--- title: "What Is a Rewarded Ad? Definition and Examples | RentAnOTT" description: "A rewarded ad is one a viewer chooses to watch in exchange for something, such as coins or a free episode. See how it works in short-form video apps." url: "https://www.rentanott.com/glossary/rewarded-ad" markdown_url: "https://www.rentanott.com/glossary/rewarded-ad.md" category: "Advertising" updated: "2026-10-05" --- # 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. ## Rewarded ad on RentAnOTT Advertising is included on every RentAnOTT plan and coins and virtual purchases are a $119/month add-on. Ask us on a demo how ad-based unlocks would be set up alongside coins in your app. [See pricing](https://www.rentanott.com/pricing). ## Related terms - [Coins and virtual currency](https://www.rentanott.com/glossary/virtual-currency) — Coins, or virtual currency, are units of in-app credit that viewers buy in packs with real money and then spend inside a streaming app, most often to unlock individual episodes of a short-form series. - [Episode unlock](https://www.rentanott.com/glossary/episode-unlock) — Episode unlock is a pay-per-episode model in which the first episodes of a series are free and each later episode is unlocked individually, usually with in-app coins, by watching an ad or with a pass. - [Microdrama](https://www.rentanott.com/glossary/microdrama) — A microdrama is a serialized fiction story told in very short episodes, typically one to three minutes each, filmed vertically for viewing on a phone. A series often runs to dozens of episodes, each ending on a hook that leads into the next. - [Vertical series](https://www.rentanott.com/glossary/vertical-series) — A vertical series is a series of episodes filmed in portrait orientation for viewing on a phone held upright. Episodes are usually short, from one to ten minutes, and released in a swipeable feed. - [AVOD](https://www.rentanott.com/glossary/avod) — AVOD (advertising-based video on demand) is a streaming model where viewers watch on-demand video for free and the service earns from the ads shown before, during or after it. - [CPM](https://www.rentanott.com/glossary/cpm) — CPM (cost per mille) is the price an advertiser pays for one thousand ad impressions. It is the standard unit for pricing video advertising, and the rate a streaming service earns for each thousand ads it shows. - [Fill rate](https://www.rentanott.com/glossary/fill-rate) — Fill rate is the percentage of ad requests that are answered with an ad. If a service requests 1,000 ads and receives 700, its fill rate is 70%. Unfilled requests earn nothing. - [ARPPU](https://www.rentanott.com/glossary/arppu) — ARPPU (average revenue per paying user) is the revenue a service earns in a period divided by the number of users who made at least one payment in that period. Unlike ARPU, it leaves out everyone who used the service for free. - [Short-form video](https://www.rentanott.com/glossary/short-form-video) — Short-form video is video that lasts from a few seconds to a few minutes, usually vertical and watched in a continuous, swipeable feed on a phone. It covers clips, reels and the episodes of microdramas. ## Further reading - [Microdrama and short-form streaming platforms](https://www.rentanott.com/blogs/microdrama-short-form-streaming-platforms) - [Short video applications compared](https://www.rentanott.com/blogs/best-short-video-application) - [OTT revenue calculator](https://www.rentanott.com/tools/ott-revenue-calculator) ## Frequently asked questions ### 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. All 163 terms: [Streaming and OTT glossary](https://www.rentanott.com/glossary). ## Book a demo Tell RentAnOTT what you are launching. The team walks through the platform and maps the path to go-live around your catalog, markets and revenue model. Book a demo: https://www.rentanott.com/contact ## More from RentAnOTT - [Home](https://www.rentanott.com/index.md) — What RentAnOTT is, what every plan includes, and how launch works - [Features](https://www.rentanott.com/features.md) — Every core feature and optional add-on - [Pricing](https://www.rentanott.com/pricing.md) — Platform tiers, apps, add-ons, usage rates and example bills in INR and USD - [Free tools](https://www.rentanott.com/tools.md) — OTT app builder and calculators for streaming revenue, bandwidth, bitrate and pricing - [Insights](https://www.rentanott.com/blogs.md) — All streaming business articles - [Glossary](https://www.rentanott.com/glossary.md) — Definitions of streaming and OTT terms - [Book a demo](https://www.rentanott.com/contact.md) — Talk to RentAnOTT about your launch Full site in one file: https://www.rentanott.com/llms-full.txt