Mochi Media Launching Payments Platform For Flash Games. Early Results Are Stunning

Mochi Media continues to quietly build out monetization and reporting tools for Flash game developers. In May we reported on the big growth in their ad network – over 100 million people a month now play games that include their ads. You can find their games on big sites like Hi5, RockYou and Meebo. We’ve heard that games that include Mochi Media stats or advertising products are played over 1.5 billion times a month.

These games are embedded on publisher sites and are very often “borrowed” by other sites who just lift the Flash files. So it’s important that the game files generate revenue directly. Ads served by the publisher around the game aren’t reliable. Mochi Media puts the ads directly into the games, so even if they are ripped off, the ads still show and create revenue.

The problem is these ads don’t make a whole lot of money – the industry average is around $0.50 per 1,000 game plays.

To fuel revenue growth to developers (and therefore Mochi Media), the company has launched a payments platform called MochiCoins with a handful of game developers. MochiCoins lets developers charge for game upgrades – users can pay for coins via credit card, PayPal or SuperRewards, and the coins that then be used to purchase upgrades in games.

The early results, we’ve heard from someone close to a game developer on the platform, are stunning.

Ninjakiwi’s SAS: Zombie Assault 2 is killing it. The game has normal Mochi Ads, but users can also purchase better weapons and other stuff to kill zombies faster and better. It’s addictive. I spent over an hour “testing” the game earlier this evening and spent $5 in upgrades in an astonishingly short period of time. Try it – you can log in via Facebook Connect and be spending money like a drunken venture capitalist in no time.

In early testing, says our source, users are buying stuff and lots of it. The average revenue has increased dramatically to $6.50 per thousand game plays.

Users are paying for upgrades and subscriptions on the iPhone, Facebook and other platforms already and proving that good apps and games can generate a lot of easy money. But what Mochi is doing is completely decentralized. The game I embedded on that page, without the developers permission, is making money for that developer and for Mochi Media.

In other words, go ahead and steal these games. They’d love nothing more.

Mochi Media has raised $14 million over two venture capital financing rounds.