I have seen in many apps, that it allows the user to view rewarded video ads, only certain number of times in a day. But, the more ads the users see, more is the revenue for the developer. Then, why is the developer doing so? P. S - I am developing an app myself. So, I needed to know the reason behind it, so as to decide whether to implement it or not.
Why do App Developers restrict the number of rewarded video ads, a user can view per day?
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Then, why is the developer doing so?
Put yourself in the position of the user.
- On the plus side, he / she wants to use the app.
- On the minus side, he / she doesn't want to watch the video ads. But he / she puts up with them.
If you force users to watch too many videos, they will eventually get fed up and stop using your app entirely. And when that happens, you get no more revenue from that user. They are gone. They probably won't come back.
The developer gets to choose which strategy to use when showing ads.
Watching rewarded ads means that you avoid paying for premium features that the app offers. The developer that way allows you to see how it would be to use the premium features but does so with the restriction that you can only do that after watching ads and only for a few times. In the long run, the developer will make more money from people buying the premium version of the app than they would have made from people watching adds.
It is very similar to the idea that a lot of online subscription services will offer a month for free to anyone, and then start charging after the second month of use. A lot of people will take advantage and only use the free month, but statistically more people will decide to pay in order to continue having access to the service. (eg audible, amazon prime, youtube premium, etc)