Anyone who has operated an online platform knows how difficult it is to attract users. Advertising costs keep rising, and users we painstakingly acquire quickly leave.
We faced the same dilemma initially: “How can we acquire highly loyal users while spending less on advertising?”
Then we realized something: **focusing solely on online doesn’t provide the answer.**
Common Pitfalls of Online Platforms
Most online services experience similar problems.
To attract users, you have to run ads, and as advertising costs rise, the cost per click (CAC) keeps climbing. Even if you painstakingly acquire users, they can simply delete an app and be gone. Their loyalty is low, so next month you’ll have to run ads again. It’s a vicious cycle.
VCs know this too. They ask, “You have traffic, but when will you make money?” It’s a difficult question to answer.
The Alternative Path We Found
Spotable thought differently: **What if we started offline?**
Making People Come to Us Directly
When we operate pop-up stores in overseas locations, passersby naturally come in. They see the sign, smell the food, and enter out of curiosity. Advertising costs? Almost none. Our physical presence itself acts as marketing.
When we introduce the Spotable app here, users voluntarily sign up. Because these are people who have directly experienced and enjoyed our offerings, their loyalty is on a different level.
Growing Together with Local Partners
We’re not the only ones promoting. The brands participating in the pop-up and our local partners also attract customers through their own networks. They bring their customers, saying, “A new Korean restaurant has opened!” It’s a synergistic structure.
A Business Earning from the Real Economy
This is the most crucial part. Over 90% of Spotable’s revenue comes from the real economy: pop-up operations, logistics, food ingredient sourcing, and tour programs. Online is merely a tool to connect these elements.
Our structure fundamentally differs from platforms that rely solely on advertising revenue. Since goods are actually sold and services are provided, our revenue is stable.
How the Virtuous Cycle Works
Let me paint a picture for you.
**Online**, we gather information on pop-up stores worldwide. Users express interest, saying, “I want to visit this pop-up,” and AI helps them plan their itineraries.
Interested users visit the **offline** pop-up stores. They experience it firsthand, leave reviews, and post photos on social media.
This data then returns **online**. Information like “which menu items were popular” and “which age groups visited most” accumulates. Brands use this data to formulate their next strategy, and the platform can provide more accurate recommendations.
As this cycle continues, a structure is created where **users grow, data accumulates, and revenue is generated.**
So, What’s the Difference?
| Existing Platforms | Spotable |
|---|---|
| User acquisition via advertising | Organic offline influx |
| Traffic-based value | Tangible assets + data value |
| Uncertain revenue model | Clear cash flow |
How about we help K-Food brands expand globally using this approach?
Inquiries: customer@spotable.kr
#O2OStrategy #PlatformBusiness #KFoodGlobal #StartupGrowthStrategy