30 Million Screen Views

This was a great milestone to hit in August, and as a user of the app I could definitely tell that there was a strong increase in the number of live streams and video views throughout the month. I do wish that this number had a bit more context and that the company would have provided screen views from previous months so that we could have charted the growth/progress that has been made. It also would have been great if they could have provided an update on user sessions (see my previous blog post for more on the importance of that KPI) for June - August, but I suspect we probably won’t get an update on that until the Q2 results are released at the end of October. With all of that being said, screen views will be an important KPI for Peeks going forward and I’ll explain why shortly.

Appointment of Rick Padulo to Advisory Board

I’m not going to spend a huge amount of time on this one, but clearly this is a big win for Peeks. I encourage everyone to use the old Google machine to learn more about Mr. Padulo, after you do that it’ll be very clear to see what he brings to the table:

• An award winning marketer and agency

• A long list of clients that collectively likely have billions of dollars in annual marketing budget.

• Someone who understands the marketing/advertising needs of those clients and how Peeks can best continue to build their product to meet those needs.

• Someone that can help Peeks build out their own internal marketing/sales department. As Peeks has been building out their product, it’s been clear that marketing and promotion has probably been one of their biggest weaknesses. It’s very comforting to know that they’ll now have a pro coming in to help them properly structure that part of the company.

None of these efforts are going to happen overnight, but it’s good to see that the wheels are in motion.

Product Updates

UI Updates & Peeks Ad Share Network

I’m actually slightly surprised there hasn’t been a bit more discussion on the information that was released here. Basically, Peeks will be turning its existing revenue model on its head and really focus the company on being an e-commerce streaming platform. To date, Peeks has made its money on tips, paid broadcasts, and crowd funding. The main problem with that model is that, for the most part, it only incented porn broadcasters. I’m totally for people being able to make money that way, but for the average streamer (The Rachelles, Laurens, ...etc on Peeks) that was producing great G or 14+ content they really had no way to make any serious money. That all changes with the new products that have been announced.

The Peeks Ad Share Network allows broadcasters to select advertisers to appear during their streams and share in a portion of the ad revenue.

The UI updates are big too, but it’s important to see how both of these new features come together. The real nugget of information here to me was

“The new UI will allow an average of 3.5 advertising impressions per screen view on applicable screens.”

That brings us back to the screen views stat from earlier in the press release. While we have no way of knowing what percentage of the 30M screen views would qualify as “an applicable screen”, let’s go out on a limb and assume that with more users and increased traffic they’re able to get those 30M screen views where ads are present. That would give Peeks 105 million monthly advertising impressions. Not bad for a growing company, but what does that mean in terms of actual dollars?

If we look back to the press release from April 17th:

“The OfferBox also has the ability to monetize the delivery of the incentives at a rate of $3.00 to $10.00 per thousand impressions”

So let’s say that Peeks is able to monetize at the low end of that at $3 per 1,000 impressions, how much extra money would they be making?

105,000,000 impressions/1,000 = 105,000 ad units.

105,000 ad units * $3 = $315,000 in additional monthly revenue.

$315,000 * 0.3 (Peeks share of the revenue split) = $94,500/month

The additional monthly revenue there is pretty close to equal to their best QUARTER in revenue so far.

You can also model out what that additional revenue would be when they’re able to generate 50M, 75M, 100M...etc screen views each month or if they are able to get more than $3 per thousand impressions.

Let’s look at one more scenario, 50M screen views at $5 per 1,000 impressions.

50M screen views = 175M impressions

175M impressions/1,000 = 175,000 ad units

175,000 ad units * $5 = $875,000 in additional monthly revenue

$875,000 * 0.3 = $262,500/month

As you can tell here, the potential is HUGE and it will be really important to see which brands/advertisers that they’re able to bring on board at launch and continue to bring on board.

For brands and advertisers - they will come on board if they feel that Peeks gives them a more efficient spend of their existing marketing dollars that they currently use on Google, Facebook, Twitter, display...etc. If a dollar spent on Peeks vs. a dollar spent on another platform brings them a higher conversion rate and higher sales, not only will they continue to advertise on Peeks, but they will likely increase their spend. Again, lots of very interesting potential here that will play out over the coming months and years.

Peeks Get Popular Service

A cool feature to allow streamers to pay more to get their content featured. I love this idea as I believe that a lot of the ‘popular’ real estate generated lots of extra video views and followers. So why not charge for this premium placement like all other apps and social networks do? Tough to tell how much this will make, but still great to see a new revenue stream.

Offer Box 1.0

I have to say so far that I’ve been pretty disappointed with what the Offer Box has been. I believe that it was sold to investors as something different earlier this year and something that would have a much more immediate impact than it actually did. Again I understand sometimes tech issues happen or things take longer than planned to launch, but the offer box thus far in it’s current form has been a bit of a bust or at the very best we can call it a ‘false start’.

With that being said, I believe that the version of the Offer Box that is described in the press release is what we all thought was going to be delivered back in April. That’s why I’m calling it Offer Box 1.0, with the current version of OB being the beta.

I’m very curious to see how this version looks/works, and if it allows full end to end commerce to occur for approved streamers. I believe this would work great for many of their approved streams as it seems like almost all of them will have products to sell. Whether it’s influencers selling t-shirts, mugs, and other merch to support their streams or people like Jen Selter launching and selling their own line of workout gear the potential at this stage of OB is there. I will wait until the actual product is released before making any other commentary on it, as I want to understand how the end to end process works, who their approved streamers/sellers are, and what the sales are like.