Mobile game ad network Greystripe has hit 140 million ad-supported game downloads thanks to iPhone users. In the fourth quarter of 2008 alone, it supported 30 million downloads. All of these ad-supported and Greystripe says that over 50 percent of ad impressions are from iPhone games. The ads themselves have game-like characteristics designed to increase the chances of consumers clicking on them and playing with them, hence “advergames.”
Last summer, TechCrunch reported that Greystripe turned its attention to the iPhone, and is subsequently seeing an increase in downloads and ad impressions. In fact, Greystripe’s Top 10 Total Games (by ad impression) are all iPhone games. In December, the company created its own version of Adobe Flash for the iPhone, which Apple currently prohibits on the iPhone, that would allow advertisers to use rich media flash ads. The company is making the iPhone market a “priority for the foreseeable future,” finding that the device is a much more successful ad platform for gaming than Java devices.
Greystripe is not the first ad network to see potential in the iPhone-other mobile ad networks have followed suite. TechCrunch reported last November that ad network Videoegg extended its ads to the iPhone. Other iPhone ad networks include : AdMob, Medialets, and PinchMedia.
Some of Greystripes top games on the iPhone include 21 Pro, Blackjack, Cookie Bonus Solitaire, Origami Rose, and Powerboat Racing. None of these are top game apps in the iTunes Store, however.
Greystripe also distributes ad-supported free games and applications through its consumer site GameJump, as well as through the iPhone App Store in iTunes. The company inserts ads into more than 900 game titles from 100 publishers that can be downloaded onto mobile phones. Advertisers on Greystripe’s iPhone and Java games including New Line Cinema, Burger King, Jeep, Speedy Oil Change, Dunlop, Xbox, Leap Frog and Axe.
wow, Greystripe is going strong. Who would have thought people would download ads! Well, interactive ads anyway!
Who would have thought people would download ads! Well, interactive ads anyway!
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Thier ads are innovative and they were one of the few who saw the potential in iphone ads. Any figures on how Admob is doing?
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Greystripe will not make it into 2010 unless they can raise another round, they are burning through too much cash. 3 major problems for iphone distribution for them:
1) They don’t control the distribution, only apple does and so they need games in the top 100 to get any amount of significant downloads and play.
2) Assuming they get a couple of games in the top 100, they don’t have enough Ad inventory to fill the ads and hence the developers are much better off with Admob or some other ad network.
3) To fill their ad network, they will run inhouse ads, hence paying developers from the VC cash they have raised and at the end of the day, bringing them that much closer to shutting down.
Come on people, Google, Yahoo, MSN, facebook are having problems selling CPM ads these days…..do you really think that Greystripe can hire a sales force to convince advertisers to advertise on the iphone when CPM ads on facebook and myspace are at $0.50CPM. Even if they get their 5 advertisers to sign on, do you think it will justify their 20+ million valuation at last close in 2007. Granted if they raised 1-2 mill, had 10 employees, I can see this business making a decent chunk of change. Unfortunately its not going to happen, remember alladvantage people…….
There are other platforms than Iphone, you know. The European market is still dominated by Nokia, so maybe they should shift their geographical focus. Furthermore, their problem isn’t necessarily ad inventory but rather that their revenue share model with the developers isn’t sustainable. If they can convince the advertsers that the OTS (opportunity to see) and CTR is higher than banner ads and thereby make them pay more, they have a chance of major success.
It’s great to see a company challenging the current business model, and letting the indie-developers get a chance to get to market. The traditional mobile games market is controlled by the operators and aggregators and in the end the developers only get 10-20% – if they can even get on the operators deck. This means only 10% of mobile games are actually profitable.
The mobile games industry is tough.
In Poland you can find mobile ad network at http://www.mobiads.pl/
They have built a great distribution platform through their white label partners. Maybe a mobile games publisher could buy them as a new channel for premium games?
I was a greystripe publisher and my eCPM was 3 cents – they suck!
Not a very good stuff to bring things up.