Businessmodel of Kiip

Customer Segments

Kiip has a niche market business model, with a specialized customer segment. The company targets its offering at firms that advertise their products and services in mobile games.

Value Proposition

Kiip offers two primary value propositions: performance and brand/status.

The company has demonstrated strong performance through tangible results. It claims the following:

• Its campaigns have helped lift awareness of brands by as much as 1,278%
• Its awareness products generate a 12% engagement rate on average

• Its response drivers generate a 9% engagement rate on average High-profile examples of positive outcomes for specific customers include the following:

• The New York Times used Kiip’s solution to reward mobile game players with unlimited access to its premium articles, helping to drive subscription trials at a 61% redemption rate on NYT.com
• Kraft used Kiip’s solution to provide game players with savings, resulting in an engagement rate 151% higher than Kiip’s benchmark The company has established a strong brand due to its performance. It is active on approximately 4,000 apps played on over 150 million devices. In 2015 it generated about $11 million in annual revenues. It has many prominent clients, including members of the Fortune *500 such as McDonald’s, P&G, Coca-Cola, Pepsi, General Mills, and Johnson & Johnson. Lastly, it has won a number of honors, including a ranking on the Dow Jones‘ FasTech50 List and recognition as one of the “Mobile Marketing Start-Ups to Watch” by The Drum, one of the “Global 250 Top Private Companies” by Always On, and as one of the“50 Most Innovative Companies in the World“ by *Fast Company.

Channels

Kiip’s main channel is its website. The company promotes its offering through its social media pages and participation in conferences.

Customer Relationships

Kiip’s customer relationship is primarily of an automated nature.

Its solution operates without need for much action from employees or the firm or interaction between the two parties. The company’s website provides access to an e-mail newsletter and answers to frequently asked questions.

That said, there is a personal assistance component in the form of e-mail support.

Key Activities

Kiip’s business model entails maintaining a robust software platform for its customers.

Key Partners

Kiip partners with app developers for games and other types of media to integrate its solution so that brands can advertise on the app. Specific partners include Perfect365, PikPok, and Dockyard Games.

The company also forms alliances with mobile web acquisition, mobile app acquisition, and direct response partners, all of whom have gained new net users. Specific partners include American Apparel, Zappos, H&R Block, MasterCard, Hotel Tonight, Delivery.com, Ancestry, and Blue Apron.

Key Resources

Kiip’s main resource is its proprietary software platform, which is active on over 4,000 apps.

It depends on its engineering employees to maintain and update the platform, and its customer service staff to provide support.

As a relatively new startup it has relied heavily on funding from outside parties, raising $32 million from 19 investors as of July 2016.

Cost Structure

Kiip has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is likely transactional expenses, a fixed cost. Other major drivers are in the areas of product development and sales/marketing costs, both fixed expenses.

Revenue Streams

Kiip has one revenue stream: the share of revenues it takes from advertisers who obtain sales through its platform. Its effective revenue share is about 60-40 (it takes home 60%).