ironSource Sees Big Growth in Rewarded Video

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A Unity report called “In-Game Advertising the Right Way: Monetize, Engage, Retain” indicates that any preconceptions one might have about rewarded video ads being unpopular among mobile game players has no basis. In fact, according to the report, rewarded video ads are well on their way to becoming the new monetization norm.

Gil Shoham, CRO, ironSource (pictured left) agrees: “Our data and experience confirms the latest results around rewarded video. We’re seeing advertisers – both brand and performance – significantly increase spend on rewarded ads, and a correlating trend on the supply-side as developers increase rewarded video integrations to capture this high-paying demand. Best of all, users continue to react overwhelmingly positively to this ad unit, in some cases complaining in app reviews when rewarded videos were removed. The fact that rewarded videos effectively function as microtransactions within an in-app economy means they invite engagement instead of irritation from users, and while it’s success among advertisers comes as no surprise, we are very pleased to see how effective it continues to be for our developers.”

ironSource is a platform for software discovery, distribution and delivery across platforms and devices. Currently over two-thirds (67%) of ironSource’s developers have integrated rewarded video (RV) ads in their apps. This figure is expected to grow past 70% this year.

Advertiser demand for RV is shooting up significantly, 300% growth in 2015 for their network advertisers. While app trailers still make up a significant portion of this spend, the flow of brand dollars significantly boosted RVs growth. Brand spend in RV grew 200% in 2015.

Supply is having trouble keeping up with this demand, but with the emergence of ad blocking and viewability guarantees, its a growing format among publishers.

According to the Unity study more than half of the studios that took part in the survey said rewarded video ads provide more revenue per user than any other type of in-game advertising.

Some additional stats:

– 200% increase in traffic (ad requests) volume year over year.

– 100% retention of tier 1 & 2 publishers (speaks to product satisfaction).

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