Cxense Emediate SSP - Cxense Display Classroom

Cxense
Emediate SSP
1 year after Emediate SSP
- a case study of what works
No setup costs
Increased revenue
Success
2
Meet Emediate SSP on SuperChat.dk
SuperChat.dk is a text-chat site where users with different backgrounds can talk to each other about various topics of
interest.
The site has existed since 1996 but was bought by iT-teknik from Ofir in February 2013. Soon after they deployed
Emediate SSP on the site. Here are the results 1 year after.
1375% 180% 300%
Revenue increase within the first year
Average selling price markup
Revenue goal tripled within 8 months
Lean Mean Money Making Machine
The earning expectations were moderate but with the help from Emediate SSP, SuperChat.dk tripled
the planned revenue within 8 months, turning SuperChat into a highly profitable business for iT-teknik
with a high, 5 figure net income in USD on average.
3
Revenue over time
% increase revenue
2500%
% increase revenue
2000%
1500%
1000%
500%
0%
-500%
“Our expectation to revenue on this "new" site was moderate. Our expected target
revenue was reached by the third month, then just increased, peaking in
December 2013, with approx. 300% of our expected revenue.”
– Bjørn Birkedal, owner, SuperChat.dk Aps.
4
No investment or setup costs
Emediate works on a Revenue Share model so there were virtually no implementation costs for
SuperChat.dk.
The time invested in implementing the Emediate SSP was also minor:
“It was pretty straight-forward to adopt Emediate to the new design, used by the text-chat - now
called superChat.dk. Within very few days, our contact person at Emediate handed over the
"tags" and other technical elements, that we should use in various places in superChat.dk. In
few words, I can say that the implementation of the SSP solution was rapid, very easy and with
nearly no technical insight needed.”
Bjørn Birkedal, owner of SuperChat.dk.
5
Why is SuperChat.dk a success?
To fully grasp why SuperChat.dk has been so succesful in implementing Emediate SSP, let us compare the
SuperChat with another site of approximately the same market position but with a different SSP strategy.
SuperChat.dk
Sold CPM
Starting price
Unnamed site with high starting price
Trend for Sold CPM
Sold CPM
kr. 9
kr. 16
kr. 8
kr. 14
kr. 7
kr. 12
kr. 6
kr. 5
kr. 4
kr. 3
Linear (Sold CPM)
kr. 10
kr. 8
kr. 6
kr. 2
kr. 4
kr. 1
kr. 2
kr. 0
kr. 0
We see a slight increase in the CPM and this is
including the abnormal month of August.
Starting price
In comparison we can see a curve of a publisher with
starting price which is 3 times as high.
We can see that SuperChat is able to raise the sold CPM price over time where as the site the higher CPM experiences
a slight drop.
6
Low CPM – more revenue
Note that the SuperChat graph is measured in numbers 10 times those of the unnamed site.
SuperChat.dk
% increase revenue
Unnamed site with high CPM starting price
2500%
250%
2000%
200%
1500%
150%
1000%
100%
500%
50%
% increase revenue
Linear (% increase revenue)
0%
0%
Mar Apr Maj Jun
Jul Aug Sep Oct Nov Dec Jan Feb
Apr May Jun
Jul
Aug Sep Oct Nov Dec Jan
Feb
When an advertiser has the choice between two relatively unknown sites not surprisingly they tend to choose the cheaper
alternative. This results in immediate revenue but also in an increase in the closing price as advertisers become more
familiar with the site.
7
Low CPM – more sold impressions
Note that the SuperChat graph is measured in numbers 10 times those of the unnamed site.
SuperChat.dk
Unnamed site with high CPM starting price
Impressions sold
Impressions sold
Impressions sold
8.000.000
800.000
7.000.000
700.000
6.000.000
600.000
5.000.000
500.000
4.000.000
400.000
3.000.000
300.000
2.000.000
200.000
1.000.000
100.000
0
0
Mar Apr Maj Jun Jul Aug Sep Oct Nov Dec Jan Feb
Mar Apr Maj Jun Jul Aug Sep Oct Nov Dec Jan Feb
Comparing SuperChat.dk with the unnamed site with a high CPM starting price, it is clear that a low CPM starting price
results in a significant increase of sold impressions over time.
8
Keep rate
Keep rate
Keep rate
Linear (Keep rate)
40%
35%
30%
25%
20%
15%
10%
5%
0%
Mar
Apr
Maj
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
In addition SuperChat.dk has been able to increase their keep rate since the
beginning, meaning they have been able to sell a bigger percentage of the
impressions put up for auction.
9
9
Top level brands as advertisers
SuperChat.dk has 9 banners across 3 sections delivering several million impressions per month.
Through the Emediate SSP 4 million impressions are sold on average every month and the buyers are
top level brands, such as major automobile manufacturers, high class fashion stores, major media
conglomerates and mainstream cell phone manufacturers who create a positive spillover effect.
”We see that some customers are worried about getting indecent banners on their site but in fact
publishers experience the exact opposite. High level brands advertising on their sites.”
- Thomas Rasmussen, SSP Business manager
10
10
Conclusion
SuperChat.dk Aps has enjoyed an incredible success since Emediate SSP was
deployed to the site. The success lies in the low starting price.
This has resulted in a number of positive effects for SuperChat.dk:
•
•
•
•
•
Instant profits
Massive revenue increase in a short time
Increased closing prices
Increasing keep rate
Positive spillover effects from top level advertisers
11
11
No setup costs
Increased revenue
Success
Connect with Cxense
www.cxense.com
https://twitter.com/cxense
www.facebook.com/cxense
www.linkedin.com/company/cxense
http://www.youtube.com/user/Cxense
https://plus.google.com/+CxenseGlobal
13