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

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.

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 Include:

  • Rewarded video doesn’t stop people from making IAP —. Players who are already spending money in titles are actually 3x times more likely than non-spending players to engage with rewarded video.
  • Rewarded video opens up considerably more revenue than IAP  48% of users chose to watch ads compared to just 2.6% purchasing IAP.
  • Rewarded video keeps users invested — Players who viewed ads had 28% longer session times.

About the Study
Seeking to analyze the impact that the inclusion of video ads would have on its successful titles, the AdColony analyzed user behavior and monetization data in two successful titles from a publishing partner.

During an experimental period from Q1 through early Q3, we sought to examine the impact of the inclusion of rewarded video ads on retention, IAP, engagement, and other metrics for success in two free-to-play (F2P) mobile games with an average DAU count of 91,000.