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Learn More About the Benefits of Rewarded Video Ads

Learn More About the Benefits of Rewarded Video AdsVictoria Kensington
Tech Insights
Learn More About the Benefits of Rewarded Video Ads

In today's fast-paced advertising landscape, change is the only constant. The goal? To capture a broader audience, boost brand revenue, and foster a dedicated community of consumers. Modern advertising is all about delivering value, whether through captivating narratives, immersive storytelling, or cutting-edge targeted strategies that make viewers feel like the chosen ones. Amidst these trends, rewarded video ads stand out, taking viewer engagement to a whole new level by offering enhanced experiences for those who stick around till the end.


In essence, rewarded video ads represent a form of advertising that offers viewers specific benefits when they watch the content until the end or engage with it in some manner. Typically prevalent in gaming environments, these ads also extend their presence into music streaming apps, fitness and language learning apps, news apps, and shopping and eCommerce apps. We will revisit and delve deeper into these applications shortly.


What drives the current popularity of rewarded video ads? The answer lies in their impressive user engagement, with approximately 80 percent of users actively opting for this format. Consequently, savvy marketers should strategically incorporate rewarded experiences into their marketing strategy. Capitalizing on users' inclination to receive benefits for simply viewing ads, a thoughtfully selected video significantly enhances the potential for audience expansion. However, we'll delve deeper into this aspect shortly.


Now, let's delve into this evolving landscape and explore how Axis, a trailblazer in the advertising realm, is making waves with rewarded video ads. We'll uncover the intricacies of this advertising format, understand Axis's unique approach, and discover how collaboration with DSPs and SSPs can elevate the advertising game.


The Landscape of Rewarded Video Ads

Earlier, we touched upon the concept of rewarded video ads briefly. In essence, this form of incentivized advertising offers users rewards in exchange for engaging with a promotional video. Now, how do these ads work? 


Picture this: you're playing, and there's a tough spot where you could use some help. Now, if you decide to watch a quick 30-second video, you get cool stuff in return—maybe extra in-game money, a stronger character, or more lives to keep going. Once the ad wraps up, you're back in the game, but now you've got those extra rewards to boost your gameplay. It's like a win-win – you get what you need, and the game keeps rolling smoothly. That's the beauty of rewarded video ads in action.


The rewarded ad experience is designed to seamlessly enhance the overall gaming experience, allowing players to continue their progress with the added perks they've earned. This value-exchange model fosters positive player engagement, providing advertisers with a unique opportunity to connect with a captivated audience in a way that enhances, rather than interrupts, the gaming experience.


The versatility of rewarded video ads extends beyond game developers, with marketers across various application genres leveraging this impactful advertising format. Take, for instance, fitness apps like MyFitnessPal, where users gain access to premium features, including personalized workouts and meal plans, through engaging with these ads.


Language learning apps such as Duolingo also integrate rewarded video ads, providing users with access to exclusive features and lessons. Duolingo, for example, awards language enthusiasts with additional hearts after watching these videos, expediting course completion without compromising efficiency.


News app enthusiasts benefit from limited access to premium content or an ad-free reading experience, showcasing the adaptability of rewarded video ads. Likewise, e-commerce giant Amazon entices users with attractive discounts following their interaction with such ads. Even music streaming giant Spotify keeps pace by offering users an ad-free listening experience for a specified duration.

In essence, applications spanning diverse industries harness the advantages of rewarded video ads. Extensive research underscores the trajectory of this advertising format in the future, emphasizing that brands embracing it are poised for success, while those hesitating may risk falling behind.


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It is crucial to recognize a distinctive feature: no other form of advertisement ensures the viewer a direct benefit following engagement. This serves as the primary differentiator of rewarded ads. The application user actively seeks interaction with the video, establishing the fundamental rationale behind the heightened efficacy of this advertising format.

