New Cupcake/iStorytime biz model lets parents earn points viewing ads

Can parents’ time spent viewing in-app ads pay for in-app purchases for their kids? It can with select Cupcake Digital titles, thanks to a cool new business model that lets adults earn points by interacting with advertising content that’s kept locked away from young viewers. The Offer Wall within Cupcake’s iStoryTime library is parent-gated; kids have no access to commerce, social sharing or advertising. But should they desire, parents can select from hundreds of ads from companies like Geico and Netflix that’s provided by mobile ad platform Tapjoy via a revenue-sharing deal that puts money-per-interaction in Cupcake’s pocket.
Cupcake introduced the model two months ago when it launched iStorytime subscriptions for ebooks. “The parent is deciding whether they want to view ads, and picking the advertisers he or she wants to interact with,” Cupcake’s Graham Farrar tells CynKids. Rewards are “based on level of effort. Watching a movie trailer might give you 30 points, where signing up for a credit card might give you 1,200.” Thus far, response to the Offer Wall has been strong. “We’ve had double-digit percentage of our daily revenue is coming via people engaging with the Tapjoy offers,” Farrar says.

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