Recent Revenue Adjustments - Mobclix Official Response

[Nitin]

Late last week it came to our attention that a major ad trafficking error had been made by one of our ad network partners, Adtini, which resulted in reports of revenue values higher than the real rate that should have been entered. As a result, some publishers had their supply running with Adtini when it should not have been. Because the incorrect values were still within Mobclix’s normal checks and balance limits there was no reason to suspect anything was wrong, but when invoicing happened the problem became evident.

Upon learning of the problem the trafficking error was quickly fixed and reports were updated to reflect the proper revenue values. All impression and click values were left unchanged in order to ensure proper tracking of all delivery. Unfortunately Adtini had grossly over reported the revenue values hence the downward adjustments in revenue for publishers.

We have been working hard with the Adtini team to determine what resolutions are possible. Due to the severity of the problem and resulting problems caused for Mobclix publishers we have decided to put Adtini on temporary probation on the Mobclix exchange, effective immediately. This means that Adtini will not be allowed to serve ads to any new developers and minimal ads to current developers. While this is certainly unfortunate we feel that what is most important is that Mobclix publishers have trustworthy advertising partners serving their ads, which in this case means limiting the amount of Adtini’s exposure on the exchange.

We are doing everything in our power to make amends for the altered revenue values caused by this error. As a commitment to our developers, Mobclix has already committed a % of lost revenues from our own revenue to help cover a portion and alleviate some of the issue created by Adtini. Although this was out of Mobclix’s control we deeply value our developer relationships and are willing to help out in any way possible.

Mobclix is 100% committed to providing an optimal and reliable place for developers to monetize their applications. As a result of this event we are committing to a number of new integration restrictions on our advertising partners aimed at ensuring nothing of this nature can happen again.

Below we’ve listed out a number of checks and balances we go through before a partner can join the network as well as new ones that have gone into effect immediately:


1. All partners must undergo a thorough credit check to determine financial viability

2. NEW - Delivery caps will be imposed on all networks correlating to their credit, so networks with small credit will not be allowed to sell advertising beyond certain limits.

3. We have 10% +/- operational audit against all 3rd party ad-reporting

4. NEW - We are adding a number of reporting audit systems into place to identify potential problems of this nature before they grow too large. Our operational audit against 3rd parties will be dropped to 3% +/-

This has been a learning experience for both Mobclix and developers. We are constantly working to provide maximum revenues and a reliable environment to monetize mobile apps. As the ecosystem grows so do the opportunities, we are always here for our developers should there be any questions or comments you can reach me directly at:

Nitin [at] mobclix [dot] com

Or you can call me at +1.650.319.8302

Sincerely,
Nitin Chitkara
VP, Business Development