Video is king. We all know that. 82% of gaming apps and 78% of non-gaming apps use video to monetize their apps. In the gaming industry specifically, Rewarded Video is king. We’ve written a lot about the important role this ad format plays in keeping users hooked on a game. Investment in rewarded video continues to grow with an estimated rise of 21% in in-app ad revenue in 2021.
Even though users have become familiar and fond of rewarded video as an ad format with 74% of users stating they would watch an ad in exchange for in-app rewards or currency, demand side partners haven’t yet adjusted to this new reality.
But not everyone is enjoying the success of what’s taken over as the leading ad format across genres. DSPs are under-indexing rewarded video ads. They’re missing out on the highest CPM and the format that, for many apps, drives the lion’s share of ad revenue. The good news is DSPs can start claiming the reward of video, with the Fyber platform closing that loop for them.
Your reward is waiting for you
Our data shows that ad networks are more likely than DSPs to win rewarded video impressions. This means that DSPs, while making the most out of interstitial and banner formats, are leaving a big rewarded opportunity on the table.
How could DSPs win with Rewarded Video? Here are a few actions to consider:
- Ingest helpful signals – Fyber Marketplace is the SDK for SDK-less partners, enabling DSPs to conquer programmatic rewarded video. We send out different flags (for example, the rewarded video flag) in the bid request allowing you to make different decisions based on the ad format – to learn more about these flags, reach out to your PDM.
- Treat rewarded video as a distinct type of inventory – Rewarded video is often seen as “expensive interstitial” by DSPs. Rewarded video is actually different from other ad formats in a fundamental way: user behavior is different – the user has opted-in to watch an ad and attention is high which leads to strong engagement and high completion rates.
- Consider a dedicated bid optimization algorithm – we know an algorithm isn’t something you could build in an instance, but considering the fact that rewarded videos have higher eCPMs than other ad formats as well as higher CTRs, bidding for a rewarded video opportunity should be different than bidding for other formats.
- Extensive A/B testing – Use our A/B testing capabilities to ensure changes implemented actually lead to improved performance. We’re currently running testing at a small scale and we’ll share valuable results later this half.