For advertisers and content owners, innovative solutions and high-quality content is imperative to achieving new heights of scale and performance. ASX-listed engage BDR Limited (ASX:EN1), a premier advertising marketplace delivers unique, transparent inventory for programmatic buyers, publishers and advertisers.
The Company offers the highest performing marketing solutions and is known to deliver the strongest yield and monetization technologies to his large clientele, who are world-class publishers.
Today, we will acquaint you with EN1’s 2020 strategic plan and the key milestones for continued growth & profitability, but before that, let us graze over a few facts about this leading marketing tech company-
EN1’s 2020 Strategic Plan- Revenue Growth & Continued Profitability
When the Company announced its 2019 Strategic Plan in February last year, it laid emphasis on returning to profitability, improving integrations, scaling current partnerships, lowering operating expenses and deploying key products.
This year, the primary objectives are revenue growth and continued profitability. It should be noted that the Company has kick started the year 2020 with new programmatic integrations (boosting total integrations to 220).
During 2020, EN1 wishes to grow business in programmatic advertising and influencer marketing fields that comprise of CTV (connected TV), pDOOH (programmatic digital out of home), Native Video, NetZero, Programmatic DSP, CPI on Mobile & CTV App, Guaranteed Attention and Influencer Self-Serve Marketplace.
It aims to concurrently achieve few recurring milestones, listed below-
- 5 new programmatic integrations signed every quarter
- 5 new CTV integrations (signed starting Q2)
- 2-4 new IconicReach brands signed every quarter
- X 1 new pDOOH integration (signed starting Q3)
- 2 new NetZero publishers signed every quarter
- Build and implement new technologies along with revenue streams to reach new customers
- Continual decrease in OpEx
EN1’s 2020 Strategic Roadmap
Now that we understand the objectives and milestones being tapped by the Company, let us comprehend EN1’s strategic roadmap, that will help it achieve the same-
EN1 Programmatic Exchange
- Programmatic Integrations- Integrations are determinants of EN1’s programmatic exchange revenue and strong KPI’s to forecast the future profitability. Increased programmatic partnerships incorporated translate into elevated supply & demand sell-through. To date, there have been 220 integrations on-board, including two new programmatic integrations in the first month of 2020, and new ones are likely to be added every quarter (EN1 aims to exceed 238 programmatic integrations by end of 2020).
Interesting Fact- $600k gross profit in a month implies that EN1 would achieve a profit as it has fixed-cost structure (unlike peers who have variable cost models).
- CTV Integrations- The Company is advocating the connected TV, apps on smart televisions and set top boxes (CTV) integrations- product development and deployment strategy. In this regard, the performance for advertisers has been consistent with current demand. EN1 is likely to have 5 new CTV integrations each quarter in 2020
- pDOOH Integrations- A fast-growing area of digital media, programmatic digital out of home, EN1 sees this as a new revenue stream and expects 1 new pDOOH integration per quarter
- Native Video Support- reXer, the Company’s programmatic ad exchange will add native video advertising capabilities by Q4 2020, indicating a new revenue stream
- App Ads.txt Coverage- The Management also expects half of the app ads.txt inventory quality coverage by the close of Q1 2020. This is an industry-wide inventory quality strategy wherein publishers list legitimate sellers within a file (reachable by anyone)
- sellers.json- EN1 is in the development phase for this initiative. This strategy enables buyers to understand how direct the ad inventory they’re buying truly is. A significant positive revenue impact is expected after it is deployed. This has direct implications on margins as middlemen would be done away with, thanks to the design of sellers.json
- IdentityLink Integration- Expected to be a game-changing user targeting evolution, this provides an anonymous identifier identifying a particular individual (across multiple devices and channels)
- NetZero- EN1’s post-paid publisher payment platform is expected to include two new, huge publishers each quarter this year, totaling 8 for 2020.
IconicReach Influencer Marketplace
- IconicReach New Business- New business for IconicReach are likely to include programmatic ad buys along with custom influencer content. 2-4 new brands are expected to be signed each quarter this year (a total of 14). Moreover, the business is likely to have an entirely new self-serve marketplace.
- Performance Attribution- In Q2 2020, the Company’s engineering teams will deploy a performance attribution technology to facilitate advertisers’ entry to assess campaign performance and analytics (across mobile apps).
- New Website- IconicReach will develop and deploy a new website with new marketing content and case studies in Q2 2020.
One of the top performers in the mobile marketing ecosystem, its acquisition has offered EN1 with over 6,000 applications that have bolstered advertising inventory available for sale.
Currently, AdCel DSP is authorized for display and video advertising (on mobile and CTV apps only). However, In Q2 2020, AdCel is likely to deploy native advertising support, within the AdCel DSP (a new revenue stream).
It will also develop and deploy its CTV SDK (software development kit), chatbot ads, a new attribution technology between mobile apps & CTV and enable attribution, or performance tracking for app install campaigns.
Moreover, In Q2 2020, EN1 expects the deployment of AdCel’s time-based guaranteed attention product for advertisers.
Besides this, EN1’s Management foresees significant growth in the CTV and pDOOH channels this year.
A strategic advisory board with key influential industry players may be established in Q1 2020. Currently, the hunt for an interim Head of Publisher Development is on. Another permanent resource is targeted to be in place in late Q2 2020- a head of publisher development, to accelerate EN1’s NetZero program and ramp revenue. EN1 may also hire a new yield manager, to constantly optimise revenue, margins and fill rates for publishers and the EN1 ad exchange, in Q2 2020.
Employees will be given individual revenue targets, tactical and incentive plans, and a higher figure for 2020 is anticipated (over the $1.15 million per person of 2019).
Further reductions of the infrastructure costs by ~10% in Q2 2020 remains a point of discussion with the Company’s tech infrastructure providers.
In closing, looking at the stock performance- EN1 was trading at $ 0.016, up by 6.7%, on the ASX on 30 March 2020 (AEDT: 1:13 PM).
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