Why Rewarded Advertising Is Effective in Mobile Games
What is Rewarded Advertising in Mobile Games?
Rewarded advertising is a kind of mobile advertisement that induces user participation by providing in-app rewards in exchange for watching a video or completing specific in-game actions. Common examples include rewarded video ads, playable ads, and offer walls.
How Rewarded Ads Work
Unlike traditional mobile ads that interrupt gameplay, rewarded ads are voluntarily chosen by users in exchange for rewards. The typical process of rewarded advertising consists of the following steps:
Ads Prompt
This is the stage where users become aware of the opportunity to earn rewards. The prompt clearly states the reward and the required action, encouraging user engagement. Since ad timing affects user experience, it is essential to carefully determine when the ad prompt appears within the game.
Opt-in
After seeing the ad prompt, users choose to watch the ad to receive rewards. They are more likely to opt in when they want to continue playing or enhance their gaming experience.
Ads Viewing
Users watch the advertisement, often having the option to skip after a certain duration. However, rewards are only granted upon completing the full ad view.
Rewards
After the ad is completed, users receive their rewards, which can allow them to continue playing or purchase additional in-game items.
Why is Rewarded Advertising Effective
According to a recent Google study, 50% of users reported that the absence of in-app rewarded ads would negatively impact their app experience. Mobile gamers, in particular, exhibit high engagement with rewarded ads. Since they know that watching an ad grants them valuable in-game benefits, they are more receptive to this format compared to other types of mobile ads.
Rewarded advertising also benefits publishers, advertisers, and users alike:
Mobile Game Users: By spending a short amount of time watching an ad, users can continue playing without spending money or gain in-game advantages. Users can typically choose their preferred rewards and, in some cases, even select the type of ads they watch, allowing them to continue playing for extended periods without compromising their gaming experience.
Publishers: Rewarded ads provide a revenue stream without disrupting the user experience. They extend gameplay duration and increase user retention, which can lead to higher in-app purchases.
Advertisers: Compared to other mobile ads, rewarded ads drive higher engagement and attention. Users are more likely to watch the entire ad (15-30 seconds) to earn their reward.
What is the Benefit of Rewarded Advertising?
With countless mobile games competing for player attention, retaining users is a significant challenge. However, rewarded ads provide solutions to this issue by offering the following benefits:
Retention
Rewarded ads help sustain player interest, encouraging them to continue playing. Since users repeatedly log in to request rewards and use them, their playtime extends, improving long-term retention rates.
ROAS (Return on Ad Spend)
Since rewarded ads drive higher user engagement, they yield better ROAS than other mobile ad formats. By strategically offering rewards at different gameplay stages, game developers can enhance user loyalty and increase long-term value.
What to Consider for Successful Rewarded Advertising
While rewarded ads are highly effective, they do not guarantee success in every case. To successfully implement rewarded advertising, several factors should be carefully considered:
Defining Campaign Objectives
Clearly outline the campaign goals, whether it’s increasing app installs, acquiring new users, improving ROAS, or boosting retention. Align the rewarded ad strategy with these objectives.
Identifying Target Personas
Analyze key user demographics such as age, gender, and in-app behavior. Understanding why users play the game helps determine which ads will effectively engage them.
Ad Timing & Frequency
Rewarded ads are an attractive option for users as they allow continued gameplay without spending money. However, excessive ad frequency or poorly timed placements can disrupt the user experience and lead to churn. Carefully optimize ad exposure to maximize engagement without frustrating players.
Limitations of Rewarded Ads
Despite their advantages, rewarded ads have certain limitations. Most rewards are only usable within the game itself. Therefore, game reward platforms that offer versatile, real-world incentives are gaining popularity among mobile gamers.
Game Platform Offering Versatile Rewards
Game reward platforms provide rewards when users complete tasks or play games.
Playio, for example, not only rewards users for playing but also offers engaging challenges such as:
Time Quest: Analyzes user gameplay behavior and recommends new games based on potential interest. Users earn additional rewards by playing for a designated amount of time, enhancing retention rates.
Hidden Quest: Rewards users for achieving specific in-game milestones based on behavioral data. Since Hidden Quests encourage users to reach key conversion points, they are particularly effective for ROAS optimization.
Playio rewards can be redeemed for Google Play gift cards, amazon gift cards, and more. By offering real-world incentives beyond in-game rewards, Playio has gained popularity among global users. Currently available in the U.S., South Korea, Japan, and Taiwan, Playio is preparing to expand its services to Hong Kong and Macau.
Contact Us
Looking to elevate your mobile game’s advertising strategy? Playio offers a sophisticated, performance-driven approach to user engagement and monetization. Contact us to explore how our platform can enhance your game’s success.
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References
1) Google AdMob. (n.d.). Rewarded ads: A win for users, developers, and advertisers. Retrieved from https://admob.google.com/home/resources/rewarded-ads-win-for-everyone/
