Rewarded Video Ads Exclusive to the Gaming Sector? Not Anymore!

SmartAdd > Marketing > Rewarded Video Ads Exclusive to the Gaming Sector? Not Anymore!

Do you associate rewarded advertising with gaining an extra “life” or an in-app bonus in gaming? Think again! Apparently, this format is already enjoying some well-deserved popularity outside gaming apps, becoming a positive enhancement to the user experience, rather than an intrusion. 

Thanks to the many benefits they offer to advertisers, rewarded ads have become one of the most prominent ad formats on mobile described as “win-win-win situations” due to their benefits for users, developers, and marketers. Check our selection of reasons why rewarded isn’t a territory exclusive to the gaming sector anymore:

  • Stellar KPIs – by incentivizing viewership and engagement, rewarded ads achieve low-cost traffic with especially high conversion rates and excellent ROAS. Also, advertisers using rewarded ads have reported achieving higher in-app purchase (IAP) revenue.
  • Quality, relevance, benefit – rewarded ads offer increased user satisfaction due to their quality, non-intrusive and voluntary nature of the ads. Moreover, audience targeting is naturally enhanced because users are more likely to choose to view ads that interest and reward them. 
  • Reward goes both ways. The reciprocal value-exchange experience means that users tend to look more favourably on the app and the advertiser. This can result in increased session length.
  • Attention follows choice. Rewarded ads’ opt-in nature combats ad fatigue – unlike pop-ups, which are frequently dismissed without a second thought, rewarded ads are able to hold users’ attention for sufficient time to get their message across and achieve interaction.  
  • A cross-industry fit. App publishers across many categories, not just the gaming app industry, have the opportunity to reward their users via ad experiences. The key is to consider what incentives might resonate with users and align with the app experience itself.
  • Sustainable ad experience. Rewarded video, in offering value in exchange for a user’s time, is highly favoured by users and creates a loyal user base. In fact, research from Millward Brown found that almost 70% of users view these ads as positive, while instream pre-roll and outstream video were not regarded as highly.
  • Mobile video ads come at a higher cost than display ads, as they are more appealing for publishers over standard display. Rewarded ones guarantee an even higher engagement rate, which is especially important for performance marketers that are after a high CTR and need to drive conversions. This translates to eCPMs that are 8.2 times higher for video than display, with an average CTR that is 7.5 times higher. 

Having successfully made the transition from tolerable to preferable, rewarded video is thriving. It offers huge potential for brand advertising because it puts the user first and drives significant performance for advertisers. Hungry for more industry insights and winning strategies? Keep following our Marketing Bites.

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