Tag Archives: mobile advertising

2014 Trends: The Future of Game/App Monetization Is Not Banner Ads

As we look upon the new year I wanted to reflect on what I feel will continue to be the trend for games and app monetization in an industry that is rapidly evolving.

The human race has created some remarkable things over the course of history, but banner ads are not one of them.

For those of you who follow me here on LinkedIn and other platforms, you’re probably familiar with my attitude toward this marketing mechanism. I think they’re interruptive. They’re annoying. They have no mobile DNA. But this isn’t another post about how bad ads are again.

Kiip came to market as a much-needed alternative for the mobile gaming industry. We realized reaching new levels or beating high scores offered natural breaks in gameplay to reward achievements. As we expanded the scope of our rewards model, we entered into different kinds of apps, from fitness and health to productivity and music.

Despite what some articles out there claim we said, games continue to play an integral role at Kiip. Look no further than the fact that we just launched the first Mobile Gaming Championship with Guinness World Records to crown the best mobile gamer on earth (and have already seen gamers top the world record charts in Into the Dead and Lane Splitter), or that we just teamed up with Cut the Rope – one of the top mobile games of all time with more than 300 million downloads – to integrate Kiip rewards.

We believe any mobile advertising strategy that doesn’t include games is a shortsighted one. Games are far and away the leading app category on smartphones, making up 33 percent of app downloads.

However, the industry has recently seen some of the biggest mobile games turn away from mobile advertising altogether and go their own way. King, the developer behind the hit game Candy Crush Saga, made lots of noise. Here’s an excerpt from an email the company sent to advertising partners following its decision to forego ads:

King’s #1 focus around delivering an uninterrupted entertainment experience for our network of loyal players across web, tablet and mobile has unfortunately led to the difficult decision of removing advertising as a core element of King’s overall strategy.”

The key word there is “uninterrupted.” The banner ad model is oriented around interruption first, engagement second. It alienates and antagonizes users. Let’s look at why that might be the case:

  • The Game Experience – Games are full of moments worth celebrating, but banner ads don’t offer gamers a virtual high five for their achievements. There’s nothing inspiring or rewarding about a small strip at the bottom of the screen. They completely miss the mark and fail to capture the opportunity to congratulate gamers for reaching milestones.
  • The Gamer Experience – Mobile has historically been a unique advertising medium because it’s the most personal device we’ve ever owned – after all, it contains all of the digital activity in our lives. 72 percent of consumers explore mobile apps at home, where they can relax and take some “me” time. Banner ads are the equivalent of solicitors – unwelcome, offering something you don’t want and difficult to make disappear.
  • The Developer Experience – The monetization equation for game developers has historically been an exchange. In return for an ad spend, advertisers ask for a piece of valuable screen space and ruin the user experience. It’s a compromise, and developers are on the losing side. As the first generation of digital natives matures, this key demographic group will have grown up ignoring ads and will be experts at navigating around them. This makes in-house options like in-game currency and purchases that much more appealing to developers.

At Kiip, we’re focused on reversing the abuse of advertising with respect and reciprocity from rewards. We are dedicated to providing a better gaming experience for users, developers and marketers alike.

The norm of monetization in exchange for sacrificing your user experience was a byproduct of the banner ad. This should not be an accepted norm. It was a byproduct of linear thinking. We are determined to continue to innovate on the concept of the moment, the reward, and helping make the entire ecosystem experience the coveted “triple-win”.

We’ve learned a lot from rewarding moments in other experiences than just games. The core learning is that at the end of the day, we are all human beings. There are key things that will not ever change: because we feel and experience things subjectively, we want to be respected and appreciated. There is a way that brands can play a part in this virtuous cycle, but unfortunately it isn’t through advertising.

Kiip playing!

Posted by:Brian Wong

Pandora Kills Its Mobile Listening Cap Ahead Of iTunes Radio !!! (QUICK READ)


Popular online music streaming service Pandora just killed its 40-hour-per-month listening limit for mobile users with free accounts. Earlier this year, the company cited rising licensing costs as the reason for the cap. It now credits the “rapid progress of mobile advertising” for the reversal, effective September 1, 2013.

More the point, though, may be the fact that the launch of Apple’s iTunes Radio is looming next month.

Facebook closes above $38 a share IPO price !!!

The following excerpt is from USATODAY!

Initial Facebook investors are finally in the black.

Shares of the No. 1 social networking firm Thursday rose $0.56, or 1.5%, to close at $38.05. It was the first time the stock has closed above its $38 a share offering price since the days following its initial public offering in May 2012.

Facebook came public amid great fanfare as many individual investors figured the company’s connection with a billion users worldwide would quickly turn it into a money making machine. Investors awarded the company with a lofty valuation of more than $90 billion as it seemed the company’s future was boundless.

But later, concerns grew that the company would face difficulty making the transition to mobile users, as it could be harder to place advertisements on smartphone screens. But after the company reported sharply higher quarterly profit as week, topping expectations largely on better-than-expected performance in mobile advertising, the negative pall on the stock eased.


Twitter Predicted To See One Billion Dollars In Sales

Bloomberg reports Twitter is expected to gain around one billion dollars in marketing demand revenue over the next two years. Two people close to Twitter Inc. predict the social sharing platform to grow twice as fast as earlier publication had to state.

Twitter first began in the year two thousand six with high hopes for a bright future in social media marketing and advertising. It will take Twitter eight years to reach one billion dollars in sales.

It originally took Facebook six years to reach one billion dollars and Google five years to reach one billion dollars in overall sales. Twitter has recently put a large amount of time into managing their mobile advertising platform.

Image Via. http://www.HelpYouTweet.com