Redbox bets on in-game mobile advertising

By Chantal Tode

May 20, 2011

Redbox is teaming up with Verizon for video streaming service

DVD kiosk brand Redbox is the first marketer to partner with Tap Me for in-game advertising on iOS mobile devices.

Redbox is launching video game rentals at more than 21,000 kiosks nationwide June 17. Through the Tap Me arrangement, the company will be able to provide gamers with instantaneous Redbox offers that could include extra lives and other content access.

“If you are developing a mobile strategy and leaving out games, you are leaving out one of the biggest mobile activities,” said Joshua Hernandez, CEO of Tap Me, Chicago. 

This is because gaming is one of the four most popular ways that mobile users interact with their mobile devices outside of texting. The list includes search, browsing, social and gaming.

“One of our cofounders joined Tap Me because he pointed out that they thought mobile and gaming were the most broken aspects of mobile ad product,” Mr. Hernandez said.

“And, while there are some awesome companies out there targeting the same market, like Wild Tangent, we both have pretty distinct approaches,” he said.

For Redbox, Oakbrook Terrace, IL, which already reaches many customers via apps for the iPhone and Android as well as its SMS list, adding a mobile gaming component is a natural extension.

Redbox is looking to generate brand awareness with gamers where they are already playing, without interrupting their experience.

Uninterrupted play
One of the benefits to gamers of Tap Me’s mobile advertising platform is that it allows game developers to wrap key game functions in branded rewards without taking the gamer out of the action. The platform was introduced at the 2011 Game Developers Conference.

“We know that what gamers don't like is to be interrupted during game play with pop-ups or out of context video interstitials, and banners are usually completely ignored because of how engaging games are,” Mr. Hernandez said.

“We are providing game developers a new way to advertise in games that doesn't interrupt game play but instead adds value to the gaming experience,” he said.

IPhone and iPad gamers can participate through Tap Me’s network of games, including hit mobile games like Kitten Cannon, Retro Revolution 2 and Charmed.

In the future, Redbox customers will have the opportunity to earn real-world rewards through their mobile gaming sessions. Players who earn rewards will also have the option to share their achievements with friends on Facebook and Twitter.

“We are not revealing the details of how the user will interact with redbox just yet, but you can look to the current platform mechanics to understand that redbox will be adding value to the game play by sponsoring extra lives, time extensions and other content access while incorporating a goal in the real world,” Mr. Hernandez said.

There are more than 30 million gamers in the mobile market today, per Tap Me.

Tap Me is launching in closed beta for Android soon.

Final Take