What it does
Bidstack Group PLC (LON:BIDS) bridges the gap between gamers, game developers, and advertisers by enhancing the experience with rich, real-world advertising inserted into the games.
How it’s doing
In a trading update for six months ended June 30, 2020, the video game-focused ad-tech firm said it landed advertising campaigns from the United States, mainland Europe and the UK. And, it added, a recent ‘Gold Standard’ certification by the Internet Advertising Bureau is opening up new opportunities.
Over the six month period it ran eleven campaigns for major advertising agency groups. Through its emerging business model the company generated £275,000 of revenue, and, it ended June with some £5.9mln of cash.
The company has also raised £5.7mln to boost its working capital as part of its efforts to expand its international presence and exploit “increased demand side interest” from advertising groups.
The firm raised £5.5mln through a "significantly oversubscribed" placing of 137.5mln new shares at a price of 4p each, as well as an additional £200,000 through the subscription of 5mln new shares at the same price by certain directors of the company and others.
In April, the company highlighted a new Lumen Research report that shows its in-game advertising technology performed “impressively” in comparison to other advertising channels.
The study, which measured the success of an in-game campaign delivered by Bidstack for a leading automotive brand, found that 94% of gamers noticed the automotive brand's in-game ads, 2.6x higher than standard display advertising norms, while the time spent looking at the ad was also 1.5x longer.
Brand recall for the campaign was found to be 2.6x higher than standard norms and exposure to the ad also had a demonstrable impact on brand perceptions, Bidstack said, adding that the in-game placement resulted in significant uplifts in perceptions of the automotive brand being affordable and in recall of price messaging. Trust and positive brand perception were also notably higher after in-game exposure to the ad.
What the boss says: James Draper, chief executive
"The disruption to the advertising industry, as a result of COVID-19, has led to media buyers turning away from traditional means of advertising and focusing increasingly on emerging digital options.”
“Bidstack's platform is well-positioned to capitalise on the increase in demand for our native in-game advertising inventory, which captures a large number of video game consumers. Over the period the levels of demand-side interest we are experiencing from media agencies and brands has increased significantly.”
- Recent deals with Gfinity and Codemasters
- People working at home is driving demand for games and in-game advertising
- New game consoles also likely to provide business spurt