Rewarded video is popular with both publishers and users for a simple reason: it's a fair trade. The user chooses to watch an ad and receives something of value in return. Done well, it can lift revenue and engagement together.
Design rewards that matter
The reward should be meaningful but not break your in-app economy. Extra lives, hints, double coins for a level or temporary premium access work well. If the reward is too small, few users opt in; if it's too large, it undermines purchases.
Place offers at natural moments
- After a failed level: offer a continue instead of a restart
- At the end of a level: offer to multiply the reward
- In the store: offer a free item once a day
- When a timer is running: offer to skip the wait
Measure the full impact
Track opt-in rate, completion rate and eCPM — but also retention and in-app purchase behaviour for users who engage with rewarded ads versus those who don't. Roll out new placements to a share of users first so you can compare before going live for everyone.
Rewarded video works best as part of a wider monetization mix. Combined with sensible interstitial frequency and occasional native placements, it can build a steady revenue base without making your app feel like an ad carousel.