The Best Paying Unit That Kids’ App Developers Miss Out On

By September 18, 2017 No Comments

How often does this happen to you: You’re at a restaurant, the waiter or waitress comes over and offers to read the specials of the day? It’s probably happening right this minute to someone, somewhere.

What if the waiter or waitress said to you, “If you let me recommend the specials, I’ll give you a free dessert, drink, side dish or a coupon for your next meal”? You’d love to engage in this exchange because you’d be getting something of value for little or no effort.

We propose this is the same exchange you can offer your users, by using Rewarded Videos in your apps. Users understand that they’re going to be subjected to advertising in free apps and tolerate it as a trade-off for gameplay. However, when advertising comes in the form of rewarded videos, it’s a win-win situation..

At KIDOZ, we learned that users love being able to win things by watching short rewarded video ads. Here are additional benefits developers are experiencing when they implement Rewarded Video units on KIDOZ:


Users love it – Better User Experience:

Users that watch rewarded videos have a better game experience because they are empowered. You give them the ability to do more, get more, obtain useful or rare objects, play at higher levels or play longer. In addition, rewarded videos are far less intrusive because they are initiated by the user, and control is what mobile is all about; being in control not only of the device and its content but also over the ads that are displayed on it. When a user willingly taps an advertisement, they have decided it is acceptable for them to engage in the promotion.


Publishers love it – Higher eCPM:

This one should be the most obvious – rewarded videos means more revenues for you.
Full stop.

For example, we noted that the same ad that ran as a rewarded video on the Kidoz SDK brought an eCPM that was 130% higher than when the ad ran as an interstitial. Because the users initiated the offer, they were more open to receiving it, the completion of views was higher as was the amount of installs, all of which boosted the eCPM for all types of campaigns.

Advertisers Need It – Higher Completion Rate:

Advertisers measure advertising to kids as branding initiatives. They therefore want their ads to be viewed to completion by your audience and are willing to pay more to ensure their videos are watched longer. Unlike advertising to adults, advertising the same message to children at a high frequency can have a negative impact. As a result, it has become increasingly important to brands that kids will absorb as much of their message as possible per viewing activity. The longer kids watch a promotion consisting of a Rewarded Video, the more valuable that session is for the brand, ultimately leading to more revenue for your property.


Bottom Line – Much Better Campaigns:

When a campaign ends, the advertiser looks over the results and compares them to performance metrics that were established during campaign planning. Rewarded Videos signal better performance for the advertiser, demonstrating a positive return on their investment. When an advertiser sees consistent returns on their marketing investment, they build trust in your brand, open their budgets, include you on more campaigns and spend more money on your apps.


So why don’t more developers adopt rewarded videos?

At KIDOZ, we have identified two main reasons why rewarded videos are not adopted into publishers’ apps.  Let’s address them:


“We prefer to include in-app purchases, and let parents pay money in order to unlock items, as we can charge more.”

Most developers falsely believe they will make more money if they will only sell directly to their install base. This seldom is the case. Parents are more hesitant to spend money on properties that they do not recognize. While some parents may pay for an app that their child might want, for most it is foreign to them to find value in buying a virtual item to improve or extend their child’s gameplay. This is where rewarded ads will fit in, and will monetize the users who will never pay.
From numerous conversations we had with developers we learned that the combination of IAP’s and rewarded ads brought the highest revenues to their apps, and did not cannibalize the direct purchases at all.

“The app was developed without a reward mechanism, and we don’t want to invest time in re-building the app.”

This is a reason we hear quite often and we understand where it comes from. However, by adopting this philosophy, developers can be leaving as much as 130% more revenue on the table.

The advantages of adopting Rewarded Videos are clear, but perhaps you just don’t know how. All that is really needed is a little bit of creativity.  Here are the three main ways we are seeing developers adopt Rewarded Videos on KIDOZ:


Item Acquisition/Unlocking:

Possibly the easiest and most straightforward way to get users to watch a Rewarded Video is to offer them to watch a video in order to obtain an object that appeals to them; it could be a weapon, it could be a monetary symbol, or it could be a design or accessory item. Even if your app was not designed to support a reward flow, you can tweak its UI and put you best content behind a “Watch to Unlock” button; after displaying the kid-friendly promotion, the feature or item will be open for a specified period of time.


Help Acquisition:

Some developers offer Rewarded Videos in exchange for gaining insight, help, or additional information that users can leverage in their gameplay. It could add time, health, stamina, protection and longevity within the game.


Gameplay Acquisition:

Other developers have implemented Rewarded Videos whose prize is the ability to change the functionality of the game. Skipping levels, going back a level, speeding up or slowing down gameplay, allowing for special abilities within gameplay, hidden levels or bonus levels, are all some of the options we have seen.


The simple truth is, if you are not yet using rewarded videos, you are not only leaving revenue on the table, you are also excluding your users from a value exchange they actually enjoy and prefer; like all things digital with kids today, they are ready for ads, but they want them on their terms.

About KIDOZ:

KIDOZ is the leading COPPA-compliant mobile network for kids, reaching over 60 million kids a month. If you would like more information on how rewarded videos can be a game changer for your business and how to effectively implement these units within your current and future apps, reach out to today.