When I was a young, awkward little kid I was always behind the current trends. No matter how hard I tried I could never keep up with all the crazy game changes the rest of the kids so effortlessly mastered. I got good at marbles when nobody cared, I learned hopscotch probably two years too late, and played with Barbie’s up until an age (I refuse to share) I probably shouldn’t have. What’s the point of my embarrassing little story? Not being able to keep up sucks, but it doesn’t suck as much as losing money because of it.
Now, let’s pretend (for your sake and mine) that you didn’t read that awful, maybe too personal confession of mine and focus on you. If you are a game developer looking to generate substantial revenue and live respectively off your apps, you MUST keep up with industry trends. In today’s case, the hottest trend/way to earn money comes in the form of rewarded video.
What is Rewarded Video?
Rewarded videos are video ad units designed to increase engagement and revenue by providing users with in-app currency, credits, or premium content in exchange for viewing a short video trailer. Basically, users get the opportunity to interact with an ad in order to receive something they desire while developers receive video completions and potentially, increased installs.
What makes Rewarded Videos so popular?
Because users are given a choice whether or not to opt-in the user experience doesn’t “take a hit.” Giving the user the choice to view the ad puts the ball in his/her court. The ad is not intrusive as it is a natural part of the actual game content. At the end of the video, there is usually a call to action, offering the user the opportunity to download a new app or return to the game and receive the in-app reward.
Rewarded video ads often increase user engagement with the app as they usually provide users with a free incentive to continue playing. (Free coins, lives, etc.) Developers make more revenue and publishers get better viewing rates on their ad campaigns. Everybody’s a winner.
Taking advantage of Rewarded Video
According to the 2016 Mobile Monetization Report “The average player who typically opens their wallet while mobile gaming only makes 1.8 purchases, which averages to $13.82” Which really means that if you’re waiting for in-app purchases to buy your vacation home in Miami you may be waiting a while. Revenue from in-app purchases isn’t exactly something you can rely on and it shouldn’t be your only strategy. This is where rewarded video comes into play.
According to a study done by Unity: “52% of mobile game developers surveyed identified video ads as providing the highest revenue per user compared to any other type of in-game advertising. “Another study done by FusePowered concluded that players who watched rewarded videos made 24% more in-app purchases and spent 21% more money than those paying players who did not watch rewarded video. You can generate an additional revenue channel by hosting video ads in your games if you can offer your players something valuable. Giving users free in-app rewards provides them with a sneak peek of your best features, helping your chances of increasing future in-app purchases.
Rewarded Video – Best Practices
You want to make sure you safeguard user experience instead of destroying it. These best practices should give you an idea of how to gain success without compromising UX.
- Give your users the option to Opt-in
- If you want your users to interact, make sure your video is visible. No one will watch a video they can’t see. Tesla Tubes is just one example of a game that integrated its rewards as part of the game itself. Players connect different tubes and when they are stuck or need help have an option of clicking on a light bulb icon for help. After they watch a short video ad they can either download an app or receive “hints” to help them continue the game.
- Offer your users something that’s actually valuable in the game economy. A life, coins, something that will help them achieve progress in the app. Make sure you entice the users by offering them something they can’t resist, a number of coins they need to purchase something, shorter waiting times, or an extra life.
- Users should be able to use the reward right after they watched the video. If the ad is shown after a “game over” offer them an additional life.
- Showcase the ad at natural, selective times.
- Give users the option to choose the award that most appeals to them. Give them a variety of options like lives/currency/in-game goods.
What NOT to do
- Do not bombard your users with video ads without creating opt-in placements. Doing so will quickly damage the UX and deter your users from playing.
- Do not Interrupt your users while they are playing. Placing an ad in the middle of a level can and will annoy your users. Wait for a more natural time like when a player runs out of lives or at the end of a level.
- Do not make the reward more attractive than the IAP’s. By doing so you will jeopardize the potential revenue from in-app purchases. If you don’t want to negatively affect your IAP’s, try giving away less in-game goods and offer shorter waiting times or lives instead.
Don’t get left behind
Rewarded video is a powerful in-app monetization tool that you do not want to miss out on. It’s one thing to be lame at marbles, suck at dodgeball, or play with dolls as an adult. All those things can be forgiven (I hope), but being behind on your app promotion strategies has consequences that can negatively affect your money making abilities and that is a serious issue. So, if you’re still using banner ads in your games and have not moved on to rewarded videos, get up to speed and familiarize yourself with the trends you need to succeed.
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