600 million devices have ad blockers. That’s the biggest boycott in human history.
And it doesn't take a genius to work out why. Have you ever had to sit through a 30 second non-skippable video ad? Have you ever had to search exasperatedly for the 'X' button to close an annoying pop-up? Have you ever been distracted from what you're reading by a video ad that just automatically starts playing? Currently, for brands to get their content out to their consumers online, these are the types of advertising platforms they have to use. Likewise, if publishers want to be able to pay their journalists, this is the type of advertising they have to put on their site.
In the arms race for the best, loudest and most attention grabbing online advertising solutions, somewhere along the way we forgot about the people on the other side.
Good-Loop is unique because it makes user control an asset rather than an inconvenience to online advertising.
Quite simply, advertisers will pay more for people who have chosen to watch their ads (opt-in advertising) because it’s a higher quality environment for them to talk to consumers.
So we have built a unique tool which taps into existing adtech solutions and harnesses the inherent value of opt-in advertising to generate free charity donations. This creates competitive advantage because where everyone else in the industry is trying to interrupt, we’re trying to collaborate and offer a fair value exchange with people. This way, we’re creating more valuable ad inventory, which is why our publishers see a 3x higher return on their inventory whilst our advertisers get their videos watched for over twice as long as on Facebook.
The impact on the wider industry is huge. Considering publishers lost $22bn to ad blocking last year, the irritating and disrespectful nature of online ads is a pretty big problem. Brands need to stop wasting money on poor quality inventory and instead use their money to engage with people in more meaningful ways.
Substantial accomplishments to date
At the end of 2016 Good-Loop was selected out of 330 applicants to be part of the Collider Startup Accelerator. Through this program we secured seed investment and a rich network of industry experts. Less than two months later our MVP of the product had been built and pushed live with our first paying customer. We now have over 15 blogs and publishers in our network and are in talk with two publishing partners to launch two new exciting campaigns. We are also in exciting conversations with publishers and media agencies. Meanwhile, Good-Loop have recently been awarded grant funding to work alongside Ogilvy Change who are a globally recognised thought leader in user design and behavioural science.
There are three main avenues of revenue for Good-Loop.
1. Brands pay to put their video advertising on the Good-Loop platform. After their ad has been watched for over 15 seconds the advertiser pays for a completed view. Global spend on digital video advertising is estimated to be worth £23.7m in 2017.
2. Users can double their donation by sharing the advert on social media. Brands pay for every social share and additional video view.
3. Good-Loop also offers a smart retargeting service for charities. We can provide invaluable 'warm leads' - making charity comms more effective and efficient. In 2016 charities spent £458.8m on advertising in the UK alone.
Use of proceeds
• Accelerate development work, prioritising the optimisation of the front-end ‘ads for good’ UX as well as back-end functionality such as reporting & payments.
• Increase sales team capacity, plus subsidise an introductory rate for new customers.
• Graphic design & asset production (reports etc)
At a broad level our customers are brands who have high quality video content and are looking for ways to deliver their content effectively to their target audience. Brands who want to cut through the noise and form a meaningful connection with their customers. This broad target breaks down into two more specific target groups. The first is big global advertisers or agencies, such as Unilever and MediaCom, who spend high volumes within the premium programmatic space and are concerned about the lack of viewability and quality in the impressions they buy. Especially since poor quality impressions can really damage a brand, a recent study found 51% of consumers thought less of a brand who used annoying auto-play video for example. The second segment Good-Loop focuses on is the long tail of awesome socially conscious SMEs, the likes of TOMS, Karma Cola or Brewgooder, who have limited ad budgets and want to do something genuinely positive with the money they spend.
Characteristics of target market
According to recent IAB global figures, brand managers and agency media buyers are spending on average, over $9 million annually on video advertising, representing a 67% increase from 2 years ago. Quality of the placement and effective audience targeting have been found to be the two most important selection criteria when deciding where to buy. Teads recently found that 47% of media buyers say finding video inventory is their biggest challenge.
Relationship- focused sales, networking and inbound marketing are the techniques we use to target our customers. Moving forwards we will develop an outbound marketing strategy to compliment this, such as SEO, content marketing and lead generation.
Good-Loop intersects two industries. The first is quality video ad networks such as Teads (2015 reported revenue was $141m) and LoopMe (raised over $7m in 2016). The second is micro-donation platforms with players such as Lilo (ethical search engine) who run 29 million monthly searches and Tinbox (brand-sponsored donations app) who recently raised $325k in seed funding. Our biggest competitive advantage will be in the strength of our publisher, charity and media network as well as our unique ability to collect and harness personal data in and ethical way, so it's crucial that we accelerate and take advantage of being first-to-market.
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