Verify was launched in the UK last summer and, simply put, it helps brands to make sure their campaigns are targeting the people and areas that they are supposed to be.
Sales were modest at £54,000 in 2018, but Location Sciences expects that figure to surge this year as more companies move to ensure their ads aren’t being ‘viewed’ by a click farm in Thailand when they should be appearing in front of people in Cambridge, for example.
The recent launch in the US should also drive growth in 2019, a year when digital ad spend has been tipped to surpass US$130bn.
“With Verify we intend to make significant waves in the ad-tech market. There is a huge market opportunity here and our key differentiators set us apart,” said chief executive Mark Slade.
“Our only purpose is to provide verification services to our clients. We are uniquely positioned to be the kitemark in the location-based advertising industry, bringing trust, integrity and transparency back to brands.
He added: “All these things combined set Location Sciences up for a successful 2019.”
Insights drives 2018 growth
Group revenue jumped by 59% to £752,000 in the 12 months ended 31 December (2017: £471,993), driven by a 519% rise in like-for-like sales in Location Sciences’ Insights business.
That arm of the company analyses mobile data to help companies work out how effective their ad campaigns have been in getting people into their stores. It is currently the largest part of the group although Verify is expected to dwarf it come 2020.
The sharp rise in revenue combined with a 61% drop in administrative costs meant loss per share reduced “significantly” to 0.98p in 2018, compared with a loss of 4.92p a share a year earlier.
Location Sciences finished the year with £2.62mln of cash in the bank (2017: £1.14mln) after raising £3.36mln from investors during 2018.