Rewarded video is a mobile ad format where the user voluntarily opts in to watch a video ad (typically 15-30 seconds) in exchange for an in-app reward — extra lives in a game, additional currency, retries, premium content unlocks. The opt-in nature is what makes rewarded video special: the user actively chose to engage. They watched the ad. Their attention is real. As a result, advertisers pay substantially more for rewarded video impressions than for any other format.
eCPM ranges across mobile ad formats (US iOS, 2026 anchors):
- Rewarded video: $10-25. Highest by far.
- Interstitial video: $5-15. Forced-view full-screen ads between sessions or after events.
- Native ads: $2-8. Disguised as content; lower attention.
- Banner: $0.50-2. The lowest-attention format.
The spread between rewarded ($10-25) and banner ($0.50-2) is 5-20× — same impression slot, dramatically different revenue depending on format choice. This is why rewarded video dominates monetization in any product that can integrate it.
Where rewarded video lives natively
- Free-to-play games: extra lives, retries, additional in-game currency, double rewards after a level. The native habitat — most rewarded-video inventory globally comes from games.
- Casual / hyper-casual games: continue-after-game-over rewards, daily-bonus boosts. Highest-volume.
- Content apps: unlock premium articles, skip a paywall once, get bonus consumable content.
- Productivity apps: bonus templates, time-limited feature access.
- Utilities: ad-removal for the next 24 hours, premium feature single-use.
Apps that successfully integrate rewarded video typically see ARPDAU lift 30-80% vs a banner-only monetization stack.
Integration best practices
- Make the reward meaningful — a reward that doesn't feel valuable to the user gets ignored. Match the reward magnitude to the 15-30 seconds of watching investment.
- Show the offer at the right moment — after game-over (when the user wants to continue), after a paywall block (when they want to keep going), at natural decision points. Bad timing kills opt-in rate.
- Don't overuse — if every action in your app triggers a rewarded-video prompt, users disengage. Cap frequency.
- Disclose the reward clearly — Apple and Google review guidelines require clear pre-watch disclosure of what the user gets.
- Track opt-in rate — typically 40-70% of users who see a rewarded-video prompt opt in. Below 30% = the reward isn't compelling. Above 80% = potentially under-charging the reward (users would gladly do this for less).
Watch retention impact: rewarded video done well can lift retention (users get further into the app, get more value), done poorly cracks retention (users feel pressured, develop ad fatigue). Track retention by frequency-of-rewarded-video-shown — there's usually a sweet-spot frequency above which retention starts dropping. Find it and stay below it.
Mobile ad format comparison (US iOS, 2026 eCPMs)
| Format | eCPM range | User opt-in? | CTR baseline | Best for |
|---|---|---|---|---|
| Rewarded video | $10-25 | Yes (user opts in) | 6-15% | F2P games, currency rewards, content unlocks |
| Interstitial video | $5-15 | No (forced-view) | 3-8% | Between sessions / level transitions |
| Playable ad | $8-20 | No (auto-play) | 5-15% | High-IPM games + retention-lift use cases |
| Native ad | $2-8 | No | 1-4% | Content feeds, social apps, news / discovery |
| Banner | $0.50-2 | No | 0.5-2% | Long-session utilities with low-revenue floor |
Rewarded video commands the highest eCPM because user attention is opt-in and intentional — advertisers value attention they bought, not attention they hijacked. The 5-20× lift over banner is the central reason mobile-game monetization shifted toward rewarded video in 2020-2026.