As with standard enterprise license models, which typically charge clients monthly by user or per “group of seats” at a fixed cost with pricing add-ons for additional features, AdStage sees potential revenue opportunity beyond just standard licensing fees.
“In beta, our automated rules app was 100% free, but maybe down the road, it’s ‘Pay $50 a month for access to this rule,’” Jain hypothesized. “You add things à la carte as people need them and where they can see the direct value. This is the value of SaaS.”
While it’s “tempting” from a revenue standpoint, Jain said, to go the managed services route and take a cut on media spend, “we think (with) true SaaS, the goal is not to take a piece of the optimization you give the customer and that’s why SaaS valuations are high – the cost of acquisition and nurturing are zero in many ways.”
In terms of future development, AdStage will be adding additional networks and third-party integrations. The platform enables cross-network conversion tracking (and has seen $25 million in ad spend flow through the platform over the last three months), but “we’re taking it one step further to do some light attribution,” Jain said.
For instance, if a user “clicks on a Facebook ad, hits your page, but doesn’t convert, (when that) that same user searches through a Google ad and converts, we’ll give Facebook an assist. The next step is [doing] this on every entity level.” This means expanding attribution further to include ad campaigns and key words and other customer touches across devices.
“Our investor Verizon does a lot of this internally where they need to understand the funnel not just from a network perspective, but from an actual device perspective, so it’s interesting to get into attribution not just in native networks themselves, or desktop, but how they then convert in mobile,” Jain said.