Summary:

Game developers are getting new tools from startup PaeDae that allow them to monetize through real-world branded rewards and distribute their apps through a promotion product. The service is trying to make its mark with very smart targeting of rewards.

PaeDae, mobile monetization
photo: PaeDae

Mobile game developers trying to crack that persistant monetization gap are getting a new tool called PaeDae that combines a reward network with tools to cross-promote titles. That takes PaeDae into competition with services like Kiip, Chartboost, PlayHaven and Tapjoy. But the company believes it’s got a unique offering that relies heavily on smart targeting of users.

On the surface, PaeDae’s withPrizes tool competes first with Kiip (see disclosure below), allowing brands to hit game users with real world rewards at key milestone moments when they’re feeling good. But PaeDae is a white label tool, so the rewards look like they’re made possible by the developer.

Santa Monica, Calif.-based PaeDae also tries to give out fewer rewards and really make its mark by offering brands effective targeting so their rewards go to the right people. PaeDae CEO and co-founder Rob Emrich told me the company uses an array of online, offline and location data to help target the right users without using cookies or UDIDs. He said advertisers only pay for performance, not impressions.

So far in early results, PaeDae has been able increase time played in apps by 90 percent and give developers eCPMs of more than $20, much higher than typical eCPMs. PaeDae said for most casual games, it can boost average revenue per user by more than 100 percent. And advertisers are seeing click-through rates of more than 9 percent and redemption rates for prizes of up to 28 percent with some brands.

PaeDae CEO and co-founder Rob Emrich

PaeDae CEO and co-founder Rob Emrich

PaeDae also works as a way to distribute apps with its withUsers tool. Developers who install the PaeDae SDK can turn around and take some of the money they make and use it to promote their apps. So a user in another game can get an invitation to download an app from a PaeDae developer for free. PaeDae will still apply its targeting technology to go after the right users.

PaeDae is working with about 20 developers right now including Kronos Games and Doppelgames and has hundreds in the pipeline. It’s also working with more than 20 brands including P&G, Omaha Steaks and online fashion retailer Beachmint.com.

With monetization lagging usage on mobile apps, developers can use all the tools they can get, if they can really deliver. If PaeDae’s results hold up over time, it might be another viable way for developers to make some real money and also drive more usage of their apps. The company, which launched in August 2011, has raised an undisclosed amount of funding from angels.

Disclosure: True Ventures is an investor in Kiip and the parent company of this blog, Giga Omni Media. Om Malik, founder of Giga Omni Media, is also a venture partner at True.

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