If we were to ask the average Indian smartphone user about what they primarily use their smartphones for besides communication, the answers would typically feature these words: social networking, chatting, videos, internet browsing and mobile gaming. Of these, mobile gaming has particularly taken off rapidly, thanks to the advantages that smartphones offer as a medium when it comes to gaming.
In fact, the number of mobile gamers in India is estimated to be over 267.4 million in 2016 growing at a CAGR of 23% between 2013 and 2016. More than 70% of mobile gamers are under 34 years of age. Additionally, more than half of them are in the 18 to 24 year age bracket. This means the market for mobile gaming apps in India is very young and thriving.
When it comes to monetizing these gaming apps, rewarded video ads are one of the most preferred ad types for engaging users. They incentivize the user's engagement with the ad, encouraging them to click on it, or watch a video to get rewarded with in-game currency or unlocked content.
However, there has been a lot of misconception around these ads. One such myth is that users do not like rewarded video ads, that they find them intrusive and these ads hamper the gaming experience. A study by Unity however, suggests that mobile gamers give highest preference to rewarded video ads over other ad types. According to the study, players gave 46% preference to rewarded video ads compared to 29% for full screen interstitial and 20% for banner ads.
The next misconception is that even if mobile gamers do see rewarded video ads, they do not engage with these ads. They just close the ad and continue to play the game. However, according to a study by Unity almost 80% of the mobile players are open to engage with video ads for in-game rewards. In fact, 71% of the players choose watching video ads as their preferred way to pay for game content.
This means there is a perfect opportunity for marketers to benefit from the fact that gamers love being rewarded for the games they play on their smartphones. They can target these users with opt-in rewarded video ads that players can watch in exchange for free premium content, means it's a win-win for both sides.