September 16, 2021 -- InvestorsHub NewsWire -- via NetworkNewsWire
Editorial Coverage: The evolution of media and advertising
dates back to ancient societies carving on rock. Ironically,
carving on a rock is probably about as effective today as an email
blast, which was all the rage only a few years ago. Hard to fathom
where digital media and advertising will be in another 5,000 years,
but safe to say that future innovations will continue to build upon
technologies evolving today. The industry moves so fast based upon
consumer trends that steadily cross inflection points and determine
the history of modern digital media. It is clear that the new era
of digital media will redefine how brands connect with consumers,
as innovation pushes the boundaries in digital media strategies to
make advertising personal and native like nothing seen before.
Email marketing is dead and taking static banner ads with it,
replaced by more intelligent and fluid technologies supported by
artificial intelligence. This next generation of digital media is
being spearheaded by companies such as DGTL Holdings
Inc. (TSX.V: DGTL)
(OTCQB:
DGTHF) (Profile) with its strategy to build a
digital media conglomerate in the categories of social, mobile,
gaming and streaming. DGTL has begun with a comprehensive software
solution platform in the social category complete with innovative
content, measurement and distribution solutions, alongside
engagement and communication tools and the technology designed
specifically for identifying the most-efficient strategies.
Companies know that consumers are ultra-savvy and intolerant of
meaningless ads, which is driving business to DGTL. Other savvy
companies, including Constellation
Software (TSX: CSU)
(OTC:
CNSWF), Magnite Inc. (NASDAQ:
MGNI), ESE
Entertainment Inc. (TSX.V:
ESE) and LOGIQ Inc. (OTCQX:
LGIQ), are seeing opportunities for growth and
evolution in their respective industries, often acquiring or
partnering with others to stay on the leading edge of
innovation.
- DGTL is working to complete acquisition of Engagement Labs,
which is modeled to add C$3.5–$4 million to DGTL revenue.
- DGTL Holdings and Spaceback have partnered for the world’s
first certified social influencer advertising platform, converting
content to web ads for any screen format.
- DGTL acquired CaaS provider Hashoff in 2020 at 2x revenue, saw
sales expand 71%.
- DGTL Holdings has completed the latest version of Hashoff 2.0,
positioning the company to target video ads on apps such as TikTok,
YouTube and Snapchat.
Click here to view the custom infographic of
the DGTL Holdings Inc. editorial.
An Acquisition at 0.5x Sales
DGTL
Holdings Inc. (TSX.V: DGTL)
(OTCQB:
DGTHF) had already established itself as a premier digital
media software portfolio company focused on Content-as-a-Service
(“CaaS”) and is now in the process of completing the acquisition of
Engagement Labs (“EL”), which will give DGTL ownership of Total
Social, Engagement Labs’ fully commercialized social media
analytics software. Total Social is essentially the only AI-driven
platform that provides a total online and offline diagnostic of an
enterprise level social media ecosystem.
DGTL has a history of savvy acquisitions, and EL certainly
qualifies in that category, expected to add C$3.5-$4.0 million in
annual revenue to DGTL at a purchase price of C$1.7 million, or
0.5x sales. This is particularly impressive considering DGTL has a
market cap currently around C$11 million. DGTL founder John
Belfontaine recently
called Total Social “a perfect complementary asset to our
existing social media CMS software, Hashoff” as TotalSocials
analytics platform validates how effective Hashoffs campaigns are,
and Hashoff provides a stable of global brand customers for Total
Social.
The strategic acquisition also marries perfectly with DGTL’s new
partnership with Spaceback and the launch of
Hashoff 2.0, which puts DGTL on the leading edge of video-based
social media markets. The next-generation video technology is a
significant development for DGTL insomuch that it presents the
opportunity for clients to seamless identify and succinctly target
users of popular video applications globally, including the wildly
popular TikTok and SnapChat, which could be the gateway to billions
of consumers. The benefits are bidirectional, meaning that adding
video platforms further expands the population of social media
influencers, which the company can add to its marketing arsenal by
more than one billion monthly active users.
These solutions position DGTL at the forefront of the emerging
mobile/social media environment. When integrated, the company
should have one of the most comprehensive packages for both the
marketing technology (martech) and digital media industries. The
corporate acquisition strategy aligns with broader market trends as
indicated in a Goldman
Sachs note, which reported that so far this year 29 SPACs have
raised $73 billion in proceeds, up a stunning 462% from the same
period in 2020 and outpacing traditional IPOs by $6 billion.
Brand Names Equal Growing Revenue
As is often commonplace in the ad market, DGTL, Hashoff and
Engagement Labs can’t disclose every client’s name for competitive
reasons. Still, investors can put together the puzzle to figure out
who some are. For example, DGTL didn’t spell out the name of one of
its newest clients in a press
release in April, but it didn’t take a gumshoe to
understand it was alcohol-purveying juggernaut Suntory Beam. Other
times, however, as when DGTL announced a major Asian
airline as new client, the picture is opaque, although it
is likely safe to say that it is a big company considering the
named $200,000 contract.
Specific names are great, but only if they translate to sales,
and DGTL’s portfolio clearly does. During fiscal Q3
ended February 28, 2021, DGTL reported C$1.25 in revenue, a
jump of 68% from Q3 fiscal 2020. That followed a 70% year-over-year
rise in revenue during the second quarter to C$1.25 million. During
the first nine months of the fiscal year, DGTL booked C$3.67
million in sales, which is fodder for analysis of the market cap
and the incoming sales with the Engagement Labs acquisition.
