Mirriad, the leading in-content advertising company is listed on the London Stock Exchange and has a market capitalisation of £7 million.
Half year results to 30 June 2023 were released on 22 August and we were delighted to welcome Stephan Beringer, CEO, David Dorans, CFO, Mark Melvin, GM North America and Philip Mattimoe, CTO to present at the latest Yellowstone Advisory webinar for private investors.
Mirriad technology enables products and innovative signage to be dynamically inserted into video content after the content is produced. Mirriad's market-first solution seamlessly integrates with existing subscription and advertising models, and dramatically improves the viewer experience by limiting commercial interruptions. A visit to their website provides a good example of this platform and technology.
The scale of the opportunity for Mirriad is huge: The US advertising spend on TV and Video is approximately $106bn annually according to Zenith. The majority is spent on traditional Linear and cable TV but their reach is falling and fell below 50% for the first time in July this year. This negatively impacts the availability of advertising inventory and in-content product and advertising placement is uniquely placed to fill this gap. Indeed, a couple of the large tier 1 content suppliers have said that in-content product placement is one of the solutions they are looking at to declining traditional TV advertising revenue. Mirriad is the most adopted in-content ad platform in the US and EMEA and so is ideally placed to be the global leader in this market. They are already working, negotiating or testing with 9 out of the top 10 US entertainment giants. On the demand side, 15 out of the top 20 advertisers are either working with Mirriad or considering running campaigns in the second half of 2023.
Programmatic trading of in-content product placement is the key to unlocking and capitalising on the growth of this new format and management believe the company is on point of launching this. If only 2.4% of the current TV advertising spend moves to in-content and Mirriad is able to capture as market leader a 20% share this would provide a $125m revenue opportunity for the company (assuming Mirriad take 25% revenue share which they are currently achieving).
Earlier this year the company raised £5.7m of net new funds and ended the half year with a cash balance of £9.8m. First half sales were £592k, which were generated…
