Everyone loves a reward, when a user watches a video ad they get a reward in terms of special items, in-game currency, or even a discount code. Rewarded video ads are a great way to claim that extra revenue and engage users at the same time. Here is an overview of the best practices for rewarded video ads for publishers to follow in 2025 and beyond.

Rewarded Video Ads have proven to be a game-changer for publishers seeking effective and user-friendly revenue-generation strategies. Whether you’re a web publisher or an app developer, leveraging rewarded video ads to earn revenue can be one of the best ways to earn ad revenue. Thanks to their proven track record of success over 76% of mobile game players would rather choose rewarded video ads than watch ads.

Publishers are increasingly acknowledging the tremendous benefits of incorporating rewarded video ads into their monetization strategies. Particularly in the gaming industry, these ads have taken centre stage as the “hottest revenue generator” in the market. According to a recent survey conducted through Facebook Audience Network, it was clearly indicated that 32% of players find rewarded video ads useful, 27% find them interesting, and 12% think they are enjoyable, making rewarded ads the most likeable form of ads.

In this blog, we’ll discuss what are rewarded video ads, how much-rewarded video ads pay, and the best-rewarded video ad practices that can help you in 2025.

What are Rewarded Video Ads? 

Rewarded video ads are an incredibly effective way of delivering user-friendly ads and building your brand. Through rewarded video ads users can watch ads in exchange for some incentives – an extended free trial, extra coins or goodies in the games, a puzzle hint, or access to some exclusive features or content. 

For example, if users are playing a mobile game, they can be rewarded with in-app virtual currency for watching a full-screen ad for 15 to 30 seconds. These ads are non-skippable, but there’s usually an option to opt out of this type of advertising. 

For example, if users are playing a mobile game, they can be rewarded with in-app virtual currency for watching a full-screen ad for 15 to 30 seconds. These ads are non-skippable, but there’s usually an option to opt out of this type of advertising. 

Rewarded video ads are gaining momentum because they offer an honest value exchange – a user views an ad for a specific time duration and receives a premium gift. 

Typically, people dislike in-app ads because they interrupt the user experience. However, when there is an exchange of value, the experience becomes less intrusive and more rewarding for the user. 

In short, rewarded video ads are:

How does Rewarded Video Ads work?

Rewarded video ads are a great way to interact with the user without interrupting their experience because they fit right with the look and feel of the app. 

Users get in-game currency, extra lives in games, or some special content when watching a video ad. 

The process consists of user interaction < need for reward < opt-in to watch < receive the reward.

Rewarded video ads are a three-step strategy that any publisher can use to monetise their content. These three steps include:

Step 1: Rewarded Video Ad Offer: 

An in-app event triggers a pop-up of a video app. The pop-up allows the app user to watch a video in exchange for a virtual gift. 

Step 2: Watch the Ad:

The user can either dismiss the offer or watch the ad for a specific amount of time (5 seconds to 30 seconds) to get the premium reward. 

Step 3: Earn the Reward: 

Once the ad ends, the viewer gets the reward and continues using the app. Yes, it’s that simple.

Do you know? AdPushup creates rewarded video ad popups that can boost engagement on your site! If you are looking to implement less intrusive or more appealing ads for your viewers. Contact Us. We’ve got you covered.

Rewarded Video Ads Trends for 2025 and Beyond

Our research into rewarded video ads statistics suggests that rewarded ads will be a great way to grow your revenues, not just this year but in the future. 

Here are some stats: 

So, what does it all mean? 

Rewarded video ads will continue to evolve. It’s time to start using this as a format so you can keep up

6 Best Rewarded Video Ads Practices

Now that you know how they work, let’s take a look at the best rewarded video ads practices.

1. Ensure Proper Ad Placement 

Natural Integration: Showing ads to engage users without interrupting them is the main goal of rewarded video ads. 

Trigger Timing: Users will see ads as a deal rather than an obligation when in need. Displaying ads when users are keen can be a perfect trigger for ads. 

Best Practices: In games, players are most likely to watch an ad for a second chance.

2. User Experience Should be a Priority 

Frequency: Overloading users with ads is a big no! You can set limits in terms of timing and frequency at which the ad is shown to the user.

Quality Content: The quality of ads is non-negotiable when it comes to displaying ads on any platform. Ads that match the vibe and style of the platforms are good to go.

Best Practices: Balanced ad frequency, good quality creatives and relevant ads will help to engage users without making them feel overwhelmed. 

3. Meaningful Rewards for Users 

Relevance: Rewards that match the purpose of users to watch the videos are a must when it comes to rewarded video ads. For example, getting extra in-game lives for a 30-second ad is an enticing deal.

Value: The value of the reward is what attracts a user towards a trade. Make sure that the reward is cool enough for users to want it and add value to their experience.

