What are rewarded video ads?
A rewarded video ad gives the user an explicit reward — in-game currency, extra lives, a hint, or access to premium content — in exchange for choosing to watch a (usually short) video ad. The defining trait is that it’s opt-in: the user decides to watch, so it feels like a fair value exchange rather than an interruption.
That opt-in nature is exactly why rewarded video is one of the best-performing formats in mobile and game monetization.
Why they earn so well
Rewarded video hits a rare sweet spot — high revenue and high user satisfaction:
- High completion and viewability. Users choose to watch and want the reward, so they watch to the end. Advertisers pay premium eCPMs for that guaranteed attention.
- Positive user sentiment. Because it’s a value exchange, rewarded video tends to improve retention rather than harm it — unusual for an ad format.
- Strong demand. Advertisers know these views are attentive and complete, so competition for the inventory is healthy.
Where they fit
Rewarded video is most at home in:
- Mobile games — the original and still dominant use case (extra lives, currency, continue-after-loss).
- Apps with premium features — watch to unlock a feature, remove a limit, or access gated content.
- Content apps — watch to read a premium article or remove a paywall meter temporarily.
It’s less common on standard web content, where interstitials, sticky units, and native formats usually fit better.
Best practices
- Make the value exchange clear. Tell the user exactly what they’ll get before they opt in. Clarity drives opt-in rates and trust.
- Deliver the reward reliably. Always grant the reward on completion — failing to is a fast way to lose users.
- Place at natural decision points. Offer the reward when the user actually wants it (after losing a level, at a paywall), not at random.
- Don’t gate essential experiences behind it. Rewarded should feel optional and generous, not coercive.
- Compete the demand. Route rewarded inventory through app monetization mediation so multiple networks bid for these high-value views.
The bottom line
Rewarded video is the rare ad format that can lift revenue and user satisfaction at the same time, because the user chooses it in exchange for something they value. For app and game publishers, it’s usually a top-earning format — provided the value exchange is clear, the reward is always delivered, and the demand is competed rather than handed to a single network. Treat it as a core part of your format mix, not an afterthought.