Video advertising pushes SponsorPay’s revenues up 125 percent year-on-year

European offer network SponsorPay says its annual revenues have grown by 125 percent year-over-year into 2011, crediting its new Android pay-per-install network and video advertising product BrandEngage.

SponsorPay has followed in the footsteps of companies like Tapjoy and Flurry in promoting incentivized video advertising, as the format gained traction in mobile games over the past year. SponsorPay launched BrandEngage last July, after it and many other monetization companies found that video advertising products performed better in mobile apps than traditional banner ads. SponsorPay’s BrandEngage product allows advertisers to show players both videos and brand engagement campaigns, which the player can watch, like and share.

SponsorPay began its life as a virtual goods monetization company on Facebook, but followed the same trajectory as many of its clients, looking to mobile after Facebook clamped down on viral channels, made Facebook Credits mandatory and handpicked rival TrialPay to be the offer provider for its virtual currency.

The Berlin-headquartered company picked up $5 million in funding from Nokia Growth Partners in February to develop its mobile product lines. SponsorPay’s advertising appears in games from Ubisoft, Bigpoint, Gameview Studios and Digital Chocolate. The company is predicting similar growth in 2012.

This story originally appeared on our sister site, Inside Social Games