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Mellentin: 50% margins in adtech are totally unsustainable

Gustav Mellentin · 808: AdTech: AdForm Beats $40m Revenue Monetizing These 3 Days · Oct 10, 2017 · at 6:23

Gustav Mellentin, CEO of Adform, contrasts Adform's 10% transparent take rate against adtech competitors taking up to 50% margins.

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“I think, yes, there are people who do 50%, but I think that's totally not sustainable, and it's a different business model than ours.”

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Gustav Mellentin Oct 10, 2017 ▶ 6:29 808: AdTech: AdForm Beats $40m Revenue Monetizing These 3 Days
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“I don't think it's, I mean, I don't think it's the, you know, end all be all to keep your marriage alive, I mean, you know, I think there are other ways of having great personal relationships with friends and with your kids and so on, but I think, you know, yo…”
Gustav Mellentin Oct 10, 2017 ▶ 18:16 808: AdTech: AdForm Beats $40m Revenue Monetizing These 3 Days
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Mellentin: Leading with data is the best strategy to sell to CMOs
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Gustav Mellentin Oct 10, 2017 ▶ 4:56 808: AdTech: AdForm Beats $40m Revenue Monetizing These 3 Days
Disclosure
Adform's $20 million venture debt facility is not asset-backed.
“Yeah, so we don't, it's not backed against anything. There's a lot of clauses, and I cannot remember them all. Relatively complicated, and I know that I've known, know that I've signed my life away 10 times during all these negotiations, and at the end of the …”
Gustav Mellentin Oct 10, 2017 ▶ 10:25 808: AdTech: AdForm Beats $40m Revenue Monetizing These 3 Days
Disclosure
Mellentin: Most of Adform's revenue comes from programmatic ad trading
“Most of the business today is actually in the trading space. So most of the revenue is coming from there.”
Gustav Mellentin Oct 10, 2017 ▶ 4:22 808: AdTech: AdForm Beats $40m Revenue Monetizing These 3 Days
Disclosure
Mellentin: Data management is Adform's fastest-growing unit at 10% of revenue
“And the data model is the fastest growing part of the business. So it's a product we launched just a couple of years ago. So it's definitely the fastest growing, but it's probably down to around 10% of the actual business. A lot of the growth is coming from th…”
Gustav Mellentin Oct 10, 2017 ▶ 4:41 808: AdTech: AdForm Beats $40m Revenue Monetizing These 3 Days
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