REG - Bidstack Group PLC - Strategy for Accelerated Growth in the US

BidstackAnnouncement

20/09/2022 07:00

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RNS Number : 9330Z  Bidstack Group PLC  20 September 2022

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the public domain.

20 September 2022

Bidstack Group Plc

("Bidstack" or the "Company" or the "Group")

Bidstack Commences Strategy for Accelerated Growth in the US

 

Bidstack Group Plc (AIM: BIDS), the in-game advertising and video game
monetisation platform, is pleased to announce that it has commenced its
strategy for the accelerated growth of the business in the United States.

 

Bidstack's increased focus on the US market follows the successful initial
implementation in Europe of the recent minimum two-year US$30million revenue
commercial deal the Group signed with Netherlands-based Azerion in December
2021.

 

The Group intends to increase the promotion of its full product offering in
the US, comprising rewarded video, in-game and in-menu advertising, across a
portfolio of more than 110 games, including the entire mobile portfolio of a
AAA global games publisher providing a powerful combination of brand awareness
and performance to advertisers and agencies keen to get in front of the
significant gaming demographic. While major publishers are starting to adopt
native advertising formats to increase brand awareness among the estimated 3.2
billion global gamers, Bidstack is now aiming to benefit from the recent
further development of its technology, in order to attract additional brand
spend through the placement of high-performing rewarded video ads that are
usually focused on user acquisition. As announced at the Group's interim
results, Bidstack's increasing inventory is now being sold to brands, agencies
and partners via a combination of an "always-on" digital open marketplace, and
private marketplace for exclusive direct deals.

 

To achieve Bidstack's substantial growth ambitions in the US, the Company is
actively focused on recruiting US-based sales, gaming and marketing
professionals with significant experience in digital advertising and with
local market knowledge. The Group has already had positive conversations with
a number of US-based executives and has recently made a number of key hires,
including Jude O'Connor, the Group's new Chief Revenue Officer.

 

The Directors believe that Bidstack's highly differentiated service offering,
when combined with the fulfilment of its current hiring plans, should result
in further significant revenue growth in 2023 and beyond.  Subject to a
number of factors, including the Group's ability to successfully implement its
"always-on" digital open marketplace and cross sell its full product offering
of rewarded video, in-game and in-menu advertising across an expanded
portfolio of games, the Directors are targeting an annual US$100m revenue
opportunity over the mid to long term.

 

In 2022, the global games market as a whole is predicted to generate US$196.8
billion. Mobile games, which make up 53% of the market (US$103.5 billion) have
been the proving ground for the native in-game advertising format, which now
is increasingly being explored by major cross-platform publishers of PC and
console titles*.  The video gaming market in the United States is one of the
largest in the world and is forecast to grow from US$30.4 billion in 2021 to
US$48.2 billion by 2027**.

 

As announced on 31 August 2022, the Internet Advertising Bureau and the Media
Rating Council have released new industry wide in-game measurement standards
have been established for ads that appear within gameplay.  The Directors
believe these standards will herald a new wave of adoption with advertisers
now being given clear benchmarks on how to measure campaign success.

 

James Draper, Founder and CEO of Bidstack, said:

 

"Our new accelerated growth strategy in the US strategy is the next stage in
Bidstack's evolution. Bidstack has now grown sufficiently as a business that
it is ready and able to tackle the huge, untapped opportunity for in-game
advertising within the US market. Our plans build on our recent significant
progress in our technology and we expect they will drive meaningful additional
revenue for the Group in the near to medium term.

 

"We look forward to updating shareholders as we progress."

 

*
https://newzoo.com/insights/trend-reports/newzoo-global-games-market-report-2022-free-version

**https://www.renub.com/united-states-video-game-market-p.php

 

-ENDS-

Contacts

 Bidstack Group Plc

 James Draper, CEO                                            via Buchanan
 SPARK Advisory Partners Limited (Nomad)                      +44 (0) 203 368 3550

 Mark Brady / Neil Baldwin / James Keeshan
 Stifel Nicolaus Europe Limited (Broker)

 Fred Walsh / Tom Marsh                                       +44 (0) 20 7710 7600

 Buchanan Communications Limited

 Chris Lane / Stephanie Whitmore / Kim van Beeck              +44 (0) 20 7466 5000

 bidstack@buchanan.uk.com (mailto:bidstack@buchanan.uk.com)

 

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