Rewarded video is one of the best-liked ad formats by advertisers, app publishers, and the viewers watching the ad. This format gives users the opportunity to opt into viewing a short video advertisement. In exchange for viewing the ad, users receive some sort of in-app reward, such as extra in-game currency or lives.
Just how popular has rewarded video become? Smaato's Global Trends in Mobile Advertising H2 2018 report found that rewarded video ad spending grew by 139% — triple the growth of other video ad formats — compared to the previous year.
Here's why rewarded video is so well-liked within the mobile advertising ecosystem:
- For Viewers: People like having the freedom to opt-in to an ad. One study found that almost 70% of users regarded rewarded video positively — more than any ad format.
- For Advertisers: Rewarded video ads are highly viewable, so they're a great way to get a message in front of an audience.
- For Publishers: Rewarded video offers among the highest eCPMs out of all ad formats, so apps leveraging this format can generate serious revenues.
With the advantages offered by rewarded video, it's no surprise that spending on the format has risen dramatically. With rewarded video offering so many potential benefits, we want to give you a complete look at this ad format and why it's so valuable in advertising campaigns.
Rewarded Video's Versatility
One of the reasons why rewarded video is quickly growing is because it's versatile. In games, users can receive additional lives, in-game currency, or levels in exchange for opting in to a rewarded video ad. Some photography apps offer filters, while music apps could offer uninterrupted listening as rewards.
The advertisers leveraging this format are mostly others apps, which makes sense because games are where rewarded video is most likely to be found. However, it's not just other apps that realize the benefits of reward video. Retail and media brands also use this format in their campaigns and make up one-fourth of all spending.
The fact that different categories of brands are using rewarded video in apps that aren't just games shows that this format is proving increasingly versatile as it grows in popularity.
Who's Watching Rewarded Video
Rewarded video viewers aren't the same as other video ad viewers. Looking at the data on the Smaato platform revealed just how different the demographics of rewarded video viewers are. With this information, advertisers can better target the relevant people for their campaigns.
- While the average age of a video ad view is 24 to 32 years old, rewarded video viewers are 33 to 41 years old. A more mature audience means higher spending power, which is good news for many brands.
- Rewarded video viewers are more likely to be female than male.
- Finally, while just 11 percent of all video viewers use iOS devices, 24% of rewarded video users are on iOS devices. With iOS eCPMs normally higher than Android eCPMs, app publishers have higher earning potential with the rewarded video format.
What's Next for Rewarded Video
Rewarded video ad spending growth is outpacing other ad formats, and this trend is likely to hold in the coming years. The benefits of this ad format for advertisers, publishers, and viewers make this is an especially useful tool. For advertisers looking to make the most of their campaign spend, rewarded video is an ideal ad format.
For more insights, download our Global Trends in Mobile Advertising, H2 2018 report today.