Rewarded Video Ads Monetization: Best Practices for 2024

As we step into 2024, the gaming industry continues to evolve, and with it, the strategies for monetization. Among these, rewarded video ads stand out as a perennial favorite. Their appeal lies in their ability to create a harmonious balance between the needs of players, game developers, and advertisers. This comprehensive guide delves into the reasons behind their enduring effectiveness and offers insights into the best practices for implementing them in your game.

Table of Contents

The Ever-Growing Relevance of Rewarded Video Ads

Rewarded video ads have transformed the landscape of mobile gaming monetization. Their design inherently benefits all parties involved:

Players receive tangible in-game benefits, such as extra lives, currency, or points, making the gaming experience more enjoyable.
Advertisers benefit from high visibility and engagement, as these ads command attention and guarantee completion.
Publishers see a steady revenue stream without disrupting the player’s gaming experience.

The Monetization Mechanism

This ad format operates on a simple yet effective three-step process:

The Offer: Players are presented with an opportunity to gain a reward in exchange for watching an ad.
Watch Time: The player opts in, watches the video, and engages with the content.
The Reward: On completion, the player receives the promised in-game benefit, enhancing their gaming experience.

Statistical Insights for 2023

Recent data underscores the growing preference for rewarded video ads:

Player Preferences: Surveys indicate that 72% of players favor rewarded video ads for their non-intrusive nature.
Revenue Impact: Studies show a 25-50% increase in ad revenues for games incorporating this format.
Developer Adoption: A striking 88% of mobile game developers now deploy rewarded video ads, recognizing their broad applicability across game genres.

Best Practices for Ad Placement

Effective ad placement is crucial for maximizing the benefits of rewarded video ads:

Start Menu Ads:
- Purpose: Introduce players to the concept of rewarded ads early, setting expectations.
- Implementation: Place a non-intrusive, optional ad offer on the start menu.
- Impact: Early engagement can increase player receptiveness to ads and boost overall ad views.
‘Out of Lives’ Ads:
- Purpose: Offer a lifeline during critical gameplay moments to enhance player retention.
- Implementation: Present an ad option when the player runs out of lives or faces a critical fail point.
- Impact: Enhances the player’s experience by providing a second chance, thereby increasing session length and player loyalty.
Daily Reward Multipliers:
- Purpose: Encourage regular play and engagement.
- Implementation: Offer the chance to multiply daily login rewards in exchange for watching an ad.
- Impact: Increases daily logins and strengthens the habit of playing the game, enhancing long-term engagement.
End-of-Game Multipliers:
- Purpose: Reward players for completing levels, encouraging continuous play.
- Implementation: Provide a reward multiplier at the end of a level or a game session for watching an ad.
- Impact: Players feel more rewarded and motivated to continue playing.
Boosters and Time Boosters:
- Purpose: Offer strategic assistance to enhance gameplay.
- Implementation: Allow players to earn boosters (like speed boosts, power-ups) in exchange for ad views.
- Impact: Improves game experience and can be critical in retaining players in more challenging stages.
In-Game Hints:
- Purpose: Assist players in puzzle and strategy games.
- Implementation: Offer hints or solutions to difficult parts of the game in exchange for watching an ad.
- Impact: Reduces player frustration and increases engagement, especially in games where players may get stuck.
In-Game Store Offers:
- Purpose: Showcase premium features and entice players.
- Implementation: Provide sneak peeks or trials of premium items or features in exchange for watching an ad.
- Impact: Can lead to increased in-app purchases by giving players a taste of the premium offerings.
Discounts for In-App Purchases:
- Purpose: Incentivize exploration and investment in in-app purchases.
- Implementation: Offer discounts on in-app purchases after viewing an ad.
- Impact: Encourages players to invest in the game, boosting revenue from in-app purchases.

In addition to these practices, it’s important to continuously monitor player feedback and engagement metrics to fine-tune ad placement and frequency. Ensuring that the ads remain a positive part of the gaming experience is crucial. The goal is to create a situation where players see the ads as a beneficial part of the game, rather than an interruption.

The eCPM Perspective

eCPMs for rewarded video ads have remained robust due to their high engagement and satisfaction rates. Notably, regions like the US, Canada, and the UK have seen significant growth, with variations across platforms and networks.

Clear Value Proposition:
- Objective: Ensure players understand what they gain from watching ads.
- Approach: Clearly communicate the benefits of watching the ad, such as the specific in-game items or advantages.
- Importance: A transparent value proposition increases the likelihood of players opting to view ads, as they can directly correlate the action with a tangible reward.
Prioritize User Experience:
- Objective: Keep the gaming experience enjoyable and uninterrupted.
- Approach: Balance the placement and timing of ads so they don’t disrupt gameplay. Ads should feel like a natural part of the game, not an intrusion.
- Importance: Preserving a positive user experience ensures players stay engaged with the game and are not driven away by excessive or poorly timed ads.
Visible Rewards:
- Objective: Make sure players see and appreciate the rewards they earn.
- Approach: Display rewards prominently, and ensure they are instantly accessible after watching the ad. The rewards should be directly linked to the players’ game progress or experience.
- Importance: Visible and immediate rewards reinforce the value of watching ads, building trust and a sense of achievement among players.
Balanced Generosity:
- Objective: Offer rewards that are enticing but don’t devalue in-game purchases.
- Approach: Find a balance in the rewards so they are attractive enough to engage players but not so generous that they replace the need for in-game purchases.
- Importance: Maintaining this balance is crucial for the game’s monetization strategy, ensuring that both ad revenue and in-app purchase revenue streams are optimized.
Targeted Segmentation:
- Objective: Personalize ad experiences based on player behavior and preferences.
- Approach: Use player data to segment the audience and tailor ad content and rewards. For example, players at higher levels might receive different ads and rewards compared to beginners.
- Importance: Personalization increases the relevance and attractiveness of ads to individual players, thereby enhancing engagement and satisfaction.
Frequency Management:
- Objective: Regulate how often ads are shown to balance monetization with player experience.
- Approach: Set a cap on how many ads a player can watch in a given period and vary ad availability based on gameplay context and player engagement.
- Importance: Proper frequency management prevents ad fatigue, ensuring that players remain interested in both the game and the ads themselves. It’s crucial for sustaining a healthy game economy and long-term player interest.

Incorporating these strategies effectively requires continuous monitoring and tweaking. Game developers should always be prepared to adjust their approach based on player feedback and engagement metrics. The ultimate goal is to create a rewarding and engaging experience for the player, which in turn drives better monetization results through rewarded video ads.

Looking Ahead: Rewarded Video Ads in 2024

As we look to 2024, rewarded video ads continue to be a cornerstone of mobile game monetization. Their success hinges on a careful balance between integration and respect for the player’s experience. By aligning these ads with the game’s core mechanics and following the best practices outlined above, developers can significantly boost their monetization efforts while maintaining a positive and engaging player experience.

In conclusion, the key to maximizing the benefits of rewarded video ads lies in understanding and respecting the player’s journey, ensuring that the ads augment rather than disrupt the gaming experience. With thoughtful implementation, rewarded video ads can continue to be a win-win-win solution for players, publishers, and advertisers alike.