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.

Value PropositionAffle offers a compelling value proposition for its customers, including: – Mobile Marketing Solutions: Providing effective mobile marketing and advertising solutions. – Audience Engagement: Offering tools to engage and interact with target audiences. – Data-Driven Insights: Delivering data analytics and insights for informed marketing decisions. – Personalization: Tailoring marketing campaigns to individual user preferences. – App Monetization: Enabling app developers to monetize their mobile applications. – Global Reach: Serving clients and businesses across the globe. – Measurable Results: Promising measurable and results-driven marketing outcomes. – Cross-Channel Marketing: Facilitating marketing across various digital channels.
Core Products/ServicesAffle’s core products and services encompass: – Mobile Advertising: Providing mobile advertising and user acquisition solutions. – Consumer Platform: Operating a consumer intelligence platform for data-driven insights. – SDK Integration: Enabling app developers to integrate Affle’s SDK for ad monetization. – Data Analytics: Offering data analytics and insights for marketing optimization. – Audience Targeting: Helping businesses target specific audience segments effectively. – Cross-Channel Engagement: Facilitating marketing campaigns across multiple digital channels. – E-commerce Solutions: Offering solutions for e-commerce businesses to drive mobile commerce. – Brand Engagement: Engaging users through brand-specific mobile applications.
Customer SegmentsAffle serves a diverse range of customer segments, including: – Brands and Advertisers: Offering marketing solutions to promote products and services. – App Developers: Providing tools for app monetization and user acquisition. – E-commerce Businesses: Assisting e-commerce platforms in driving mobile commerce. – Digital Marketers: Catering to professionals and marketers seeking effective mobile advertising. – Publishers: Offering monetization opportunities to publishers through ad integration. – Data-Driven Enterprises: Providing data analytics and insights for informed decisions. – Global Reach: Extending services to clients and businesses worldwide. – Startups: Assisting startups in growing their user base through mobile marketing.
Revenue StreamsAffle generates revenue through various revenue streams: – Performance-Based Pricing: Earnings based on the performance and results of mobile advertising campaigns. – Data Analytics Services: Revenue from data analytics and insights services provided to clients. – App Monetization: Income from app developers who integrate Affle’s SDK for ad monetization. – Licensing and Subscription: Earnings from licensing and subscription-based models for software and services. – E-commerce Solutions: Revenue from e-commerce businesses using Affle’s solutions. – Data Partnerships: Earnings from partnerships involving data sharing and insights. – Consulting Services: Income from consulting services related to mobile marketing strategy. – Global Expansion: Potential revenue growth through expansion into new markets and regions.
Distribution StrategyAffle employs a strategic distribution strategy to reach customers: – Network Partners: Collaborating with a network of partners, publishers, and app developers. – Direct Sales: Engaging in direct sales efforts to acquire brand and advertiser clients. – Data Integration: Integrating with data providers and partners for enhanced insights. – Digital Channels: Utilizing digital marketing channels to promote its solutions. – Global Reach: Expanding services to clients and businesses across the globe. – Research and Development: Investing in R&D for product development and innovation. – Customer Support: Providing support and assistance to clients throughout their engagement. – Partnership Growth: Seeking strategic partnerships to expand reach and offerings.



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.

Distribution Strategy:

  • Online Advertising Platform: Affle primarily distributes its services through its online advertising platform. This platform connects advertisers with their target audience by utilizing user-intent indicators and behavioral signals to serve relevant mobile ads.
  • Global Reach: Affle operates globally, allowing it to reach advertisers and users worldwide. This global reach is essential for serving a diverse range of clients and campaigns.
  • Client Engagement: The company’s distribution strategy includes tools and services aimed at client engagement and customer retention. This involves keeping existing customers engaged and encouraging repeat advertising campaigns.
  • O2O Platform: Affle also offers an online-to-offline (O2O) platform, which targets online users and encourages them to make purchases in physical stores. This involves bridging the gap between digital marketing and in-store conversions.

Marketing Strategy:

  • Data-Driven Approach: Affle’s marketing strategy revolves around its data-driven approach. The company leverages user-intent indicators, behavioral data, and transactional information to provide targeted advertising solutions. The emphasis is on delivering personalized and relevant ads to users.
  • Client Partnerships: The company’s marketing efforts involve establishing and maintaining partnerships with clients. Affle collaborates with eCommerce companies, major brands, and other businesses to manage their advertising campaigns effectively.
  • Fraud Detection: Affle’s marketing strategy highlights its fraud detection capabilities. The company offers tools and services to help clients detect and combat various forms of online advertisement fraud. This is presented as a valuable aspect of the company’s offerings.
  • Online-to-Offline Promotion: Affle promotes its enterprise O2O platform as a means to bridge the gap between online and offline marketing. This strategy aims to attract businesses looking to drive in-store sales through digital advertising.

Organizational Structure:

  • Leadership: The company’s leadership is likely composed of its co-founders, Anuj Khanna Sohum and Madhusudana Ramakrishna. They provide strategic direction and oversee the company’s growth.
  • Management Teams: Affle may have dedicated management teams responsible for various aspects of the business. This includes teams for technology development, client relationships, fraud detection, and the O2O platform.
  • Data Analysts: Given the data-centric nature of the business, Affle employs data analysts and data scientists to extract valuable insights from user data. These insights drive the company’s targeting and ad placement strategies.
  • Sales and Partnerships: Teams focused on sales and client partnerships work to acquire new clients, maintain relationships with existing clients, and explore growth opportunities.
  • Technology and Development: The company’s technology and development teams are essential for maintaining and enhancing the online advertising platform. This includes software development, platform maintenance, and data analytics capabilities.
  • Customer Support: To provide excellent customer service, Affle likely has customer support teams available to assist clients with inquiries, campaign management, and technical support.
  • Fraud Detection Specialists: Given the emphasis on fraud detection, Affle employs specialists in ad fraud detection who continuously monitor and improve the company’s fraud prevention tools.

Key Highlights

  • Affle’s Overview: Affle is a global tech company established in Singapore in 2005. It specializes in targeted mobile advertising through its consumer intelligence platform.
  • Significant Presence in India: Affle is a prominent player in the Indian market, focusing on mobile advertising and ad technology. It benefits from India’s growing online user base, as only a quarter of internet users in the country shop online.
  • Business Model: Affle’s business model centers on utilizing user-intent indicators based on marketing attribution, behavioral signals, and transactional data. It predicts user interests and maintains engagement through continuous data updates.
  • Client Engagement and Transactions: Affle collaborates with eCommerce companies to deliver relevant mobile ads and facilitate transactions. It also manages marketing campaigns using insights derived from its data collection.
  • Prominent Partnerships: The company has partnered with significant brands like Amazon, Flipkart, McDonald’s, and more. It operates across sectors including eCommerce, real estate, travel, transportation, and governmental campaigns.
  • Revenue Streams: Affle earns revenue on a cost per converted user (CPCU) basis, which depends on purchase price and customer acquisition. The company also generates revenue through engagement and awareness-driven advertising.
  • Business Model Segmentation:
    • Serving ads to attract new consumers on mobile devices.
    • Tech tools for engaging existing customers and encouraging repeat purchases.
    • An enterprise online-to-offline (O2O) platform that targets online users to encourage in-store purchases.
    • Tools to detect and block online advertisement fraud, including the mFaaS platform for identifying various types of ad fraud in real time.
  • Competition and Growth: While Affle faces competition from established players like Facebook and Google in international markets, it has the advantage of being one of the few listed companies engaged in mobile advertising and ad technology in India. As India’s online population grows, Affle is positioned to attract new clients.

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