Advertising company: ”Our customers don’t like ads”

As its “customers don’t like ads,” Evite, an American online party planner, decided to just close its advertising business. This happens while other players on the market just get into it.

Customers don’t like ads as they hurt their experience

According to Davin Yeom, the CEO of the company, the ads were hurting the customer experience to such an extent that they just declined them. Because of the pandemic, as people stopped attending events, the company’s e-card business suffered a lot. As a result, Evite wanted to avoid annoying the remaining customers.

“Our users don’t like ads,” Yeom briefly said. Also, he explained that it was hard to grow and become an important player, as the space was dominated by tech giants. The CEO mentioned that when creating awesome invitations, the last thing they want would be their guests to see ads. So, they realized that annoying users would make them search for alternatives.

Four times less ads

The company’s ads business part went down from 80% two years ago, to 20%. And Evite is planing to exit it for good, this year.

In the beginning, almost 25 years agon, it was an entirely ad-based company. But two years ago, Yeom, previously a marketer of another business, bought it in 2020, with a group of private investors.

As a result of the decision to give up ads business, 50 people in the sales team were fired.

At this moment, the company makes most of its money from sales of card designs. Also, commissions that it gets for recommending party vendors and gifts bring part of the revenue. In order to strenghen its business, it has been investing in card designs.

Since 2019, the revenue incresed 73%, and without the constraint of advertisers in the US, it plands to expand globally soon.

The move seems to be against the trend. Many other companies involve in the ads business. Thus, they try to increase their profits. But for this, they use their data to help advertisers target consumers. This started happenning especially as an effect of the privacy changes from Apple and Google.

Still, according to Yeom, ads might be good, but companies should keep their customers and users in mind.

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