Rewarded ad systems: Are they right for your game and how to implement them
It’s not a secret that as mobile games have become increasingly hybridized, both in terms of their monetization and gameplay, retention has become the new golden KPI. In order to effectively monetize in this new hybrid ecosystem, publishers and studios need players who will stay and play for longer. And so, creating a positive user ad experience for players has become increasingly urgent.
One approach that has gained traction is the implementation of rewarded ads.
WTF are rewarded ads
Rewarded ads offer players the option to engage in exchange for in-game rewards. These ad units have proven to be a powerful tool for revenue generation and player engagement, offering developers and players a win-win scenario. Developers are able to monetize their games with ads and players are given an opt-in ad experience that doesn’t disturb gameplay.
Most players want to engage with rewarded ads. According to the 2023 Unity Gaming Report, while only 3% of players convert to paying for in-app purchases (IAP)* in successful free to play mobile titles, over 60% are interested in engaging with rewarded ad placements**. These two groups are also non-exclusive, as an IAP purchasing player may also engage with rewarded ads too.
Are rewarded ads right for your game?
While there’s clear benefits to rewarded ad units, before jumping into implementation it’s important to consider if a game can support a rewarded ad system.
Some important questions to ask include:
- Does the game have a form of in-app currency and economy?
- Does the game offer power-ups, boosters, or consumables that players would want to access?
- Does the game have an in-game store where players can spend their earned in-game currency for boosters or cosmetics?
If the answer to all three of these questions is yes, then your game can support rewarded ad units.
What you need to implement rewarded ads
1. The right ad partners and infrastructure:
A lot of the success of your rewarded ad strategy will depend on finding the right ad partners and infrastructure for your game that offer both scalability and ease of integration. Partners like Unity Ads and mediation solutions like Unity LevelPlay can provide the flexibility of supporting both ads and IAPs to maximize revenue potential.
2. Strategic placements to ensure optimal player engagement:
Properly placing ads is crucial for maintaining player engagement. Utilize data insights, like engagement rates by placement location (for example, such as after or between levels), to determine the most effective spots. Timing is also key; rewarded ad placements should be when players are most incentivized to engage, like when a player has run out of in-game currency or retries and is otherwise unable to continue playing.
Source: Unity Mobile Growth Monetization Report 2024, Chart 3.4
3. Clear communication of the value proposition:
Players need to understand what they gain by watching a rewarded ad. Clear signposting and messaging should be used to effectively convey the benefits to the player, increasing the likelihood of player engagement. For example, if a rewarded ad is offering a player a boost or a retry in exchange for watching an ad, the player needs to understand that this will help them extend their game session or or speed up their progression.
Source: Unity Mobile Growth Monetization Report 2024, Chart 3.6
How to measure your rewarded ads’ performance
After implementing rewarded ad units, monitor the performance of them using A/B testing tools like Unity Analytics. You should be looking out for KPIs like Average Revenue Per Daily Active User (ARPDAU) from IAP, the retention rate, and the engagement rate.
It’s important to establish a control group to allow for accurate comparison against a baseline. If players enjoy the new feature, you should see an increase in engagement first, followed by an increase in playtime and retention, and ultimately a boost in player LTV.
A win-win
Rewarded ads offer a balanced approach that respects player choice while improving revenue generation, creating a cycle that benefits both developers and players. As the mobile gaming industry evolves, rewarded ads will likely play a pivotal role in creating both engaging and profitable gaming experiences in the near and long term.
*Source: Unity IAP Plug-in, Games that made over $10k USD in 2023, players that installed in 2023
**Source: Unity Gaming Report 2023, chart 4.4