NEWS: DBMM in Right Space as Search & Social Media
Post# of 247
Marketwired Digital Brand Media & Marketing Group, Inc.
16 minutes ago
NEW YORK, NY and LOS ANGELES, CA and LONDON, UNITED KINGDOM--(Marketwired - Oct 30, 2015) - Digital Brand Media & Marketing Group, Inc. (OTC PINK: DBMM) is developing an outreach to new global investors who are knowledgeable of the digital landscape, as well as existing supporters. This is directed to share the seemingly relentless, upward trend of market sentiment, and where DBMM fits. Recently DBMM/Digital Clarity has signed several significant clients: an entertainment venue in the UK, a US asset-based investment management company, among others who understand a digital footprint is required to compete successfully in a consumer-oriented economy. Discussions begun last year with a major automotive company are taking new shape with a European campaign.
The recent IAB Internet Advertising Revenue Report released at the beginning of October, 2015, showed that half-yearly revenues totaled $27.5 billion, 9.5% higher than the same period in 2014. Mobile ad revenues were $8.2 billion or just under + 30%. Most significantly, the lion's share of this unprecedented growth was driven by Paid Search.
Reggie James, Co-Chief Operating Officer and Senior Vice-President Marketing & Communications, commented: "The survey conducted independently by PricewaterhouseCoopers continues to re-emphasize to both existing and prospective investors that DBMM remains an exciting investment opportunity as the Company looks to invest in its brand, Digital Clarity, with the only real barrier to dramatic growth being investment in the core business, supported by investors, to make a sizable acquisition. An acquisition will increase scale considerably, while increasing professional talent to service (new) clients. As a labor-intensive business, this is essential."
James added, "Digital Clarity has made considerable inroads in both Search and Social Media Channels as also highlighted in the Adobe Digital IQ Index (ADI) Report where two of the Company's core focus areas, Automotive and Retail markets, both expanded."
The ADI Report predicts the U.S. auto and retail industries will drive the most dollars in the digital advertising marketplace. The Automotive sector, in particular, is fueling revenue with CPC's (Cost-Per-Click) up 14% on better optimization of spending, as demonstrated through a healthy rise in CTRs (Click-Through-Rate), up 32%.
The Report also noted that revenue-per-visit (RPV) for traffic coming from social platforms is increasing across the board. Facebook still leads the group with the highest referred RPV followed by Pinterest. "What is interesting is how fast Reddit is closing the gap with the other social platforms, given the difficulties they have been facing of late," Roberts, an industry expert and report author, said. In fact, Reddit has almost caught up with Twitter.
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James concluded by saying, "Our business model is supported by industry growth and Company results. The IR outreach will seek like-minded investors who understand the power of digital marketing translated to client's increased ROI."
In the full industry context of dramatic expansion, there has been no direct correlation to DBMM's (increasing) revenues and its pps. Economic and industry analysts examine financial statements and have determined averages to be used as multiples in valuing a company. The multiple for digital media has increased annually according to research experts such as Forrester and PricewaterhouseCoopers. The manufacturing revenue multiple of 10x16 is low compared to 20x25 of digital media revenues. There are anomalies like Sapient who was acquired by Publicis last year for a multiple of 48. DBMM's revenues are public information and serve us well in discussions with prospective investors, clients and companies in whom we have an interest, but the Company expects the IR outreach program will bridge the pps shortfall.
In order to better position the mathematical market cap, DBMM has converted certain of its Preferred Shares to Common Shares. The resultant shares are restricted, can only be sold through Rule 144 and are held by long-term investors.
Additionally, the 10-K Annual Audit for the 2015 fiscal year is being prepared. Part of the process is to test whether the Company has sufficient authorized shares reserved for its outstanding debt, as well as provide sufficient support for organic growth and acquisition(s). Accordingly, the Company has raised its Authorized Shares to 200 Million for the 2016 fiscal year, 2% of its previous AS.
There is major expansion underway enabled by strong operating performance in 2015. Our new clients and those in the pipeline have made way for real progress. We look forward to 2016.
About Digital Brand Media & Marketing Group, Inc. (DBMM):
DBMM Group crafts, designs and executes digital marketing strategies across multiple ad platforms and social media networks for a broad array of clients to help each of them establish a uniform brand identity across the digital universe. The product offering is a unique value proposition of intelligent analytics provided by an experienced digital marketing and technology team.
Safe Harbor Provisions:
The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in DBMM's reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.
Contact:
Digital Brand Media & Marketing Group, Inc.
IR
info@dbmmgroup.com
TEL: +1 646 722 2706