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New Case Study – Rewarded Video: Revenue Enhancer or IAP Cannibal?

Posted Oct 17, 2017

Rewarded video might be the preferred method of ad engagement for users, but how does it impact the overall revenue for a publisher? AdColony partnered with one of our publishing partners to dig into the impacts of adding rewarded video to a mobile app.

Would users become more loyal after receiving rewards or would they churn faster than those who worked through the game for rewards naturally? Would users hate the publisher adding ads to their favorite title? To answer these questions, we looked at the impact of revenue, retention, session times, and more to determine the true impact that adding rewarded video would have on mobile games.

The answer is clear: Rewarded video not only improves the experience for users over interruptive ads that create unnatural breaks in the user experience. Throughout the study period, there was a 28% increase in overall gross revenue.

Other Highlights:

  • Players who are already spending money in titles are actually 3x times more likely than non-spending players to engage with rewarded video
  • 48% of users chose to watch ads compared to just 2.6% purchasing IAP
  • Players who viewed ads had 28% longer session times

If you’re looking for more rewarded video best practices, our previous case study on “watch to continue” ads, and our previous blog post can provide an immediate reward. For more information on user engagement best practices across the industry, our most recent Publishing Survey has that and more.

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