Advertiser Average Market Cap - Approaching $1 Billion
A fact regarding our network is that most of our advertisers are small companies with market capitalizations of under $100 million. Our content talks about large companies, but not a lot of them advertise with us. Some companies, like Nevada Copper and Colossus Minerals, have grown over the years they have been with us, but they were smaller when they started with us. We have recently had companies like Orbite Aluminea, Lucara Diamond, Quest Rare Minerals and IC Potash join the ranks, bringing up the average. It’s a trend we expect will continue. However, we had an advertiser join last week that has pushed the average close to the $1 billion mark, all by themselves. We are frequently approached by ad networks offering to sell our ad inventory to their network of advertisers. However, we have focused on direct sales, believing it brings more value to everyone (advertiser, investor and ourselves). But when Nikesh Desia from InvestingChannel called, I took the call. We worked with InvestingChannel two years ago. Rather than working with them to sell our inventory of display ads, we did a “co-registration” deal. What this meant was that after an investor signed up for one of our newsletters, they would be presented with offers to sign up for other things. These could be newspaper subscriptions or financial/investing offers and we received a cut of the revenue. Unfortunately there was not a lot of uptake on these offers. However, in the process we learned more about what our investors were looking for and refined our funnel. The result was more investors subscribing to our newsletters. Nikesh had a new offer for me. He had a specific request from one of his clients that had to go on Gold Investing News. That client is SPDR Gold Shares (GLD), the largest gold ETF by far. While we still needed to serve our existing advertisers, I knew this was a deal we had to do. So we have carved some inventory out and we are serving GLD ads. GLD is the largest physically backed gold ETF in the world. It started trading on the NYSE in 2004 and now also trades on the Singapore, Hong Kong and Tokyo stock exchanges. According to their web site on October 17, 2012, they had 1,333.89 tonnes of gold in trust. That’s 42,885,878.49 ounces. Their market cap is somewhere in the $70 billion neighborhood. We started running the GLD ads on Gold Investing News last week. They were very happy and within days requested to go across our network. So while the median market cap for our clients hasn’t changed much, the average has spiked as a result. It’s a trend we hope will continue.