Vungle to Build Developer Network with Seed Funds
Vungle, the nascent mobile video ad network that announced a $2 million seed financing round in late April, on Tuesday said it would attribute $1 million of the raised funds to attract mobile app developers to its platform.
Vungle inserts a 15-second video trailer into a mobile application. The video trailers are intended to be advertisements for other apps.
The challenge for Vungle is getting those videos advertisements made, and then getting them seen. Therefore, the company aids prospective advertisers by helping them create the 15-second commercials in HD using a screen capturing technology.
Vungle claims that due to overwhelming advertiser demand, which has ramped up far faster than it can accumulate publishers, the company has decided to make its publisher software development kit self-serve.
The $1 million will be used to guarantee payouts to developers ahead of time once certain objectives are met -- like the developer showing the number of videos that they say they will. Vungle also wants to offer certain publishers a ‘100 percent fill rate’ guarantee, in which the company pays a developer up front, whether there are enough advertisements to show or not.