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.

About NetworkNewsWire

NetworkNewsWire (“NNW”) is a financial news and content distribution company, one of 50+ brands within the InvestorBrandNetwork (“IBN”), that provides: (1) access to a network of wire solutions via InvestorWire to reach all target markets, industries and demographics in the most effective manner possible; (2) article and editorial syndication to 5,000+ news outlets; (3) enhanced press release solutions to ensure maximum impact; (4) social media distribution via IBN millions of social media followers; and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience comprising investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 77948 (U.S. Mobile Phones Only)

For more information, please visit https://www.NetworkNewsWire.com

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com

NetworkNewsWire is part of the InvestorBrandNetwork

DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW undertakes no obligation to update such statements.

Snap (NYSE:SNAP)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Snap Charts.
Snap (NYSE:SNAP)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Snap Charts.