Does advertising always have to operate within a pay to play model? PaeDae doesn’t think so, as it’s just announced a new platform called Bartr that developer can use to start advertising their mobile apps or games without spending a dime.

Bartr operates on a series of credits. Developers that run ads within their own apps and mobile games will earn credits, and they can use these to advertise in other applications at a targeted demographic.

“The great thing about Bartr is that we’re able to transform advertising into a resource for developers, rather than just another cost of marketing,” PaeDae cofounder and CEO┬áRob Emrich said in an interview with VentureBeat.

Bartr works off of the idea that developers need a high volume of people using their apps before they can really start making money. The problem with most advertising models is that you have to spend a lot to get the word out about your application or mobile game and hope that it brings in new users. If it doesn’t, then you’ve spent a lot of money and have nothing to show for it. Bartr removes the need to spend lots of money just to generate new users.

The new Bartr service is part of PaeDae’s overall strategy to create a deeper relationships with developers, which will hopefully entice them into using the startup’s core rewards/prize business. PaeDae makes money when advertisers (brands and businesses) pay to offer rewards available to users of mobile- and web-based games. PaeDae shares the revenue from these deals with developers. The reward service are all white-label, so it adds value to the app, providing something unique to its customers. The startup’s clients include Amazon, 1-800 Flowers, P&G, and StyleMint.

“[With Bartr], we’re starting with games, because that’s what we know,” PaeDae co-founder and VP of business development Sam Kim told me. He added that Bartr is set up to enable developers of all applications to participate, but that initially game developers would have a strong presence.

Right now it’s only available on iOS apps, but support for Android should roll out in the need future. Bartr itself won’t launch until March, but developers can download the SDK now via PaeDae’s website.

Founded in 2012, the Santa Monica, Calif.-based startup has raised over $1 million in seed funding and is seeking to raise a Series A round of funding in late 2013. PaeDae, which has 12 employees, faces competition from Kiip and a handful of others.