Friday, September 30, 2022

Stop thinking about it, do it now

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Sabine Elsässer
Sabine Elsässer is founder and chief editor of the StartupValleyNews Magazine. She started her career at several international direct sale companys. Since 2007 she works main time as a journalist. While that time she learned more about the Startup Scene, what made her start her own Startup Magazine the StartupValleyNews.

Nexoya helps marketeers to optimally allocate their marketing budget across channels to achieve best performance results.

Please introduce yourself and your startup Nexoya to our readers!

We, that’s Manuel Dietrich and Marco Hochstrasser, founded Nexoya in Zurich back in 2018. Today, 23 amazing people belong to our team. Nexoya helps marketeers to optimally allocate their marketing budget across channels to achieve best performance results. We do this in a fully data privacy-compliant way and with predictive AI-algorithms to find the most interesting trend in the marketeers’ data. Nexoya reads millions of data points every day, from the number of sales, conversions and clicks to likes from each individual post or sessions on a landing page. Currently, we can take into account data from 36 integrations, ranging from social media platforms such as LinkedIn, Twitter, Facebook or Pinterest, to search engines such as Microsoft Ads or Google Ads, to customer systems/CRMs or exogenous factors such as weather data or exchange rates. 

Our platform reads and evaluates all the data of active marketing campaigns on a daily basis. These campaigns are grouped in a digital advertising portfolio. Based on the historical data and the specific configuration made for this portfolio – such as the available budget and the selected risk level a customer’s individual AI model is generated. This model predicts the trends and future results of the various campaigns and ads. For example, the expected conversions on the website, the cost-per-lead or the cost-per-click for entire campaigns and each individual ad.

From the predicted values, the AI model determines the best possible distribution of the advertising budget across all campaigns, ad sets or ads assigned to a specific multichannel portfolio. It does so on a regular basis – increasing overall performance up to 30 per cent and at the same time significantly decreasing effort for the marketeers, as the changes can be automatically applied and sent back to all publishers. 

How did you get the idea of Nexoya?

We both previously worked in the cloud industry and were looking to move from developing infrastructure at scale to building an effective application on top of the cloud. From the start, we wanted to build a SaaS and Machine-Learning/Artificial Intelligence startup. When we looked into the marketing technology space, we witnessed how people struggled with data analysis, interpretation, and especially data-driven actionability and automation. That was the moment we realized we’d be in the marketing field with our endeavor – we discovered “the problem” to solve.

Why did you decide to start with Nexoya?

We both already had entrepreneur experience in different areas and wanted to launch something from scratch. In combination with the obvious problems marketeers had and the ask for help we got when talking with them – we knew it is the right time to start it. We were able to create added value for these customers immediately which made it clear for us that this was the right thing to do.

What is the vision behind Nexoya?

We had the idea to help marketers get their data together and become data driven. In digital marketing, everybody has the data digitally available per definition – but rarely does someone take this data and make sense of it or even automatically drives conclusion with it, like changing budget allocations. When we presented the first prototypes to people, and they said „and when can I have that? “, we knew we were on to something.

How difficult was the start and which challenges you had to overcome?

Building a startup is a roller coaster ride; by its very nature, founders have to go through plenty of dark canyons and cross many chasms. We were particularly lucky to have our low points at different times, so one could always encourage the other. It is challenging to build something we built with all the market hurdles and challenges such as COVID, unstable market conditions or other aspects to hurt startups in the last couple of years. And in statistics, only 4% of all startups achieve €1M ARR, annual recurring revenue, after they were funded – so I am proud that we are coming there very fast.

A first and important milestone was the financing of our company. We knew we were on a very interesting path, but the fact that we were able to convince many investors and close our first investment round made us very proud. A second very moving moment was when we were able to prove for the first time that our AI-driven engine can dramatically improve the performance of cross-channel campaigns.

Who is your target audience?

We address digital marketers who are performance driven, invest in cross-channel advertising campaigns and want to change their way of doing budgeting and at the same time get significant better return on ad spend. 

What is the USP of your startup?

We grew up with large customers such as CSS or Generali, and that is why our platform and AI models are particularly strong in B2B lead generation and ecommerce areas with complex funnels. Our platform starts to make sense when you are spending €250’000 per year in advertising or more. Besides the unique value proposition, Nexoya is a no-bullshit company willing to add real value. We follow a high work ethic and very open and honest customer relationships.

Can you describe your typical workday?

As a founder there is no typical workday I believe – but we can try to summarize the most important points. Our day starts with alignments with the team, looking into product management and obviously –  we try to meet customers at a regular basis. Keeping a close loop with our customers on their challenges and problems and how we can help them best is pivotal even if you grow as a company. 

Where do you see yourself and your startup Nexoya in five years?

Helping performance marketers across Europe manage their marketing portfolio in the most transparent and efficient way possible. Our vision is a thriving and prosperous company that adds real value to marketing teams across Europe and beyond.

What 3 tips would you give to founders?

If you think about starting a startup – well, stop thinking about it, do it now. Quit your job and dedicate yourself to the problem you want to solve – 3 months in a startup are like one year in the corporate world, and you will not miss the experience.

People are everything, especially in the early stages. So, choose your partner(s) and employees wisely because they are your most important asset.

Build a tent next to your first customers office and sleep there, for a period. Sounds funny, but I think next time we will do that… Your first couple of customers are your entry point into the problem area you are solving – try to be as close to them as possible to understand what you want to solve and what not. 

More information you will find here

Thank you Manuel Dietrich and Marco Hochstrasser for the Interview

Statements of the author and the interviewee do not necessarily represent the editors and the publisher opinion again.

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