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BizReport : Advertising archives : April 08, 2016

Rewarded video ads a hit with game developers and players alike

A new study reveals that rewarded video ads are a fast-growing and popular monetization and engagement method used within today's mobile game developer community.

by Helen Leggatt

Unity Technologies surveyed more than 2,000 mobile games developers and players and found that, among both sets, rewarded video ads, which offer players virtual currency and other incentives, were the most popular.

Among mobile game developers, more than half (52%) said video ads provide the highest revenue per user compared to any other type of in-game advertising. Less than 1 in 10 (9%) of developers noticed retention decrease after introducing rewarded video ads and 86% said the integration of rewarded video ads unaffected or even increased in-app purchasing.

Among players, 71% say that watching video ads is their preferred way to "pay" for game content and more than half (54%) specifically chose rewarded video. The vast majority (80%) said they were open to engaging with video ads for in-game rewards.

For game players who are never likely to fork out money to play, the opportunity to watch videos in return for virtual goods has the added benefit of keeping them engaged with a game for a longer period of time which, in turn, means they end up seeing ads and generating more revenue for the game developer.

And there are benefits to the advertiser, too, According to Elain Szu, senior manager of exchange marketing at Twitter/MoPub, "Rewarded video ads provide users with an additional reason to watch the whole video, giving the advertiser more leeway and time to get their message across for their brand than a video that you can skip after a few seconds".

Image via Shutterstock

Tags: gaming, in-game advertising, rewarded video, video advertising

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