Rewarded Video Advertising: Boost Engagement & Revenue

Ever wonder why some apps ask you to watch a short video before you get extra lives, in‑app coins, or premium features? That’s a rewarded video in action. It’s a ad format that gives users something valuable—like points, extra content, or a temporary boost—in exchange for watching a video ad. Because the user decides to watch, the experience feels less intrusive and the ad performance jumps.

What Is a Rewarded Video?

A rewarded video is a short (usually 15‑30 seconds) video ad that users can voluntarily watch to earn a reward inside the app or game. Unlike banner or interstitial ads that interrupt the flow, rewarded videos let the user stay in control. The reward can be anything: virtual currency, new characters, ad‑free time, or even a discount coupon for an e‑commerce site. This give‑and‑take model builds trust—users know they get something, and advertisers get a higher‑quality view.

From a marketer’s perspective, rewarded videos deliver three big wins. First, completion rates are higher because the audience chose to watch. Second, the signal you get from a completed view is stronger, which improves targeting for future campaigns. Third, the reward itself can be tied to a brand action—like signing up for a newsletter—to turn a video view into a lead.

Best Practices for Using Rewarded Video

1. Match the reward to the user’s value. If you’re running a casual game, in‑game currency works best. For a shopping app, a discount code or free shipping voucher feels more relevant. The reward should feel like a natural extension of the app experience.

2. Keep the video short and clear. Users don’t want to sit through a 60‑second slog. Aim for 15‑30 seconds, and make sure the brand message is front‑and‑center. If the ad is too long, users may abandon it, hurting completion rates.

3. Show the reward before the video starts. A quick pop‑up that says “Watch 20 seconds, earn 50 coins” sets expectations and reduces confusion. Transparency builds trust.

4. Test frequency. Bombarding users with rewarded videos can feel spammy. Use analytics to find the sweet spot—often one reward per session works well for games, while e‑commerce apps might limit it to once per day.

5. Integrate analytics. Track not just video completion, but post‑reward actions: do users spend the coins? Do they make a purchase after a discount code? This data tells you whether the ad is driving real value.

6. Leverage programmatic platforms. Modern ad exchanges let you target specific user segments, set floor prices, and optimize for completed views automatically. Pair this with a demand‑side platform (DSP) that supports rewarded video inventory for better ROI.

7. Follow platform guidelines. Each app store and ad network has rules about reward timing, ad length, and disclosure. Ignoring them can lead to rejection or loss of monetization rights.

When you combine these tactics, rewarded video becomes a win‑win. Users feel respected because they chose the ad, and brands get a high‑engagement placement that often translates into higher conversion rates. If you haven’t tried rewarded video yet, start with a small test—pick one reward, a single ad creative, and measure the lift in both engagement and revenue. The results will guide you on scaling the format across more of your inventory.