Can This Alternative Marketing Company Set a New Standard?

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Imagine you lost 40% on your investment in one day. Not a pleasant thought, is it?

That’s exactly what happened to Ooh Media! Ltd [ASX: OML] investors last month.

This came after the company downgraded its full year earnings.

The company blamed a drop in ad spending on roadside billboards.

Will the stock come back? I’m not so sure…advertising is changing.

Online advertising now dwarfs print advertising.

Facebook and Google carve up the advertising dollars of companies all over the world.

There’s a clue here. Internet advertising is where the big dollars are, and most browsing is done by smartphone.

There are two emerging trends which could force businesses to think differently.

The first one is driverless cars. The second is the global use of ad blockers.

I’ll touch on the driverless cars first…

I said the other day that, in my opinion, billboard advertising looks almost over.

Callum pushed back and said people aren’t looking at their phones while they’re on the road.

Right now they’re not.

But as we transition from manual driving to autonomous driving, where do you think your attention will be?

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It’s called Level 5 Autonomous driving

You’d be crazy to think that fully autonomous cars aren’t coming in the near future.

In fact, it’s now a globally accepted. It’s called Level 5 Full Automation. It’s on the SAE International Index under J3016.

These cars won’t have pedals, nor a steering wheel…

You could even say the driver will be removed from even needing to look at the road ahead.

If that’s the case, where will their attention be? I certainly won’t be watching for oncoming billboards.

My time could be better spent mapping out my travel plans for the day.

Ding, a local business I frequent has a sale on for members. It was sent directly to my phone…my car asks if I’d like to reroute by the store on the way home later today…

You get my point, right? Of course, the scene above was completely fictitious. But don’t count it out.

The second trend that is already global, is the use of ad blocking software. You may already use this.

Today, 47% of all internet users use an ad blocker on both mobile and desktops.

That’s an incredibly high percentage of users. It’s also another reason why companies need to start thinking differently about how they advertise to their customers.

There’s a new company who’s at the forefront of this trend.

They intend on sending ads directly to your mobile. In the same fashion you receive an SMS.

Intrigued? I hope so!

The company just raised $5 million listing on the ASX.

I like to keep an eye on new floats. Often, this allows you to get onto a stock story early…

A share for the watchlist

Let me give you a brief introduction to the company…

AppsVillage Australia [ASX:APV] calls itself a technology acquisition company.

The company has an agreement in place to acquire AppsVillage Ltd. That’s an Israeli marketing company.

Things can get a touch confusing here. AppsVillage Australia is the holding company, while AppVillage Ltd is the operating company they’re buying.

AppsVillage’s pitch is that they help small to medium sized businesses develop their own app.

It’s very simple to use, according to AppsVillage. In just a few seconds your business Facebook page is transformed into an app that can be downloaded on both Google and Apple app stores.

This way they can directly advertise to their customers.

They pay a monthly subscription fee to AppsVillage for this.

Now, let’s envision what this may look like. Let’s say you own a nail salon and you wanted to run a promotion for a buy one, get one free service.

You have a few options. You can take it to print media and wait several weeks for the results…

Create a Facebook ad campaign and pay high fees…

Or finally, target your current customer base via Facebook and get instant feedback on your promotion.

Well, the third option is a real case scenario where a nail salon generated $1,000 within an hour of sending a promotion to their current customer base.

OK, it may take some time for this to become the new norm, but if executed correctly, it could drive more loyalty and increase consumer spending.

And it’s these kinds of developments that I really think can pave a new way in direct response marketing.

AppsVillage could carve out a lucrative niche here.

If they execute things correctly, perhaps it could just be the Afterpay of the marketing world.

Keeping all this in mind, AppsVillage is a stock I suggest putting on your watchlist. Remember, it just came to the market, so it’s an idea to consider and follow.

This is not a recommendation to buy or sell APV. It is simply an update. I hope you find it useful.

Until next time,

Jonathan Evans Signature

Jonathan Evans,
Analyst, Profit Watch

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