RLX - Digitalbox CEO James Carter discusses 2023 challenges and strategies for growth
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Digitalbox PLC (AIM:DBOX) CEO James Cartertells Proactive's Stephen Gunnion that 2023 marked the fifthconsecutive year of profitability for the company despite facingsignificant challenges.
Carter saidDigitalbox encountered difficulties due to audience loss from keyplatform changes, particularly by Meta and Facebook, and was impactedby the broader economic downturn affecting the UK and global admarkets. Despite these setbacks, the team addressed key platformissues, enhancing audience engagement for its primary brands,Entertainment Daily and The Tab, in the fourth quarter.
Strategic acquisitions, including TV Guideand a substantial social media following through a deal with MediaChain, have contributed positively, with notable audience growth andcontent amplification.
The global admarket remained subdued throughout 2023, with Digitalbox observing aflat ad market and a decrease in the programmatic digital market by 10to 20%. Moving into the first quarter of 2024, the company has seenencouraging performance, although the ad market challenges persist.Carter highlighted Digitalbox's resilience and growth in such amarket, especially with The Tab increasing its average session valuesby 25%.
He also discussed theongoing adjustments with Facebook and Google's algorithms,impacting traffic and content distribution. Specific updates fromGoogle and policy enforcement by Facebook have presented hurdles, butDigitalbox has managed to navigate these changes successfully.
The acquisition of media assets from MediaChain has allowed Digitalbox to reach younger demographics andsignificantly increase audience sizes for Entertainment Daily and TheTab.
Looking ahead, Digitalbox isfocused on further developing its proprietary ad stack, Graphene,exploring new acquisition opportunities, and ensuring its brandportfolio is well-positioned to handle future platform changes.
With £1.9 million in cash at the end of 2023, Carter said thecompany is prepared to leverage opportunities presented by the currenteconomic climate.
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