Sramana Mitra: Could you throw some light on what kind of revenue sharing you were doing? It sounds like that is the core of your business model.
Brock Berry: For the services part of what we do, the media company takes 70 cents out of every dollar they sell. That’s the revenue share so to speak. If you think about our business model from a manufacturing perspective, we’re more of a distributor in that relationship. These folks that we work with are more like retail locations. >>>
Sramana Mitra: I think I understand what your perspective is on online education. What kind of a company are you? Are you bootstrapped?
Blake Garrett: We are funded but we use cash much more effectively than some of our competitors. I founded the company in late 2012 and I frankly didn’t have the development skills to create a product. I needed cash early on. I raised money from angel investors.
Being based in Austin, Texas, there’s a good amount of angel investors but the dollar value per angel investor is not >>>
According to a recent eMarketer report, digital advertising spending in the US is expected to grow from $83 billion in 2017 to $129.23 billion in 2021. Digital ad expenditures overtook TV ad spend in 2016. TV ad spend is expected to reduce from 35.2% in 2017 to 30.8% by 2021. During the same period, digital advertising will grow to nearly half of the advertising spend in 2021 compared with 36.7% in 2016. The Trade Desk (Nasdaq: TTD) is a self-serve ad platform that went public recently.
Sramana Mitra: How much of what you are saying you do is done manually versus in software?
Brock Berry: The recommendation part of the software is completely automated via the technology software platform. The trafficking of all the campaigns that are sold is also automated right from the proposal to the ad-serving tools including the input into an order management system to keep track of the history and background changes to the campaign.
Sramana Mitra: What are the trends in your space as it pertains to online education?
Blake Garrett: We are seeing this macro-trend from people moving from the classroom to online education. When we started three years ago, about 150,000 people took online driver’s education in Texas. Those numbers would be closer to 200,000 if normalized for differences in population per age. We are definitely seeing a trend where as they become more familiar with online learning and mobile-based learning, we’re seeing that market move that way.
Sramana Mitra: What is the size of the market for license training? What percentage of that market do >>>
Over the past few years, there has been an added focus within the global healthcare industry to reduce costs and manage resources more efficiently while improving patient care. To meet these pressures, healthcare organizations including physicians and insurance service providers have become data driven. San Francisco-based Clover Health is a Billion Dollar Unicorn club member making big strides in the industry.
Sramana Mitra: What was that business doing that allowed it to grow that fast?
Brock Berry: That’s exactly why we started AdCellerant. The market was really ready for that type of traction and we were bringing these highly-sophisticated marketing strategies to local business owners. We were doing that through the media companies that we worked with, which had thousands of sales people.
Because of the massive sales force and the fact that we are able to leverage that sales force for free, we >>>
Paul Haynes, CEO at eSentire, shares his company’s journey in building a mid-market Cyber Security company from Canada. He also gives an overview of the Toronto-Waterloo corridor and its startup activities.