Periodic Reporting for period 1 - PTC (Machine-Learning Technology for Digital Marketing)
Reporting period: 2018-09-01 to 2019-01-31
Nowadays, larger bid-phrases, in online advertising campaigns, represent a huge challenge (the so called “long tail challenge”) because there can be millions of combinations of keywords, resulting in less relevant matches (insufficient ROIs achieved). To understand the current challenge, the only possible way to optimize these online campaigns is mostly manual but digital advertising campaigns must manage massive data, impossible to cope effectively manually. This reduces the quality of targeting, the cross-platform Ads and Keyword Management and as a result, diminishes the marketing performance (ROIs: 1-3%). Our company has developed OrbitalAds, the first machine learning-based technology focused on automating Digital Marketing Campaigns to increase ROI of Advertisers. Basically, the implementation of OrbitalAds suppose the easy compilation of huge quantity of data and algorithms using machine learning and deep learning tasks are adjusted in real-time to improve business results (maximizing ROI). OrbitalAds creates, manages and optimizes thousands of ads automatically and in any language, saving time and money. It can be easily implemented being compatible with existing SEM management tools and it can find new terms that can be included as keywords into SEM strategies. The operational and financial feasibility assessment has allowed us to define the price policy and the investment needed to reach a go-to-market stage for OrbitalAds project. Online Advertising is a huge market (€ 230 bn in 2018) that keeps on growing at a frantic pace, hoping to reach € 297 bn by 2020 and hence growing at a Projected CAGR of 13.5%. In this context, OrbitalAds will play an essential role based on its potential to increase the online ROI of campaigns ROI and its improved advertising management versus the manual systems. We have evaluated under three economic perspectives our financial projections, considering different possible scenarios regarding our share of wallet and managed spent. Our OrbitalAds algorithms technology will be profitable even under the most pessimistic scenario we have analysed. The more realistic case will provide a ROI of 671% in 3 years. Hence, the positive feedback obtained from the feasibility study have encouraged us to apply for EC funding through Phase 2, which is aimed at completing the fine tuning of our tool and at the development of our SaaS model for the large-scale implementation of our technology.
During the OrbitalAds phase 1 project We have accomplish the following objectives divided in three aspects:
COMMERCIAL FEASIBILITY
The market analysis conducted during phase 1 showed the high potential of the project in terms of its significant opportunities as an innovative solution within the online advertising market. In addition, we have made progress in the preparation of an IP strategy for the next commercialization phase. Finally, we have defined our market strategy for the commercialization of our product over the next 3 years, including a business model
TECHNICAL FEASIBILITY:
The technical feasibility assessment performed in Phase 1 has allowed us to identified the metrics and KPIs requirements to escalate our technology. It has also enabled us to define the objectives at the technical level of the phase 2 project and o define the work methodology plan to be followed during the next 2 years in order to accomplish those goals
FINANCIAL FEASIBILITY
First of all, we have carefully analysed the total investment required to reach a go-to-market stage. After we redefine the pricing policy according to the real needs of our clients, we have updated our financial projection based on three 3 possible scenarios: realistic, pessimistic and optimistic. We conclude that OrbitalAds will be profitable, even under any described scenario, containing a ROI of 671% for the most probable (realistic case)
COMMERCIAL FEASIBILITY
The market analysis conducted during phase 1 showed the high potential of the project in terms of its significant opportunities as an innovative solution within the online advertising market. In addition, we have made progress in the preparation of an IP strategy for the next commercialization phase. Finally, we have defined our market strategy for the commercialization of our product over the next 3 years, including a business model
TECHNICAL FEASIBILITY:
The technical feasibility assessment performed in Phase 1 has allowed us to identified the metrics and KPIs requirements to escalate our technology. It has also enabled us to define the objectives at the technical level of the phase 2 project and o define the work methodology plan to be followed during the next 2 years in order to accomplish those goals
FINANCIAL FEASIBILITY
First of all, we have carefully analysed the total investment required to reach a go-to-market stage. After we redefine the pricing policy according to the real needs of our clients, we have updated our financial projection based on three 3 possible scenarios: realistic, pessimistic and optimistic. We conclude that OrbitalAds will be profitable, even under any described scenario, containing a ROI of 671% for the most probable (realistic case)
Our company has developed OrbitalAds, whose core innovation is focused on semantic optimization with Artificial Intelligence, Natural Language Processing & Machine Learning algorithms, that is applied to semantic targeting in GoogleAds campaigns. In terms of economic benefits, we expect to obtain more than € 40 million in revenues in 3 years, creating 80 new jobs. The implementation of our technology in the current online advertising sector will allow to maximize the ROI of the advertising agencies and companies, since it is solution capable of managing big data in real time in a very simple way