Hello @d0zer!
My feedback will relate more to the business development and digital ad sales revenue model.
As I see it, business development will need to grow as the # of users continues to grow. Where and how will the gathered data (steps count, groups management, etc.) be stored? Will there be a need for additional employees, data servers, physical space? These are added costs to the business as it grows. Data security is also tantamount, which I'm sure will have added costs.
Projecting the costs of this build-out vs. the projected digital ad revenue will greatly assist your profitability projections. And if you're trying to attract investors, they will want to know this info (or at least have the confidence that YOU know this).
As for generating digital ad sales revenue, I believe THIS will prove your most significant challenge to the revenue model. My opinion is based on the experience of trying to generate buyers of ad space to place their banner/video ads on a website with EXCELLENT content but relatively small recognition (average 30k views p/day).
I contacted 275 companies, organizations with the goal of slicing a small portion of their ad spend to come DIRECTLY to this website.
You see, the first challenge was to motivate the ad buyers to change their placements routine away from the large algorithms (FB, Google, etc) and come direct to us. The second challenge was trying to SELL the notion that "the eyeballs will come," or in your app's case, that the users will come.
This is a very tough, two-pronged, selling challenge!
I hope my commentary has proved helpful. I wish you the greatest success. Your passion will carry you a long way...this has been my experience as an entrepreneur.
Peace and smiles
You gave me a lot to think about!
I like how you write about the challengers that are involved because these are also in my mind all the time. How to attract ad buyers or companies when there are no users yet? Like you said this will be very hard. Do you have some advice on how to interact with ad buyers? Is there a specific strategy I could use?
Thank you for your feedback. I very much appreciate it! (sending 2 shares)
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My digital ad sales experience occurred in 2017. My job involved 100s of cold calls via phone & emails.
The first challenge was creating a list of contact names of ad buyers (the decision makers) at the numerous organizations I contacted. The next step was trying to establish a line of communication with these ad buyers.
Remember, these folks are shielded by their inbox & voicemail, so it's easier said than done!
Another option available to you is to offload the responsibility to the major algorithm distributors, namely Facebook and Google. The problem here, though, is that they hoover up much of the generated revenue, and pay you pennies per impression.
But it does get you started, and the tracking technology that the algorithms provide can be useful for targeting new users of your app.
Bottom line, my experience tells me that cold calling ad buyers at the companies and organizations who place ads is a very challenging way to go. It may become easier once your app is popular, but attracting them to an ad spend on an unproven app will be tough.
The technology behind digital ad distribution is constantly evolving. My next suggestion is to gain as much knowledge of the future direction of digital advertising, which will greatly assist you in deciding how to proceed.
Best success to you!
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