What are you working on? Can you give us a brief overview of your company?
Nickelytics makes launching real-world ads as simple, scalable and measurable as posting a digital ad. Our company has tapped into the +25 billion-dollar OOH advertising industry by democratizing outdoor ad buying by leveraging an extensive pool of ‘ready-to-engage’ assets for campaigns that can be managed, deployed and measured through our self-service portal.
What about you? Tell us a little bit about yourself and what inspired you to start this journey :)
I’ve always had an entrepreneurial spirit. I started and sold a small coffee shop while in college and that really helped to shape my knowledge of just what it takes to run a company. I also spent some time working for Salesforce, Netapp and Gartner and quickly excelled in those sales roles and grew into management. While undeniably great experiences, I ultimately grew to miss the hustle of being an entrepreneur and startup life. This passion came together as I founded The Nickel Ride which soon after transformed into the venture-backed company it is today.
What's your background? What is the unfair advantage that will make you succeed in this industry?
My background is in business development and sales leadership at organizations like Salesforce, Netapp, and Gartner. During my corporate career, I nearly always worked with companies to help them understand large data sets and leverage them as a competitive advantage for their business. Similarly, at Nickelytics, we believe a critical part of the problem we are solving is precisely. We help bring measurability and ease of use to OOH - Which has often been a very fragmented and complex medium for brands to leverage
The Business Model
What is your business model, and who are your customers?
We make a commission on all transactions that happen on our marketplace. Right now, we focus primarily on Gig Economy drivers and enable brands to launch hyperlocal OOH ads at scale. Brands pay an average of $500 per vehicle per month on a minimum 6-month contract and minimum 3 vehicle deployment. Brands can purchase online retargeting campaigns through unique Nickelytics data for an additional $1,500+ per month. We pay the brand ambassadors/drivers an average of $250 per vehicle per month for the active campaign duration and net the rest.
Did you already find a product-market fit? How do you acquire and retain your customers?
Yes - we have finally hit a point where we have significant demand on both the demand(advertisers) and supply side (Driver side). We are now looking at implementing additional pieces of inventory into our marketplace such as Billboards and digital billboards.
We acquire brands directly through marketing outreach, as well as work with a number of top agency partners who have relationships with top advertisers agencies with national reach. Advertising agencies are paid to place and manage ads for top brands - we make their job easier and more effective.
How big is your operating market? Could you provide some independent research/insights?
$40B out-Of-Home Advertising market (report.)
What's your competitive advantage, and how are you going to build a sustainable economic moat?
Working with advertising agencies is the key to rapid growth for Nickelytics. Once we get connected with them, they understand our product offering. They then can turn around and offer/pitch it to their clients that leverage Out-Of-Home Advertising. The agencies like it because it helps them measure the effectiveness of their client's advertising dollars. The clients like it because it solving large pain points their business has when it comes to gaining exposure and increasing brand awareness. By the nature of their industry, they are typically working with larger brands that have larger advertising agencies.
This approach allows us to scale much more rapidly because we can be hyper-focused on getting in contact with these agencies instead of relying on reaching out to all the brands directly.
Where we believe we will win long term is the diversification of our inventory. In the future, we are moving beyond just mobility advertising and beginning to integrate all significant OOH inventory into our marketplace. This will grant advertisers (small and Big) the ability to launch their entire OOH marketing campaign in just a few simple clicks and the ability to connect offline exposure to the digital world.
We feel strongly that part of the issue with Out-Of-Home Advertising currently is the fragmentation of its inventory. We are building a centralized location for all of your OOH needs.
One of the key components of your potential success is the ROAS that your customers will be able to generate using the platform. May I ask what the current ROAS is for existing/concluded campaigns?
The current ROAS can vary depending on the client industry, product offering, and campaign strategy. However, most of our clients are averaging a 6 dollar return on every $1 spent.
Who is on your team? Is there a fun story behind it? If so, We'd love to hear more!
Diverse founders with 20 years (combined) of adtech leadership at Google, Amazon, Salesforce, Visa, Gartner and Linkedin. We also have 5 other super talented employees that support our business that cover operations, tech, marketing and sales.
I was sad to read that your CTO, Sven left the company. This isn't a good sign from an investor's perspective. Would you please elaborate on that? I see that he is still an advisor of the company, but it would be important to know why he left right now!
It was certainly disappointing to lose Sven, who has been with the company since its early days; however, I can assure you his departure had nothing to do with its current trajectory or market opportunity. It was due to personal issues he was facing, and he felt it was ideal to step down from a full-time role and serve the business from a part-time advisory perspective.
With that said, he worked closely with the business to identify his successor to ensure Nickelytics was set up for continued success. We started to work with Shama Keskar, who was onboarded as co-founder and CTO during that process. She has over a decade of adtech leadership experience at organizations like Google, Amazon, Linkedin, and Visa.
Where do you see you 5-10 years from now? What's your exit strategy?
We feel Out-Of-Home Advertising is on the precipice of significant growth due to many factors. Our goal is to make Nickelytics synonymous with Out-of- Home Advertising. While we would love to grow large enough for an IPO, the data shows most similar companies in our domain end up getting acquired ahead of that point. Thus, making the most likely outcome of the organization as we continue to grow our business.
What do you believe is the biggest risk for the company?
Biggest risk to the company is us not being able to raise the capital needed to capitalize on the market opportunity. Its a matter of time before a significant competitor comes along so it increases the need for us to move quickly.
Did I Invest In Nickelytics?
I’m still in the process of writing a full deal report and decide whether or not I will invest in Nickelytics. I will send my final investment decision on Saturday to subscribers of the Angel Notes newsletter (you can join through the form below). See you soon!