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A sincere interest to provide fundamentally strong, undervalued affordable stocks and opportunity to investors within the oil/gas sector. Over ten years experience as a financial analyst and a proven track record of finding/sharing undervalued companies with the fundamentals to support a price... More
  • Mobile Marketing: Finding Tomorrow's Winner 0 comments
    Feb 4, 2014 5:16 AM | about stocks: FB, GOOG, LNKD, KEEKF-OLD, TWTR, YHOO

    Mobile advertising is quickly becoming a must for any business large or small and there is no greater indicator of that than Facebook's (NASDAQ:FB) recent earnings announcement.

    Facebook reported revenues of over $7 billion dollars, with $1.5 billion of that directly from mobile for year ending December 31, 2013. Impressive as that is, it does not take into consideration the fact that mobile advertising now accounts for more than 50% of total revenue - an astounding increase of 400% from Q4 2012. Mobile ad revenue in the last quarter alone was far greater than all revenue in any prior year.

    Facebook is not alone in seeing increased mobile ad revenue.

    In December 2012, eMarketer predicted global mobile ad spending would hit $7.19 billion in 2013 and steadily increase from there.

    Comparing mobile to more traditional forms of advertising it may seem like a drop in the bucket with TV around $195 billion annually and $110 billion or so on print, however it is quickly closing the gap on the estimated $32 billion spent on radio advertising.

    Twitter (NYSE:TWTR) will release earnings later this week providing more fuel to the growing mobile revenue fire.

    Right now the social media sector is one of the hottest sectors in the market to invest. Within the last couple of years, Facebook has made its debut and has risen from lows below $20 per share to a recent all time high of $63.37. Twitter continues to amaze following Facebook to a new high of $65.37 even without profits. Google (NASDAQ:GOOG), Linkedn (NYSE:LNKD), Yahoo (NASDAQ:YHOO) and Tumblr are all seeing mass increases in mobile app revenues as the market realizes that not only do more and more people have mobile phones, but those people are spending more time on those phones than on their desktop computers. As always, it's important to share your message and promote your products where the people are captive to your message.

    These are all great companies and the stalwarts of the social media space, although maybe a little overpriced at the moment.

    The key then, is to find tomorrow's winner - today.

    Of course we hear about Snapchat, Tumblr and various other upstarts that may be capitalizing on the advertising dollars flowing into the mobile app space, the problem is, they continue to be private companies and are therefore not available to average retail investors.

    There is however, one social media company that will not only be capitalizing on these very advertising dollars, but will also be making its initial public offering debut in a rather non-traditional fashion within the next couple of months - KEEK.

    KEEK is a mobile application that allows users to create a 36 second video accompanied by 111 characters of text and share it via Facebook, Twitter, Tumblr or its very own platform. The application is available for iPhone, Android, Blackberry and Windows Phone

    The beauty of this application, aside from its current 60 million users (and growing) is the marketing potential. With Facebook, Twitter, Google etc., already capitalizing on the mobile advertising using static type ads, this takes the marketing opportunity to a whole new level putting it more on par with television type marketing. The opportunities are limitless with the ability to combine 36 seconds of video accompanied by 111 characters of text. There is no question that KEEK will become a very large player in the mobile marketing space either as a standalone as it currently is, or as a tool advertisers use to create content to share via Facebook, Twitter and various other sources.

    At the moment, KEEK is a private company, however, due to a reverse takeover currently in the works, it is expected to make its public debut on or around March 31, 2014. You can however take advantage of this in advance through the publicly traded takeover partner - Primary Petroleum (PETEF).

    Yes, you read that correctly, an oil and gas company will be merging with a social media company to provide the public access. You can read more about the transaction at my instablog, 2014: Year of the KEEK

    As 2014 progresses one thing is sure, the naysayers of social media being a viable, profitable business model are quickly revamping their story. Although some still argue that the social media space is a bubble, companies like Facebook are proving that not only are they a viable, profitable business in their own right, they are spearheading the changes in the way people communicate and share with each other as well as the manner in which business is being done.

    Disclosure: I am long PETEF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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