As we all know, the mobile game industry is a highly competitive industry. To get ahead, developers often use advertising as a marketing strategy. That is why it is crucial to choose the right ad format.
Interstitial advertisements and rewarded videos are the two most commonly used formats that have the highest success rates.
Both ads have unique benefits that can boost user engagement and app revenue. But which one is right for your monetization strategy?
In this guide, we’ll break down the key differences between interstitial ads and rewarded video.
Help you choose the best format to maximize app performance and enhance your application user experience.
Understanding Interstitial Ads
Do you remember seeing ads during moments of level-ups in mobile gaming apps or content transitions? If so, then you are probably just seeing interstitial ads.
Interstitial ads usually take up the entire screen and appear when users switch between two pieces of content in an application
This type of advertisement might take the shape of text, photos, or videos. Users can select whether to open or close the advertisement immediately.
If this type of ad shows up too often, it is likely to reduce users’ satisfaction. As it interrupts their game.
That’s why it usually only appears for one or two seconds before being closed by the user.
As a result, it is critical to schedule the appropriate time to display this form of advertisement.
Understanding Rewarded Video Ads
Meanwhile, rewarded video ads take the shape of videos that offer users specific rewards if they watch them in full.
In online games, rewards video might take the form of points, extra lives, or unlocking premium content.
Gamers have the option to watch the video ads for 15 to 30 minutes and earn a reward afterward. Having this rewards system makes this form of video ads appear to be more beneficial to gamers.
Interstitial Ads vs Rewarded Video: Key Differences
We can draw some contrasts between interstitial advertising and rewarded video based on the information provided above. Now let’s look at the explanation below.
1. User Interaction
Interstitial ads require gamers to click on ads in order to close them. This kind of ad takes seconds to load and can be closed after.
Meanwhile, rewarded video advertising allows players the chance to view or close the ads. Later players who watch the ads will get a reward.
Having rewarding systems will make the interaction between advertisers and users feel more fair.
2. Placement
Interstitial ads appear during the transition between two pieces of content or when the screen changes. For example, when a player pushes the play button after pausing the game for a while.
On the other hand, rewarded video ads are usually integrated into gameplay. Ads will appear while the app is operating.
For example, when a player runs out of lives and must end at a specific level, a video ad shows.
If players wish to continue playing and earn more lives, they can view a promotional video for one or two minutes. Then they can resume the game from their previous level.
3. Monetization
Each advertisement has a unique monetization scheme. Interstitial ads have a higher CPM (Cost Per Mile) than other types of ads because they display at each transition.
This means that revenue will be significant due to high visibility.
On the other hand, rewarded video advertising may have a lower CPM, but they have a much better engagement rate.
Players will have to watch ads in order to get the rewards. The more ads they watch, the more revenue the app developer earns.
Read: App Monetization Trends in 2025
4. User Experience
The frequent presence of interstitial advertising can be annoying, even causing gamers to abandon the mobile games apps.
As a result, a method is required to ensure that advertisements do not show too frequently that they disrupt the player’s experience.
Meanwhile, rewards video ads prove to enhance user experience, but excessively long ads may disrupt gameplay and reduce engagement. It will impact app flow and retention rates.
Benefits of Interstitial Ads
Here are the benefits of interstitial ads for your mobile game app.
- High Visibility: Full-screen ads ensure maximum visibility and high engagement rates.
- Increased Revenue: Higher CPM rates help developers earn more.
- Flexible Placement: Developers can strategically place the ads based on application type and user experience.
- Wider Reach: Expands audience reach for better ad performance.
Benefits of Rewarded Video Ads
Rewarded video ads offer similar advantages, like:
- Boosts engagement: Reward ads grab users’ attention and increase engagement.
- Improves retention: Longer playtime and positive emotions lead to better retention.
- Enhances user experience: Rewards create a positive sentiment and improve the overall experience.
- Increases in-app purchases: Reward ads encourage more time spent in the app, boosting impressions and purchases.
Best Use Case: When to Use Each Ad Format
After explaining both ads, let’s learn the best times to use each ad type.
Use Interstitial Ads If
- Your mobile game app has recurrent breaks over a set time period. For example, it works in a mobile game, that leveling up takes little time.
- Users are familiar with natural breaks before continuing the game.
Use Rewarded Video Ads If
- Your mobile games include premium content, coins, or in-game purchases.
- Users interested in using the reward they receive to stay within the program.
Read: In-App Purchases vs Ads: Which One Is Better?
Conclusion
Interstitial ads are more effective for apps with long sessions and natural breaks.
On the other hand, rewarded video is ideal for apps with premium content or those that require points and in-game currency.
Choose the ad format based on your app type, user preferences, and monetization goals. Try both formats and analyze the metrics to find the best fit.Need help choosing the right ad format? Contact TyrAds today and let us provide the best solution for your app.
