Rewarded Video Ads Strategy: Maximize Revenue & Engagement

Rewarded video ads have become the gold standard for mobile app monetization. When implemented correctly, they increase revenue while actually improving user experience. Here's how to build a winning rewarded video strategy.

Why Rewarded Videos Work

Unlike interstitials that interrupt users, rewarded videos offer a value exchange: users choose to watch an ad in return for in-app benefits. This opt-in model creates higher engagement rates and user satisfaction.

Key Stats

Optimal Placement Strategies

1. After Failure Moments

When users fail a level or run out of resources, offer a rewarded video to continue. This is the highest-converting placement because users have clear motivation.

2. Before High-Value Actions

Offer bonus rewards before important gameplay moments—double coins before a boss fight, extra time before a timed challenge. Users value these boosts.

3. Daily Reward Multipliers

Let users watch a video to multiply their daily login bonus. This drives daily active user retention while monetizing engaged players.

4. Currency Shops

Include a "Watch Ad" option in your in-game store alongside paid options. This provides a free path for non-payers while maintaining IAP revenue.

Reward Design Principles

Frequency Capping

Don't let users burn out on ads. Implement smart caps:

Technical Implementation

Preloading

Always preload ads in advance. Nothing kills conversion like a loading spinner when a user wants to watch. Load the next ad immediately after each view.

Fallback Networks

Use mediation to ensure ads are always available. If your primary network has no fill, fall back to alternatives. A 0% fill rate means lost revenue.

Error Handling

Handle ad failures gracefully. If an ad fails to load, either offer the reward anyway (for retention) or clearly communicate the issue without frustrating users.

Measuring Success

Track these KPIs to optimize your rewarded video strategy:

Balancing IAP and Ads

Rewarded videos shouldn't cannibalize in-app purchases. Strategies to maintain balance:

Conclusion

Rewarded video ads, when implemented thoughtfully, create a win-win: users get value, and you generate revenue without harming the experience. Start with proven placements, test continuously, and always prioritize user experience over short-term revenue.