CrowdGather (CRWG): Building an Online Community Empire
CrowdGather Inc. (OTCBB: CRWG), a leading developer and operator of online forum-based communities that combines social media and content to compete alongside companies ranging from LinkedIn Corporation (NASDAQ: LNKD) and IAC Interactive Corp (NASDAQ: IACI). And with the popularity of these communities taking off, this could mean a big opportunity.
For example, every single minute, 320 new Twitter accounts are created, 98,000 new tweets are sent, 100 new LinkedIn accounts are created, 13,000 hours of music are streamed on Pandora, 50 WordPress blogs are created, 1,500 blog posts are made, 100 questions are asked on Ask.com, and more than 20,000 new posts are made on Tumblr.
However, online forums are unique in that they are communities of people discussing specific products, services or even brands. For instance, the company’s ZuneBoards.com discusses Microsoft’s Zune MP3 player and related accessories. This audience is many times more likely to do things like recommend purchases and post reviews, according to Zack’s Research.
CrowdGather Builds Value via Acquisitions
CrowdGather has leveraged its infrastructure, software and services to synergistically acquire more than 81 properties and 599 domain names covering a wide variety of market verticals. Through its ADISN digital media agency, the company aggregates these acquisitions into key verticals and offers advertisers measureable rich media solutions.
Currently, the company’s network generates between 220 to 225 million monthly page views and 16 to 18 million monthly unique visitors, according to its latest 10-Q filing. Additionally, approximately 16 million users have registered on their network sites to date with 28 million discussions comprising over 350 million individual replies.
These metrics make CrowdGather extremely valuable relative to many recent social media initial public offerings and private companies. For instance, Pandora Media Inc. (NASDAQ: P) – a provider of streaming and social music services – had just 29 million active users as of January 31, 2011 with a market capitalization of around $2 billion.
Ad Platform Could Unlock Significant Value
CrowdGather is developing an integrated ad server that it hopes will generate significant revenues from what they consider a minimally monetized component of their business – their hosted forums. With hundreds of thousands of forums hosted on its Yuku.com, FreeForums.org, Forumer.com and LeFora.com properties, this could make a large impact.
The integrated ad server could also help the company transform itself into a platform play serving third-party forums. Internet users are increasingly using these forums to ask questions, write reviews, or simply interact with others on a particular topic.
The company plans to demonstrate this value, in part, by marketing its Erox fragrance that was co-developed with Human Pheromone Sciences Inc. (OTCBB: EROX). According to CEO Sanjay Sabnani, “The development, marketing and launch of Erox marks the first social media product launch for CrowdGather, a business model we intend to pursue going forward.”
A Great Investment Opportunity
CrowdGather represents a great investment opportunity in the underappreciated online forum industry. With a market capitalization of just $7.27 million, the company is dramatically undervalued compared to its social media peers, especially when considering its rapid growth and near-term monetization strategies.
For more information on CrowdGather, please see the following resources:
CONTACT: 888-288-5215 · Please read our Full Disclaimer pertaining to this article.
Request a Detailed Report on CrowdGather Inc. (CRWG)