A Word on Hashoff
As mentioned, DGTL’s business acumen shows through in deal
structure. For instance, the Hashoff acquisition in January 2020
for just two times revenue included stipulations that Hashoff sales
must rise from C$3 million to C$10 million in order to receive 100%
of the stock and cash promised as part of the C$6 negotiated
valuation, or else the purchase price is subject to clawbacks.
Management has a knack for incentivizing the target company, while
building and protecting value for DGTL shareholders.
Hashoff allows brands worldwide to identify, optimize, engage,
manage and track top-ranked digital content publishers for
localized brand marketing campaigns. The company works with brands
of all sizes, offering its package a la carte to represent campaign
size, inclusive of more than 150 million freelance influencers that
hold the key to consumer’s attention no matter what or where any
product or service is being offered.
Want to sell lime beer in San Francisco or flip flops in Miami?
Hashoff has the database of influencers to find the most likely
customers. That explains why the likes of DraftKings, Door Dash,
Veritone, Anheuser Busch-InBev, PepsiCo., Nestle, Post Holdings,
Danone and Keurig-Dr. Pepper, Ulta Beauty, Pizza Hut, Live Nation,
the CW, Scribd, and Novartis, to name a few, have run campaigns
with Hashoff.
The First to Market — and a Big Market It
Is
DGTL is a trendsetter as the inventor of a new social media
marketing category. Called “social influencer advertising” and
“content-to-commerce,” DGTL’s CMS is the first of its kind that
quickly and efficiently converts social media content into web
advertisements. This technology can turn the DSP banner ad market
on its side and command ad dollars in multiple verticals, such as
digital out of home (“DOOH”), signage and broadcast television.
The scale of this market opportunity is difficult to completely
comprehend. Global Industry Analysts estimate the global digital
advertising and marketing size at $350 billion in 2020 and more
than doubling to $786.2
billion by 2026. Drivers include an accelerated shift to
digital advertising brought on by the coronavirus pandemic that
forced companies to either explore the digital space for the first
time or dedicate more resources to the space to try and reach
stay-at-home consumers.
In every facet of technology, investors are looking to get in
front of the next hot trend. Social display ads look to represent
this type of opportunity. According to Spaceback,
which specializes in bridging the gap between social and paid
media, these new ads are “authentic recreations of social media
posts configured to deliver in traditional banner placements,
supporting programmatic campaign goals (awareness, prospecting,
direct response).” Pioneering the market, Spaceback is working on
the first certified content creators for social display ads.
New Ways of Getting in Front of Consumers
DGTL is the new kid on the block focused on disrupting the
space, but DGTL is by no means alone. Companies big and small are
looking for the latest technologies to establish a presence in a
wide range of markets. That is best accomplished by progressive
companies making the most of the latest tech. As it goes, the
market is ripe for consolidation as savvy companies acquire or
partner up to maintain a competitive edge.
Constellation
Software (TSX: CSU)
(OTC:
CNSWF) is an international provider of
market-leading software and services to a number of industries,
both in the public and private sectors. In the past six
months, the company announced the completed
sale of FICO’s Collection and Recovery business to
Constellation’s Jonas Software operating group, a leading provider
of enterprise management software solutions, as well
as the
acquisition of SSP Limited by Volaris Group, a CSU
subsidiary; SSP Limited is a leading global supplier of technology
systems and software for the property and casualty insurance
industry.
Magnite
Inc. (NASDAQ:
MGNI), the largest independent sell-side advertising
platform, last month launched the first-of-its-kind performance marketplace through
a partnership with Quigley-Simpson. Magnite’s robust platform is
optimized for long-form video and supports high-quality advertising
and viewing experiences. With more than one-third of U.S.
households no longer reachable through traditional TV in the
next few years, Magnite’s CTV looks to play a fundamental role in
advertisers’ media plans.
ESE
Entertainment Inc. (TSX.V:
ESE) is a Europe-based entertainment and
technology company focused on gaming and esports. The company
just completed
the acquisition of 100% of the shares of Auto Simulation
Limited T/A Digital Motorsports, an Ireland-based provider of
advanced simulation racing infrastructure, technology and support.
“Closing this deal catapults our digital motorsports business to a
new level, providing us with an industry leading ecommerce
platform, new technologies, global tier 1 partnerships and
additional esports infrastructure,” said ESE CEO Konrad Wasiela.
“The synergies are clear, and our vision to become the #1 global
brand for esports in the Motorsports industry remains”.
LOGIQ
Inc. (OTCQX:
LGIQ), a global provider of award-winning e-commerce
and fintech solutions, has partnered
with GumGum, a global media and contextual intelligence
company, to provide e-commerce marketers a powerful targeting
solution for their digital advertising campaigns. GumGum will offer
its contextual intelligence solution, Verity(TM) through
the Logiq Digital Marketing(TM) platform. This combination
creates a powerful solution that scans the entirety of a digital
media environment, providing a precise understanding of the overall
context through text, imagery, audio and video.
Technology is a key factor in evolution, whether in advertising
or any other industry. As long as technology grows and advances, so
will the services and products offered by companies committed to
being leaders in their fields.
For more information about DGTL Holdings Inc. (TSX.V: DGTL)
(OTCQB:
DGTHF), please visit DGTL
Holdings 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.
SOURCE: NetworkNewsWire
Editorial Coverage
DGTL (TSXV:DGTL)
Historical Stock Chart
From Nov 2024 to Dec 2024
DGTL (TSXV:DGTL)
Historical Stock Chart
From Dec 2023 to Dec 2024
