As marketers consider how to allocate their mobile video budgets, interest in opt-in formats, such as rewarded video, seems strong. According to a June 2018 OpenX study, two-thirds of US marketers surveyed said they plan to increase their spend on opt-in video in 2019.
"We'll see brands invest in this format in the next year to 18 months, especially as they're shifting more toward video first vs. display first," OpenX's Mesa said.
There are many benefits of rewarded video that marketers can't get with other mobile video formats.
As Mesa indicated, the user experience is a lot better when users feel there's an even value exchange with the advertiser. Ari Brandt, executive vice president of strategic development at Verve, agrees: "Time and attention is currency for users on mobile devices, and they want something in exchange for their time. In rewarded ads, you are actually giving something of value to that user."
Rewarded video also replaces the traditional push approach to advertising and allows the user to be in control. "When someone accepts an offer to participate, versus having a brand thrust in their face, it makes all the difference in the world," said Mitchell Reichgut, CEO of Jun Group. This also means that viewability isn't a concern with rewarded ads.
But these benefits come with a high price tag.
Because rewarded video ads are engagement buys—not impression buys—they tend to be more expensive than the typical display ad.
In Reichgut’s view, marketers can expect to see more website visits and coupon downloads after a rewarded video is viewed. "There’s more specificity of audience, so it can be more expensive. But it’s a different type of engagement, and the expectation should be set accordingly. You should be getting more value for the dollar than just a random exposure to an ad," he said.
When marketers want more than just impressions from their mobile video ads, they're likely to turn to rewarded video. Ninety percent of the marketers surveyed by OpenX agreed that opt-in video generates stronger engagement metrics for ads compared with other formats.