Rewarded video today: Six insights into MoPub’s unique offering

Tuesday, October 30, 2018
By: Diana Boiteux

This blog post is co-authored by MoPub's Diana Boiteux and Tarika Soni.

Summary: Non-gaming brands contribute a larger share of voice than gaming advertisers on MoPub. Playables are one of the most innovative formats in the rewarded space and are growing aggressively. LATAM and APAC regions have shown tremendous growth and are expected to grow further for rewarded ad formats.The highest yield for a rewarded video publisher is typically delivered when real-time bidding (RTB) demand is enabled alongside network demand. With the adoption of Advanced Bidding, we expect publishers’ yield to improve significantly as it allows demand partners to bid on unique users that they were unable to reach previously due to legacy waterfall setup.

At MoPub, we pride ourselves on being on the forefront of advertising for mobile app publishers, and this includes our continued investment in the most impactful ad formats. Rewarded video ads (also known as opt-in video) are quickly becoming a needle-mover for both supply and demand partners and are expected to continue to grow in 2019. We launched rewarded video for networks in 2015 and added rewarded video real-time bidding for DSPs less than a year after, so it’s time for a check-in: what’s the latest with this popular ad format? Why is our rewarded video offering unique in the market?

We’ve been busy making improvements and growing the pool of available programmatic and network buyers for this highly engaging format. Based on MoPub’s auction data, we’ve seen tremendous growth and adoption both for app developers and advertisers:

We wanted to share 6 interesting insights that make MoPub’s rewarded video offering unique in the market.

1. Brands continue to scale rewarded video spend. As illustrated below, more than half of the top 50 advertisers buying rewarded video on MoPub were non-gaming brands in August 2018. Fortune 1000 brand advertisers continue to scale up on rewarded video, in part, due to these campaigns delivering high completion rates and conversions.

We’ve heard first-hand from gaming publishers and ad network partners that they have never seen a non-gaming ad live on their apps, until enabling programmatic demand to compete. We’re happy to be able to provide unique campaigns from diverse global and localized brands, so that users see a mix of creatives, avoid repetitive ads fatigue, and are encouraged to engage with relevant campaigns.

2. Playable ads are becoming the most engaging and innovative format in the rewarded space. Playables in the rewarded space are growing aggressively as more and more publishers get comfortable with this functionality. The ability for users to opt-in to engage with the ad unit before installing the app is clearly appealing, as it allows users to really try a new app/game. As a result of the better performance engagement rates, we're seeing an uplift of 30% higher CPMs compared to rewarded video on MoPub Marketplace.

3. MoPub’s SDK-based solution provides maximum competition. Not all rewarded video demand is from ad networks. MoPub’s platform allows network and Demand-Side Platform (DSP) demand to compete for every impression. Publishers report that they see up to 20% - 30% of their rewarded video revenues coming from DSPs--which requires zero additional SDK footprint. However, we believe it’s still critical to leverage SDK-based network partners to maximize competition for each and every rewarded impression.

4. Highest yield delivered when RTB demand is enabled alongside network demand. For rewarded video, publishers typically see the highest eCPMs when real-time bidding (RTB) demand is enabled alongside network demand. MoPub’s platform allows price competition at the impression level through a unified auction between 180+ real time bidders (DSPs) as well as SDK-based ad networks. This competition maximizes revenue for each rewarded video impression.

"With our model we only bid on selective users. If we have a chance to bid, we are likely to outbid a network for the impression if it comes from one of those users."
—Eugen Martin, VP Product, REMERGE

5. Advanced Bidding allows publisher yield to improve significantly. We believe the market is ready for mobile app bidding. MoPub is working with select networks, including Facebook Audience Network, to support Advanced Bidding for all ad formats, including rewarded video. This will allow publishers’ yield to improve significantly and allow demand partners to bid on incremental premier unique users that they may have been unable to reach due to legacy waterfall setups.

6. Highest rewarded adoption is driven by APAC and LATAM. We’ve seen tremendous regional growth in LATAM and APAC regions. As shown in the chart below, for rewarded format adoption on MoPub’s platform, APAC saw 108% growth YoY while LATAM saw a 300% growth YoY. This is being driven by healthy growth of utility and lifestyle advertisers buying this format at scale (and an overall better understanding the value of this format). It’s time for publishers to start scaling their campaigns in LATAM and APAC if you are not live already!

Interested in learning more? See how leading gaming publisher Ubisoft was able to double user LTV across several apps by using rewarded video.

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