It’s hard for Brian Wong to keep calm about his company while he carries on an interview.
The 21-year-old’s San Francisco-based Kiip (pronounced “keep”) is a rising star of the mobile gaming and advertising world. It may be the killer app for advertisers.
The Vancouver wiz kid skipped two years of elementary school, two years of high school and graduated from the University of B.C. at 19. He went south to work for Digg in business development but was laid off in May 2010.
“What I ended up doing was starting a company based on the premise that I noticed people around me are [engrossed] in games on their phones and not paying attention to anything else,” Wong, who spoke at the Grow 2012 Conference in Vancouver, told Business in Vancouver.
“The tactics being used in smartphones were really in the form of banner ads. That advertising ... is not as effective as it should be. It became a nuisance; it became interruptive rather than creating anything of value.”
So Wong created a gaming platform that allows users to work their way to rewards, such as discounts on goods and services.
“These games had one thing in common: achievements, high score, something meaningful. It’s more like moments of achievement, the dopamine rush.”
The U.S. wireless industry reported 331.6 million subscriber connections at the end of 2011. A May report by Nielsen estimated that smartphones held a 50.4% share, of which Android phones led Apple’s iPhone 48.5% to 32%. Tablets and smartphones are becoming the preferred way to play video games. ABI Research said shipments of Sony and Nintendo handheld devices have fallen from a 2008 peak of 47 million to a forecast 38 million in 2013.
Wong said marketers want to learn more about potential customers, but Kiip lets them contact the users in an opt-in approach.
“We let the user put in their email address and take the rewards,” he said. “We don’t share the emails with the brand or developer. The reason we do that is to preserve the trust between the consumer and the brand.”
Like many in the online world, Wong had to search for a unique name and brand. “Keep” was gone, so the company opted for an alternate spelling.
“We think it’s a short, one-syllable, memorable name. There is this unique angle around retention, bringing people in and keeping them close,” he said. “The Wii has a naming convention that uses two i’s, so we tried to do that.”
Kiip has developed an impressive client list that includes blue-chip brands like P&G, Kraft, American Apparel, Best Buy, Disney, VitaminWater, GE and Pepsi.
The company raised $4 million in venture capital financing last year through Hummer Winblad and True Ventures. A second round, led by Relay Ventures, garnered $11 million this year.
Kiip has branched out into fitness apps, and Wong hints there is more up his sleeve.
“We’re focusing on making Kiip part of more consumer experiences, not just mobile and games. Being methodical about bringing rewards to people every day.” •
