In a recent analysis of our clients’ growth patterns, we discovered one common thing: clients tend to grow 4-5x bigger, in a fraction of the time.
To illustrate this, we developed a calculator. This requires you to enter 4 inputs:
What is your starting capital?
What is your monthly margin on a campaign spend?
How long do you wait to get paid?
What is your time horizon for using OAREX?
This assumes an 80% advance of your invoice value and a 2.5% fee. In this example, if you start with a $10,000 to spend on traffic/user acquisition, and you generate 20% per month, wait 60 days to get paid and use OAREX for 6 months, you will grow revenue 496% and profits 420%.
With OAREX, the total campaign spend you can achieve — by reinvesting our funds into your growth channels — will be $220,567.
Without OAREX however, you’ll only be able to reinvest your money 2 times in a 6 month period (day 60 and day 120), for a total spend of $36,400.
The difference in profits? $37,836 with OAREX, vs. $7,280 without.
Please note these results are NOT guaranteed. This is all simply illustrating that if you use OAREX to scale your growth, it will occur much faster than if you didn’t.
OAREX funds businesses that earn money from digital advertising. We fund them by purchasing their advertising invoices payable by ad partners. OAREX then deals with collecting payment — in 30, 60 or 90+ days — from the ad networks.
We fund publishers, smart phone apps, supply-side platforms, demand side platforms, and advertising networks, exchanges and agencies. Established in 2013, we’ve purchased thousands of media invoices over the years, and 2 major things about getting paid have become very obvious.
The first thing is that payment didn’t always occur on the expected payment date. Sometimes it paid early, sometimes it paid late. The second was that the payment wasn’t always the same amount as reported in each dashboard. As a participant in the digital media you can attest to the frustration and potential cash flow issues this can cause.
So let’s break down each factor one by one, but first, a little bit about our methodology:
We Studied Thousands of Digital Media Invoices
We studied thousands of invoices purchased from our digital media clients. The invoices were payable by the top 20 desktop / mobile ad networks in our portfolio. The nature of the study was to focus on the supply side, where payments usually hit last. The invoices were purchased primarily from publishers and smart phone apps, with appx. 20% from publisher networks and SSPs. Below are our findings:
We Found That 54% Of Invoices Paid Late
Of the invoices studied, here is a breakdown of key findings:
54% of all invoices were paid later than the expected payment date
Payments were, on average, 5.3 days late
80% of all ad networks paid late at least once
32% of all invoices were paid early
Only 3% paid exactly per terms
Here are some highlights:
Matomy paid early 63% of the time
Google paid early 72% of the time
Conversant paid early 67% of the time
Glispa paid early 67% of the time
Criteo, Rubicon, Pulsepoint and OpenX paid early 50% of the time
We Also Found That 33% of Ad Networks Underpaid
As for the amount of payment, here is the breakdown:
33% of all invoices were underpaid (lower then reported)
The average under payment was 3%
67% of all ad networks under paid at least once
30% of all invoices were overpaid (higher than reported)
17% paid the exact number they said they would
Advertise.com, Connatix, and Sovrn overpaid about 60% of the time, with Advertise.com leading the pack by paying early 67% of the time.
FIND OUT WHO PAYS LATE OR UNDERPAYS BY DOWNLOADING THE FULL REPORT:
Managing Cash Flow In Digital Media: Grow Quicker & Faster With OAREX
No doubt cash flow management is necessary to hitting scale and growth. Without properly managing your cash flow, you will have to constantly bridge the gap with credit cards or your own capital. With OAREX, you can sell your media invoices for immediate capital up front. This will allow you to reinvest into your winning traffic or user acquisition campaigns to grow quicker, faster.