Rewarded Video Ads vs Offerwalls: Which Works Best for Game Monetization?

Mobile game monetization has evolved dramatically over the past decade, with developers constantly seeking the perfect balance between revenue generation and user experience. Two popular monetization models have emerged as frontrunners in the free-to-play space: rewarded video ads and offerwalls. But which one delivers better results for your game? Let’s dive deep into both strategies to help you make an informed decision.

What’s the Difference Between Rewarded Video Ads and Offerwalls?

Rewarded Video Ads: The Quick Engagement Model

Rewarded video ads are short, typically 15-30 second video advertisements that players can choose to watch in exchange for in-game rewards. Think of them as a value exchange: players invest their time and attention, while developers receive ad revenue and players get premium currency, extra lives, power-ups, or other valuable game assets.

The key characteristics of rewarded video ads include:

• Short duration: Usually 15-30 seconds, sometimes up to 60 seconds
• Immediate rewards: Players receive their reward instantly after completion
• Low commitment: Minimal time investment required from players
• Passive engagement: Players simply watch without additional interaction
• Standardized format: Consistent experience across different ad networks

Offerwalls: The High-Engagement Alternative

Offerwalls present players with a curated list of tasks or offers they can complete to earn in-game rewards. These might include downloading and trying new apps, completing surveys, signing up for services, or making purchases with partner brands. The rewards are typically more substantial than those offered through rewarded video ads, reflecting the higher level of engagement required.

Offerwalls are characterized by:

• Varied time commitments: From quick app downloads to lengthy surveys
• Higher reward values: More substantial in-game currency or premium items
• Active engagement: Players must take specific actions beyond passive viewing
• Diverse offer types: Apps, surveys, subscriptions, purchases, and more
• Personalized experience: Offers can be targeted based on player demographics and behavior

Which Monetization Model Earns Higher ARPDAU?

The Revenue Landscape

Average Revenue Per Daily Active User (ARPDAU) varies significantly between rewarded video ads and offerwalls, largely depending on your game’s genre, player base demographics, and implementation strategy.

Rewarded Video Ads ARPDAU: Typically generates $0.01 to $0.05 per daily active user, though this can vary based on geographic location, player engagement rates, and ad fill rates. The revenue model is straightforward: developers earn a portion of the advertising spend each time a player completes a video ad. CPM rates generally range from $1-10, with higher rates in premium markets like the US, UK, and Australia.

Offerwall ARPDAU: Generally produces higher ARPDAU figures, often ranging from $0.05 to $0.20 per daily active user, with some well-optimized implementations achieving even higher rates. The revenue is more volatile but potentially more lucrative, as developers typically earn 10-30% of the value players generate through completed offers.

Why Offerwalls Often Win on Pure Revenue

Offerwalls tend to generate higher ARPDAU for several reasons. The completion of high-value offers, such as subscription sign-ups or app installations with in-app purchases, can generate significantly more revenue than a single video ad view. Additionally, the higher rewards offered through offerwalls can motivate players to engage more frequently and with higher-value activities.

However, this advantage comes with important caveats. Offerwalls typically have lower participation rates than rewarded video ads. While a larger percentage of players will watch a 30-second video ad, fewer are willing to commit time to downloading apps or completing surveys.

When Should You Use Offerwalls Instead of Rewarded Ads?

Player Demographics Matter

Your choice between these monetization models should heavily consider your player demographics. Offerwalls perform exceptionally well with certain player segments:

Ideal Offerwall Demographics:

• Players aged 25-45 who have disposable income for subscriptions and purchases
• Users in tier-1 countries (US, UK, Canada, Australia) where offer values are highest
• Engaged players who spend significant time in your game daily
• Players who already make in-app purchases, indicating comfort with digital transactions

Better Suited for Rewarded Video Ads:

• Younger demographics (13-24) who prefer quick, passive engagement
• Players in emerging markets where offer availability may be limited
• Casual players with shorter session times
• Users who rarely make in-app purchases

Game Genre Considerations

Certain game genres align better with each monetization model:

Offerwalls Excel In:

• Strategy games where players have longer engagement sessions
• RPGs with complex progression systems that benefit from substantial reward injections
• City builders and management games where premium currency has clear, long-term value
• Games with strong social elements where showing off premium items matters

Rewarded Video Ads Work Better For:

• Hyper-casual games with quick play sessions
• Puzzle games where players need immediate help (extra moves, hints)
• Action games where quick power-ups provide instant gratification
• Games with simple monetization systems

Implementation Complexity

Offerwalls require more sophisticated implementation and ongoing management. You’ll need to handle offer tracking, reward distribution, customer support for failed completions, and fraud prevention. Rewarded video ads are plug-and-play solutions that require minimal ongoing maintenance once implemented.

Can Both Models Work Together?

The Hybrid Approach

Many successful games implement both rewarded video ads and offerwalls, creating a comprehensive monetization ecosystem that caters to different player preferences and behaviors. This hybrid approach can maximize revenue by capturing value from both quick, frequent engagements and deeper, high-value activities.

Strategic Implementation:

• Use rewarded video ads for immediate, frequent needs (extra lives, small currency amounts)
• Reserve offerwalls for major rewards (premium characters, large currency packages, exclusive items)
• Implement progressive reward systems that guide players from video ads to higher-value offerwall activities

Segmentation Strategies

Smart developers segment their player base and present different monetization options based on player behavior:

• New players: Start with rewarded video ads to establish the value exchange concept
• Engaged players: Introduce offerwalls after demonstrating the game’s value
• Paying players: Offer premium offerwalls with exclusive, high-value rewards
• Churning players: Use both models strategically in retention campaigns

Technical Considerations

Running both systems requires careful technical integration. You’ll need to balance the user interface to avoid overwhelming players with too many monetization options. Consider implementing a unified rewards center that presents both video ads and offerwall opportunities in a cohesive, user-friendly manner.

AppLixir Summary

The choice between rewarded video ads and offerwalls isn’t binary. Your optimal monetization strategy depends on understanding your specific audience, game mechanics, and business objectives.

Consider starting with rewarded video ads due to their lower implementation complexity and broader player appeal. Once you’ve established solid engagement patterns and understand your player base better, you can experiment with adding offerwalls to capture additional revenue from your most engaged users.

Remember that monetization is an ongoing optimization process. Continuously test different implementations, reward values, and placement strategies to find what works best for your specific game and audience. The most successful mobile games today use data-driven approaches to refine their monetization strategies continuously.

Both rewarded video ads and offerwalls have proven their worth in the mobile gaming ecosystem. The key is understanding which model aligns best with your game’s unique characteristics and your players’ preferences, then executing that model exceptionally well.