One of the main dilemmas for mobile game developers is how to fund their product. Charge upfront and risk turning off potential customers? Or maybe offer the game for free and charge in-app or present ads to players? French startup VIDCOIN aims to help out those who develop free-to-play games by offering a platform through which users will actually views ads and provide developers with needed revenue.
There are few things more annoying while watching an online video or using an app and having an ad pop up in front of your face. The ads are an important way to help developers make money, but that does not usually make them any less annoying to games. VIDCOIN believes that they can encourage users to actually want to watch these ads, but only if there is a reward at the end. The platform operates by pre-loading ads within the game and inviting users to click on them. Those who click and watch until the end are then offered a page through which they can access new content within the game.
VIDCOIN tells me that their service is free to install and that they charge a commission based on each transaction completed. Their economic model is based on cost-per-view (CPV). The company was founded back in 2013 and says that they have served 2,500 video-ad campaigns in 25 countries.
A representative from VIDCOIN tells me that the inspiration for the business came to co-founder Jerome Vuillemot as he ran a gaming studio. Realizing that 95% of players never end up paying, he set out to develop his own platform to help out his fellow game developers.
A couple of weeks ago, the company announced that they have picked up 1 million Euro in new funding from Swiss fund Virtual Network. Prior to that, they had picked up an undisclosed amount of funding from Kima Ventures. Although the startup is based out of France, they have set their sights across the pond and are planning to open a new office in New York City. At the moment, the company claims 12 employees between its offices in Lyon and NYC.