affle-business-model

Affle Business Model In A Nutshell

Affle is a global tech company that delivers targeted mobile advertising via a consumer intelligence platform. It was founded in Singapore by Anuj Khanna Sohum and Madhusudana Ramakrishna in 2005.

Affle has a significant presence in India as one of the only listed companies to be involved in mobile advertising and ad technology in the country.

Since only 25% of Indian internet users are shopping online, the company is well placed to attract new clients as more citizens move online.

However, Affle faces strong competition in international markets where players such as Facebook and Google are already established.

What is Affle’s business model?

The company utilizes user-intent indicators that are based on marketing attribution, certain behavioral signals, and transactional data.

It then predicts the particular interests of users based on insights from the information it collects and continuously updates this information to maintain consumer engagement.

For example, Affle works with eCommerce companies to serve relevant mobile ads and complete transactions.

The company also manages marketing campaigns based on intelligence from the data it collects.

Affle has worked with companies such as Amazon, Flipkart, BookMyShow, McDonald’s, Axis Bank, and Johnson & Johnson.

Aside from eCommerce, the company primarily operates in real estate, travel, and transportation and has even worked on governmental campaigns.

Revenue is earned on a cost per converted user (CPCU) basis, with the exact amount dependent on the total purchase price of a product or service and the customer acquisition model.

The company also earns revenue via advertising that generates engagement and awareness. 

Affle business model segmentation

According to Indian chartered accountant Harsh Mody, Affle’s business model can be segmented into four sub-models:

  1. The serving of ads on mobile devices to help companies attract new consumers.
  2. The use of tech tools to ensure existing customers are kept engaged and are more likely to make repeat purchases.
  3. An enterprise-only online-to-offline (O2O) platform, where a customer who leaves a digital footprint is served relevant advertisements about the offline presence of a brand to encourage them to purchase in a physical store.
  4. Further tools that help clients detect and block online advertisement fraud on a real-time basis. One such tool is mFaaS, a so-called fraud-analytics-as-a-service (FaaS) platform that helps marketers detect multiple types of ad fraud resulting from bots, devices, click spamming, and SDK spoofing. 

Key takeaways:

  • Affle is a global tech company that delivers targeted mobile advertising via a consumer intelligence platform. It was founded in Singapore by Anuj Khanna Sohum and Madhusudana Ramakrishna in 2005.
  • Affle’s core business model involves user-intent indicators that are based on marketing attribution, certain behavioral signals, and transactional data. Insights from this data are then used to serve relevant ads and increase user engagement and repeat purchases.
  • In addition to serving ads and keeping existing customers engaged, Affle offers an enterprise O2O platform where online users who leave a digital footprint are marketed offline and encouraged to purchase in a physical store. Affle also sells a fraud-analytics-as-a-service (FaaS) platform to help its clients reduce various types of ad fraud.

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