I like to walk. Okay. All right. My God. Okay. Can you hear me this way?
Yes.
All right. You'll tell me if my bouncing is interfering, but I bounce. So I'll try my best. Okay. Right. I was talking about cookie deprecation. So the issues that our clients are talking to us about are cookie deprecation, so cookies going away, privacy regulation within the EU with GDPR, and places like here in California with the CCPA, and many, many, many states around the nation which are passing their own sort of privacy regulation, preventing clients, brands, from seeing what's happening online. Another big problem are the walled gardens. So Amazon, Meta, Alphabet do not share their data with anybody else, which is why we call them the walled gardens. And as a result of all of this, clients have really limited ability to measure performance. The collection of these issues are what we call signal loss.
This is a huge problem for the digital marketplace, and Inuvo solves for signal loss, and the way that we do that is by using our AI. We have a large language model. It reads the open web. We organize all of that information into what's called a concept graph. Every single brand has its own concept graph. Every brand's concept graph comprises media concepts. A concept is just a unit of knowledge. That's all it is, and every concept is connected to every other concept. Some concepts have a much tighter connection than others, but there's a relationship, and we examine that relationship to build out our models, which informs how we buy media without having to rely on any of the traditional signals like cookies. Any questions so far? You're tracking? All right. Good.
Our approach, because we provide full visibility, cost savings, and we're privacy compliant, provides a lot of advantages to our clients. Like I had said before, we're not relying on cookies, and cookies, for many, many decades, was the infrastructure that built advertising online. Whenever you would go from a shopping cart to another web page and you'd be served an ad based on the products that you just put into your shopping cart, that's cookie tracking, and because all of that is going away. Our models also update in real time, so they update every five minutes. That's a really important factor. That's a really important feature because it shows that they are in real time, where we are portraying intent as it's happening online. That's a real advantage.
A lot of other companies which try to segment out audiences gather cookies together, and they don't present a real-time picture on what's happening. We do that. There's no additional costs to use our product. A lot of other companies will overlay different data costs to an online buy, making the buy very, very expensive. So there are lots of really great things that we can do that will allow for a much better product, better performance, better visibility. There are four parts to how we go to market. The first is that we create this concept graph. We build out these models. We match up brand concepts and media concepts, and then we activate those models in programmatic media channels. Of course, every single programmatic channel, whether it's OLV, online video, connected TV, OTT, over the top, native display, so on and so forth. It's this easy.
This is sort of an illustration of what our models look like. We had a client that had an EV product, and we were able to tell them that we could find about 70 million, I mean, 70-100 million impressions at any given time, representing about 4-5 million people showing intent on a given day. These are daily impressions and daily reach. This is an indication of how well we can do targeting online. We did the same thing for a luxury traveler, a company that was packaging or marketing luxury travel experiences. Same thing. I mean, 60 million impressions, 2-3 million individual people that we can find and target in real time. There's some real influence and power with the kinds of models that we can activate.
We also provide for every one of our customers a dashboard that presents to them who their audience is, who we're targeting, where their audience lives, what kinds of concepts are most relevant to their audience, and we do this without having to rely on cookies or any other data from our customers, and every customer gets this kind of dashboard, which for them is terrific because it's a lot of insights that they can use for a lot of other marketing programs like creative. There are two ways to activate our models. One is through managed services, where we buy the media for our clients, and the other is through self-service, where we give our clients some instructions in the form of what's called a Deal ID, and they can go activate the models themselves.
Different clients are interested in managed services, and other clients are interested in self-service, which I'll explain in just a second. This is a really big marketing opportunity for us. There's $80 billion that are currently spent in Search, mostly with Meta. There's $100 billion that's currently being spent. I'm sorry, I said that wrong. Social is with Meta. Search is with Alphabet. And then there's programmatic, which is the open web. And that's a $200 billion market. And that's the market that we operate in. Our managed services clients are typically mid-size agencies that lack the skills and the talent to buy the media themselves. They're interested in our solutions for all the reasons that I've talked about, but they lack the people to activate those models for them. That's managed services. That's typically a mid-size agency. Did I do that? There we go. Okay.
And then there's self-service, which is a new product that we rolled out about five or six months ago. This product is targeted specifically towards larger agencies and clients. These clients are typically holding companies. There are six major holding companies: IPG, Omnicom, Havas, WPP, and so on. These big companies represent about 80% of all global media. Most of that is in digital. Half of that is in programmatic. These are the companies that are really interested in our self-service product. And these companies are introducing us to brands that we never would have spoken to before because they wouldn't have been interested in having us buy the media for them. So now we have two big products targeting managed and self that allow us to cover the entire ecosystem within the advertising space. Here are some of our clients. You'll recognize many of these brands.
Our product is used across lots and lots of verticals. Lots of times, clients will say to us or investors will say to us, "Do you have a specialization?" The answer is no. Our product, our models can be used against anybody who's investing in programmatic media, regardless of the size and regardless of the sector. When our clients compare us to other people who do similar things, they tell us that we beat performance on average 67% of the time against competition, better than our competition by 67%. That's enormous, which is why we have really terrific retention. We beat our competition's performance, leading to much higher retention rates. Our financial performance has been pretty good, quarter over quarter, year-over-year. Compounded quarterly growth right now is at 5.5%. That's since Q3 2022. We have cash. We have no debt.
