You’ve probably seen them: watch a short video, and get an extra life. Finish a quick demo and earn some coins. That’s a rewarded ad. It’s an opt-in format that gives users something back: access, currency and perks in exchange for a few seconds of attention.
They’re big in mobile apps, where every tap counts and interruptions can tank user interaction. Unlike traditional ads that hijack your screen, rewarded video ads let users become more selective about their online experiences. As they turn to ad blockers to avoid too many ads, rewarded ads offer a more balanced solution. This format actually gives people a reason to participate.
It’s not a magic fix. But it’s a practical way to keep apps free, content flowing, and users more in control of how they interact with ads.
Understanding rewarded ads
Let’s keep it simple. Rewarded ads give users a choice: watch an ad, get something in return. That “something” might be in-game currency, an extra life, or temporary access to premium features. The primary word here is choice. These aren’t annoying pop-ups or unskippable ads that take over your screen. You opt in, or not.
Here’s what that usually looks like:
- Rewarded video ads – Watch a 15 to 60-second clip and collect your reward. Think coins, gems, lives.
- Playable ads – Try before you download. These let users interact with another app or game, often with a reward attached.
- Survey ads – Answer a question or complete a quick quiz to earn a benefit.
Most of the time, these ads show up in mobile games. You run out of lives, up pops the offer: watch an ad, keep playing. But it’s not just for gamers.
Rewarded ads also appear in utility apps, like VPNs or file managers, where you might unlock a feature for a limited time. Some streaming platforms are dabbling too. Want to watch without interruption? Watch this one ad first and get an hour of ad-free content.
It’s a win-win (at least in theory). Users feel more in control, and developers get higher engagement rates. Compared to forced formats, this model offers something back and doesn’t just interrupt.
So, if you’ve ever tapped “watch ad to continue,” congratulations. You’ve already met rewarded video.
Why are rewarded ads gaining popularity?
People are tired of being interrupted by ads they never asked for. That’s why rewarded ads are catching on. They flip the script. Instead of forcing users to sit through an ad, they give them something for it. A trade. One that feels fair.
And that’s what makes all the difference.
For users, it’s a win.
Want an extra life? More in-game currency? A sneak peek at premium content? Watch a short ad. That’s it. The model is opt-in, not pushy. Users get to choose, which means they’re more likely to stay engaged. Google AdMob’s own data supports this. According to their internal research, half of users said they’d be less satisfied with the app if rewarded ads disappeared.
For developers and publishers, it’s a smart way to monetize.
Not everyone wants to spend money on an app. But give them the chance to unlock features or currency in exchange for a short video? Suddenly, you’re making money from users who wouldn’t otherwise pay. And without annoying them with endless prompts or gating features behind a wall. According to gameBiz, rewarded video ads can drive up revenue by as much as 40%.
Advertisers see results, too.
These ads get watched. All the way through. That means better impressions, higher click-through rates, and stronger return on ad spend. Case in point: Sydney-based Not Doppler used ‘double-reward’ ads in Earn to Die 2 and saw engagement jump 38% above the norm. When users choose to watch an ad, and know there’s something waiting for them at the end, they tend to follow through.
Rewarded ads work because they don’t feel like ads at all. They feel like choices. Traditional ads are more like interruptions, which are usually annoying. But with rewarded ads, it gives people control, which is a rare advantage for users, developers, and advertisers alike.
A closer look at the user experience
Now we’re going to talk about user experience, because this is where rewarded ads either land well or fall flat.
Most users don’t mind watching an ad if they’re getting something useful in return. The primary difference? They opt in. It’s not some forced 30-second pre-roll with no escape. That sense of control matters. Studies show that when users see a clear benefit (e.g. extra lives, bonus content, premium currency), they treat the ad as part of the app and not some annoying detour.
There’s also a behavioral quirk at play. Getting a reward after watching a video triggers a small “I earned this” effect. It’s minor, but it adds up. A bit of dopamine, a better mood, and (if you’re tracking it) a small lift in retention or session length.
Still, it’s not all rosy.
Some users hit the same ad over and over. Others get stuck in an endless loop of “watch-to-progress,” especially in mobile rewarded video ads. It starts to feel less like a bonus and more like a treadmill.
And here’s the tricky part: the same mechanic that keeps people engaged can, when overused, slide into exploitative territory.
