July 27, 2021 -- InvestorsHub NewsWire -- NetworkNewsWire
Editorial Coverage: The $150-billion global advertising
industry is looking for answers during a shakeup that has cable
television charting a course emblematic of the Golden Age of Radio
a century ago. Owing to the confluence of cord cutters, DVRs
allowing people to skip commercials and an off-year for elections
among other things, local TV ad revenue has been sinking in 2021.
Now more than ever, brands are forced to keenly monitor marketing
trends and adjust strategies that increasingly point toward digital
solutions to reach consumers. Working with content creators and
influencers, those people (and things) on social media with a large
or specific group of followers that can be swayed into purchases by
compelling messaging, appears to be particularly effective. By now,
most people are aware of marketing via a personality, such as Kim
Kardashian who can influence her followers to try a particular
product. While that still has its place, the market is far more
evolved and sophisticated today, with companies such
as Clubhouse Media Group Inc. (OTC: CMGR) (Profile) aggregating an impressive
collection of influencers and content creators with hundreds of
millions of followers and combining that community with technology
as a platform for collaboration and creation. That type of dynamic
is a win-win for advertisers and the world’s most popular social
media apps and sites, including Facebook Inc. (NASDAQ:
FB), Pinterest Inc. Class A (NYSE:
PINS), Snap
Inc. Class A (NYSE: SNAP) and Twitter Inc. (NYSE: TWTR).
- Brands are forecast to spend up to $15 billion on influencer
marketing in 2022.
- Clubhouse Media Group operates a global network of four
professionally run content houses, each with more than 50 content
creators and a global network reach of more than 400 million
followers.
- Clubhouse has also developed Magiclytics, a platform that
analyzes social media campaigns, streamlines the process of
identifying influencers and designs budgets for social media
spend.
- Clubhouse recently signed a joint services agreement with Rick
Ware Racing, one of the most accomplished and recognized racing
teams in the world, currently running an Indycar and NASCAR team
with former winning Formula 1 driver Romain Grosjean.
Click here to view the custom infographic of
the Clubhouse Media Group editorial.
$15 Billion in Influencer Marketing Spend
The reality is that ads and commercials have become a nuisance
that most people circumvent at every opportunity. Pew Research
Center’s analysis of BIA Advisory service shows
expectations for a 19% decline to $14.9 billion in local TV ad
revenue in 2021. Online pay-per-click banners are heading towards
extinction, as people have learned to look past them or simply
click out of a site that makes them too intrusive.
Searching for quantifiable returns on investment, brands are
turning to social media influencers and high tech that optimizes
marketing efforts by using machine learning, artificial
intelligence and other next-generation technology. Somewhere in the
mix of influencers and technologies resides the next great thing in
advertising: ultra-targeted marketing utilizing the full spectrum
of influencers – including kidfluencers, nano-influencers and even
computer-generated influencers – to reach the desired demographic,
no matter how big or how specific. There’s good money in it too, as
evidenced by a Business Insider market report estimating companies
will spend up to
$15 billion on influencer marketing in 2022. Take note
that is parity with over-the-air TV ad revenue. Times have
changed.
Clubhouse Media Group Inc. (OTC:
CMGR) represents the future of influencer media
and marketing, with a global network of four professional-run
content houses, each with more than 50 content creators. Every
content house has its own brand, influencer cohort and production
capabilities. The comprehensive portfolio includes management,
production and deal-making services to its hand-selected
influencers. Clubhouse also has a management unit specifically for
individual influencer clients and an investment arm for M&A or
investment activity specific to the social media influencer
markets.
The flagship content house is Clubhouse Beverly Hills, a
12,000-square-foot gated house in the famed L.A. suburb that is
occupied by a select group of content creators and full-service
production team living and working together 24/7. Other content
houses include Clubhouse Europe, DanceDome LA, Dobre House,
WeHeartFans and Doiyan. With superstars such as Lindsay Brewer,
dubbed the Future of Indy Car, as content creator,
the reach of the
Clubhouse portfolio attracts content creators and brands
alike.
The network has more than 400 million followers in total and has
delivered more than 1.5 billion monthly social impressions. The
company defines its total followers as a sum of all followers
across all social platforms, whether Clubhouse influencers or
corporate-owned social media accounts. The majority of
Clubhouse-related followers (~290 million) are on the wildly
popular video platform TikTok, followed by 51.7 million on
Instagram, 56 million on YouTube, 2.6 million on Snapchat and 2
million on Twitter.
It’s Magic(lytics)
Clubhouse derives revenue by taking a percentage of brand deals
its affiliated creators make content for; the sale of proprietary
content of its creators; and data analytics, one of the most
important components of effective marketing. Clubhouse has
developed and acquired software, data analytics and predictive
analysis tools. Branded Magiclytics, these tools are the backbone
of a platform that analyzes social media campaigns, streamlines the
process of identifying influencers and designs budgets for social
media spend.
