Mochi Ads ; In Game Advertising ripe for casual games

mochiad_logo

We have talked about the growth of the casual games. It is a huge market, about $1B worth. I even know somebody who won $1M playing “casual game” and as casual gaming grows the demand for services that monetize these game play is going to increase.

I remember playing the smash hit Desktop Tower Defense game when it had just released a new version and went from a free to sponsored game play model. At that time, the folks at the Hand drawn games, the makers of Desktop Tower Defense, had overdone the sponsorship part, the pieces in the game were sponsored and impacted the enjoyment of game play. The Desktop Tower Defense team is using the Mochiads now. Mochiads suggests showing ads at natural break points in the game and not have the ads take over the games, which is the right way to go.

Last August, Accel Partners, the venture firm that funded Facebook, led the investment in this first round for Mochi Media.

Mochi Media launched MochiAds for casual games and is out of private beta now. It allows casual video game developers to embed ads within their video-games and includes analytics for measuring how many ad views they are getting and how much money the ads are bringing in.

mochiads

In the example they have, the cpm rates are listed at $0.28-$0.43. For casual gaming that sounds about right; the sites charge anywhere from $.75 to $2.00 CPM.

Eye Blaster (eb.in-games) is another player in the market. They have relationship with RealNetwork and several other casual game sites.

In-game advertising, either being delivered to hard core gamers, or during real game plays (which generated $77M in 2006), or to the casual gamer, has great growth potential and the interesting thing is that these ads are immune to Tivo-killing, or Adblaster or selective content removal tools which makes them even more attractive to the advertisers.

Tags: Mochiads, Eyeblaster, in-game ads

 



Revver version 2.0 and video revenue sharing market

ImageRevver has just launched version 2.0. The new site has a few new features - Interface is cleaner, improved search functionality, better sharing (like Wordpress plugin), better categorization, video responses, and simpler ways to communicate with other members.

For advertisers, they can now sponsor collections, like “most watched” or “most commented” and banner ads for certain categories.

There are some reports that Revver paid out $1M in the past year to its content producers; not a large number, but it is a good start.

An interesting example is when an iPhone user got a 300 page bill from AT&T and made a little video out of it and posted it on Revver; the rumors are that she made about $5,000 from the video. I can’t even hazard to guess as to how much the infamous folks at Eepybird.com that made several videos of menthos and coke fountains, made.

Youtube apparently shares some revenue with select partners, Blinkx, Metacafe, mDialog and very long list of others have similar model and Google has launched video adsense as well. The revenue shares range from about 40% to 80%, with most of them at 50% share.

A recent Forrester report that says 7 percent of consumers in North America who use the web regularly are uploading videos at least once a month, which is a much larger number than I expected (perhaps the qualification of “regular web user” explains why the number looks huge)

Another place that I see the growth in user generated video is in product reviews. We know that when buying a new product people prefer “peer reviews” rather than “expert reviews”; so I can see videos posted on Amazon describing the products and have a revenue share model which was similar to that of Epinion. The market will continue to grow, new niche player catering to specific interest will continue to gain market share and benefit from the long tail of search engines, big players like Google will continue to dominate and there will be rise of videos about products.

Tags: revver, youtube, online video, revenue share



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