Rewarded Video Ads in Games: Best Practices for Placement, Rewards and Revenue

A rewarded ad is a full-screen ad that a player chooses to watch in exchange for something in the game: an extra life, double coins, a free chest, a hint. Because the player opts in, rewarded ads are the format players dislike least, and for many free-to-play games they are also the largest source of ad revenue. Designed well, they can even raise retention and in-app purchases, because they give non-paying players a way to keep going and a taste of what paying would feel like.

Designed badly, they cheapen the game's economy, train players never to pay, and clutter the interface. This guide covers the decisions that separate the two.

The value exchange

Every rewarded placement is a trade: the player gives up thirty seconds or so, and the game gives back something worth more to them at that moment than the time. The best placements are those where the player wants something badly and right now. Three questions decide whether a placement works:

1. Does the player want the reward at this moment? A continue offered the instant a player fails is worth far more than coins offered on the main menu.
2. Is the offer clear? The button should say exactly what the player gets: Watch an ad for +5 moves, not a vague icon.
3. Is it optional? The player must always be able to decline without penalty and carry on.

Placements that work

• Continue after a fail. The strongest placement in most games: a few extra moves, a second life, or a revive. The player is invested in the level and close to winning.
• Double the reward. At the end of a level, offer to double the coins or items earned. The player has just been rewarded and an ad makes it better.
• Free chests and spins. A daily or timed free reward that an ad unlocks early, or an extra spin of a reward wheel.
• Speed-ups. Skip a timer on a building, a crop or an energy refill. Common in builders and idle games.
• Hints. In puzzle and word games, a hint for an ad is a natural exchange.
• Trial of premium items. Let the player use a premium booster or character for one level after an ad. It also shows them what they could buy.

Sizing the reward

The reward must feel generous to the player and be cheap for the economy. A useful way to think about it: a rewarded ad should give a non-paying player a small, bounded taste of what paying players have, never a substitute for it. Compare each reward to what the same thing costs in the store. If an ad gives a large share of a purchasable pack, players will watch ads instead of paying. Rewards that are consumed immediately, such as extra moves on the current level, protect the economy better than currency the player can save.

Caps, cooldowns and timing

• Cap the number of rewarded views per placement per day, so the offer stays special and the economy stays balanced.
• Use cooldowns on placements that can repeat, such as a free chest, so the player has a reason to come back later.
• Do not offer a rewarded ad before the player understands the game. In the first session, a free reward without an ad often works better, teaching the player what the reward is worth.
• Check fill before showing the button. If no ad is available, hide or disable the offer rather than letting the player tap and wait.
• Always deliver the reward, even if the ad fails to complete for a technical reason that was not the player's fault. A player who watched an ad and got nothing will not watch another.

Rewarded interstitials

Google AdMob offers a related format, the rewarded interstitial: a rewarded ad shown automatically at a natural transition, without the player tapping a button first. Because the player has not opted in, it must be preceded by an introductory screen that says a reward is coming and gives the player a clear way to opt out. It sits between a rewarded ad and an interstitial and suits moments such as the end of a level.

Store and platform rules

Google Play's policy on unexpected and interstitial ads, introduced in 2022, restricts full-screen interstitials: at the time of writing, they must be closeable after 15 seconds, must not appear before the splash screen, and must not appear unexpectedly, for example at the start of a level. Rewarded ads that the player explicitly opts into are exempt from those interstitial rules, provided they follow the general ads policy. On both stores, rewards must not be given for actions that the stores forbid incentivising, such as rating or reviewing the app. Check the current policies of both stores and of your ad networks before launch.

Metrics to watch

• Engagement rate: the share of daily players who watch at least one rewarded ad. A low rate means the offers are not compelling or not visible.
• Impressions per daily user, by placement. Shows which placements carry the revenue.
• eCPM by network and country. Rewarded slots usually earn higher eCPMs than interstitials; mediation with bidding gets you the best price. In-app bidding vs waterfall explains how.
• Ad revenue per daily user, and total revenue per daily user including purchases. The first can rise while the second falls.
• Retention and purchase conversion of players who watch rewarded ads compared with those who do not. Test changes with holdouts rather than assuming the effect.

What appears in your rewarded slots

Rewarded slots are among the best places for advertisers too, because the viewer has chosen to watch and will usually see the whole ad. That is why many playable ads are designed with rewarded placements in mind: the viewer has time to play. Rewarded vs interstitial playable ads covers designing an ad for both. For your players, the quality of these ads is part of the experience of your game, so most mediation platforms let you block categories you do not want to show, and review what serves.

The same game can be both sides of this market. When it is time to advertise your own title in other games' rewarded slots, Playable Ads Maker builds the playable once and exports it in the format each of 13 ad networks asks for.