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AdColony Earnings

Q2 Results: Aurora, Programmatic, and SDK Growth

Posted Aug 25, 2017

Yesterday, AdColony reported our Q2 2017 results as part of Opera Software ASA’s quarterly earnings. The quarter was highlighted by growth in our SDK penetration and the results of our latest Aurora™ HD Video ads.

AdColony revenue for Q2 was $96.1M and we were EBITDA positive at $0.9M. While both numbers were softer than we hoped, they were increases over our results from Q1 of this year.

Aurora HD Video
We launched Aurora™ HD Video in early June, and we’ve seen great initial results from the campaigns run with brands like Disney and Buffalo Wild Wings. On average, over 40 percent of users who saw an Aurora™ ad unit engaged with it, blowing away industry benchmarks.

Various press outlets have written about some of the initial Aurora™ results, and we have great campaigns in the pipeline that we’re excited to share info about going forward.

Managed services are still a big part of our brand business, and will continue to be going forward, yet there is no denying that programmatic is here to stay. Programmatic made up 20% of our brand revenue in Q2, double Q2 2016.  In the APAC region, programmatic is even higher and makes up 30% of our brand revenue.

Going forward, we’ll continue to invest in programmatic, and will focus on things like activating new DSP connections and making sure our new products can be bought/sold programmatically. If our customers want to buy programmatically, it’s important we have the tools in place to allow them to do so.

SDK Growth
Another key area of growth in Q2 was our third generation SDK.

When we released the SDK late last year, it was one of the most significant upgrades we had made to date, and we knew it would unlock a variety of new monetization techniques and ad experiences for publishers, making a real impact on our business.

In today’s mobile landscape, first party supply is more important than ever, and the growth of our SDK is a key indicator into our overall business growth In Q2 our SDK penetration grew over 200% and now makes up over 40% of all impressions we see.

As SDK penetration grows, we’re able to scale our new products, and Instant-Play™ HD Vertical Video is a great example. From May through July, Vertical Video grew 400%, going from around 1 million videos a day to 5 million. Vertical Video is something our advertiser partners are excited about, and our publisher partners are seeing noticeably higher eCPMs, so the continued growth and scale is making an impact on both sides of our business.

The second half of the year is always an exciting time in the advertising industry, as our partners look to move past Summer and prepare for the holiday season, and developers are updating their apps with the new OS software from Apple and Android/Google. In support of this, we recently released our 3.2 version of the AdColony SDK that supports both iOS11 and Android Oreo and are working closely with our publisher partners on integration. We’re looking forward to sharing more updates and highlights of the business in the months ahead.

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