Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Mirriad Advertising: Ad Industry Game Changer

By Edison Stock MarketsAug 12, 2021 13:05
Mirriad Advertising: Ad Industry Game Changer
By Edison   |  Aug 12, 2021 13:05
Saved. See Saved Items.
This article has already been saved in your Saved Items

Mirriad Advertising PLC (LON:MIRI) is shifting up a gear, with its AI-driven, in-content advertising gaining credibility with brands, agencies and platforms, helped by December’s £26m fund raise. A Tier 1 global content platform signed up in Q420 (subject to an NDA) and in June, Tencent (HK:0700) upgraded to a full commercial contract. A major global food and beverage company has been working with Mirriad to insert assets into content and has extended the co-operation. The offering is being positioned as an integral element of marketing budgets, with the additional prospect of ad insertion into live TV. We initiate forecasts showing scaling revenues and reducing EBITDA loss.

EPS Estimatea
EPS Estimatea

Share price performance

Share price performance
Share price performance

Business description

Mirriad generates new revenue for content producers and distributors by creating new advertising inventory in content. Its patented, AI and computer vision technology dynamically inserts products and innovative signage formats after content is produced. Its market-first solution seamlessly integrates with existing subscription and advertising models, and dramatically improves the viewer experience by limiting commercial interruptions. Mirriad operates in the US, Europe and China.

Activating the buyers

With the ever-growing challenges of reaching ad-avoiding audiences and with third-party cookies being withdrawn from FY23, brand owners are looking for more innovative solutions to engage with their target audiences. To take full advantage, Mirriad needs to integrate with a programmatic advertising ecosystem. Good progress is being made but there remain some elements to be added internally, via M&A or partnerships. Identification and monetisation of ad inventory (the ‘space’ where a product or ad can be appropriately inserted) must be seamless, scalable, and readily compatible with agencies’ working practices, especially for live (or near-live) content. Mirriad’s initial commercial breakthrough with Tencent provided proof of concept and copious efficacy data on core industry KPIs of brand recognition and purchase consideration. Broaching the US market is key and signing a global Tier 1 entertainment company looks to have been the bridgehead. The recent framework agreement with a major global food and beverage company after successful proof-of-concept trials steps up commercial credibility. Adding music video and, in time, live TV and sports gives brands the ability to target by audience and mood.

Modelling of campaigns and revenue share

We are now initiating forecasts, modelling revenues on assumptions on numbers of campaigns, campaign value and the proportion allocated to Mirriad under revenue-share arrangements, but caution that this stacking of assumptions means a wide range of possible outcomes. December’s £26.2m gross fund raise has given the resource to meet management’s ambition on scaling up both technology and sales.

Valuation: Discounting good revenue growth

Traditional multiples are helpful given the limited visibility. A reverse DCF suggests the current share price is factoring in FY23–30 revenue CAGR of 31%, assuming EBITDA margins reach 25% for that period (WACC: 10%, 2% terminal growth).

Investment summary

Company description: Contextually relevant ad insertion

Mirriad has developed and, crucially, protected the technologies and methodologies to digitally insert advertisements and products into linear and digital content, post-production (as opposed to traditional product placement, which is done at the time of filming) protected by a series of patents. This enables brands to reach audiences at scale, through a medium that consumers have been shown to like and which studies have shown increases impact. The group’s new scene-selector capability allows for automated identification of inventory, informed by context both physical and emotional, which will allow agencies and advertisers to select the most advantageous opportunities for their insertions. While the focus to date has been mostly in film and TV, music video is a clear extension with great potential. The next stage is built around the opportunity in live events. Accelerating towards the programmatic opportunity, Mirriad has developed a platform to give its customers live, on-screen visibility of the content’s audience, demographic and geographic reach potential.

Click on the PDF below to read the full report

Mirriad Advertising: Ad Industry Game Changer

Related Articles

Kseniia Medik
Top Pharma Stocks to Buy Now By Kseniia Medik - Oct 15, 2021

The stocks of the vaccine producers have gained a lot during 2021 due to the wide vaccination campaign around the world. Still, the COVID-19 pandemic is still not over as the virus...

Mirriad Advertising: Ad Industry Game Changer

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email