Rewarded Video Ad Revenue: An In-Depth Analysis

Monetizing a game with rewarded video ads can be a highly effective method, but how much revenue can you realistically expect? This depends on several factors, including the number of players, the frequency of ad views, and the geographic distribution of your user base. In this article, we will delve into a specific scenario and explore the potential revenue from rewarded video ads within the context of a hypothetical game with 100,000 daily active players.

Understanding Game Monetization Through Rewarded Video Ads

Monetizing a game with rewarded video ads involves showing users a video that they can choose to watch in exchange for an in-game reward. This method is popular due to its simplicity and potential to increase engagement. However, the revenue generated from these ads can vary significantly based on various factors, including the geographic distribution of your user base and the attractiveness of your ad offers.

Dependency on User Base and Ad Views

Let's consider a scenario where you have 100,000 players daily, and each player views the rewarded ad 5 times a day, but does not click on it. To truly understand the revenue potential, we need to break down the numbers further. It’s crucial to identify which users are actually viewing the ads, as only these users will contribute to your revenue.

Potential Revenue Calculation

Assuming 20,000 out of the 100,000 daily active players are watching the ads, we can start to make an estimate of the potential revenue. Admob, the advertising network for Android, pays varying rates depending on the geographic location of your app users. In this analysis, we will focus on regions such as the UK, US, Australia, Canada, and India.

Revenue from UK Users

In the UK, Admob pays a competitive rate of 10-17 USD per 1,000 users who watch a rewarded video ad. If 5,000 users from the UK are watching the ads, the revenue generated can be calculated as follows:

Revenue (5,000 / 1,000) * (10 17) / 2 USD

Using an average rate of 13.5 USD:

Revenue 5 * 13.5 USD 67.5 USD

Revenue from Other Regions

For the rest of the regions, revenue rates will naturally be lower. As an example, let's assume that the revenue from users in other regions is half that of the UK, i.e., 5-8.5 USD per 1,000 users who watch a rewarded video ad.

If we assume that 15,000 users out of the remaining 15,000 in the US, Australia, Canada, and other regions are watching the ads, the calculation would be:

Revenue (15,000 / 1,000) * (5 8.5) / 2 USD

Using an average rate of 6.75 USD:

Revenue 15 * 6.75 USD 101.25 USD

Total Potential Revenue

Adding these amounts together, the total potential revenue from 20,000 users watching rewarded video ads in this scenario would be:

Total Revenue 67.5 USD 101.25 USD 168.75 USD

The Importance of Geographic Diversification

It’s important to note that the revenue generated from rewarded video ads can vary significantly based on the geographic distribution of your user base. Areas like the US, UK, and Canada tend to generate higher revenue due to their more affluent and tech-savvy populations. In contrast, regions such as India and Africa might generate less revenue due to lower ad rates and potentially lower spending habits.

Optimizing Monetization Strategies

To maximize your revenue from rewarded video ads, consider the following strategies:

Geographic Targeting: Focus on regions with higher ad rates and greater potential for engagement. Ad Placement: Ensure that your ads are displayed in a way that maximizes user engagement without disrupting gameplay too much. Ad Quality: Offer attractive and engaging content in your ads to improve the odds of user engagement. Data Analytics: Regularly analyze ad performance data to refine targeting and ad content.

Conclusion

While the potential revenue from rewarded video ads can be significant, it is highly dependent on several factors, including the geographic distribution of your user base and the engagement levels of those users. By understanding these factors and optimizing your monetization strategies accordingly, you can maximize your earnings and improve the overall monetization performance of your game.