AudioMob Financial Model

Two products:

1. Unity Plugin - drops audio ad slots directly into mobile games without touching existing display/interstitial inventory. Creates net-new ad revenue for publishers.
2. AudioMob Ad Platform - replaces existing display banner slots with audio ads, converting them to higher-value audio inventory.

Value proposition:

• For publishers: incremental revenue (600%+ banner CPM uplift), zero retention damage (D7 retention +0.43%; 0% IAP damage), non-intrusive format.
• For advertisers: 1000%+ average CTR increase vs standard banners; 25-second audio CTR of 3.26% vs 0.01–0.3% standard banner.
• 61% of mobile players leave audio on - the core insight enabling the format.

• TAM: $39B
• SAM: $4B
• SOM: $247M
• Audio advertising spend growth: 20%+ in 2020; CPM range $5–$30
• Mobile gaming app store spend growth: 71% in 2020
• Sources cited: Forbes, Spotify, Dax, iHeatMedia, Business of Apps, Google, Apple

• Ad platform take-rate: AudioMob acts as intermediary (bridge) between demand (advertisers/music labels) and supply (mobile game publishers). Take-rate percentage not disclosed in deck.
• CPM pricing: Audio ads priced at $5–$30 CPM; exact AudioMob net CPM/rev-share split not stated.
• Two distribution channels:
• Unity Plugin: sold/distributed to game developers directly via Unity asset store integration.
• Ad Platform: programmatic/managed-service placement into existing mobile game ad slots.
• No subscription, SaaS, or licensing fees mentioned. Pure ad revenue share model.

As of H1 2021:

• CTR: 1000%+ average CTR increase
• Audience reach: 2.5bn (access to most mobile games)
• Churn: 0% - 100% of music clients re-spending
• Named demand-side clients: Universal Music Group ($7.1bn revenue), Warner Music Group ($4.474bn revenue), Sony Music ($7.82bn revenue), BMG ($602m revenue)
• Agency pipeline: the7stars (£200M+ media spend/year), Dentsu Aegis Network (thousands of brands), Next Broadcast Media (100+ brands, $1bn revenue)
• Named brand prospects: P&G / Pampers, Intel, KitKat, Jeep
• Unity Plugin case study: 600%+ banner CPM uplift; D7 retention +0.43%; 0% IAP damage
• Ad Platform case study: 3.26% CTR on 25-second audio ads vs 0.01–0.3% standard banner
• Prior raise: $1.5M (Business Insider coverage cited)
• Google investment: $2M (TechCrunch: Google invests in Black Founders)

• CPM range: $5–$30 - upper bound consistent with premium audio/podcast CPMs.
• CTR uplift implies significant engagement premium for advertisers, supporting premium CPM pricing.

Competitive positioning: AudioMob occupies the "Audio Centric + User Centric" quadrant - non-intrusive audio ad serving. Competitors mapped across four quadrants:

• Audio-centric but intrusive: Pandora, Spotify, SoundCloud, adswizz, Instreamatic, Q.SIC
• Display / user-centric (non-audio): Tapjoy, AdColony, Vungle, InMobi, MobFox, Teads, OGURY, PubMatic, RubIcon, venatus
• In-game (emerging): AdInMo, anzu.io, Bidstack, Admix, Adverty, Frameplay, Sayollo, RapidFire

Moat claims:

• First-mover in non-intrusive in-game audio ads
• Exclusive relationships with all four major music groups (UMG, Warner, Sony, BMG) - 0% churn, 100% respend
• 2.5bn audience reach via publisher integrations
• Dual-product (Unity Plugin + Ad Platform) covers both new and existing inventory

Exit comps cited: AppNexus ($1.5B+, AT&T 2018), AdMob ($750M, Google 2009), Vungle ($750M, Blackstone 2019), MoPub ($350M, Twitter 2013).

Team:

• Christian Facey, CEO - Forbes 30 Under 30; ex-Google strategist, ex-Facebook; game developer and music producer.
• Wilfred Obeng, CTO - Forbes 30 Under 30; ex-Google and Goldman Sachs engineer; programmatic adtech expertise; clients include Amazon, Hilton, IHG.

Funding:

• Round: Series A
• Prior raises: $1.5M seed (Business Insider) + $2M Google Black Founders fund

Archetype + why: AdTech marketplace / programmatic ad revenue model. AudioMob is a two-sided ad marketplace - revenue is a function of impression volume × CPM × take-rate. This is standard for mobile ad networks (cf. AdMob, MoPub). Not SaaS (no recurring subscription). Not DTC. Not a 3-statement standalone without a proper revenue build.

Forecast horizon & granularity: 5 years (2021–2025), quarterly for Years 1–2, annual for Years 3–5. Series A investors want to see the path to scale, not just Year 1.

Key drivers & assumptions:

*Supply side (publisher inventory)*:

• Number of integrated mobile games: start ~50 games at close, grow to ~500 by Y3 based on agency pipeline momentum
• Average monthly impressions per game: 10M–50M impressions/month depending on game DAU
• Fill rate: 40% in Year 1, scaling to 65% by Year 3 (early-stage audio demand constrained)
• Audio CPM: $8–$15 net to publisher]

*Demand side (advertiser spend)*:

• Number of active advertiser accounts: 4 music label clients at H1 2021; model agency channel opening Y2 (Dentsu, Next Broadcast, the7stars) adding brand advertisers
• Average spend per music label client per quarter: £500K–£2M (the7stars alone spends £200M+/year; label budgets are a small slice of that)
• Brand advertiser ramp: 3–5 brands in Year 2, 15–25 by Year 3

*Monetisation*:

• AudioMob take-rate: 30–40% of gross ad spend (standard for mobile ad networks; not disclosed in deck)
• Revenue recognition: net revenue = gross ad spend × take-rate

*Unit economics*:

• CAC (publisher): low - Unity Plugin is self-serve/plugin model; marginal cost per game added is near zero
• CAC (advertiser): sales-led at Series A; estimate £50K–£150K blended CAC for enterprise music/agency clients
• Gross margin: 70–80% (software marketplace; main COGS = cloud/infra and ad serving costs)

*Cost structure*:

• Headcount: primary cost driver; 15–25 FTE at Series A close, scaling to 60–80 by Y3 (engineering, sales, ad ops)
• Infrastructure / ad serving costs: 8–12% of revenue
• S&M: 20–30% of revenue through Y2, declining as flywheel builds

Scenarios (Base / Bull / Bear - which variables flex):

• Bear: Fill rate stays low (25–30%); agency channel delays by 12 months; take-rate compressed to 25% by publisher negotiation.
• Base: Fill rate reaches 55% by Y3; agency channel opens Y2; take-rate holds at 35%.
• Bull: 0% churn continues; major agency conglomerate (Dentsu) activates full brand roster in Y2; fill rate hits 70%+ driven by brand demand exceeding supply.

Required sheets / outputs:

1. Assumptions dashboard (all drivers in one place, colour-coded)
2. Supply model: games integrated × impressions × fill rate × CPM → gross inventory value
3. Demand model: advertiser accounts × avg. spend → gross ad spend
4. Revenue bridge: gross ad spend → net revenue (take-rate)
5. P&L: Revenue, COGS (ad serving infra), Gross Profit, OpEx (S&M, R&D, G&A), EBITDA
6. Headcount plan (by department)
7. Cash flow & runway (Series A proceeds vs. burn)
8. Scenario toggle (Bear / Base / Bull)
9. Comparable exits summary (AppNexus, AdMob, Vungle, MoPub) for implied valuation at exit