What are Rewarded Ads?

Rewarded ads, or incentivized ads, are in-app ads that offer users an incentive in exchange for interacting with an ad or performing an action, such as watching a video ad, installing an app or registering for a website. A real-life example of this is an application like Spotify which offers users thirty minutes of uninterrupted music in exchange for listening to a couple of ads. Other example rewards that users can unlock upon completion of a requested action include virtual coins, extra ‘lives’ or miscellaneous game powerups etc.

With rewarded ads, users are given the option to decide whether they consent to interacting with an ad or not. Publishers are able to specify the rewards available and decide which rewards can be used for each ad unit.

“Almost 80% of mobile app users are open to interacting with video ads for in-app rewards”

How do rewarded ads work?

User is given the option to view an ad if they want to unlock certain app features. This usually happens during a transition point, such as in-between game levels.
The user decides to opt-in and interact with the ad
Once the ad interaction is complete, the user receives the aforementioned reward
The user consumes the reward and is able to continue using the app

Does Google allow rewards to view ads?

Rewarding users for viewing or interacting with ads is usually one of the cardinal sins of Google ads and can lead to account termination. However Google do have some specific formats that (subject to being whitelisted for them) allow users to be rewarded for ads.

AdMob rewarded ads : Video or interactive ad formats that can be linked to rewards in ads
AdX Rewarded video for apps : In app video ads that can be tied to user reward
AdX Rewarded video for web : Short form video ads that can be tied to rewards. This is not currently a widely available feature.

All of these rewarded ads feature has to be specifically enabled by Google, and is not available to any publisher using Google’s monetization toolset. The rewarded ads feature is also limited to a certain number of specific publishers. OKO can provide access to this feature for publishers that are interested in implementing rewarded ad units into their apps. If you’d like to hear more about this solution, get in touch with our team today.

What are the benefits of rewarded ads?

There are a number of benefits associated with rewarded ads. Firstly, they enable publishers to monetize a larger proportion of users that do not want to spend money. Rewarded ads offer a more positive user experience as users can gain access to items that enable them to continue playing, progressing or accessing paid items. The opt-in nature of rewarded ads means that ads are non-intrusive and enable users to retain control.

In terms of revenue gains, rewarded ads have the potential to offer higher RPMs due to their engaging and highly viewable nature. Advertisers love rewarded ads because they tend to perform better and offer higher returns.

Are there any drawbacks?

Drawbacks of incentivized ads include the fact that some users will only interact with ads to gain an incentive. This traffic is generally of lower quality and less valuable to advertisers because users are less engaged. This will be factored into advertisers bids. Users can also sometimes have a lower lifetime value.

Are rewarded ads only available on mobile?

Rewarded ads are most commonly used in apps and games, but this does not necessarily mean they are only available on mobile. Different vendors offer different formats but rewarded ads through Google are available in-app only.

Going back to the Spotify example; Spotify’s rewarded ads model with the reward being able to listen to thirty minutes ad-free music in exchange for listening to a couple of ads is available on the Spotify app which can be used on desktop, mobile or tablet.

Dolly Bagnall

Dolly joined the OKO team in early 2019 and certified to Google Certified Publishing Partner status. Dolly manages publisher communication and learning at OKO.