iPromote has resellers in the US and Internationally and many of them share the same profile; traditional media companies with tens of thousands of advertisers serviced by hundreds of field sales reps. Most sell packages ranging from a few months to a year, often bundled with other products and services. There are over 30,000 SMB advertisers now on the iPromote platform, and the data from these resellers reveals some compelling performance numbers.
So let's address churn. This is a common topic in our space and there is a misplaced belief that small budget advertisers equate to high churn. Our data shows otherwise. Over the trailing 24-months churn averages roughly 6% per month. This means 94% of the revenue from last month is recurring. Additionally, of those advertisers remaining, the average length of a campaign runs for over 1 year.
Much of this success I would assign to three reasons:
- Excellent service and support. iPromote partners have invested in training, smartly packaged and bundled services, and built the correct sales and support models to drive high customer satisfaction.
- The correct technology. I believe many SMBs have been sold solutions which were not designed for small budget display advertisers resulting in poor execution and unacceptable ROI. iPromote is purpose built with proprietary technology for executing small budget campaigns at scale, and delivering value every day for every campaign.
- Dedicated and accountable sales leadership. When I look at the performance data the pattern is obvious. Partner resellers who are in market everyday selling display are building growth every month. We have partners who sell over 1,000 new display orders every month on the iPromote platform, and have done so with such consistency they are now generating well over $1 million of new and recurring incremental revenue every month.
Display is one of the few remaining digital products which can scale and be sold into a large reseller's book of business. Many resellers are already selling search and have done so for years. Most are now seeing growth slow as many of their existing accounts have largely been optimized for search campaigns, and its limited scope makes it hard to differentiate. Forecasted to outgrow paid search, local display is a product which offers scale, can be uniquely positioned alongside existing products, and offers significant new and recurring incremental revenue.