AerServ, the only mobile-first video mediation platform, recently announced the launch of rewarded video for mobile, helping developers monetize their app offerings in a crowded and challenging marketplace. CEO Josh Speyer provides more insight into their offering as well as the growth of video and the mobile games market.
Q: What is rewarded video?
A: Rewarded video ads combine the engagement power of video content and incentives to encourage users to engage with in-app ads. Game players are more inclined to accept rewards like extra currency or gameplay benefits in exchange for watching video ads. Rewarded video is one of the few successful ways of monetizing apps currently available to publishers, and is growing in popularity as brands recognize its power to engage in this channel.
Q: What is the monetization benefit to game developers?
A: Because users are both incentivized to watch rewarded video ads and can choose for themselves when to do so, they enjoy an uninterrupted experience and demonstrate a higher level of engagement with app and advertising content. Additionally, users are motivated to continue their in-app experience, using the currency they’ve earned, increasing the users’ exposure to app content and opportunities to engage them with messaging content.
Take Dice World for example, an excellent app developed by the team at Pangia Games. They’ve done a great job implementing rewarded video at a natural point in the gameplay where a user might drop off. Instead, the user can view a short ad in exchange for additional gold, increasing user retention and getting them excited to continue playing the game. With rewarded video, everyone wins: the user is rewarded with in-app currency, the advertisers receive the user’s undivided attention while the ad plays (resulting in high performance) and the publisher earns more revenue.
Q: What do you think is the consumer roadblock when it comes to making in-app purchases?
A: There are multiple roadblocks, and the main culprit may be different depending on the specific consumer. For some consumers, there is the perception from all but the top echelon of serious gamers that apps aren’t trustworthy. In addition to the fact that there is often less certainty about information security, no user wants to feel as though they have been tricked into downloading a “free” app only to find it costs money to use it to its full capability. This can be especially frustrating for users when the bulk of the items available for purchase are “expensive,” at least in the world of apps, where users are accustomed to getting things either for free or a very nominal cost.
It’s important to offer items at a variety of prices that will appeal to a variety of users, from casual to serious. For others consumers, they have simply been programmed to believe that content and games are free. Whether I’m reading an article online, on my phone, playing a game, or using a utility app, most consumers assume it is free. They have a hard time equating enough value to spend real-life dollars in the exchange.
Q: What is the market demand for rewarded video? What are your predictions for growth in this space?
A: According to Swrve, 98.65% of users won’t shell out for an in-app purchase. The F2P gaming model relies heavily on in-app purchases to make money, yet they are relying on a mere sliver of their players to support that model. Rewarded video opens additional revenue opportunities to publishers, and brands are always looking for more ways to connect with consumers, especially in the mobile space. As the mobile video market continues its explosive growth, we expect rewarded video to play a large role as a preferred integration method for app developers.
Q: How does AerServ differ from competitors in this area?
A: AerServ offers rewarded video as part of a comprehensive mobile-first advertising monetization platform, whereas most rewarded video offerings come from dedicated networks. As such, we enable app developers to implement rewarded video with intelligent inventory allocation to the largest amount of video ad buyers. Rewarded video on the AerServ platform is supported by the data necessary to hone in on top purchasers, increasing revenue and engagement, without removing the user from the app experience.
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