Zoomd Technologies and the MarTech Industry as explained by CEO Ofer Eitan

March 20, 2020

Ofer Eitan elaborates on how Zoomd growth story and its conceptual business conduct serves as a model of inspiration in the MarTech industry. Excerpts from the interview.

Full Interview

1. Can you describe Zoomd for us, when and what led to its formation?

Zoomd is a marketing software company. We are a merge of two companies- Moblin which used to serve as a mobile app distribution platform and Zoomd which provides onsite search & monetization for publishers.

In 2017, Zoomd and Moblin merged to transform into an innovative Marketing Technology company dedicated to assisting advertisers and publishers to achieve their key performance indicators (KPIs) through performance-based technology. The merged entity enables us to provide both advertisers and publishers data-driven results. 

2. Who are the advertisers and publishers? What role does each play in the marketing industry?

The advertisers we work with are mostly app owners that are looking to acquire new users to boost their service or product among relevant audiences. Advertisers (or agencies) that buy media from several platforms for achieving their goals and benefit from the advantage of managing all media buying from one place via one purchase order.

The publishers are mobile/website owners or media traffic sources that are looking to monetize more inventory. Our onsite search solution assists in achieving higher engagement with existing onsite audiences with no need to develop a search code by themselves, plus keep their users on their site and not moving to a different site. It’s an advanced technology that can be very expensive to develop and maintain over the years. Our software engine allows any website to improve their UI in a matter of adding a single line of code. Within minutes a website gets a full upgrade free of production costs.

3. Let us take an example — If an app owner wants to market his/her app, what strategies would Zoomd adopt to help that person meet his/her target requirements?

Usually, the app owner has KPI’s like registration ratio from install, purchases, events, etc. same as retention rates; 2nd day, 7th day, etc. (sic) our technology has the ability to profile relevant traffic sources, audiences, analyzing the vertical/category, geo, OS and other parameters, then recommending the bid price per source. It’s not just analytic metrics, Zoomd technology buys the media and brings the goods (targeted KPI’s users) to the app owners. For example; if someone is searching for a recommended travel to Brazil, we will target them to download a travel app. The intent of the users means relevancy, and by this, we’re able to hit the KPI’s and the advertisers ask for more inventory.

4. Zoomd is a platform that integrates 600 media sources into one consolidated dashboard. Would it be comfortable for you to share the technology behind this?

The Martech ecosystem is different from many others, we don’t compete with ad networks or exchanges, we don’t offer a “better bid” than the rest. We understood that each media source has its own unique USP, and our desire was to bring it all to the advertisers, let them enjoy everyone’s USP’s and get the best-converting traffic for their needs. From a high-level perspective, we analyze all relevant traffic sources and not “just recommend” by pointing to the best sources and sub-sources, we also deliver those best sources/bids. hence, it’s analytic + auto media buying.

Zoomd Technologies

5. What is the business model of Zoomd, and how is the RoI assessed?

For advertisers – performance or transparent media buying. Performance means the advertisers define the KPI’s and we deliver the goods. Transparent means we are working on a fully transparent model to prevent cannibalism between active media sources and overspend. Transparent mode is based on licenses/media cost percentage.    

As for publishers, we pay them revenue share out of the monetization amount created on their traffic.

6. How do you ascertain user behaviour and consumer trends from your analysis?

Our special sauce is the unique data that we accumulate from the search and user acquisition products we own. By knowing what people are searching for on the web, we can serve them accurate ads based on personal preferences. On our user acquisition platform, we understand which sources are better suited for different vertical apps, knowing where to find users from different geos and other key metrics (Ex. what kinds of apps they’re using).

7. How diverse is your client base and why do you think a business should consider Zoomd over its competitors?

I can say in the humblest way possible, that we can work with all different apps, and can deliver users to any legit vertical from e-commerce to utilities to food delivery, etc. For publishers it’s very simple as mentioned earlier; we pay them instead of getting paid.

8. What challenges is Zoomd currently facing? What coping systemic measures have you taken to tackle them?

Like other players in the Martech category, we are all constantly battling fraud either on app traffic or web traffic. Those fraud bots and technology keep on changing their methodology to disrupt a clean advertising business which takes lots of effort to handle on a daily basis. But as they change, we are always on the lookout.

