September 20, 2011, 9:39 AM

Tapjoy Introduces Mobile Video Ads Based on Mobile Value Exchange™

Tapjoy Videos™ delivers video engagements at scale on a pay-for-performance basis

SAN FRANCISCO, Sept. 20, 2011 -- Tapjoy, Inc. (www.tapjoy.com), a leading independent mobile advertising marketplace, today announced the availability of Tapjoy Videos, an innovative mobile video advertising platform designed to provide advertisers with the reach, impact and brand building power of TV combined with the targeting and user engagement offered by Tapjoy's extensive pay-for-performance ad marketplace. Leading brands taking part in the launch include Gap, Old Navy, Gamefly, eHarmony, Netflix, Intuit, Zynga and others.

"Video ads are expected to be one of the fastest growing segments of the mobile advertising industry, which according to Gartner is predicted to balloon to more than $20 billion by 2015," said Mihir Shah, president and CEO of Tapjoy.  "Clearly, advertisers are bullish on mobile video ads, and we help them reach more than 50 million people per day in a way that allows them to engage with their audiences in much deeper and more meaningful ways than TV ads ever could."

Mobile Value Exchange and Pay-Per-Completed-Video Engagement Pricing Deliver Results at Lower Costs  

With consumer audiences shifting media consumption from TV to more interactive forms of entertainment such as the Internet and mobile applications, many brands are reallocating budgets accordingly. An eMarketer report predicts that US mobile ad spend will grow between 25 and 36 percent annually over the next three years, while traditional media ad spend will essentially remain flat. However, eMarketer also reports that only 38 percent of online videos are viewed to their completion, proving that true engagement can be hard to find, even in digital advertising.

Tapjoy Videos solves this challenge by allowing advertisers to sponsor content within popular applications, enabling consumers to unlock premium features or content in exchange for watching videos. This sponsorship establishes a unique value exchange in which the user gets a premium application content experience for viewing a video ad in its entirety and the advertiser receives the user's attention for the duration of its message. Tapjoy Videos features pay-for-completed-view pricing to guarantee results at a significantly lower acquisition cost than TV advertising.

Consumer Choice and Interactivity Further Increase Engagement

With Tapjoy Videos, consumers choose which ad they want to watch, and this self-selection process helps ensure the viewer is more interested and engaged in the video than when viewing an automatically generated pre-roll ad or similarly disruptive video ad. Upon completion of the video, advertisers can give consumers further options to engage with their brand through actions such as following the company on Facebook or Twitter, forwarding the video to friends, or visiting the advertiser's web site and allowing consumers to make purchases directly through their mobile device. These actions further increase the effectiveness of the ads and deepen user engagement on a one-to-one basis.

Increased Revenue and Better User Experience for App Developers

Tapjoy Videos enables mobile application developers to generate incremental revenue by providing consumers with virtual currency as the value exchange for engaging with video ads. The ads are seamlessly embedded into the application experience through the Tapjoy SDK, so users can watch video content without having to leave the application. Tapjoy intelligently places targeted video ads along with other ad types to maximize publisher revenue. Tapjoy Videos is architected to minimize bandwidth usage.

Developers can integrate Tapjoy Videos by downloading the Tapjoy Publisher SDK at www.tapjoy.com. Advertisers interested in distributing ads through Tapjoy Videos should contact adsales@tapjoy.com.

About Tapjoy

Tapjoy is the success engine for mobile application distribution, engagement and revenue. The company's turnkey in-app advertising platform helps developers acquire cost-effective, high-value new users, drive engagement within their applications, and create incremental income by providing an ad-funded payment method. The Tapjoy ad marketplace spans over 10,000 applications and 280 million global consumers on iOS, Android and emerging mobile platforms. Tapjoy is backed by top-tier investors including J.P.Morgan Asset Management, Rho Ventures, North Bridge Venture Partners, InterWest Partners and D.E. Shaw Ventures. Headquartered in San Francisco, the company also has offices in New York, London and Tokyo. For more information, please visit www.tapjoy.com.

SOURCE Tapjoy, Inc.

CONTACT: Matt McAllister, Fluid Communications, +1-510-229-9707, matt.mcallister@tapjoy.com

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