Rewarded Video Ads

Rewarded video ads are a popular advertising format in mobile apps, especially in gaming. Users watch a short video and receive something in return, such as coins, lives, or premium access. Because the user chooses to watch, rewarded video advertising is considered a non-intrusive format that supports both app engagement and revenue. 

What are rewarded video ads?

Rewarded video ads are opt-in video advertisements that offer a reward to users who complete watching the ad. The reward is part of the app experience and is applied only after the video has been viewed until the end.

The format is used in mobile apps to increase engagement and generate revenue. Users know what they will receive before starting the video, which makes the interaction transparent. This voluntary structure often leads to higher completion rates and a positive user response.

Rewards vary depending on the app category and can include:

• in-game currency, energy, or items
• lives, retries, or hints
• access to locked content
• premium features for a limited time

How rewarded video ads work in mobile apps

The format follows a simple flow:

1. The app offers a benefit in exchange for watching a video.
2. The user chooses to watch the rewarded video ad.
3. The ad is shown in full, often with sound on.
4. When the video completes, the app grants the reward.
5. The ad network reports impressions, completions, and revenue.

Below is a visual example of how a rewarded ad flow typically works in a mobile game. The illustration is based on a diagram from Google Ad Manager’s “Rewarded ads” feature brief.

Because users opt-in, rewarded video ads typically achieve better completion rates than passive formats. Completion is the key point where revenue is generated. Ad networks optimize toward showing ads that are likely to be completed and rewarded.

Rewarded video ad format explained

Rewarded video ads:

• are short videos, usually 15-30 seconds
• appear at natural breaks in the app
• require full completion to unlock the reward
• must clearly communicate the reward before viewing

The clarity of reward matters. Users should know exactly what they will gain. This improves trust and increases participation.

Common placements:

• end of a game level
• when energy or lives run out
• to unlock a feature
• before a premium action

In most cases, users watch because they want progress, not because they want ads. This alignment makes rewarded video ads effective in maintaining engagement.

Rewarded video ads vs interstitials vs banners vs in-app purchases

Rewarded video ads belong to a group of monetization models. They sit between advertising and in-app purchases.

Interstitial ads

• full-screen ads without rewards
• interrupt the experience
• no opt-in

Banner ads

• small ads placed on the screen
• lower revenue
• passive format

In-app purchases (IAP)

• users pay real money for benefits
• higher commitment

Rewarded video ads

• voluntary
• provide benefit without payment
• can reduce friction created by IAP

Many apps use rewarded ads to support users who are not willing to spend money while keeping IAP available for players who want faster or larger benefits.

Benefits of rewarded video ads for mobile apps

Rewarded video advertising offers several advantages:

• Higher engagement. Users choose to watch ads for rewards.
• Strong completion rates. Completion drives revenue and CTR.
• Good user experience. The ad is voluntary and tied to progress.
• Revenue diversification. Income comes from ads, not only purchases.
• Positive sentiment. Users feel they are receiving value, not being interrupted.

Apps that rely on progression, energy, or consumable resources are strong candidates for rewarded formats. Many games demonstrate that combining purchases and rewarded video ads increases lifetime value across both paying and non-paying segments.

Rewarded video ad metrics to track

Key performance metrics include:

• Completion rate: percentage of videos watched until the end
• CTR (click-through rate): clicks on call-to-action after the video
• eCPM: revenue per 1,000 impressions
• Fill rate: how often ad requests return an ad
• Retention: whether rewarded ads increase session time or return rate

Completion rate is one of the most important indicators because rewards are only granted after the video is fully viewed. Higher completion usually means higher revenue.

Rewarded video ads best practices

Effective implementations follow several principles:

• Place ads at natural pauses, not during active gameplay
• Communicate rewards clearly before viewing
• Limit frequency so the app does not feel like a reward loop
• Test reward values to balance engagement and revenue
• Track completion and adjust placement based on performance

Many apps start by testing a single placement, then expand to more areas if metrics are strong. Small changes in timing or reward type often affect participation rates.

Frequently asked questions

Why use rewarded video ads?

Rewarded video ads allow you to generate revenue without forcing interruptions. Users receive a benefit, and the app earns income only after a completed view. This format supports engagement, retention, and monetization at the same time.

What is a rewarded video ads example?

Examples include:

• watch a video to gain extra lives in a game
• watch a video to unlock a hint
• watch a video to speed up a process or cooldown
• watch a video to access premium content temporarily

These actions match user intent and encourage participation.

How to add rewarded video ads to an app?

Implementation involves:

• integrating an ad network SDK
• selecting placements where rewards make sense
• testing visibility, timing, and reward value
• monitoring metrics such as completion rate and eCPM

Over time, developers adjust performance and frequency based on reporting. 

Related terms

• Interstitial Ads
• SDK (Software Development Kit)
• Ad Mediation
• Cost Per Completed View (CPCV)