Optimizing for the right Video Ad Reward
Most games struggle with how much reward to give when implementing Reward video ads. There is no “One Solution” but you should consider the following when rewarding users for watching a video Ad.
CPM Payout by Country:
Many video ad platforms would claim to pay $20+ eCPM or $60+ CPIs. While that’s is true for North American traffic, if you have a worldwide audience with 10% of users coming from North America, the fact that the Video Ad Network pays $20 or $60 eCPM is less relevant. You should ask eCPM for each country you have 10%+ of your traffic. That should give you a clear idea on how much you be getting per user per country.
Video Ad Fill-rate per Country:
Video Advertisement is becoming popular everywhere and is one of the fastest form of advertisement worldwide. But you rarely get 100% coverage worldwide. Northern America and West Europe get 99% video fill rate while other Geos have 35% or less video fill rate. For the later (i.e. 35% video fill-rate), 65% of the time, either you are not getting paid or paid way less. So you have to understand the fill-rate to see what percentage of your traffic will make you money.
Here is an example.
The game has 50k Daily active users.
Determining your payout per Geography
|Geography||Users/Geo||CPM||Total Revenue||Revenue per user|
|North America||5000||$ 9.00||$ 45.00||$ 0.009|
|South America||8000||$ 3.00||$ 24.00||$ 0.003|
|West Europe||6000||$ 9.00||$ 54.00||$ 0.009|
|East Europe||13000||$ 2.75||$ 35.75||$ 0.003|
|South East Asia||12000||$ 4.00||$ 48.00||$ 0.004|
|Middle East||2000||$ 3.00||$ 6.00||$ 0.003|
|Africa||1500||$ 1.25||$ 1.88||$ 0.001|
|Australia||2500||$ 9.00||$ 22.50||$ 0.009|
|50000||$ 237.13||$ 0.005|
Determining your Video Fill-rate and likely payout
|Geography||DAU||Fill-Rate||User Monetized||Rev / per user||Revenue|
|North America||5000||99%||4950||$ 0.009||$ 44.55|
|South America||8000||65%||5200||$ 0.003||$ 15.60|
|West Europe||6000||89%||5340||$ 0.009||$ 48.06|
|East Europe||13000||51%||6630||$ 0.003||$ 18.23|
|South East Asia||12000||47%||5640||$ 0.004||$ 22.56|
|Middle East||2000||81%||1620||$ 0.003||$ 4.86|
|Africa||1500||35%||525||$ 0.001||$ 0.66|
|Australia||2500||99%||2475||$ 0.009||$ 22.28|
For a 50k daily active user-base, you will get $176.80 effectively making 3.5 cents per watched video Ad.
If you paying users spend $1.00 to get 50 coins, you will be better off giving 3-5 virtual coins per one instance of watched Video Ad.
The post is intended to give you an idea on how to optimize reward video Ad for best monetization results. I would love to hear your thoughts and questions (drop a comment below, will respond)