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Mobivity Could Revolutionize Local Advertising

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Mobivity Could Revolutionize Local Advertising 

By Ken Nagy, CFA

Mobivity (OTC Markets:) is a developer of marketing solutions and platforms for mobile devices. The Company provides a suite of services and technologies that enables brands, enterprises, marketers, and content owners to engage consumers via their mobile phone and other smart devices. Mobivity’s solutions remove the complexity of interactive electronic communications with consumers through its suite of services and technologies. The growth of smartphones along with the strength in the US restaurant industry should create a tail wind for the firm. Mobile technology is in the sweet spot of $136 billion local advertising market and poised to take market share.

Response rates for text messages are far above their traditional media counterparts.

  • 95% of text messages received are read by the recipient.
  • Approximately 90% of text messages received are read within 6 minutes of receipt of message.


Local Advertising

The current local advertising market stands at approximately $136 billion. Much of it local advertising is antiquated and in the form of yellow pages, newspaper inserts, TV or Radio. These advertising platforms are losing their effectiveness. The cell phone stands to revolutionize this industry because Cell phones travel with you. Your phone can be served with geographically relevant ads wherever you are.

Taking a shot at Projections

Today Mobivity has approximately 5,000 clients paying an average of $1,000.00 per year. The business model is a recurring revenue model that has scale. So when the firm signs a franchise deal it’s possible to sign as many as 3500 individual stores at one time, such as in the case of Sonic . If there are 500,000 viable places to eat in the United States and over time the company can get a 20% penetration rate that could translate to $100 Million in revenue.


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