Glossary · Advertising

What is a rewarded ad?

A rewarded ad is a video advertisement that a viewer chooses to watch in exchange for a benefit inside the app, such as coins, an unlocked episode or a period of ad-free viewing. The viewer opts in, watches to the end and receives the reward.

How rewarded ads work

The app offers a choice: pay to unlock, or watch an ad. If the viewer taps to watch, an ad of 15 to 30 seconds plays and cannot be skipped. When it completes, the ad system confirms it to the app, and the reward is granted.

The confirmation should be checked on the server, so that the reward cannot be claimed without watching.

Where they fit in streaming

  • Unlocking the next episode of a microdrama without coins
  • Earning a small number of coins, limited per day
  • A day of ad-free or premium access
  • An early look at an episode before its free release

Why they work

Because the viewer asked for the ad, completion is close to total and attitudes toward it are far better than toward an interruption. Advertisers pay well for that. For the service, rewarded ads earn something from the large majority who never buy, and keep those viewers moving through a series, some of whom later pay to go faster.

Keeping the balance

If ads unlock everything, nobody buys coins. Limit the number of rewarded unlocks per day, make the paid route clearly quicker, and track whether viewers who use rewarded ads later convert to paying, or whether payers are drifting to the free route.

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FAQ

Rewarded ad, answered.

More definitions in the streaming glossary.

Planning a streaming service?
Are rewarded ads skippable?

No. The reward is given for watching the whole ad, so leaving early forfeits it.

Do rewarded ads reduce purchases?

They can if they are unlimited. With a daily cap they mostly earn from viewers who would not have paid, and introduce some of them to paying.

How much does a rewarded ad earn?

More per impression than a standard in-feed ad in the same market, because completion is so high. Actual rates depend on country and demand.

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