Home A New Distribution Model for Apps: Tapjoy’s Pay-Per-Action Service

A New Distribution Model for Apps: Tapjoy’s Pay-Per-Action Service

Mobile app distribution service Tapjoy, known best for its “pay-per-install” advertising mechanism for user acquisition, has today introduced a new concept in application distribution models: “pay per action.” Instead of simply rewarding users for downloading apps, this new form of mobile advertising only rewards users once they’ve taken a specific action within an app or game – for example, beating a certain level or watching a tutorial of some sort.

Says Tapjoy, the new service will deliver a much higher return on investment as it guarantees a higher level of engagement among the app’s users.

The way Tapjoy’s previous program worked is that it would provide end users with virtual currency rewards for application installs from Tapjoy advertisers. Those users could then “pay” for apps with that virtual currency, instead of with a credit card.

With the new “pay per action” model, Tapjoy advertisers don’t dole out the rewards until a user has performed a specific action within the app. This leads to higher levels of engagement on the end user’s part as they must actually use the app, not just download it. Because of what this service can deliver, advertisers are likely willing to pay more for this type of activity.

Of course, in order to provide these rewards, Tapjoy needs to know when the designated action has occurred. For this part of the new service, the company has partnered with Apsalar for access to its mobile analytics platform. Going forward, Apsalar will provide the analytics service now found within Tapjoy’s dashboard. Another benefit to this partnership is that Tapjoy advertisers can use the analytics to also determine at which point users tend to stick around within an app, and then incentivize the users to reach that stage.

According to GameFly’s VP of Marketing Steve Hartman, the pay-per-action model will “significantly increase conversions that will lead to acquiring GameFly users who are more loyal and engaged.” And Rizwan Virk, CEO of Gameview Studios (Tap Fish, Tap Ranch, Tap Town) says that having the two companies – Tapjoy and Apsalar working together “will be great for developers like us.”

The new PPA software development kit will be available to registered Tapjoy customers. Interested parties can learn more by contacting Tapjoy from the sign up form here.

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