User-rewarded content: The path to higher engagement and more effective advertising

What is user-rewarded content?

It is an unskippable ad type that rewards users for interacting with it. 

This concept is based on the principle of voluntary choice - the users decide for themselves whether they want to interact with the ad and get a reward. URC ads are most commonly found in app environments, primarily in games.

URC formats: Rewards that motivate

Videos are most commonly used for URC campaigns. You can access placements offering this type of advertising through RTB platforms. Whether through private deals or open auctions.

Specifically in DV360, you can make URC available in the line item settings. In the Targeting section, select User-rewarded content and check only the User-rewarded content checkbox. In Proficio, for this type of targeting, we also limit the ad serving to mobile and tablet devices only, as apps with URC have the highest share on these devices. Therefore, we also select only App inventory in the Environment settings.

Recently, a new public inventory - App mediation partners - has appeared in DV360. This inventory promises higher returns from advertising, specifically in-app placements. We’ll be testing this inventory soon and bring you the results and insights next time. 

But always make sure to tailor the content of your ad to the stage of the conversion path within your targeting. It’s also important to note that the rewards are set by the developer of the app – you only provide the ad that will be served.

Since URC ads are primarily displayed in game-themed apps, we recommend excluding the most irrelevant ones right away before running your campaign. These are usually apps with children’s content. If you don’t regularly check placements and exclude irrelevant apps, your campaign could lead to low-quality website traffic and unnecessary costs.

Measuring and evaluating the success of URC campaigns

To measure the effectiveness of URC campaigns, it’s important to track key metrics. These will always be based on the stage of the conversion path you’re using URC campaigns for - just like for any other campaign. For example, for the consideration phase, we most often evaluate URC campaigns based on the number of website visits, CTR, the website engagement rate, and, in the case of video, viewability rates.

For one of our clients, we supported a traditional video campaign with a URC campaign at DV360 to test a new format we could use to drive website traffic. The classic video campaign used an in-stream format in open auction and web inventory. Thus, it was not a YouTube campaign. The URC video campaign used the same targeting in the open auction, except that we set up user-rewarded content and targeted only app inventory and mobile devices.

Results in numbers

The result was a 28% more expensive CPM but a 300% higher CTR. Therefore, with 3 times higher CTR coupled with almost 70% lower CPC, the URC campaign resulted in higher traffic at a lower cost compared to a traditional video campaign. Even though the CPM was more expensive and it was a non-skippable ad. On the other hand, the 40% higher video viewability rate helped awareness, with users spending more time with the brand message. Engagement rates according to GA4 were similar for both campaigns.

Conclusion

URC is an interesting strategy that rewards users for interacting with an ad, therefore increasing their engagement. This approach allows advertisers to achieve better campaign results, especially in terms of increasing interaction with the ad and video ad viewability. By focusing on users and their motivation, URC offers an interesting way to further push and scale RTB campaigns, and gain additional quality traffic alongside traditional targeting.

We’ll enhance your campaigns too! 

With DV360, we’ll take your brand campaigns to the next level too. With effective frequency management, you won’t overwhelm your users even when using multiple formats. Do not hesitate to contact us and together we will create a tailor-made RTB strategy for you.

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