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What are Rewarded Ads – Explained

Did you know! Rewarded ads are a type of advertising format commonly used in mobile games, in which users are offered incentive or reward in exchange for engaging with the ad content. Magicbid uses auto ad switching where if your eCPM is less than interstitial ads then the rewarded format takes over, so that you don’t lose your lifecycle and it eventually then helps you to maintain a revenue. 

Key Features of Rewarded Ads

Key Features of Rewarded Ads

These are some key features of rewarded ads: 

  • Incentives: Users are typically offered rewards such as in app coins, additional lives, power ups and other virtual goods in exchange for watching the entire ad or completing a specific action. 
  • User Engagement: Reward ads often lead to hire user engagement as users are willingly choosing to view the content in exchange for a reward this can result in a more receptive audience for advertisers. 
  • Extended User Session: Users may spend more time within an app or game when rewarded ads are implemented as they are motivated to interact with the ad to gain the offered rewards. 
  • Monetization for Developers: For app and game developers rewarded ads provide a way to monetize their product without relying solely on in app purchases. Ad revenue is generated based on user interactions with the ads. 
  • Positive user experience: Because the users willingly opt to watch the ad, the overall experience tends to be more positive. This can contribute to higher user retention and satisfaction. 

What are Rewarded Ads for Website

Rewarded ads for websites follow a similar concept to rewarded in mobile apps. These ads are designed to incentivize users to engage with the ad content by offering them some form of reward. There are some key aspects of rewarded ads for websites. Incentive, user engagement, monetization challenges for Website, extended user session, positive User experience, promotion and brand awareness are the major offerings of rewarded ads

What are Rewarded Ads for Website

Implementing rewarded ads on websites require a thoughtful approach to ensure that the rewards offered are aligned with the interest of the target audience. It is essential to strike a balance between monetization goals and providing a user experience to maintain trust and engagement. 

How Rewarded Ads Work

How Rewarded Ads Work

Rewarded ads usually work by offering users a reward or incentive in exchange for their engagement with the ad content. This process involves quite a few steps and they are – 

1. User Opt-In

Users are given the option to watch an advertisement voluntarily. This could be presented as an offer to earn in-app currency, unlock additional content, or receive some other virtual benefit. This approach is crucial for maintaining a positive User experience as users voluntarily choose to interact with the ad. 

2. Watch for Reward

When users opt-in, they watch a short video ad or engage with some form of promotional content. The content is usually brief, often ranging from a few seconds to a minute.

3. Earn Rewards

After watching the ad, users receive the promised reward. This could be in the form of in-app currency, extra lives, power-ups, or other virtual goods, depending on the nature of the application.

Rewarded ads are popular among both users and developers for several reasons:

  1. User Engagement – rewarded ads aim to boost user engagement by providing a clear value proposition.  users are more likely to interact with the ad if they perceive the offered rewards as valuable and desirable
  2. Monetization – for Website owners and publishers rewarded ads offer a means of generating revenue beyond traditional display advertising. Advertisers pay for user interactions and website owners on a share of that revenue. 
  3. Incentivized Actions – Rewarded ads can be used to encourage users to take specific actions within an app, such as viewing content, completing levels, or spending more time on the platform.
  4. Virtual Goods – Users appreciate the opportunity to earn virtual rewards, enhancing their overall experience and progression within the app.
  5. Integration in apps and websites: rewarded ads are commonly integrated into mobile apps, games. Website developers and publishers incorporate ad placement strategically within their content to maximise user engagement and revenue.
  6. Positive user Experience: The voluntary nature of rewarded ad contributes to a positive User experience. Users are more likely to view the interaction as a fair exchange of their time and attention for valuable rewards. This approach contrasts with more intrusive ad formats that disrupt the User experience. 
  1. Tracking and Analytics: advertisers and Developers use tracking and analytics tools to monitor user interactions with rewarded ads. This data helps optimise ad campaigns, improve targeting and enhance the overall effectiveness of the rewarded ad strategy. 

Why to use Reward Ads? 

There has been a lot of competition in the mobile gaming market. The developers have also been focused on retention. Striking the balance between monetization and user experience is critical to the success of the game.

Why to use Reward Ads 

Rewarded ads are one of the most popular these days and are the correct way to balance between both of them. It is act as a win for users, a win for developers and a win for advertisers. 


Rewarded ads create a mutually beneficial scenario where users, developers and advertisers all stand to gain. Users get valuable rewards, developers generate additional revenue and advertisers connect with the more engaged audience that respects users’ choice. In this growing marketplace, magicbid finds an effective way to generate revenue offering a paramount success.