Balance is everything.
The developer & advertiser angle
Then, there’s value for both sides of the ad equation.
From the developer’s perspective, rewarded video ads are a reliable way to bring in revenue from non-spenders. You know the ones: they never pay for extra lives or premium skins, but they’ll gladly watch a 30-second ad to get past a level. That attention still counts. And when scaled across thousands (or millions) of users, it adds up. Fast.
These ad views fill the monetization gap and help lift your overall ROI without compromising user experience.
Let’s reverse the roles.
Advertisers like rewarded video for a different reason: it works. It’s opt-in. It’s brand-safe. And, crucially, it’s user-initiated, so you’re not shouting into the void. You’re reaching someone who chose to watch. That one choice translates into higher completion rates, better user participation, and a stronger return on ad spend.
And let’s not overlook the format itself. Visual? Check. Sound-on? Check. Full-screen? Absolutely. You’ve got attention, and that’s a scarce commodity. Whether the goal is conversions or brand recall, rewarded video ads offer the kind of lean-in moment that static banners or skippable pre-rolls can’t match.
No wonder in-app rewarded video is showing up in both performance and brand campaign playbooks.
The ethics and grey areas
Sure, rewarded ads are technically “opt-in.” But how much of a choice is it when your next move depends on it?
In mobile games, it’s not unusual to hit a wall (extra lives, bonus loot, faster upgrades) all locked behind a 30-second video. Watch the ad, get the reward. Don’t watch? Wait it out. Or worse, lose progress.
That’s where things get murky.
Over time, what starts as an occasional uplift can spiral into a loop: dopamine hit, reward, repeat. B.F. Skinner’s famous rat experiments showed that unpredictable rewards made subjects push harder. The same applies here: randomized in-game perks tied to ad views can trigger similar loops.
So here’s the question: if players feel nudged into ad engagement just to keep pace, how “optional” is it really?
This is where developers need to tread carefully. Rewarded video ads can add value, sure. But lean too far into them, and the line between engagement and coercion starts to blur.
Final thoughts on rewarded ads
Rewarded ads offer a fresh take on digital advertising. They don’t steal your attention; they earn it through value. Simple, clear, and far less annoying than autoplay clips or full-screen interstitials that force you to hunt for the tiny X.
That said, not every implementation nails it. When done right, rewarded video ads can make apps feel more premium without pushing users away. But when done wrong? They add to the ad fatigue that users are already trying to escape.
This is exactly where something like Poper Blocker for Android earns its keep. It’s not out to wipe ads off your screen entirely. Instead, it targets the junk (the popups, overlays, and cookie nag boxes), while giving formats like in-app rewarded video room to breathe.
Ads that respect choice stick around. The rest? Gone. That’s the kind of balance more platforms (and users) can get behind.
FAQs
Do rewarded ads work on all types of apps?
Absolutely. You’ll find rewarded video ads most often in mobile games, but they’re just as common in VPNs, file storage apps, video players, and other utilities. If an app has something worth unlocking (extra bandwidth, bonus coins, or a one-time upgrade), rewarded ads offer a way to get it without spending money. That makes them a fit across a wide mix of categories.
Can users skip rewarded ads and still get the reward?
Nope. Users have to finish the ad (whether that’s watching the full video or interacting with a playable unit) before they get the perk. This keeps things fair for advertisers, who only pay when users actually participate. It’s also why rewarded ads remain a solid pick for performance-focused campaigns.
Do rewarded ads slow down the app?
Not if they’re done right. Most SDKs are built to cache these ads in the background. That means no annoying lag while the user waits for the video to load. As long as the app isn’t already maxed out on memory or running into performance issues, rewarded ads won’t slow things down or cause crashes.
Are rewarded ads safe for children?
They can be, but only if the developer puts the right safeguards in place. Age filters, parental controls, and compliance with child protection laws are critical. Most major ad networks offer these tools out of the box. Skip the setup, though, and you risk serving ads that shouldn’t be shown to younger audiences.
Can rewarded ads replace in-app purchases?
Not really. Think of rewarded ads as the appetizer and not the main course. They’re great for letting users sample premium features or earn minor bonuses, but they’re not built to replace full-blown purchases. Most apps use both: free rewards to build goodwill, and paid upgrades for users who want more.
