Bidstack Group (AIM:BIDS) said in its trading update for the six months ended 30 June 2020 that it has seen a significant increase in demand for in-game advertising in recent months as a result of the COVID-19 pandemic and lockdown measures.
Bidstack said it has recently attracted advertising campaigns from the US, Europe and the UK, while its recent ‘Gold Standard’ certification from the Internet Advertising Bureau presents new opportunities.
Customers are moving beyond initial test spends, the in-game advertising firm noted, adding that the size and scope of proposed advertising campaigns has ‘increased significantly.’
During the period, Bidstack has worked with and run campaigns for 11 major advertising agency groups while its network of approved local partner agencies in Europe, Africa and South America now extends to nine companies.
Shares in Bidstack Group were trading 2.33% higher at 4.4p on Tuesday morning.
The company generated revenue of £0.275 million (6 months ended 30 June 2019: £0.027m) and ended the period with cash at around £5.9m (period ended 30 June 2019: £6.0m).
Whilst no earnings figures were disclosed, the group’s balance sheet remains strong due to the oversubscribed placing in June raised gross proceeds of £5.7m leaving it in a healthy cash position to continue to pursue its business plans.
The Board continues to expect revenues for 2020 to be very significantly second half weighted and in line with market expectations for the year ending 31 December 2020.
"The disruption to the advertising industry, as a result of COVID-19, has led to media buyers turning away from traditional means of advertising and focusing increasingly on emerging digital options,” said James Draper, Chief Executive of Bidstack.
“Bidstack's platform is well-positioned to capitalise on the increase in demand for our native in-game advertising inventory, which captures a large number of video game consumers.”
He added, "Over the period the levels of demand side interest we are experiencing from media agencies and brands has increased significantly.
We are continuing progress with a range of content developers to construct the depth of supply which will enable us to fully exploit the demand we are starting to generate."
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