Bitcoin is an interesting, trending cryptocurrency capable of making transactions across the Internet easy–and due to ever-increasing notoriety in the press is becoming ever more popular. As a result, mobile developers might be turning their eyes to this digital currency in an attempt to tap into an audience who trade in it.
Vungle, a mobile ad startup that focuses on 15-second in-app videos, has added bitcoin as a payment option to app developers. Vungle allows creators of mobile apps (iPhone and Android), to monetize their business to show 15-second videos in high definition that is integrated into the user experience.
Advertising on mobile devices is a booming market. That market is expected to reach $5.4 billion this year. In parallel to the increase the growth of mobile ecosystem, entrepreneurs are seeking to transform it into profits by helping the growing market to reach its full potential.
The addition of bitcoin option to Vungle platform allows publishers and developers to expand their reach on the Vungle’s mobile ad network spanning some 4000 apps. It will also provide flexibility to keep more of what they earn because of the virtual currency’s lower transaction costs. In addition, bitcoin exchanges are faster as compared to other transaction as developers don’t have to go through a financial institution.
The company, based in San Francisco and London, has set itself the goal to shake up the market for in-app video advertising. The target group of Vungle are specifically individual developers or small groups of developers. Given the explosive proliferation of mobile devices, and the need to monetize the broadband traffic that these devices create in any way possible, in-app advertising should have plenty of room for new companies to come. Vungle believes the long-term prospects of bitcoin is important enough to offer it as a payment option. Bitcoin has more potential as a payments system than as a widely used alternative currency.
“Developers are looking for more flexibility regarding payments, and don’t want to be tied to traditional payment structures,” said Vungle CEO Zain Jaffer. “We have a long view on this new currency, and we’re betting that as Bitcoin gains more widespread traction, increased demand will follow. So, we are excited to offer it as an option to our publishing partners.”
Vungle’s platform ensures video ads play smoothly and without being too intrusive. The company said video ads on its platform are viewed by over 100 million people per month. Developers in Vungle’s network include Cut the Rope, Fruit Ninja creator Halfbrick Studios, ZeptoLab, Wooga and Sega.
The company last month raised $17 million in Series B funding led by Thomvest Ventures with participation from Crosslink Capital, Google Ventures, AOL Ventures, SoftTech VC, and Webb Investment Network. The company said it plans to use the new capital to build a suite of monetization tools for mobile app developers. The startup has raised a total of $25.5 million in funding to date.