Exaget ActiveRadio: Radio advertising solutions for the mobile era

PRODUCTS & SERVICES

1. A Software Development Kit (SDK) that broadcasters and/or other app developers can incorporate into their own Radio application. The software recognizes advertisements in the Internet radio stream and replaces generic radio advertisements with highly targeted, interactive audiovisual advertisements;
2. m-Vouchers, m-tickets, m-scratch cards that Radio stations can combine with their radio advertising to bring the benefits of mobile advertising to Radio
3. An online self-service audio ad network for broadcasters and advertisers take the benefit of programmatic ad sales and purchase;
4. A Radio App that is customisable and offers small and medium size radio stations to get live quickly.

PROBLEM SOLVED

90% of adults listen to Radio for an average of two hours per day. Approximately half of that is commercial Radio, which is dependent on advertising for their business. While Radio listening has been consistent, the advertising spend has decreased as advertisers go after the better accountability that digital and mobile advertising offers. Exaget solves this through driving revenue increase by: a) Increasing the value of the Ad spot by making audio advertising contextual and relevant b) Increasing the market size by making audio advertising cost effective for new advertisers.

REVENUE MODEL

Exaget is selling a service. The business model is primarily one of revenue share as is the case with any of the other Ad networks. The business delivers targeted ads and keeps a share of the revenue. Digital audio ads command a premium of over 6 times, as compared to regular radio ads. Thus, broadcasters can potentially make more money, even after sharing any revenue with Exaget. This is an established business model in the online and mobile display ad business, making it familiar to the customers.

EXIT STRATEGY

The immediate objective of the company is to build up broadcast ad inventory. i.e. to sign up as many broadcast partners as we can. We have twenty broadcasters in the UK now, who have a combined listening base of over two million listeners. With the tie-ups under discussion with advertising agencies, we expect to start monetizing this inventory. The broadcaster base will be attractive to a number of potential buyers. Besides, the direct competitors who do not have a good mobile solution, potential acquirers are existing display/video ad networks, who would want to add radio advertising capability to their network. Exit is expected to be a trade sale in 3-5 years.

Source: icnw