Online advertisement is one of the fastest growing category in advertisement industry. People now days watch TV lesser, radio station listener also stagnent and hard to growth. One of the fastest growing industry is about online. Everyday people is using mobile phone more frequent compare to any other things.
In online advertisement industry, basically it seperate into 2 category - SSP & DSP. SSP is Supply Side Platform. An SSP lets publishers sell their ad inventory across different ad exchanges. DSP stand for Demand side platforms. DSP lets advertisers buy across several different ad exchanges.
Basically AcuityAds is a DSP and they assisting their customer to buy advertisement space and put up customer advertisement online.
AcuityAds last year Q4 launched a very unique and currently only one in the market platform that customer can manage the advertisement flow according to customer want. This can help customer to arrange the advertisement journey and deliver the message to consumer more efficiently and thus increase the conversion rate.
The new product is gaining a very good feedback and almost every large company tested the product is happy with it and AcuityAds get a 100% sign up for these group of customer.
AcuityAds customer can choose to self manage all the advertisement from A to Z by using AcuityAds platform or they can choose to appoint AcuityAds to manage all the advertisement. Of cause if customer appointing AcuityAds to manage their advertisement will need to pay a higher service fees.
Usually a big company having own advertisement team will choose to use self-service and this will help to lower down the advertisement cost. For AcuityAds, they having higher margin for managed services side.
Last year, AcuityAds revenue was drop due to Covid-19 pendamic. There is few large comapny who using their platform was from travel industry. Because of the pendamic, travel agencies reduced their advertisement spending and this cause their revenue drop. But due to a more efficient control on their cost, they manage to deliver a positive operating income in FY2020.
Company launched the new platform Illlumin last year Q4 and it get a very good sign up rate.Company revenue also start recovering from the pendamic. on latest Q2'21 report, it show a very good revenue increase compared last year. Company revene grew by 55% and company have turn into profit and recoded 3.36million profir for the quarter.
Currently this company was still not yet discover by the market and that's why share price didnt go up. But i believe this is one of the gem in advertisement industry and I will hold my position tightly.
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