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Glossary · Mobile Advertising

Rewarded ad

An ad a user chooses to view in return for a benefit inside an app or game.

What is rewarded ad?

A rewarded ad is an opt-in format, most common in mobile games and apps, in which a user chooses to watch or interact with an ad in return for an in-app benefit such as extra lives, in-game currency, a hint or access to premium content. The app presents an offer, the user accepts, the ad plays, and the reward is granted once the agreed condition, often completion, is met. Because the user initiates the exchange, it is generally seen as less intrusive than interstitials that appear without warning. Rewarded formats include full-screen video, playable ads and offerwalls.

How rewarded ad works

The user opts in, watches the ad to completion and receives the reward.

  1. The app shows an offer at a natural point, such as after a failed level, explaining the reward.
  2. If the user opts in, the app requests a rewarded ad from its mediation layer or ad partners.
  3. The ad plays in full screen, usually as video or a playable.
  4. When the ad completes, the app confirms the event, often through a server-side callback, and grants the reward.

Why it matters

Completion rates are high and users accept the format because the exchange is voluntary.

For advertisers

Rewarded placements deliver attentive, full-screen views, which suits app installs and video completion goals.

For publishers

App developers can earn from non-paying users while supporting retention, because the reward adds value to the experience.

Practical example

Hypothetical example

A player watches a 30-second video to earn an extra life.

Key considerations

  • Reward value and placement need balancing so ads support the in-app economy rather than replace purchases.
  • Server-side verification of completion helps prevent users claiming rewards without watching.
  • Advertisers should recognise that some viewers watch mainly for the reward, which can affect post-view engagement.

More Mobile Advertising terms

Frequently asked questions

Why are rewarded ads considered user-friendly?

Because the user chooses to watch in exchange for something they value, rather than having the ad imposed on them.

Are rewarded ads only for games?

No. They are most common in games but are also used in content, utility and streaming apps, for example to unlock an article or feature.

What is an offerwall?

A rewarded format that lists several tasks, such as installing an app or completing a survey, each with its own reward.