Best Practices: For games, getting gems, extra lives, or any power-up in exchange for an ad can keep users engaged and avoid ad fatigue.

 4. A/B Test Different Rewards for Optimal Results

Best Practices: It is crucial to test different types of rewards or incentives that you can offer to your users. Testing helps developers learn which rewards are most loved and understand optimal offerings that can monetize their apps. 

Analyzing Engagement: Tracking how many people finished watching ads and redeeming rewards to improve user experience and make changes make ads more effective and enjoyable for users.

Testing: A/B testing the rewards, including variants such as type of reward, duration of ads, quantity per session, and ad placements can improve the effectiveness of your rewarded ads and maintain user satisfaction.

Examples of Rewarded Video Ads?

These ads are most commonly used in gaming apps. However, they have other placements and uses, and not all are exclusive to mobile gaming.

Any kind of app can implement a reward system as long as there is a medium to reward the user. If you plan to implement these ads, make sure to know what your options are, what incentives you can offer, and how you can balance the revenue you generate through the ads. 

• One of the best examples would be Spotify, a music streaming app. On Spotify, users can stream and download music in exchange for viewing ads.
• Duolingo, a language education app, have incorporated rewarded ads where users can gain virtual currency (called ‘hearts’) by watching an ad video. They can use the rewarded currency to access free lessons and progress through the course.
• Clash of Clans, a very popular game where the player can build their own village and battle with enemies, uses rewarded ads to make the user experience more enticing. Whether a user needs an extra gem to speed up the progress or boost gameplay without spending money, rewarded ads are a saviour for both the developer and the user. 

The key is to serve the right in-app video (with attractive rewards) at the right time to generate the best results. 

Advantages of Using Rewarded Ads

Rewarded video ads hit three birds with one stone – users, advertisers, and developers/publishers:

I. For Users: 

This type of ad is less intrusive for users because the viewers have an option to either dismiss or accept the reward offer. There is no autoplay, and the users are never forced to watch them. These ads offer the following benefits to the user:

1. Value Exchange 

Since these ads are accompanied by incentives, users don’t mind spending a few seconds watching an ad. Furthermore, they are able to gain in-app premium features without spending money. Put simply, it’s a beneficial deal for users.

2. User Experience

According to Google, 50% of users say that they would be less satisfied with the app experience if rewarded video ads were removed. 

II. For Advertisers:

1. Guaranteed Quality Engagement

Rewarded video ads have a higher ad viewability score as compared to other ads – because users are not rewarded unless they’ve viewed the ad completely. There’s also no option to skip ads, so it guarantees a higher completion rate of ad views.

2. Retention

Since these ads allow users to either opt-in or opt-out, it’s more likely that viewers are watching ads they have some interest in. In other words, such ads ensure better audience targeting. 

III. For Publishers/Developers

1.Engagement

If you’re a publisher or developer aiming for higher user retention rates on your ads, you must consider rewarded video ads. Users are more likely to stay if they have the opportunity to earn rewards or get something interesting in exchange. 

As much as 80% of the rewarded video ads target audience opt-in to view ads. The more users more will be the more revenue you generate through your ad units.   

2. Retention

Rewarded video ads are developers’ favourites because they keep users engaged and boost ad revenues. These formats are designed to protect the core app experience and efficiently monetise users who don’t want to make in-app purchases. 

3. Revenue Generation

Finally, this type of ad provides a great opportunity for implementing a hybrid monetization model through in-app purchases. An increasing number of apps which monetize via in-app purchases are implementing rewarded video ads as a by-product of IAP. 

That’s not all – rewarded video ads can also serve as an introduction to paid features of an app, so not only do users stay engaged, but some of them might eventually become paid customers over time. 

Ad Specs for Rewarded Ads

Specifications for these ads differ by ad platform. However, below are a few of the most-followed guidelines:

What are Rewarded Video Ads Networks?

Rewarded video ad networks are platforms that connect advertisers with publishers, offering a range of video ad formats where users can opt to watch ads in exchange for rewards or benefits.

These networks have gained popularity due to their effectiveness in engaging users, driving higher ad completion rates, and providing a win-win situation for both advertisers and users.
Some of the popular rewarded video ad networks for adding publishers or mobile game ads include:

1. AdColony
2. Unity Ads
3. Chartboost
4. Litoff
5. AppLovin MAX
6. Tapjoy

In Closing 

With increasing market competition, developers need to find the right balance between user experience and monetization – two components that are crucial to the success of any app. Rewarded Video ads are becoming one of the most effective mediums for achieving that balance. 

Using rewarded video ads in your app is an excellent way of increasing an app’s revenue and providing a high volume of quality ad impressions. Developers using rewarded video ads have seen a positive impact on both revenue and user engagement. 

Adpushup can help you with advanced ad technology trends with best-in-class optimisation techniques to deliver a better experience for your video ads. 

FAQs: Rewarded Video Ads

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