Ad Exchange Group - It Pays to Perform
Company: Ad Exchange Group
Company Description: Ad Exchange is the premier performance-based digital marketplace that connects advertisers and affiliates to efficiently market, sell, and fulfill online campaigns. Unlike the traditional advertising model where companies pay ad agencies obscene amounts of money without knowing how many customers they’ll get in return, Ad Exchange is a zero-risk, highly profitable pay-for-performance model.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Company of the Year - Advertising, Marketing & Public Relations - Large
Nomination Title: It Pays to Perform
Tell the story about what this nominated organization has achieved since January 1, 2016 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.
Ad Exchange Group is a top performance-based, direct-to-consumer marketing CPA network offering Publishers (“Media Buyers”) and Merchants ("Advertisers") a single gateway for digital direct response solutions. The Company’s proprietary and comprehensive e-commerce platform helps Advertisers connect with Media Buyers looking to maximize the value of the advertising space on their websites. Ad Exchange Group collects revenue when products are sold through its network. Approximately 10,000 new customers are acquired on the Company’s e-commerce platform every single day.
AdEx offers a proprietary technology platform (CAMP) that offers Advertisers the unique value proposition of generating revenue while increasing efficiency. Its cutting-edge technology, combined with its high-quality operations, results in leading Earnings per Click (EPC) for Media Buyers and maximum Customer Lifetime Value (CLV) for Advertisers. The technology offers a wide range of additional marketing solutions, including mobile, email and social media.
2016 was a banner year for AdEx, with the tech team becoming the headlining heroes. AdEx filed two provisional patents for a direct response ad server and split tester, launched a new beta client dashboard that collects real-time analytics from the company and its strategic partners, and normalized its end-to-end customer database for over 5 million transaction records.
Sales, however, was not to be outdone. The company secured its first billion-dollar branded customer Jeunesse, which helped contribute to AdEx’s skyrocketing profits. Since its inception in 2013, Ad Exchange Group achieved $100M in cumulative revenue within 20 months of inception and without any infusion of outside capital. In 2016 alone, with only 28 employees on payroll, the company grossed over $91 million in revenue and $8.6 million in adjusted EBITDA.
That translates to $3 million in revenue per employee. What's the secret to maintaining a lean yet highly productive workforce? As a results-oriented work environment, Ad Exchange Group sets expectations, goals, and deadlines for its employees while maintaining a healthy stream of two-way communication between managers and employees. Trust and accountability vastly reduce the need to micromanage. Employees are allowed to telecommute if they need to travel or be at home with the kids. They are encouraged to contribute ideas if they are better than the ones management provides and are empowered to help implement change for the benefit of the team or a project.
At the beginning of 2017, AdEx implemented a matrix organization that both cuts down the red tape involved with more hierarchical organizations and allows employees to be contributing members in different business units and take greater ownership in company initiatives and projects. Employees, in turn, feel more like their opinions matter and that they can make a meaningful impact beyond their normal day-to-day responsibilities. Small wonder that AdEx won the 2016 Gold Stevie Award for Great Employers.
Accolades came aplenty this past year. AdEx was recognized by the Orange County Business Journal as one of the Best Places to Work, won the Silver Stevie Award for Company of the Year: Advertising, Marketing & Public Relations, and most recently, CEO Peter Nguyen won the Excellence in Entrepreneurship Award from the OCBJ in a field of 100 companies.
In addition to its performance marketing network, AdEx also offers fulfillment services through its Push Innovation (“Push”) business line, which specializes in servicing digital direct-to-consumer businesses. In the third quarter of 2014, Ad Exchange became majority owner of Push Innovation, a company that generated $10 million in gross annual revenue prior to acquisition. Since 2016, AdEx has put into motion plans to fuel Push’s hyper growth. It diversified Push’s suppliers, expanded fulfillment operations to an east coast branch, and grew its workforce by over 30% to accommodate its growing client list. By the end of 2016, Push’s gross annual revenue shot over $30 million. This year, Push secured a warehouse 4 times its current size to catch up to the demands of the rapidly expanding business.
Ad Exchange is quickly becoming the smart turnkey service for brands in the direct-to-consumer marketing.
In bullet-list form, briefly summarize up to ten (10) of the chief accomplishments of this organization since the beginning of 2016 (up to 150 words).
-Filed two provisional patents for a direct response ad server and split tester.
-Launched a new beta client dashboard that collects real-time analytics from the company and its strategic partners.
-Normalized its end-to-end customer database for over 5 million transaction records.
-Grossed over $9M in annual revenue.
-Achieved $8.6M in adjusted EBITDA.
-Averaged $3M in revenue per employee
-Instituted a matrix organization which give team members the opportunity to make greater contributions to different business units.
-Won several awards, including Orange County Business Journal's Best Places to Work, Silver Stevie Award for Company of the Year: Advertising, Marketing & Public Relations, and Excellence in Entrepreneurship Award for CEO Peter Nguyen.
-Fulfillment business Push Innovation tripled revenue under AdEx since acquisition
Of the following measures of success, which ONE do you want the judges to most appreciate about your organization's story of achievement since the beginning of 2016?