What are the pros and cons of using rewarded ads vs. non-rewarded ads in your app? (2024)

Last updated on Aug 8, 2024

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Mobile Advertising

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What are rewarded ads?

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What are non-rewarded ads?

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Pros of rewarded ads

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Cons of rewarded ads

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Pros of non-rewarded ads

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Cons of non-rewarded ads

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Here’s what else to consider

If you have a mobile app, you might be wondering how to monetize it effectively. One of the most common options is to use ads, either rewarded or non-rewarded. But what are the differences between these two types of ads, and what are the pros and cons of using them in your app? In this article, we will explore the benefits and drawbacks of rewarded ads vs. non-rewarded ads, and how to choose the best option for your app and your users.

Key takeaways from this article

Boost user engagement:

Incorporate rewarded ads in your app to incentivize users with bonuses like extra features or content. This strategy can improve user experience and increase engagement by providing clear value for their time.
Balance monetization efforts:

Mix rewarded and non-rewarded ads to diversify revenue streams. Although non-rewarded ads might be less engaging, they offer consistent income and can be strategically placed to minimize disruption to user experience.

This summary is powered by AI and these experts

Rishika Gupta Top Marketing Analytics Voice | Mobile…

1 What are rewarded ads?

Rewarded ads are ads that offer users some kind of incentive or reward for watching or interacting with them. For example, you might have seen ads that give you extra lives, coins, or premium features in exchange for watching a video or completing a survey. Rewarded ads are usually opt-in, meaning that users can choose whether to engage with them or not. They are also typically integrated into the app's gameplay or functionality, so that they feel more natural and less intrusive.

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Rewarded ads are advertisem*nts that offer users incentives, such as in-app currency, extra lives, or exclusive content, in exchange for engaging with the ad. The primary advantage of rewarded ads is that they provide a mutually beneficial experience, as users receive rewards for their engagement, which can lead to higher ad completion rates and user satisfaction. However, the downside is that they can potentially disrupt the user experience if not implemented thoughtfully, and may affect the app's overall monetization strategy.

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Also, rewarded ads have become a popular monetization strategy for app developers and advertisers, as they offer a more user-friendly and positive ad experience. Some key features and aspects of rewarded ads are that users are offered a tangible incentive or reward for interacting with the ad. Rewards can include in-app currency, extra lives, power-ups, virtual items, access to premium content, or any other form of value within the app.

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Rewarded ads offer users incentives like extra lives, coins, or premium features for engaging with them, such as watching a video or completing a survey. These opt-in ads are integrated naturally into app gameplay or functionality, making them feel less intrusive.

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2 What are non-rewarded ads?

Non-rewarded ads are ads that do not offer any incentive or reward for users. They are usually displayed at regular intervals, such as between levels, or as banners or pop-ups on the screen. Non-rewarded ads are often mandatory, meaning that users have to watch or close them before they can continue using the app. They are also usually external to the app's gameplay or functionality, so that they feel more disruptive and annoying.

3 Pros of rewarded ads

Rewarded ads have several advantages for both app developers and users, such as increasing user engagement and retention, improving user satisfaction and loyalty, and generating higher revenue and eCPM. Users are motivated to watch more ads to get rewards and use the app longer, feeling that they are getting something valuable in return for their time. Advertisers are also willing to pay more for rewarded ads as users are more likely to watch and interact with them.

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Rewarded ads benefit app developers and users by boosting engagement, retention, satisfaction, and revenue. Users watch more ads for rewards, extending app use and feeling valued. Advertisers pay more for these ads due to higher interaction rates.

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Rishika Gupta Top Marketing Analytics Voice | Mobile App Marketing | App Store Optimisation | App Campaigns | User Acquisition | Engagement | Monetisation
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Rewarded ads can be a powerful tool to keep users engaged in the app. Users get cool stuff in your app, like extra lives or special items, just for watching a short ad. This is a win-win for games, entertainment apps, and some other types of apps. Users stay happy and keep coming back, and you make money.Imagine a fitness app where you can watch an ad to unlock a bonus workout – users stay motivated, and you keep them engaged! Rewarded ads create a cycle where everyone wins.

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The pros of rewarded ads include increased user engagement and higher ad completion rates, as users are motivated by the incentives offered. These ads enhance user satisfaction by providing tangible benefits, which can lead to greater retention and loyalty. Rewarded ads can also generate additional revenue by encouraging users to interact with ads they might otherwise ignore. Additionally, they offer a more positive user experience, as users feel they are receiving value in exchange for their attention.

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4 Cons of rewarded ads

Rewarded ads can be a great way to monetize your app, but there are some drawbacks to consider. For example, users may opt for rewards over in-app purchases or subscriptions, leading to a decrease in revenue. Additionally, users may become addicted to rewards or lose interest in the app without them. Finally, if rewards are too frequent, too low, or too irrelevant, it can damage the app's reputation and quality.

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The cons of rewarded ads include potential disruption to the user experience, as frequent interruptions for rewards may annoy users. They can also complicate ad integration and require careful balancing to ensure the rewards do not undermine the app’s monetization strategy. Additionally, users might come to expect rewards for ad interactions, leading to lower engagement with non-rewarded ads. Overreliance on rewarded ads may affect overall app revenue and user perceptions of ad value.

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Rewarded ads can monetize your app effectively, but they have drawbacks. Users might choose rewards over purchases, reducing revenue. They may also become dependent on rewards or lose interest without them. Frequent, low-value, or irrelevant rewards can harm the app's reputation and quality.

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5 Pros of non-rewarded ads

Non-rewarded ads may not be as beneficial as rewarded ones, but they do have some advantages that should not be overlooked. For instance, they can generate consistent revenue, diversify the app's monetization strategy, and increase the app's reach and exposure. Non-rewarded ads can also present users with products or services that they may be interested in.

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The pros of non-rewarded ads include seamless integration into the app experience without requiring additional incentive structures. They can be less intrusive, reducing the risk of disrupting user engagement and app functionality. Non-rewarded ads also simplify the ad management process, potentially lowering operational costs. Additionally, they offer consistent revenue generation without the need for complex reward systems, providing a straightforward approach to monetization that can appeal to users who prefer uninterrupted app usage.

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Non-rewarded ads may not be as advantageous as rewarded ones, but they offer consistent revenue, diversify monetization, and increase app exposure. They also present users with potentially interesting products or services.

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6 Cons of non-rewarded ads

Non-rewarded ads can have some drawbacks that you should be aware of before using them in your app. Users might become bored or frustrated by the ads, which could lead to decreased engagement and retention. Additionally, users might feel exploited or spammed by the ads, lowering user satisfaction and loyalty. Furthermore, users might associate the app with low-quality or irrelevant ads, damaging the app's quality and reputation.

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Before using non-rewarded ads in your app, consider their potential downsides. These ads can cause user boredom or frustration, leading to lower engagement and retention. They may also make users feel exploited, reducing satisfaction and loyalty, and can damage your app's reputation if perceived as low-quality or irrelevant.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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This section offers an opportunity to share any examples, stories, or insights that haven't been addressed in the earlier sections. Is there anything additional you would like to contribute?

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What are the pros and cons of using rewarded ads vs. non-rewarded ads in your app? (2024)

1

2

3

4

5

6

7

1 What are rewarded ads?

2 What are non-rewarded ads?

3 Pros of rewarded ads

4 Cons of rewarded ads

5 Pros of non-rewarded ads

6 Cons of non-rewarded ads

7 Here’s what else to consider

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