Next-level app monetization: 5 super-powers of Rewarded Video ads

  • Rewarded Video ads deliver many valuable benefits beyond app monetization, including longer app usage sessions and loyal users.
  • With flexible in-app placement options, they enhance the user experience rather than disrupt it.
  • Striking the right balance can be achieved with frequency capping and daily view limits.

You have to be hiding under a rock or far removed from the mobile app business to not notice the deluge of attention that Mobile Video Content and thus, Mobile Video Advertising brings about. All you have to do is look at passersby who are glued to their mobile devices, fixated on video content.

National Geographic staged this sidewalk pedestrian lane for cellphone users as a promotional stunt in Washington D.C.

National Geographic staged this sidewalk pedestrian lane for cellphone users as a promotional stunt in Washington D.C.

Let’s start by stating the obvious: Video is beautiful and captivating and successfully holds audience attention on the big screen, TV screen, online, tablet and smartphone. We’re suckers for it. As a nation, it just so happens that we are now watching as much video on our mobile devices as we do on other mediums, and often simultaneously. So pervasive is this habit, that the IAB recently identified an emerging challenge for marketers: How do we grab viewers’ attention when it’s divided between two video feeds?

Our growing love for video on mobile devices and our longer video watching sessions is no surprise, with tablets, phablets and stronger data plans enabling the trend. It follows that mobile video advertising spend is on track to reach $6 billion in the US by 2018, (that’s half of the total online video ad spend). Marketers go where their consumers are.

This is where understanding the power behind Rewarded Video Ads come in. They are the next generation of the already hard-working, high-performance Video Ads; Cherries on top of the proverbial sundae, providing several benefits to app developers beyond app monetization. Further, they deliver benefits to the marketer and app user alike:

Longer App Usage Sessions: Rewarded Video Ads go one step further to enhance and extend game or app usage by offering an opportunity to earn special in-app perks or privileges such as an extra life, currency, game level advancement, discount/offer, or insider knowledge, special skill, secret game tip, etc. For app developers, this feature enables the user to stay in the game longer and succeed.

A Happy, Empowered Player: The user makes a decision to watch a video ad in exchange for the reward. In an app environment where there is limited real-estate and the potential to clutter an app with advertising, empowering the player by giving them a choice provides a sense of control to the user. The reward shows a tangible appreciation of the users’ attention for accepting the ad, offsetting the potential for alienating them.

More and Higher In-App Purchases: Data from multiple ad network sources shows that users who are exposed to Rewarded Video Ads make more in-app purchases and spend more than paying players who have not been exposed to Rewarded Video Ads.

High Lifetime Value (LTV) audiences: For marketers, the incentivized view creates a patient, attentive, interested viewer, and serves as a filter for quality. A non-skippable ad format lends itself to higher viewing completion and thus, downloads.  Higher engagement and more downloads for the advertiser means more return for the developer too. Gatekeeping for quality is a win-win.

Brand Affinity: Audiences are more accepting of ads when they have actively decided to watch them, setting the stage for audiences to view the advertiser in a favorable light. Opt-ins have chosen to watch.

Rewarded Video Ads offer flexible integration, as there are several strategic in-app placement choices that can appeal to your app users’ needs. For more details on how to integrate these videos into your app, read up here.

A final note on striking a balance:

As an app developer, protecting your user experience while monetizing your app is a delicate balance. Cluttering your app with too many ads may cause your users to get irritable. Not enough ads, and you reduce your revenue opportunity. Too many rewarded views, and you risk cannibalizing the in app purchases.   It is essential to pay attention to the actual ad-serving details to ensure ads are properly paced and not delivered in excess. To prevent going overboard and increase your likelihood of getting it just right, ask your ad platform partner about which controls are offered, such as frequency capping and daily view limits (DVL). When you’re in charge of frequency, you can control how often an ad appears throughout the game experience, and put a daily limit on the number of times a user can view an ad in a day. With these controls in place, you can deliver a better experience to those who you are critical to your success – your all important users.

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MarketingNext-level app monetization: 5 super-powers of Rewarded Video ads