Mobile advertising specialist engage:BDR (ASX: EN1) has signed US location-based weather information tool WeatherBug to its publisher monetisation platform.
The deal will see engage:BDR provide advertising demand to WeatherBug, through a non- exclusive, non-transferrable, worldwide licence to transact on its advertising exchanges.
It will secure direct and incremental access for engage:BDR to millions of daily impressions and unique users from WeatherBug’s global network, through a new openRTB (real-time bidding) programmatic integration exchange.
In the first half of 2020, the exchange conducted an average of 55 billion programmatic auctions per day compared to 20 billion recorded for the previous corresponding period.
By the end of 2019, engage:BDR’s average daily auctions increased to 25 billion per day, generating approximately $17.1 million in revenue.
With the addition of WeatherBug and other programmatic integrations, engage:BDR executive chairman Ted Dhanik expects average daily auction numbers to keep rising despite COVID-19 disruptions.
“The direct correlation between daily auctions per day and revenue also include fill-rate or sell-through, and this has been globally impacted by the current pandemic,” he said.
“As our COVID-19 temporary budget suspensions are lifted, we feel [we are] very well positioned to accelerate much quicker than ever before, as greater daily auctions increase earnings potential at a granular level.”
The WeatherBug agreement is for an indefinite term and can be terminated by either party with 60 days notice.
Currently the third most downloaded weather product in Apple and android app stores, WeatherBug consists of a mobile and desktop app reporting live and forecast data on hyperlocal weather.
Users rely on the popular app’s granular data from top sources to inform them of daily weather conditions and help effectively plan their time.
Statistics show WeatherBug users to be more engaged in the app compared to users of other weather apps, exhibiting strong engagement at an average of 87.4 minutes per user, per month.
“It’s this high engagement from [WeatherBug’s] users that our clients’ [advertising] campaign performances will benefit from,” Mr Dhanik said.
“Weatherbug’s platforms are entirely brand safe, scoring a viewability of more than 80% for most of their advertisers, which refers to ads actually viewed versus those just served.”
Earlier this week, engage:BDR announced it had grown its 2020 first-half revenue to $8.1 million, representing a 31.5% increase on $6.1 million recorded in 2019 and sustaining a nearly break even operating profit of $211,000.
The company’s net assets increased during the reporting period by 14% to $4.5 million, compared to $3.9 million for the previous corresponding period, while total liabilities improved 25% to $9.7 million from $13 million.
Average programmatic ad auctions on a daily basis nearly tripled to 55 billion per day (peaking at 100 billion per day), representing more integrations signed and onboarded onto engage:BDR’s ad exchange as well as potential revenue opportunity once demand and advertising rates restore to pre-COVID-19 levels.
In March, engage:BDR announced a strategic performance plan featuring key milestones for 2020 with the goal of achieving profitability.
‘Toughest economic era’
Mr Dahnik said the half-yearly results were considered to be strong in “one of the toughest economic eras of our time”.
“We are now well-positioned to grow beyond our early 2020 trajectory because of the extra “heavy-lifting” our team has done since March, as commerce continues to be restored in the US,” he said.
Way of the future
Programmatic advertising is predicted to be the way of the future across all devices including desktop, mobile and television.
“We have been strategically building the infrastructure to support incremental, new programmatic opportunities such as digital out-of-home,” Mr Dahnik said.
“Our new tomorrow requires efficiency more than ever … programmatic marketing will deliver consistent return on investment for advertisers, which will keep our services in high demand.”