One of the most popular and effective methods of monetization for games is rewarded video ads. However, as with other mobile monetization options, it can also be a complicated process to do it right. When you need to consider impressions, video caps, and use rate, deciding the best way to implement video ads can be difficult. What’s important is doing so in a way that provides a rewarding and exciting experience for users.

Understanding Value Exchange Ads

We’ve talked about monetization before and why rewarded video ads are one of the best options out there. What you may not fully understand is how rewarded video ads are value exchange ads. What does that mean? A user who watches or interacts with a rewarded video ad received in-app currency, items, or features for doing so. Instead of forcing an ad in the face of your users, users can make the decision about whether watching the ad is worth it based on the rewards that are offered to them upon completion.

Increased Ad Revenue

There are also plenty of benefits for the individual who creates the game when using value exchange video ads. One of them is increased ad revenue. Not only does this sort of ad increased ad revenue in general, but it also tends to create more clicks than other advertisements in many markets. One of the reasons this is true is because users are choosing to view the content rather than being told to do so. It’s their decision to watch the video.

Increased Session Time and Engagement

Another benefit on the side of the developer is that users who spend time watching rewarded video ads also tend to have better engagement and increased session time than those who do not. Why? These people have been rewarded with premium items or currency that lets them feel more engaged and interested in the game. It’s easy to pick up and put down a game in most cases but being able to access extra features can make someone more dedicated to learning more about the game.

Higher Level of Retention

Developers of mobile games with rewarded video ads can also enjoy a higher level of retention from their audience. When you implement videos well, they can be a core aspect of the game and its engagement loop. When you pair video ads with appropriate cool-downs, the rewards can help create better engagement habits. This leads to improved retention metrics for the developer of the game.

Higher In-App Purchase Spending

Once users have gained premium content, they are often more likely to purchase in-game currency or features. Rewarded video ads create a way for users to see how bonuses work before shelling out money for those things. The rewards give users the chance to see how the bonuses and features work, which can lead to wanting more of it through spending money.

Rewarded video ads are a form of value exchange ads and they can be an excellent option for bringing in revenue, keeping users, and convincing users to seek out in-app purchases.

AppLixir has been helping 100+ games monetize using Reward Video Ads on Web, Mobile Web and Mobile games & sites.