The news earlier this week that Interpublic and other investors put $11 million into Kiip focuses attention on another promising revenue stream for mobile games. I first wrote about Kiip when I saw its founder speak at the Social Gaming Summit in 2011 and am excited that this investment validates that there are monetization opportunities outside of in-app purchases.
Kiip provides a service that allows advertisers to serve rewards to game players after accomplishing something in a game. For example, they may get a coupon for a free T-shirt from Abercombie & Fitch after reaching level 10. The advertiser pays Kiip to serve this offer and Kiip then gives the game publisher a share of the revenue. On a high level, it seems like a win for all three parties: the player gets something for free, the advertiser can interact with potential consumers at the height of their pleasure in a game and the game publisher receives additional revenue. The rewards should also benefit game companies by encouraging both retention and engagement in players, as they are more likely to come back and earn more rewards. Continue reading “What Interpublic’s investment in Kiip means”