Benefits of Rewarded Ads

The benefits of rewarded ads are endless. From increased user engagement and better brand perception to boosting revenue for publishers and diversified revenue streams, these ads are the best. By the way, users who interact with rewarded advertisements are, on average, 4.5 times more likely than non-interactive users to make in-app purchases.


Benefits for demand owners

1. Enhanced User Engagement

Rewarded ads provide a voluntary and positive engagement experience for users, leading to higher ad interaction rates. This increased engagement contributes to better campaign performance for DSPs. Rewarded advertisements enable players to get past your game's free-to-play level without having to pay any money, which is a terrific way to increase engagement.


2. Precise Targeting Opportunities

DSPs can leverage user opt-ins for rewarded ads to gather valuable data, enabling more precise targeting. This data-driven approach ensures that ads are delivered to a relevant and receptive audience.


3. Improved Brand Perception

Users who choose to engage with rewarded ads often perceive the brand positively, associating it with providing value. This positive association can translate into increased brand awareness and loyalty.


4. Monetization Opportunities

By partnering with SSPs and publishers offering rewarded video ad placements, DSPs can explore additional monetization channels. This diversification of revenue streams is beneficial for the overall business model.


Benefits for supply owners

1. Optimized Ad Inventory Management

Rewarded ads allow SSPs to strategically manage ad inventory by integrating them seamlessly into user experiences. This optimization ensures a positive user journey while maintaining a steady revenue stream for publishers.


2. User-Friendly Monetization

The opt-in nature of rewarded ads aligns with user preferences, fostering a user-friendly monetization approach. SSPs can offer valuable incentives to users, creating a balance between the user experience and revenue generation.


3. Increased Publisher Revenue

Rewarded ads often result in higher engagement rates, leading to increased revenue for publishers. SSPs can facilitate this process, helping publishers monetize their content effectively.


4. Data-Driven Insights

The data collected from rewarded ad engagements provides valuable insights for SSPs. These insights can be used to refine ad placements, optimize targeting strategies, and enhance overall campaign performance.


Benefits for Publishers

1. Monetization Without Intrusiveness

Rewarded ads offer a non-intrusive way for publishers to monetize their content. Users willingly engage with ads in exchange for valuable rewards, creating a positive revenue stream without compromising the user experience. Data shows that 62% of users choose to interact with such ads regularly. 


2. Extended User Session Duration

Users engaging with rewarded ads often spend more time within the app, leading to extended session durations. This increased user engagement can positively impact the overall app performance and user retention.


3. Diversified Revenue Streams

Publishers can diversify their revenue streams by incorporating rewarded ads alongside traditional ad formats. This diversification provides financial stability and flexibility for publishers.


4. User Retention and Satisfaction

Rewarded ads contribute to user satisfaction by offering tangible benefits. Users are more likely to stay engaged with an app that provides value, leading to improved user retention rates for publishers.


These ads create a mutually beneficial ecosystem, providing value to users, optimizing revenue streams for publishers, and enabling precise targeting for DSPs. The collaborative efforts of these stakeholders contribute to a positive and sustainable advertising model.


Understanding the User Journey of Rewarded Video Ads for Demand Owners

DSPs play a pivotal role in ensuring a seamless user experience. These ads find integration into various apps and platforms, ranging from mobile games to fitness and language learning applications. DSPs collaborate closely with app developers and publishers to strategically embed rewarded video ad placements.


The success of rewarded video ads lies in strategic placement and user triggers. DSPs leverage data-driven insights to identify optimal moments for ad placement, seamlessly aligning with natural breaks or transitions within the app's content. This strategic approach enhances user receptivity and overall engagement.

The core of rewarded video ads lies in offering users incentives for engagement. Users are presented with the option to engage with a rewarded video ad in exchange for valuable incentives, such as in-app currency, power-ups, or exclusive content. DSPs work hand-in-hand with advertisers to design compelling incentives that resonate with the target audience. Furthermore, transparency is maintained throughout the process, with users given the choice to opt in to watch the ad, ensuring compliance with privacy regulations.