The prescient Magiclytics output is the product of proprietary
algorithms using machine learning, artificial intelligence,
historical data and ad campaigns. Companies come looking for data,
and influencers or influencers take the data to brands to
demonstrate why they are a perfect fit to reach consumers that will
be interested in their goods.
Star Power
Launching a new product with star power behind it can be a
billion-dollar opportunity. Just ask Kylie Jenner,
who sold 51% of
Kylie Cosmetics for $600 million to Coty in 2019, or Kim
Kardashian, who sold 20% of her KKW Beauty to Coty in January for
$200 million. Clubhouse is using the same playbook, working towards
the development of its own brands.
When it does, CMGR has some star power onboard of its own. In
addition to Lindsay Brewer, professional wrestler/influencer
Taynara Conti, the internet phenom the Dobre Brothers, and other
famous celebrities work in tandem with Clubhouse. The company’s
advisory board is another type of demonstration of networking and
reach, comprised of a partner from VC fund A16Z and a top media
exec who was general manager at PBS, former managing director at
BBC Worldwide America, former president of Viacom Productions, and
former executive vice president of Primetime at NBC
Entertainment.
More Racing Traction
The star lineup got bigger this month when
Clubhouse signed a
joint services agreement with Rick Ware Racing (“RWR”),
one of the most accomplished and recognized racing teams in the
world. The new accord is three-pronged to also include FinTekk
along with RWR, a professional motorsports racing and marketing
company providing services specifically focused on the NASCAR Cup
Series, NASCAR Xfinity Series, the IndyCar Racing Series, and the
IMSA Sports Car Championship Series.
Clubhouse will receive logo placement on RWR vehicles in both
NASCAR and IndyCar events, to include Formula 1/IndyCar superstar
Romain Grosjean and IMSA Asia Le Mans champion Cody Ware and other
drivers in the RWR roster. FinTekk will provide Clubhouse with
marketing and branding consulting services utilizing the RWR racing
platform and promote Clubhouse as the primary brand for NASCAR
events involving RWR. Broadly, the companies will collaborate to
promote each other’s brands through social media and digital
platforms and expansive fan bases through 11 scheduled race events
running from July 18 – September 26, 2021.
If You Build It. . .
Advertising through social media is simply the name of the game
today and for the foreseeable future. It is with good reason that
the social media juggernauts have made impressive runs in the last
year-and-a-half to be trading at or near all-time highs: supply and
demand. If consumers are going to stay in high demand, as they
always are, suppliers – those companies that bring them in droves –
will too.
Facebook Inc. (NASDAQ: FB) had
about 2.85 billion
monthly active users as of the first quarter of 2021, a
mind-bending 36% of the world’s population. That traffic translates
to advertising revenue, which is the bulk of the money that
Facebook makes. During the first quarter, ad revenue surged 46%
from the year prior quarter to $25.44 billion. Profits nearly
doubled year-over-year to $9.5 billion, or $3.30 per share.
Pinterest Inc. Class A (NYSE:
PINS) reported 478 million
active users worldwide during the first quarter, a truly
impressive number dulled a bit by following Facebook’s stats.
Market cap keeps things in perspective, where the multifunctional
visual search engine or Pinterest has a market cap around $45
billion compared to the $1 trillion of its bigger counterpart.
During Q1 PINS monthly active users grew 30%, while revenue
improved 78% to $485 million.
Snap
Inc. Class A (NYSE: SNAP), the owner of the popular
picture sharing and chat app appropriately named SnapChat, is another channel that keeps
attracting more people. Back in Q1 2014, Snap claimed 46 million
global daily active users. In the first quarter this year, that
number reached 280 million, up 15 million from Q4 2020. Revenue
beat Wall Street estimates, coming in at $770 million for the
quarter, a sharp gain from $462.5 million in the year earlier
period.
Twitter Inc. (NYSE: TWTR) aligns
with the best of them too, trumpeting 478 million users during the
first quarter this year, up from 367 million in Q1
2020. Twitter posted revenue of $1.04 billion for Q1
2021, which was up 28% from $808 million a year prior. In a signal
of it advertising prowess, ad revenue was up 32% to $899 million.
The company also swung to a profit of $68 million, reversing a loss
of $8.4 million a year earlier.
Advertising has always been a highly competitive marketplace.
The coronavirus pandemic likely made it even more so, but it also
merely accelerated trends towards digital methodologies that were
already accumulating. Coming out of the pandemic, consumer habits
are forever changed, which bodes well for companies with a deep
presence and those with leading edge technologies to match brand to
consumer.
For more information about Clubhouse Media Group, please
visit Clubhouse Media Group Inc.
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