Last fall, UK’s alternative ads firm, Giftgaming, launched an equity crowdfunding campaign on Seedrs to raise funds for expansion of its alternative ads solution. During the campaign, the startup successfully captured £35,000.
Giftgaming is a patent-pending in-game ad service and startup supported by Accelerate Cambridge, Cambridge Judge Business School. How it works: brands give powerups, extra lives, etc. (with coupons) to players and the startup delivers them as surprise gifts to users.
Gift gaming is built on Scala, the same technology used by LinkedIn, Twitter and Intel, and the Lift Framework, which is used by Foursquare.
The Giftgaming team stated:
“With giftgaming, we aim to put an end to intrusive in-game advertising that is destroying immersive gaming experiences. Right now they are being ruined by incredibly intrusive and irritating advertising (such as video ads). We will restore gaming to its former glory with our service.
“In Peter Lorenz’s words (Former Jagex VP of Business Development and Former WildTangent Director of Business Development EMEA)*, Giftgaming “offers a non-disruptive, friendly and very nice way of actually monetizing a game.”
“Ultimately, we hope to change how players see brands completely; adding value to the gaming experience, rather than being a mere intrusion. Also, players thinking better of the game companies who use Giftgaming, as they have opted to use a service which gives players free in-game content.”
Now, nearly 6 months later, Giftgaming has returned for a second round of crowdfunding and has selected Seedrs once again. Within a few weeks, it has secured over £100,000
During a recent interview, founder and CEO of Giftgaming, Nicholas Hatter, shared:
“Many of our 180 investors on Seedrs probably play games, or have kids who play games, and so experience the pain we’re solving: intrusive in-game ads. We’ve got the advertisers, we’re got the publishers, and we’re using a known revenue generating mechanism: affiliate networks. Now we’re scaling up.
“The fundamental limitation of competitors who do moment-based or achievement-based rewards is in their nature: they’re based on moments and can be too dependent on player skill. And given the average mobile gaming session is only 6.8 minutes, there’s a hard limit on the number of incentivized video ads a player can watch in one session.
“Giftgaming provides a non-intrusive revenue stream for game developers and publishers to make up for these flaws.”
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