Making video ads affordable
Los Angeles, California, United States United States
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Company description

How does Addroid work?

With Addroid, you can create a video banner ad in as little as 30 seconds. You simply log in to the site, create a name for your ad, and then drag and drop your video onto the banner creation page. While it’s uploading, the Addroid platform automatically codes the video into HTML5 for you. You can customize your ad with replay and audio buttons as well as multiple hotspots. And then with just one click, your ad gets sent to the content delivery network where it can be served to publishers.


What is significant about that?

As many creative agencies and media planners know, the production process for banner ads extremely cumbersome and time-consuming. And since producing and serving video ads is also very expensive, many advertisers have been forced to use outdated Flash banners which are limited to no more than a handful of images. Addroid allows advertisers to easily upgrade their display campaigns with video for less than half of what it costs to create and serve traditional rich media ads (15 cents CPM vs. 40 cents CPM). 


What are the main benefits for creative agencies & media planners?

Besides dramatically reducing the cost of creating and serving in-banner video ads, Addroid’s automated platform cuts out the “middle men” and condenses the production process from days into minutes. Addroid also eliminates the need to hand-code in Flash which also saves time and money in the production process.  And instead of having to “reinvent the wheel” for your display campaign, Addroid allows you to use your broadcast-quality video online, helping to maintain brand consistency and a high-quality experience across all platforms.


Are video banner ads really that great?

According to the IAB, 69% of marketers and 55% of agencies plan to increase their Digital Video Advertising (DVA)* so the demand for a more efficient, cost-effective way to create these ads is increasing as well, which is exactly what Addroid does.  The same study found that audiences respond better to DVA, with consumers showing a higher engagement rate with online video*.  Other research shows that 8 percent of video ads generate a user interaction** and consumers exposed to video advertising were 28 percent more likely to visit the brand site***.  


* “An Inside Look at Demand-Side Perceptions of Digital Video Advertising” (IAB, April 2011)

** “Video Ad Benchmarks: Average Campaign Performance Metrics” - DoubleClick (2007)

*** ComScore Report (2010)


Business model

Addroid is a web-based video ad authoring environment that provides users a way to build video ads with NO Flash and NO coding. If you can upload a Youtube video you can make a video ad. 

Because the process has been simplified we're able to dramatically lower the cost. What now costs 40¢ (CPM or cost per thousand impressions) will only cost 15¢. That allows us to disrupt the 1.5 Billion dollars spent on Rich Media in 2010. However the price of 15¢ is so low we've lowered the barrier of entry for standard Flash jobs and that market is three times as large at 5.6 Billion.

Competitive advantage

Low cost and ease of use.