What is Rewarded Ads?
Ad format that provides users with in-app rewards (currency, lives, unlocks) in exchange for engaging with advertisements.
Rewarded ads are an advertising format that offers users valuable in-app rewards such as virtual currency, extra lives, premium content, or power-ups in exchange for watching a video ad, completing a task, or engaging with branded content. This opt-in format creates a positive user experience by providing clear value exchange.
Why It Matters
Rewarded ads significantly increase user engagement and retention while generating higher eCPMs for publishers. Users who engage with rewarded ads are 4.5x more likely to make in-app purchases and show 30% higher lifetime value. The voluntary nature of rewarded ads reduces ad fatigue and improves brand perception compared to interruptive formats.
How to Calculate
Rewarded ad metrics include: Completion Rate = (Completed Views ÷ Started Views) × 100%, Reward Redemption Rate = (Rewards Claimed ÷ Ads Completed) × 100%, and Revenue Per Completed View (RPCV) = Total Revenue ÷ Completed Ad Views.
Industry Benchmarks
| Category | Average | Good Performance |
|---|---|---|
| Video Completion Rate | 85% - 95% | 95%+ |
| eCPM Range | $8 - $20 | $25+ |
| User Engagement Lift | 20% - 40% | 50%+ |
Best Practices
Offer meaningful rewards that align with app progression and user goals. Place rewarded ad opportunities at natural friction points (out of lives, low currency). Use clear value propositions in reward prompts. Limit daily rewards to maintain their perceived value. A/B test different reward amounts and types to optimize engagement.
Examples
A puzzle game offers extra moves for watching 30-second videos, increasing session length by 45%. A fitness app provides premium workout unlocks through rewarded ads, boosting user retention by 25%. A racing game lets players double race winnings via rewarded videos, improving DAU by 30%.
Notes
Rewarded ads work best in apps with virtual economies or progression systems. The format maintains high user satisfaction scores because participation is voluntary. Integration with game mechanics and app flow is crucial - poorly placed rewarded ads can disrupt user experience despite their opt-in nature.