Rewarded Ads: How Do They Benefit Game Publishers

Rewarded Ads

The digital media landscape is always changing, and this has prompted game publishers to gravitate towards new and creative ways to monetize their content and improve user experience the rewarded ad. What is exactly a rewarded ad and why is it that game publishers love it? Let’s take a look.

Rewarded Ad Approach

Rewarded ads are another form of incentive-based advertising where users choose to watch an ad and receive a reward within the game . Almost always, the incentive for the user is in-game currency, a power-up, or attempt at a higher score. The definition of this ad approach usage in video games can hardly be explained more than: a rewarded ad is an ad player will watch for its further effect in-game. The most common scenario of an interaction with a rewarded ad consists of four steps:

  1. An ad prompts the possibility – either by a probability or by a count – of receiving an incentive after watching. The user gets a choice to view the ad to receive the incentive .
  2. A user chooses to opt-in.
  3. A user receives an incentivized offer after watching the ad.
  4. A user loses game progress or game session and “uses” the received reward to start again immediately from the position lost .

The Benefits for Game Publishers

  • Enhanced user engagement and retention: rewarded ads ensure a win-win balance where players receive desirable in-game items, and publishers maintain high engagement and retention rates . Balancing user experience with monetization determines whether a game app will maintain its success in the long run.
  • Higher revenues: not only do the publishers keep more players on the app, but also they stand to gain more as rewarded ads are more engaging and a rational alternative to in-purchases . Such a non-invasive monetization model enables publishers to substantially increase revenue.
  • User perceptions: with 54% of users finding video ads relatable, 62% prefer to engage in reward-based advertising voluntarily . Furthermore, a report by Unity on Ads Study reveals that 71 % of users favor in-game video ads over in-app purchases or paid apps.

Conclusion

Rewarded ads exemplify a more symbiotic relationship between advertising and gaming, allowing publishers to earn more revenue and users to experience a more fulfilling gaming experience. It is evident that publishers who capitalize on rewarded ads strategy can fill their coffers while also retaining a user base that is loyal and engaged.

Game publishers can leverage the power of rewarded ads to strike the right balance between monetization and keeping their users happy, and the benefits are likely to be felt in the years to come. As digital ad spending soars, rewarded ads present a genuine, viable, and user-affable solution to game monetization.

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