What is Rewarded Video?
Rewarded video is an ad format where users voluntarily watch a full video advertisement in exchange for an in-app reward. Unlike interstitial ads that interrupt the user experience, rewarded videos are user-initiated and create a value exchange that benefits both users and publishers.
This opt-in nature leads to dramatically higher engagement rates, better user sentiment, and premium eCPMs for publishers.
Why Rewarded Video Works
- User Choice: Users decide when to engage, reducing frustration
- Value Exchange: Users get something valuable for their time
- Full Attention: Users watch completely to earn reward
- Positive Association: Users appreciate the brand that gave them rewards
- Non-Disruptive: Doesn't interrupt gameplay or app flow
Performance Comparison
| Metric | Rewarded Video | Interstitial | Banner |
|---|---|---|---|
| Completion Rate | 90-95% | 50-70% | N/A |
| eCPM (US) | $15-40 | $8-15 | $0.50-2 |
| User Sentiment | Positive | Neutral/Negative | Neutral |
| Viewability | 95%+ | 80-90% | 50-70% |
Common Reward Types
- Extra Lives/Continues: Continue playing after failure
- In-Game Currency: Coins, gems, or credits
- Time Boosters: Speed up timers or cooldowns
- Premium Content: Unlock levels, characters, or features
- Power-Ups: Temporary gameplay advantages
- Multipliers: Double or triple earned rewards
Pro Tip: Strategic Placement
Place rewarded video offers at moments of high motivation—after a failed level, when currency is needed, or at natural break points. Users are most likely to engage when the reward solves an immediate need.
Best Practices for Publishers
- Valuable Rewards: Offer rewards users actually want
- Natural Placement: Integrate at logical app moments
- Clear Value Prop: Show exactly what users will receive
- Limit Frequency: Don't overwhelm with constant offers
- Reliable Delivery: Always deliver rewards after completion
- Test Placement: A/B test different trigger points
Best Practices for Advertisers
- Quality Creative: Full-attention format deserves best content
- Strong Hook: Capture interest in first 3 seconds
- Clear CTA: Make next steps obvious at the end
- Mobile-First: Design for vertical, sound-on viewing
- Optimize Length: 15-30 seconds is ideal
Rewarded Video Benchmarks
| App Category | eCPM Range | Engagement Rate |
|---|---|---|
| Casual Games | $10-25 | 30-50% |
| Midcore Games | $15-35 | 40-60% |
| Hyper-Casual | $8-20 | 50-70% |
| Utility Apps | $5-15 | 20-35% |
| Entertainment | $8-20 | 25-40% |