Once users opt in, the rewarded video ad plays seamlessly within the app interface. DSPs employ advanced technology to optimize ad delivery, ensuring high-quality playback with minimal disruption to the user experience. This careful balance between engagement and seamlessness contributes to the overall success of the ad campaign.


Post-engagement, users receive their promised rewards, creating a positive interaction. This positive experience contributes to increased user satisfaction and brand affinity. DSPs play a crucial role in analyzing post-engagement metrics to gauge the effectiveness of the rewarded video ad campaign. This data-driven approach enables continuous refinements in targeting strategies, optimization of ad creatives, and an overall enhancement of the impact of rewarded video ads.

In the realm of rewarded video ads, DSPs act as architects of a mutually beneficial ecosystem, bringing together advertisers, app developers, and users in a harmonious journey of engagement and value exchange.

Target Advertisers for Rewarded Video Ads

Advertisers are increasingly drawn to rewarded video ads for their unique ability to foster positive user engagement. The opt-in nature of these ads ensures that viewers actively choose to interact, leading to a more receptive audience. Advertisers value this voluntary engagement as it not only enhances brand perception but also provides an avenue for delivering tailored messages to a captivated audience. The intrinsic value exchange, where users receive incentives for their engagement, creates a win-win scenario, making rewarded video ads an attractive choice for advertisers aiming for meaningful and impactful connections.

Axis is committed to expanding the reach and impact of rewarded video ads by continually working on broadening the user base. This involves strategic collaborations with publishers and advertisers, ensuring that advertisers can access a diverse and engaged audience. By forging partnerships with platforms spanning various sectors, Axis facilitates advertisers in reaching their target demographics effectively. The ongoing effort to expand the user base for rewarded video ads underscores Axis's commitment to providing advertisers with a comprehensive and far-reaching advertising solution.


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Axis: Pioneering Rewarded Video Ads

In the vast sea of advertising players, Axis emerges as a pioneer, setting itself apart with a commitment to innovation. As we navigate through the realms of demands and suppliers, let's unravel how Axis collaborates with these essential components of the advertising ecosystem.


Digital advertising is a complex dance, and demand owners are the choreographers. They determine which ads to buy and how much to bid, ensuring that advertisers reach their intended audience effectively. Axis's collaboration with advertisers is a strategic move, aligning with the very architects of digital advertising to maximize the impact of rewarded video ads. The result? A win-win scenario where advertisers get the exposure they desire and viewers get content that adds genuine value.


On the flip side, publishers are the stage managers, coordinating the distribution of ad inventory on behalf of publishers. For Axis, partnerships with supply owners are pivotal, opening doors to a vast network of publishers ready to incorporate rewarded video ads into their content. It's not just about reaching the right audience; it's about reaching them seamlessly, and Axis's collaboration with SSPs ensures a smooth and effective delivery of these engaging ad experiences.



So, who benefits the most from this paradigm shift in advertising? Rewarded video ads cater to a diverse audience, but game studios and app developers are particularly reaping the rewards. When rewarded video ads were introduced, 62% of developers observed that user retention either remained the same or increased.


In a world where monetizing games is a strategic challenge, Axis steps in with tailored solutions, offering in-game rewards and engagement strategies that not only captivate players but also boost revenue for developers.


But we don’t stop there. Axis is on a mission to expand its user base, working tirelessly to bring the magic of rewarded video ads to more demand and supply owners. The success stories are piling up – increased revenue for DSPs, enhanced monetization for publishers, and advertisers who have found a unique way to connect with their audience.

As we wrap up this journey into the world of rewarded video ads, it's clear that Axis is not just riding the wave of innovation; it's creating it. The call to action is resonant: for DSPs and SSPs ready to elevate their advertising game, Axis is the partner of choice. Join the ranks of those who have embraced a new era of advertising—an era where viewers don't just watch ads; they experience them.

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