A rewarded video gives something valuable to the viewer to compensate the viewer for watching the ad.
The best place to show a rewarded video in a game is where the user might need something extra, such as more coins, another life, a hint, etc.
However, some users in-app purchase extras like these. For this reason, offering a rewarded advertisement instead might not always be optimal for your revenue.
You should test rewarded videos. When you do, observe which users watch the videos, and at what location in the app they engage. Such insights help you determine optimal points in your app where you can offer rewarded video, and which users engage with them. This helps you further optimize your video usage.
Here are some examples of rewards you might offer a user who watches a rewarded ad:
Period boost : Increased player strength or some other game benefit for a limited time.
Daily bonus : For example: “Watch video in exchange for daily bonus.”
Accelerate user action : For example: “Watch video to finish building now.”
Some app companies report that adding rewarded video to your game increases in-app purchases. This is because it gives users a low-cost way to experience the value of extras like power-ups, coins, etc.