Rewarded video ads are effective and engaging; most importantly, users like them. Unity Ads, a monetization platform, reported that 62% of mobile gamers regularly view rewarded video ads and 71% prefer this ad format. Google found that 50% of users were more satisfied with their app experience because of rewarded inventory.

The reasons for the popularity of rewarded ads are easy to figure out. Viewers get something for their engagement, making it a win-win for viewers and advertisers alike. Despite this popularity, rewarded ads have been largely relegated to the mobile gaming world — but we think other app verticals should consider using rewarded ads to reach their goals. According to SmartyAds, “the engagement rate of reward videos climbs up as high as 92%, and the opt-in rate reaches 79% – an almost impossible task for the majority of exhausted formats.” With numbers like these, no vertical can afford to write off rewarded ads.

The basics of rewarded ads

Rewarded ads incentivize app users to take a specific action by giving them something in return for taking a specific action. In the gaming world, that often means watching a video in exchange for in-game currency or extra lives. However, rewarded ads typically come in a couple of different formats:

(ironSource Rewarded Video)

Offerwalls — Traditional offerwall traffic (incent) rewards users for installing or completing an action in the app. The reward is generally external to the app.

(ironSource Rewarded Video)

Video — Rewarded videos usually reward users with in-game currency (or another in-app reward) for watching or interacting with an ad shown within the app.

Offerwalls tend to work better than video in non-gaming contexts, though with good creative, rewarded videos could certainly work for other verticals. And, increasingly, advertisers are getting creative with how they use rewarded ads. For instance, interactive ad formats, such as playables, can also serve rewarded inventory. And as Business of Apps points out, “rewarded playables can be used in both an app-to-web and app-to-app conversion flow to unlock new high-value users…”

Rewarded ads for fintech and beyond

When it comes to effectively implementing rewarded ads, the objective of a campaign typically matters more than the app’s vertical. For instance, we’ve found that Incent campaigns tend to work when install volume or driving up app store rankings is the priority. However, when it comes to incent offerwalls, ROAS and LTV tend to be lower for down-funnel metrics. Still verticals like Fintech, lifestyle or e-commerce apps have seen the most success with rewarded ads. For these clients, rewarded ads offer a good balance between low CPAs and decent ROAS.

Let’s explore what a rewarded ad for a delivery or fintech app looks like. You open up your favorite game and start playing. Eventually, you get the chance to interact with an offerwall, or a rewarded video ad, but instead of seeing ads for another game, you see an ad that offers you $200 when you sign up for a bank’s new credit card. You could also offer $5 a first food order from a delivery service or your next ride with a ride-sharing app.

User flows such as the above outlined can be highly beneficial for advertisers looking to hit their targets and achieve the scale they need. It’s important to work with a trusted partner on your performance needs, particularly a partner that specializes in driving successful growth with channels outside of traditional search and social. If you’d like to learn more about whether or not your app may be a good fit for a rewarded campaign, don’t hesitate to reach out.