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7 that adding Atemi would bring instant expertise .
“ The paid media segment requires a considerable amount of relevant data and an excellent platform to make the best decisions swiftly ,” the analysts wrote . “ The pay-per-click ( PPC ) business is highly competitive and has significantly lower margins than for Better Collective ’ s other operations .
“ However , Atemi Group is one of the largest paid media companies focusing on online gambling and should therefore have a competitive advantage . The paid media segment will also help Better Collective to test new markets with minimal investments before making larger investments in those markets with the right conditions .”
As detailed in the analysis of Better Collective later in this report , it also brings instant scale . Redeye estimates paid media will now represent circa 45 % of Better Collective ’ s revenues going forward .
SCALE MATTERS
Analysts Redeye dismissed the fact that paid media is inevitably lower margin . “ We believe there should be substantial synergy opportunities , such as improving the commission fees on smaller markets and lower admin expenses ,” the analysts wrote . “ It is a low-margin business , but we argue that Better Collective should be able to improve the EBITDA margin with a couple of percentage points .”
There was also “ large potential ” with the untapped markets of the US and Germany . “ We believe that Atemi Group has strong growth potential in 2021 as Google has opened for AdWords in the US and likely will open for AdWords in Germany .”
Yet paid media is clearly not
January 2021