Exploit is one of those words that can have a bad rep. One definition is to use a person in an unfair and selfish way (i.e. “hackers exploit vulnerabilities”). But the word exploit has it’s origins the Old French verb esploit, meaning “to accomplish, achieve, fulfill”. Modern day English defines exploit as “to make full use of and derive benefit from a resource”. And that’s exactly what media buyers do with OAREX’s future ad revenue payouts (as a resource): they derive extra benefit from return-on-ad-spend (ROAS), by investing future ad dollars today. In turn, media buyers spend more on winning campaigns and exploit ROAS. In other words, media buyers make full use of our capital.
The Opportunity Cost of Media Buying
The opportunity cost of media buying is high. In financial circles, there is a similar concept known as impermanent loss. The impermanent loss of media buying can be high – deploying test budgets on a wrong channel, or not having enough capital to exploit a winning campaign. With OAREX you can be sure to access liquidity to test multi-channel campaigns, and access even more liquidity to invest further into winning ones. The cost of not having liquidity-on-hand (i.e. impermanent loss or opportunity cost), often times, is greater than the nominal fees paid for the capital.
How To Exploit ROAS To Make Full Use
OAREX integrates with ad revenue platforms, so we can see your earnings in real-time. This allows us to fund payments owed to you months ahead of time. So for example, if you generated $1,000 yesterday from Xandr, we’ll fund you $900 today. And if the driver of your ad revenue is new, paid traffic, then you’ll want to plow as much money into those campaigns as possible. Otherwise, you leave money on the table: impermanent loss.
Hot ROAS Ad Campaigns Don’t Last Forever
No hot ad campaign lasts forever. When you have a winning ad campaign, you need to “press the iron while it’s hot”. Exploiting winning ad campaigns to make full use of them is a must in order to avoid a big opportunity cost. By trading in your future ad revenue payouts for upfront capital, you can assure yourself the liquidity to take advantage of a situation (winning ad campaign) in a selfish way (higher ROAS).
Exploit ROAS with More Cash On Hand
There are multiple ways to secure funding in order to exploit ROAS, including:
- Accelerating a future revenue event
- Part with your own cash
- O.P.M. (other people’s money)
- Borrow money from a lender
- Use credit cards or VC money
It’s important that no matter what path you go, you assess the risks and obligations – both to you as an owner and your company – before moving forward with a deal.
Ready to get started with risk-free capital?
If you’re ready to get started with risk-free capital, you can apply here.