Rewarded/Incentivized Advertising Market Size
After extensive research into industry-related websites, market reports, and statistics portals, information on the market size for rewarded/incentivized advertising does not appear to be publicly available. However, the research team was able to gather valuable data on the growth of the market, the effectiveness of the advertising, and the market size of some related spaces.
Advertising Market Size
- The estimated mobile advertising spending in the U.S. for 2019 was $87.06 billion.
- It was estimated the U.S. market size for mobile video ad spending was $15.93 billion in 2019. Since rewarded video advertising has largely been limited to gaming apps up to this point, it is likely that the market size for rewarded video is a portion of this market.
- Ad revenues for gaming apps was estimated to be $3.25 billion in the U.S. in 2019.
- There are 187 million mobile video viewers in the U.S., all who are potential advertising targets.
Rewarded Video Advertising Growth
- From the 2nd quarter 2017 to 2nd quarter 2018, rewarded video ad spending grew 139% globally.
- From the 1st quarter of 2018 to the 1st quarter of 2019, ad spending for rewarded video grew globally by 245%.
- Globally, about 25% of companies using rewarded video advertising are media companies, well over 50% of the companies are other apps, followed by smaller shares for retail, government and other verticals.
Effective Cost per Mille
- Mobile effective cost per mille (eCPM) grew 33% in the U.S. from 2018 to 2019.
- At the end of 2018, rewarded video eCPM for iOS was $13.75 and it was $12.01 on Android.
Effectiveness of Rewarded Videos
- Seventy six percent of app users said that rewarded video ads made them like a brand more.
- One study showed that rewarded video ads had a 43% better return on investment than non-rewarded video ads. Additionally, rewarded video ads had a 45% better click through rate, and a 33% better conversion rate than non-rewarded video ads.
- Sixty two percent of users regularly engage with rewarded video ads.
We began our research by looking for the market size for rewarded advertising on market research sites such as Wise Guy Reports, industry sites such as eMarketer and Business of Apps, statistic aggregators such as Statisita, and reputable news sites including Forbes and Vox. While these in depth searches allowed us to find information on the growth of the rewarded video advertising market, as well as the size of the mobile video advertising market in the U.S., there was no data available specific to the rewarded advertising market in the U.S. or globally.
Once we knew the data was not publicly available, we changed our strategy to look for ways to triangulate and estimate of the market size. Since we had found data on the mobile video advertising market in the U.S., and since we knew that the market of interest was likely included in this number, we proceeded to look for data on how the mobile video advertising market was broken down by type of video. An examination of the websites for platforms that support reward based ads, including SmartyAds, as well as industry sites such as the Interactive Advertising Bureau (IAB) did not uncover the desired information. While we did find a breakdown of the types of video advertising, there was no data on the market share of each type. Therefore, we were unable to triangulate the market size.
As a final attempt, we decided to examine the advertising budgets of some top players in the mobile gaming industry. Since rewarded video is still largely confined to this space, we thought if we could find some budget breakdowns, along with the overall mobile video ad spending market size we had already found, we could make a broad estimate of the market size based on how much several companies spent on rewarded video. According to Ranker, some of the most played mobile games are Call of Duty Mobile, PUBG Mobile, Minecraft, Clash of Clans, Clash Royale, and Doodle Jump. After uncovering the companies that owned the games (Call of Duty owned by Activision, Minecraft owned by Mojang, Doodle Jump owned by Lima Sky, etc.) we proceeded to examine publicly available financial information for the companies to see if they disclosed any data on their advertising budgets. For a variety of reasons, including the companies being private, and them owning multiple apps and not providing a detailed breakdown, this strategy was also not successful.