
If your app keeps the users engaged by offering them exclusive content, you get an upper hand. Rather than charging them for the exclusive content, you may opt to reward video ads and monetize your app. Due to this, user engagement will be high compared to other apps in the similar category and eventually, the app will rank higher on the app store.
· Increases Daily Time Spent on The App
By implementing rewarded ads, the users are compelled to watch the entire ad in order to earn rewards. In other words, users do not have the option of skipping the ads shown to them.
Due to this, not only does the ad completion rate is at the max, but app owners also benefit by increasing the time spent by each user on the app.
After watching the complete ad, users gain rewards that provide a fulling user experience and further increase revenue.
· With Rewarded Ads In-App Purchases Can Be Increased
The users are more likely to spend real money on in-app products in the future, once they start using the reward points or currency to buy the in-app items.
Users purchase in-app items using rewarded points and once they get hooked, eventually they also tend to spend real money to buy these in-app items. Thereby helping the publisher to earn more revenue.
· Rewarded Ads Boost User Retention
With the help of rewarded ads, the app can introduce a point system, wherein the users will accumulate points over a period. The user can then redeem these points when they reach a particular value for something exciting.
This approach can increase user retention as the users will be using the app more often to earn points as well as spend the accumulated points to get rewards.
· Rewarded Ads Help in Improve Ad-Targeting
Another way in which rewarded ads boosts revenue and engagement is that you can set the ads as skippable. Users can select the ads they want to view and when they want to view them, thus enabling them with more freedom than the other types of ad formats. The power of choosing the ads enhances user engagement and the opt-out nature makes ad-targeting more effective.
· Rewarded Ads Decreases Ad Fatigue
The best part of a rewarded ad is that it reduces ad fatigue. With the ever-increasing usage of apps, they are bound to see numerous ads, which adversely affects user engagement. As mentioned earlier, the users of apps are exposed to various types of ads, and they tend to ignore most of them as they are irrelevant.
With rewarded ads, the engagement from the user is higher as they anticipate rewards after viewing the ad. Moreover, they opt-in to watching the ad; hence, the ad that is shown to them is relevant, and they would be interested in the message of the ad as well, thereby not only resulting in better user engagement but also in getting more revenues.
In order to boost revenue and user engagement, one must be aware of how to implement the rewarded ads correctly. Some things to keep in mind to get the best out of these ads are.
How To Implement Rewarded Ads to Boost Revenue & User Engagement:
· Placement of the Ad
Ensure that ads are placed at an appropriate moment. For instance, if you show the ads to the user during a critical juncture in their game, it will not have the desired effect, and they will ignore the ad.
· Test Run
Do a test run on what types of rewards will work for your target users. For example, one can opt for A/B split testing to test the ads that would work for the users, or one can opt for testing by giving the same incentive to two different ads. After testing the combinations, the one that offers the best results can be used to optimize the rewarded ads for your benefit.
· Ensure Relevance
Last but not least, ensure that the ads you are putting out are relevant to the users. Placing relevant ads as per your app will increase engagement and also help in increasing revenue. For example, placing the advertisement for vacation stays in a travel app makes the ad relevant to the user.
Conclusion
A lot of users are willing to spend time viewing these 30-second ads so that they get some kind of reward in exchange. The high engagement rates and the increased earning possibilities make publishers opt for this type of advertising.
Would you also like to explore rewarded ads format or know other ways to boost your app revenue? Get in touch with our experts at AppBroda – the ultimate place to monetize and scale your app business.
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