1001 Startup Ideas - Social Media ads based on real time data

What is the Startup idea?This week's 1001 Startup Idea is to create a business that will use the real-time data to relay advertisements across social media channels. This company will provide a social media management tool and a platform which can be used to manage social media advertisement. The platform will use an algorithm to relay the advertisement across social media platforms based on key data points. For example, a company can relay advertisement for clothing based on real-time weather conditions.

Market DefinitionSocial media has taken the world by business by storm and brands are leveraging its power. Some interesting facts and numbers in relation to social media advertisement are given below:

• According to statista.com, in 2015, the advertising revenue of social networks worldwide amounted to 25.14 billion U.S. dollars and is projected to grow to 41 billion U.S. dollars in 2017.
• Hootsuite.com states that Social media spending in the U.S. alone is expected an increase to $17.34 billion in 2019.
• Hootsuite.com also states that in 2017, analysts predicted a 26.3% global increase in spending for social media ads
• Statista.com has estimated that the number of worldwide social media users will reach 2.5 billion by 2018.
• According to the CMO survey, the share of marketing budgets spent on social media is expected to more than double over the next five years, from 11% today to 24% by 2020.
• The CMO survey also found out that 22% of social media marketing activities are performed by outside agencies.

Competitor AnalysisThere are various platforms which provide either social media management tool or provide the social media advertisement platform but we have not come across an entity which combines the both. Driftrock is a platform which provides services on the similar lines but it does not have a social media management tool. Similarly, Hootsuite is a social media management tool but does not provide customisable services to relay advertisement based on real time data.

Pain Point & Target AudienceThe target audience for this venture will be "businesses looking to advertise on social media". The advertisements that are relayed on social media are relayed without any data points and reach its audiences even at times when they may not be interested in such products which are being advertised. There are very few platforms or companies which are able to advertise or relay advertisement on social media platforms based on any data points.

Value PropositionThe startup will offer a platform which will relay the advertisements based on real time data. It will relay the information to social media users based on certain key metrics of significance showing the need for such products. For example, a clothing company can advertise winter clothes based on low temperatures in a region or a company can advertise products based on new trending fashion or discussion on social media.