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7 February 2023
#Mobile advertising


Vungle has a great detailed article on the subject! And although we have already mentioned this format of advertising in our blog, we decided to tell it again and add important details with the help of the source. Let’s start!

Rewarded video ads

With rewarded advertising, publishers can generate revenue, increase user retention, and stimulate in-app purchases. Advertisers, on the other hand, receive views of their ads and the loyalty of the target audience. And users are rewarded for viewing ads in the app.

This type of advertising is one of the advanced benefits that the in-app channel can offer.

In what categories of applications can it be used?

There is a misconception that rewarded video ads are relevant only for gaming applications. This is wrong. Rewards may be appropriate in different categories.

Here are some examples from Vungle.

Discounts on purchases – for example, unlocking a coupon, can be with a limited duration.

Unblocking music – for example, N minutes of listening without ads in a streaming application.

Reward in the game – for example, getting a bonus life.

Editorial remuneration – for example, reading premium material for free.

Unlocking an option in the dating app so that the user gets access to more profiles.

Temporary ability to view the application without ads.

Bonus sticker packs, for example in a social application.

Unlocking a book chapter or multiple chapters that can be read for free.

Unblocking a video content, for example, N hours of watching movies and TV shows for free.

Rewarded video ads work best when the reward is relevant throughout the user journey. So, for example, if we are talking about a game, at the beginning, at the first levels, it can be a small amount of in-game currency. But in the next stages, the rewards increase. The user may no longer be interested in just the currency, but extra lives or some special skills to pass difficult levels.

Why Use Rewarded Video Ads

The format is said to be one of the “most efficient”. And it is not just words. It implies benefits for all participants in the advertising process: publisher, advertiser and user.

Benefits for the Publisher

Advertising revenue.

Growth in user retention. Vungle cites studies (no details provided) that say that the retention rate of users who view rewarded ads during the first week of using the app reaches 53.2% by day 30 (a 300% increase compared to users who didn’t watch ads).

Potential income within the application. Again, the source cites research that has shown that users who view rewarded ads are more likely to buy the rewards they receive with real money. In some cases, users do this 4.5 times more often. And as a result, LTV becomes at the level of 326%.

How to get the best return from rewarded advertising?

Placement considering UI. On pages with high traffic, in between levels in the game. Publishers can enable notifications and interface elements that will remind users to receive rewards for viewing. Moderation is important: avoid placements that will rudely interrupt the user experience.

Scale rewards. As the user journey progresses, the needs and interests of the user change. Depending on the category of the application, it is worth offering relevant rewards with this in mind.

For publishers, you can demonstrate the value of the reward if it is also sold for money in the future. This will increase the chances that the user, after receiving it for free, will want to make a purchase.



This article contains useful tips from AppSamurai for advertisers to make rewarded ads more attractive to users.

And here are the results of a study conducted by InMobi to understand what users actually think about rewarded advertising.

We at BYYD are launching ads in mobile applications and we can make an advertising campaign with video in the rewarded format. Our advertising campaigns are all about building brand awareness, and rewarded ads do a great job of that. Check the examples of advertising campaigns in different formats and join our platform.

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