- Crowd’s focus is on selling exemplary products that are integral to the lives of its millennial audience
- Recently, enhancing its position amid millennials, Crowd has collaborated with KINN Living to sell exemplary products integral to the lives of European-based millennials on a Direct to Consumer model
- The Company remains optimistic of its future, and as per Chairman Steven Schapera, has many exciting opportunities ahead
A digitally native enterprise, Crowd Media Holdings Limited (ASX:CM8) has continued to grow into a lithe, lean, and nimble business operated by not corporate managers, but efficient and enthusiastic entrepreneurs. Even amid the coronavirus market turmoil, the Company has continued to identify opportunities, develop strategies to secure them, and is confident of an effective execution with vision, capital, and passion.
Let us cast an eye on the humble beginnings of this global media and marketing company versus its tech-savvy stance today-
Crowd Media’s Brief History & Current Offering
Formerly known as Crowd Mobile Limited before changing the name a couple of years back, the Company was co-founded by Mr Domenic Carosa, current CEO and Executive Director over a decade ago, with the initial focus on digital and mobile media. The business was set up on a unique model- users asking experts questions with each question charging a certain amount.
Over time, the metamorphosed from a mobile performance company to a global social media house with campaigns executed with local market knowledge and cultural expertise.
Today, CM8 is a global digital media Company, considered a pioneer in influencer and social media marketing with two divisions-
- Crowd Mobile- Mobile products, billing & subscription
Operates one of the largest Q&A entertainment and technology services globally that is aided by Artificial Intelligence and provision of mobile content (games, applications, music etc.) to millions of consumers
- Crowd Media- Global influencer marketing
Crowd Media reaches millions of social media consumers via social media channels and social influencers using proprietary technology platforms and an experienced team that helps provide creative solutions for clients, managing over 250 social media marketing campaigns every month
Crowd Media’s Millennial Spotlight
Crowd’s in-house products have a focus predominantly on Gen Z and Millennial audiences. So much so, the Company believes that millennial audience marketing through mobile is its DNA and understands the global millennial generation.
Millennials are globally turning into the largest demographic with over 80 million just in the US. Last year, CM8 projected that the clan might even outnumber baby boomers in the near-term. Millennial dynamics are global macro trends: urban, increased purchasing power and digital natives.
Let us break this down-
The concept of social media and millennial seems mutually inclusive- a rapidly entering workforce with soared purchasing power, millennials are known to spend long periods (as long as 5 hours each day) on social media. Moreover, social media platform users are likely to grow from 2.46 billion in 2017 to 3.02 billion in 2021. Additionally, Crowd Media offering focusses on digital celebrities who have vast following of the millennial consumers.
Given that traditional advertising does not fit the current trend and that influencer marketing is a rapidly growing industry with an estimated market of USD 20 billion, CM8’s Crowd Mobile division has been selling on social media in more than 50 markets successfully over past 7 years- executing campaigns, reaching and commercializing more than 200k unique customers monthly.
Crowd Media’s Focus
Crowd’s team has a global presence with local cultural expertise. The Company has already well tapped the rapidly growing industry of influencer marketing and has been taking every opportunity that validates the scalability of social media marketing, helping provide creative solutions for brand clients that include Loreal, Nescafe, Braun, Foreo and Coty, to name a few.
With the shift in focus from mobile to web and social media, the Company has been aiming to earn a bigger share of the retail ecommerce price pie. Instead of being a fee-earning agency for big brands, Crowd aims to earn a larger slice of the retail sale proceeds of brands that it is strategically aligned with.
Crowd continues to deliver globally competitive social media and digital influencer campaigns, while generating material revenues with a strong year-on-year growth. Recently, the Board reported that the Company has recorded another positive result at the underlying EBITDA level for April 2020 post January, February, and March, with positive operational position for the year to date with $13.6 million in revenue and a small profit of $0.1 million in underlying EBITDA, despite the substantial downturn in operative economies, owing to COVID-19.
CM8 quoted $ 0.027 at market close on 3 June 2020. The stock has delivered YTD returns of 47.37 %.
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