With privacy rules such as the GDPR and CCPA becoming world standards, we are always careful about the data we hold and understand its vulnerability. We understand that the data we accumulate is sensitive and should be well managed for us to keep going in a legal and transparent manner. 

9. Can you share a few critical insights about the MarTech industry for our readers? Also, what should an organization know before entering this industry?

In 2019, brands, apps, and agencies increased their Martech budgets by 44%, meaning this is now a market worth $52 billion and I expect further growth in the year ahead.

Driving this growth is data, and more specifically, the realization from marketers that are experts in data leads to actionable insights that drive a greater ROI and provides more control of media spend and a better understanding of what does and doesn’t convert.
As previously said, data is a sensitive subject and should be treated wisely and on the other hand, being able to analyze it even better.

CEO Ofer Eitan

10. A few months ago, you went public on the Toronto Stock Exchange (TSX). Congratulations on that. How do you peruse it as a growth opportunity?

Thank you! The process of turning into a public company has a lot to consider.

Unlike other public offerings, we already have an up and running platform and a steady list of growing advertisers. Now, after having the vote of confidence from our investors, Zoomd is investing in adding more sources, including social sources to our product, while executing our strategy of growth worldwide, allowing us to create better and stronger relationships with our international clients and partners.

11. It has been observed for quite some time that there has been a dip in your share prices in the TSX as per recent trends. What strategy are you adopting to improve it?

At the moment, around 90% of the shares are locked. Any transaction, even at 1,000 USD, impacts the share price. So one day it will go down, the other will rise, and just during the last week, it went up :-)

We’re starting our IR communication these days, heading up to deliver our strategy for the SaaS method and disruptive concept of media buying. We have a clear road map on this one as well, and I’m sure that it will boost things and provide certainty to any of our shareholders.

12. You’re expanding your business internationally like you recently entered the Latin American markets and also South Korea. What other areas Zoomd wishes to pursue business in the future?

We understand that Latin America and SEA have a lot of potentials as these markets are booming with consumer digital activity, focused on mobile-first. For example, people in Latin America trust e-wallet apps more than their previous bank that was so far away from their houses. We are pursuing emerging markets that up until now weren’t at the focus of global brands, but these days big brands who own operations and represent these markets consider their growth plan to include emerging markets as the penetration of the mobile device is on the rise. The main verticals are fintech, eCommerce, and games

13. What is living the life of an advertiser like?

App owners constantly think about the value it can give their users and what service or product they should need tomorrow. It’s that thin line of supplying value that will be profitable for both sides. We always look at the main parameter from our side – “how much a user is important for you” and you’ll be surprised that not every app developer can draw the metrics of GEO and OS. We push the ones who don’t have it to analyze the funnel and those who have it, we deliver. 

14. Your journey as a CEO and a marketer must’ve given you a nice learning curve. What 3 things would you advise future entrepreneurs? 

1.    Create KPI for your personal growth and venture; don’t compromise, considering team spirit and quality parameters.
2.    Manage your time wisely and take some business risks when needed. There is no 100% certainty for any entrepreneurs. Risk is part of the game of entrepreneurship that can provide higher benefits to you (if it works).
3.    Lift yourself after failures, there will be some (not just business targets…), the journey milestones are the thing you’ll take further on to the future and is the thing that differentiates you from others.

Key Takeaways

  • Zoomd Technologies is a confluence of two companies viz. Moblin, which was a mobile app distribution platform and Zoomd, which is a platform for onsite search & monetization for publishers.
  • The agency works with advertisers and publishers. The former are mostly app owners, and the latter are mobile/website or media traffic sources.
  • Zoomd Technologies doesn't solely rely on analytic metrics but also media buying and directing the targeted KPI's users to the app owners.
  • With the Analytic+Auto Media Buying combination, the agency evaluates all relevant traffic sources and delivers the best sources/bids.
  • Zoomd has fully transparent and comprehensive business models which are separate for advertisers and publishers.
  • Ofer estimates the MarTech industry is valued at $52 billion and is expected to see steady growth in 2020.
  • Despite a constant drop in Zoomd Technologies share prices, it saw a bullish phase in the past week. 

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She is a writer and content marketer at MobileAppDaily. Her knack around the mobile apps is merely splendid. Her experience in the tech industry has assisted her in churning out the best and more importantly, unbiased mobile app reviews.

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