Appssavvy Hoping to Crack Mobile Ads Market with Activity-Based Ad SDK

New York-based Appssavvy, an advertising startup backed by True Ventures that laces interstitial ads into apps when users take certain actions, is bringing its solution to mobile apps.

Called Adtivity, Appssavvy’s mobile SDK for iOS and Android allows developers to incorporate interstitial ads into a variety of social activities like sharing photos, checking in, sending and earning virtual goods and even leveling up within a game. (Whether this is a good experience for users who want to quickly get in and out of an app is another question.)

Developers can match Adtivity activities to the look of their apps, but the ads will all always display as large format center-of-screen displays.

Appssavvy launched its Adtivity platform back in September, pivoting its entire business model from traditional static display ads to interactive, activity-based ones. The company teamed with a variety of developers to launch Adtivity, and now says that its ads are seen by more than 127 million people per month. 6waves, 50 Cubes, iWin, GameDuell and OMGPOP are all listed as Adtivity partners.

The mobile advertising business has already gone through a significant wave of consolidation after Google bought AdMob for $750 million in 2009 and Apple followed on by scooping up rival Quattro. InMobi and Millennial Media remain distant runners up as independent, venture-backed mobile ad networks.

There are also a number of small startups that have recently cropped up over the last year from AdMob and Tapulous alums like MoPub, which lets developers sell their own inventory directly and auction off space in real-time, and Chartboost, which lets developers partner up to cross-promote apps.  Kiip, another mobile advertising company backed by Hummer Winblad Venture Partners gives gamers rewards, like deals or coupons from brands, when gamers reach achievements like leveling up.

Appssavvy has made forays into incorporating branded activities on mobile games before. In May, the network helped Century 21 add a branded building promotion to ngmoco’s We City.