- Crowd Media is the world’s sole listed social commerce business leveraging social influencers globally
- It has evolved from a mobile performance company to a global social media house, where campaigns can be executed with local market knowledge & cultural expertise
- With last few months being productive, the Company has a robust outlook which defines “The New Crowd”
Crowd Media Holdings Limited (ASX:CM8) is a renowned global media and marketing company. CM8 is reportedly the only listed company in the world with an influencer social commerce market focus!
Crowd Media- “We are millennials”
A vertically integrated social media commerce business, Crowd sells a growing number of products and services. The Company’s network is bolstered by its partnerships with hundreds of mobile carriers internationally and few largest agencies, brands and media companies of the world.
Crowd has two divisions-
- Mobile division: built upon its Q&A and Subscription tech platforms to produce and deliver content, including apps, games, and music. This division operates in over 50 countries and 30 languages.
- Digital Marketing division: works with brands and digital influencers to deliver branded content primarily to the fast-growing Millennial and Gen Z markets. The division has worked with whopping 10k+ digital influencers worldwide.
Interestingly, Crowd is the only listed company in the world with an influencer social commerce market focus, leveraging social influencers internationally.
Over the past five years, Crowd has collaborated with more than 10k influencers across 30 countries and in more than ten languages. A millennial focussed enterprise, Crowd successfully acquired more than five million millennial customers just in the past five years. It deems millennial, it’s target customer, to be the “generation of me” who are transforming the Company.
Do you know that influencer marketing is growing rapidly? So much so that the estimated market by 2020 is projected to be worth USD 20 billion!
This is basically how influencer marketing works-
The influencer posts the story on their social media account, promoting CM8’s brands. The customer swipes up to the product page, lands on the Company’s mobile website and adds the product to their shopping cart. Revenue is generated and the customer avails easy check-out process with multiple payment options.
Besides this, it is understood that Crowd Media, the tech-based seller of exemplary products and services pays special attention to the needs of millennials, let us graze over a few facts-
Business Highlights of Past 6 Months
Earlier in February, Chairman Stephen Schapera stated that “Crowd has got its mojo back”. The past few months have validated the same.
For starters, the business is now profitable at an underlying EBITDA level for period January to June 2020. For more insight on this financial turnaround, PLEASE READ- How Crowd Media Accomplished Significant Financial Turnaround Across Months?
Besides this, Crowd established the operational platform (dedicated team, supply chain logistics) to launch brands consistent with its vision (Crowd’s strategic vision is discussed later in the article).
Moving on to recent highlights- Crowd launched three Direct to Consumer (D2C) brands in the last three months- KINN Living, London Labs and I Am Kamu. Moreover, the Company is all set to launch its first brand from the Vital Innovations portfolio in the next ten days.
It should be noted that Crowd’s recent target market has been Europe- with an overwhelming 400 million + digitally minded population. The exclusive and binding Marketing Services Agreement with VITAL will catalyse the strategic vision to sell exemplary products integral to the lives of European-based millennials on a D2C model. Moreover, the Company has deep experience in digital marketing to millennials in most European countries, across 12 different languages.
READ HERE for details on VITAL and Crowd Deal- Yet Another Milestone for Crowd Media: Exclusive Marketing Service Agreement with UK Firm
On the business front, sales have been building steadily and in line with the Company’s expectations. Crowd has also established a dedicated Amazon sales and marketing team. It will be launching two of its existing brands in the next five days.
Crowd’s 3 Horizon growth strategy
The Company’s strategic vision was outlined by Mr Schapera at the November 2019 AGM-
- Horizon 1, CY 2020- Crowd with a D2C focus aims to sell products and services that it owns, part owns or is strategically aligned to provide a gross margin between 70-75%.
- Horizon 2, CY 2021- The company intends to rely more on collaborations, partnerships, strategic alliances, D2C focus, initial focus on travel insurance and fintech space for more scalable sale of services
- Horizon 3, CY 2022- Crowd to launch a conversational “voice-and-visual” interactive digital media product with applications across various sectors. It plans to create an entertaining "conversational commerce" experience between consumer and influencer. For example, imagining Facetiming a virtual Lewis Hamilton or learning about the Battle of Trafalgar by Facetiming Napoleon- indeed the Holy Grail of influencer marketing!
In FY21, 6 D2C brands across mobile, web and Amazon platforms are likely to be launched. Moreover, the execution plan and progress for insuretch and fintech is already ahead of schedule, including necessary steps to acquire appropriate licences as part of Horizon 2 strategy.
Besides this, Crowd aims to combine its Q&A technology with technologies of its strategic partners, thus, completing the product development to meet Horizon 3 objectives.
At closing, we leave with an image of “The New Crowd”-
CM8 is currently on a trading halt and will commence normal trading on 23 June 2020. It last quoted $ 0.32 on 18 June 2020, up by 3.22 % relative to its last close.
(Note: All currency in AUD unless otherwise stated)