And we have a $10 million borrowing facility. So we like to say we have a very healthy balance sheet. So we believe that we compete in a marketplace worth $200 billion that is being incredibly disrupted by all the problems you've been reading about regarding digital media, namely cookie deprecation and privacy regulation and walled gardens. Our product is a solution to combat all of those problems. We have proven performance when measured against our competition, resulting in high renewal rates. Our self-service product is giving us growth, and we envision that to be a really important product for us next year. And we can deliver, of course, all digital channels available in programmatic media, again, whether it's video or display. So I'm Barry. This is Alicia. We're here to answer any questions. And thank you. That's it. That's my pitch. Any questions? Yes, over there.
So why is your SG&A increased so much over the last year or two? And you expect that to return to a quarter-level reaching profitability rate?
Yeah. So our SG&A increased because we have put investments in stability on our capital pile. We've been working incrementally year after year, and so we couldn't fund into that. But year-over-year, our SG&A costs have gone down as of Q2. And then we're reporting Q3 soon, and you'll see that we're continuing a trend to lower those costs as well.
How high?
Okay.
How high?
Probability?
Okay. And you forecast return to profitability anytime soon anymore?
Yeah. So our cash flow profitability is around the $100 million level. And with our continued growth, we're hopeful that we can achieve those levels in the near future.
We're very excited about next year.
How about the 12-month profit margin? And when you drive that down, you give yourself $10 million.
You might as well ask more questions because there's absolutely no food outside for anybody to eat.
Are any of you currently investing in the AI ad tech space?
Oh, yeah. Yes.
Year over year, maybe 20%.
What excites you about the space?
I just think, let's say, it's a growing market every year, and there's a lot more people relying on everything we do is on research. So all of the market that we've found are on there. We capture ads that other sources of media will diminish, but this is going to be the source of all of it. And you see things, and you're adding those ads coming in. It's going to be growing just as fast.
Do you see?
I was going to ask him because we've just met.
Right now, I mean, we know each other, but we just had a meeting. We haven't had a meeting. How do you see Inuvo playing in that space?
We allow the need to grow. I think your AI technology is helping better your competition because there's a race for that. And whenever there's a new industry with 50 people in technology, five of them work, five get bought out, and the other 30-40 don't make it. So hopefully, you guys are one of the ones that will stay ahead of the game and be technologically developing key AIs and products that other people want to use.
Yeah. So when our advertisers ask us that question, "So how are you different?" one of the things that we talk about, and I probably could have gone deeper into this in the specific value slide, but because we don't rely on any cookies, we're not polluting our models with any other third-party data. Our models are built entirely by using the concept graph, right? So we're reading the open web, looking for these patterns, and that gives us instructions for how we buy our media. A lot of our competition takes a lot of other data, other third-party data, and appends their models with that third-party data. We think that that's a legacy approach that won't work as signal loss continues to increase, which is why we like to think of ourselves as future-proof. So for us, our approach, which is patented, by the way, is a real advantage.
Client-grade tech.
Yeah.
Can you talk about how you've been working with current techs?
Yeah. So this has come up a lot today. There's something really interesting within the advertising space, which is that everybody is a frenemy, which is a term that Martin Sorrell used to describe Google many, many years ago. Martin Sorrell was the CEO of WPP, the largest media buyer in the world. We are all frenemies. So The Trade Desk is a partner, by that I mean we have clients that have seats on The Trade Desk, so they can transact on The Trade Desk, and they can take our models to help direct what media they buy on The Trade Desk. The Trade Desk is also a competitor because they offer managed services to some of their clients. We also offer managed services.
So we've had agencies or we've had brands tell us, "We use The Trade Desk for managed services, so we don't need to use you." But then I've had other clients say to me, "We buy on The Trade Desk ourselves. We'd love to use your models to help inform how we buy." So they are both a competitor and a partner.
In Inuvo?
Yes.
Yes.
What's the research outcome to see what it is in terms of getting potential customers to choose you over other managed?
Yeah. So our biggest challenge is getting meetings. That is the absolute biggest challenge. The second thing I don't worry so much about because once I get a meeting, I usually get a text. It's getting a meeting that's my problem. And so the way that I'm combating that is I will be in Chicago on Halloween, hosting a Halloween event with one of my salespeople at a big agency in Chicago, and I will be dressed as the Flash.
So you're saying that you're getting meetings?
Yes.
You're supposed to be so you would have a high success rate after getting a meeting?
Yes. Yeah. We have a very high success rate getting meetings, especially for clients who are using our self-service product because there's no minimum investments that you need to put against those models, so it really is worth it to the clients to test a new customer acquisition approach in a new sector, which is AI, which still has a real sex appeal to it for a lot of these agencies.
Behind your table?
Yeah. Can I see your hand go up over here?
Yeah.
Any other questions?
Do you get more of that?
Yeah.
Do you have a number to that percentage rate?
About 97% of clients we retain. In the fourth quarter of this year, it was actually really higher. It was over 100% retention rate because it was a nice book. Any other questions? If any of you have any relationships outside of this room that involve media budgets, I would love it if you were introducing me to your relationships because we are always looking to meet new potential customers. If there are no other questions, I will give you five minutes now. Thank you.
Thank you.