Adthink in pro forma Growth of +20%
Adthink (ENXTPA:ALADM), the French digital marketing specialist, today published its 2020 revenues and posted growth of 20% in pro forma revenues and more than 2% in consolidated revenues. The group enters a new phase of growth, strengthens itself in the face of the crisis and appoints new CEO and CRO.
It is in a context of economic crisis linked to a global pandemic that the Adthink group has shown its ability to bounce back. By restructuring, diversifying and repositioning itself, the company was able to keep its commitment to return to growth with consolidated sales up +2% over the full year and organic growth of +1%, despite this particularly unfavorable context.
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Strong rebound in Agency activities and traffic generation
The advertising Agency and its publisher sales house were impacted at the height of the crisis, over the period end of Q1 to Q3, with budget postponements for its advertisers and a significant drop in unit prices on programmatic exchanges. However, the Agency was able to react by redoubling its efforts to win new customers, by diversifying into sectors less impacted by the situation and by building on the rise of e-commerce, allowing it to post growth of +12% over the last quarter, compared to Q4 2019.
At the heart of innovation in a constantly evolving market, the Agency has developed several advertising formats, integrated guaranteed visibility technology, overhauled its proprietary adtech platform AdAccess and equipped its Trading Desk with new DSPs (media purchasing platforms). The Agency is working on the transition to a cookie-less environment and will soon announce a 360° publisher revenue optimization solution, based on proprietary content monetization technology. These innovations translate into increased yield optimization performance and customer retention of over 80%. Inspired by its peers Reworld Media and Webedia, the sales house dept. is studying possible external growth opportunities in the media sector, wishing to develop a proprietary inventory based on its experience in monetization.
The qualified traffic generation activities of the Review Sites, taking advantage of Adthink’s expertise in SEA (Search Engine Advertising), in particular with Google, were also impacted by the pandemic with a volume of business below the objectives set in February but still posting +35% growth in fiscal 2020.
New growth driver in online retail with the acquisition of OBRGN
The acquisition of OBRGN, an e-commerce start-up, laid the foundations for one of the new growth drivers for 2021, online retail. With sales generated almost entirely in the US, the development of this new pole is immediately international. Combining the acquired know-how and the digital distribution platform Expand developed by the Adthink Labs, several new stores and products will be launched in Q1 2021, under the direction of its new Chief Revenue Officer, Nicolas Lehé, who brings 13 years of experience from PokerStars and ChiliPoker in particular.
Jonathan Métillon, CEO of Adthink, adds: « Other investments are planned, particularly in subscription services, with new OMS (Order Management System) technologies and the affiliate platform. By repositioning itself in B2C digital distribution while building its proprietary audiences, developing its own walled garden, a closed ecosystem that we control from end to end, Adthink clearly shows its desire to maintain its independence and profitability by basing its growth on massive and very buoyant e-commerce and digital content markets. »
Adthink’s 2020 annual results will be published on April 1, 2020 before the market opens.
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