Pros and Cons of Rewarded Video Ad
AppLixir is a Reward Video Ad Monetization Platform for games and websites. We have used a combination of Interstitial and Rewarded Video Ads in the past and the Pros and Cons we have listed below if based on what we have experienced in the past. Currently we mainly focus on Rewarded Video Ads to monetize Web, Mobile-Web and Mobile sites.
Rewarded video ads can be an effective way to monetize a site, but there are both benefits and drawbacks to consider. Here are some key trade-offs when using rewarded video ads for monetization:
Pros of using Rewarded Video Ads:
- High engagement: Users frequently engage with rewarded video ads more than other ad formats, actively drawn in by the tangible benefits they offer, such as in-app rewards or premium content, in return for viewing the ad. This can lead to higher viewability and conversion rates.
- Better user experience: Since users choose to watch these ads in exchange for a reward, they tend to be less intrusive and disruptive than other ad formats, which can lead to a better user experience.
- Higher revenue potential: Rewarded video ads often have higher eCPMs (effective cost per thousand impressions) compared to other ad formats, as advertisers are willing to pay more for highly engaged users who are more likely to convert.
- Positive brand association: By offering users valuable rewards, you can create a positive association between your site and the advertiser’s brand, which may lead to increased brand loyalty and higher user retention.
Cons of using Rewarded Video Ads:
- Limited audience : Rewarded video ads are more suited for apps or sites with a gamified experience or with premium content locked behind a paywall.
- Implementation complexity: Integrating rewarded video ads can be more complex than other ad formats, as you need to create a system to track and deliver rewards to users.
- User fatigue: Overuse of rewarded video ads can lead to user fatigue, which may result in decreased engagement and negative user sentiment towards your site and the advertiser’s brand.
- Dependency on ad networks: You may become overly reliant on ad networks that specialize in rewarded video ads. This could make you vulnerable to changes in their policies, ad fill rates, or eCPMs.
- In summary, rewarded video ads can be an effective monetization strategy for certain types of sites or apps, particularly those with a gamified experience or premium content. However, it’s essential to balance the benefits and drawbacks to ensure they enhance user experience.
Now Interstitial ads, Interstitial ads are full-screen ads that appear at natural breaks or transition points within an app or website’s content. They can also be a viable monetization strategy, but like any ad format, there are pros and cons to consider:
Pros of using Interstitial ads:
- High visibility: Interstitial ads are full-screen and often appear during transitions, making them highly visible to users. This can lead to higher click-through rates (CTR) and better conversion rates for advertisers.
- Better revenue potential: Due to their high visibility and impact, interstitial ads usually have higher eCPMs compared to other ad formats like banners, resulting in increased revenue for publishers.
- Flexibility: Interstitial ads can accommodate various ad formats, such as static images, rich media, or video, providing flexibility for both publishers and advertisers to create compelling ad experiences.
- Controlled timing: Publishers exercise control over the display timing of interstitial ads, integrating them actively at natural breaks or transition points to minimize disruption and enhance the user experience.
Cons of using Interstitial ads:
- Intrusiveness: Interstitial ads can be perceived as intrusive or annoying, as they interrupt the user’s experience by taking up the entire screen. This can lead to negative sentiment towards the app or website and the advertiser’s brand.
- Increased bounce rates: If users find interstitial ads too disruptive, they might choose to leave the site or app altogether, resulting in higher bounce rates and lower user retention.
- Ad-blocker susceptibility: Due to their intrusive nature, interstitial ads often find themselves in the crosshairs of ad-blockers, potentially resulting in diminished ad revenue.
- Loading time: Interstitial ads, particularly rich media or video ads, may increase the loading time of an app or website, impacting user experience and potentially leading to increased bounce rates.
- In summary, while interstitial ads can provide higher visibility and revenue potential, they may also be perceived as intrusive and negatively impact user experience if not implemented thoughtfully. It’s essential to strike a balance between monetization and user experience by integrating interstitial ads at natural breaks or transition points and avoiding overuse. Additionally, monitoring user feedback and engagement metrics will help optimize ad placements and maintain a positive user experience.
