Businessmodel of SpotX

Customer Segments

SpotX has a multi-sided business model, with two interdependent customer segments that are both needed in order to operate:  publishers seeking advertising-related services and providers of those services such as advertisers, ad networks, agencies, trading desks, and demand-side platforms.

Value Proposition

SpotX offers three primary value propositions: convenience, customization, and brand/status.

The company offers convenience by enabling publishers to connect with all of their demand  sources – advertisers, ad networks, agencies, trading desks, and demand-side platforms – in a single place. It also allows advertisers to deliver their campaigns across various platforms (mobile, desktop, and connected TV devices) programmatically (i.e., in an automated fashion).

The company enables customization by providing rich targeting and forecasting capabilities to advertisers so they can reach the right audiences at the right time.

The company has established a strong brand due to its success. It bills itself as the largest global marketplace for video ad inventory, processing more than five billion video ad decisions daily and delivering ads to over 600 million people in 190+ countries per month. Its prominent clients include The Atlantic, Meredith Corporation, Mail Online, Bonnier, and Scripps. Lastly, it has won many honors, including the following:

• A “Company of the Year” Apex Award from the Colorado Technology Association (2015)
• Recognition as a Marketing Technology Leader in the Upshot 50 (2009)
• Recognition as the “Top Online Video Advertising Platform” by Streaming Media (2008) ### Channels

SpotX’s main channel is its business development team. The company promotes its offering through its website, social media pages, and participation in summits, forums, and conferences.

Customer Relationships

SpotX’s customer relationship is primarily of a self-service, automated nature.

Customers utilize the service through the main platform while having limited interaction with employees. The company’s website features a “Knowledge” portal through which existing clients can obtain education and training materials.

The site also has a “Resources” section that includes white papers, infographics, videos, and guides. Moreover, SpotX provides access to an e-mail newsletter with news and insights. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

SpotX’s business model entails maintaining a robust common platform between two parties:  publishers and demand sources such as advertisers.

Key Partners

SpotX works with a number of partners to enhance its solutions for publishers and advertisers. Specific partners include Brightcove, IRIS.TV, Staq, Lotame, DoubleVerify, Videology, theTradeDesk, Kaltura, and DynAdmic.

Key Resources

SpotX’s main resource is its proprietary software platform, which processes five billion video ad decisions a day.

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

Lastly, as a startup it has relied heavily on funding from outside parties, raising $12 million as of December 2010.

Cost Structure

SpotX has a cost-driven structure, aiming to minimize expenses through significant automation.

Its biggest cost driver is likely transaction expenses, a fixed expense. Other major drivers are in the areas of customer support/operations and administration, both fixed costs.

Revenue Streams

SpotX has two revenue streams: revenues it generates from fees charged to publishers to use its platform and to service providers such as advertisers to present their offerings on the platform.