Focusing in on the what the CEO said about the new markets they are entering, this sounds more promising than I understood from my first read through,
In the quarter, Q2, we launched a pilot of our web advertising program. This allows – let’s talk about e-commerce first. This allows an e-commerce shop that has a website to buy on our in-app inventory, the 1 billion-plus daily active users we see in mobile gaming, a video advertisement and route that user to their shop and purchase that user in the same way that mobile gaming companies like purchasing users on our platform.
So doing it on a performance basis, and then we’re delivering that measurable revenue and result. This is brand-new. I’d say it’s been in pilot for a few months now.
Results are looking really promising, materially better than what we would have expected this early in our progression in trying to get into web advertising. So this product, we think, is something that we’re going to invest heavily behind, start scaling out and hopefully will show a material impact in '25 and beyond. And it is not limited to just e-commerce. It opens the door to advertising for any website of any type that wants to drive transactions that are measurable on a performance basis on our platform.
Now we do, do sit on 1 billion-plus daily active users. We’ve got one of the most sophisticated advertising platforms in the world, and we’re driving billions of dollars of performance value in gaming. There’s nothing about the technology we have that would disallow it from going outside of just mobile gaming, and we’re already seeing positive trends in that pilot. So as we start putting these pieces together and broaden out our platform over time, we’re really excited about how big the numbers could become.
Directly applicable to e-commerce is something that we’ve always hypothesized as possible. The models in Axon 2.0 are so much more sophisticated than technologies we’ve had in the past that they should enable success there. Now we’re in pilot and we’re seeing success there. So we’re at the point now where we know we put the pieces in place, and now it’s more of a go-to-market problem and less of a technology problem.
This does sound like a greenfield opportunity for AppLovin and they make it sound surprisingly simple to move the technology to adjacent markets because nothing restricts the ads to mobile gaming. Additionally, they mentioned none of this pilot, or any improvements in the model are baked into the future guides.