Watching TV or videos online can be a pain with endless adverts interrupting. Anyone who has viewed YouTube knows the feeling, but there is one company trying to refine online advertising.
Mirriad Advertising superimposes ads into the TV show or video, otherwise known as digital product placement. It means there is no need to hit watchers with adverts before or during the programme.
While it sounds like a dark art, the company is adamant its tactics are legitimate, adding that advertisers have being using product placement for years —see any James Bond film.
The evidence is that the company’s idea is working and its client list includes Chinese video streaming platform Youku. Just last month it penned a new deal with internet giant Tencent.
Off the back of the Tencent deal it has increased its revenues forecasts to £1.1 million in 2019 and £2.2 million in 2020.
Analysts in the City believe the company is a slow burner, but could grow rapidly once it has a number of partnerships in place.
Paul Richards at Numis says: “We see considerable opportunity for Mirriad to scale rapidly through its Youku partnership in China and expect further launches in the near- to mid-term in markets like the US following agreements with leading broadcasters such as Univision and NBCU, Brazil’s GloboSat, Germany’s RTL and India’sStar.”
Numis has a 83p target price, far above today’s 14.5p.
It also has some notable backers with George Soros holding a stake in the company through his fund management firm. Others include IP Group, Parkwalk Advisors and Garraway Capital Management.
