Thursday, September 20, 2012

How Google, Facebook, and Yahoo-Bing Are Helping Micro Cap Companies & Stocks

Google Inc. is expected to surpass rival Facebook Inc. in selling online "display" advertisements in the U.S. this year, according to a new estimate by research firm eMarketer Inc, as reported by the Wall Street Journal Thursday September 20, 2012.  This healthy competition in online advertising has many benefits for the micro cap company looking to promote their business as-well as Investor Relations firms looking to promote company s' stock tickers and S.E.C. releases.

Search vs. Display: What Are They? 

As WebitMD explains: In Google Adwords, there are two primary “venues” on which you can display ads, the first being Google Search, the second being the Google Display Network (GDN).

Google Search and their search partners, such as search.aol.com, allow the display of text ads along with organic results (unpaid) that are triggered by keywords. You type in a keyword or phrase, Google displays the most relevant ads. When you click on the ad, the advertiser is charged based on an auction price and you are re-directed to the advertiser’s website.

GDN on the other hand are “contextually” targeted ads based on content, interests, or topics. Publishers of content use Google Adsense as the vehicle for displaying ads. In addition, Google uses your demographic data and interests to display ads you might be interested in.

So if, for example, you are reading an article about Tiger Woods skipping the US Open and see an ad for the new Nike 20XI golf ball, the ad is there. Nike recognizes that, if you are reading an article on golfchannel.com, you probably have an interest in Golf. So you might buy golf balls.

On the other hand, if you are reading an article on nytimes.com, you might see the same Nike 20XI Golf ball ad. Most likely, this ad was displayed because your Ad Preferences indicate “Golf” as an interest.

How Do Micro Cap Companies and Start-up Firms Take Advantage?

MicroCapCompany.COM: There are a few ways smaller companies are taking advantage of Online advertising. (1) Playing all the giants: Google, Facebook, and Bing-Yahoo (2) Setting budgets that match what a micro cap firm can afford and (3) Promoting stock to create liquidity and share volume for capital fundraisers.

  1. As reported in the Wall Street Journal, Google is expected to generate net display-ad revenue of $2.31 Billion this year, which equates to 15.4% of the total U.S. market.  Facebook which runs in second place is expected to generate $2.16 Billion this year or 14.4% of the total market share.  The ability to utilize all platforms can give a small company advertising on the same foot as large-cap firms for a fraction of the cost.
  2. Advertising online allows users and companies to set budgets and timeline when they want their ads to appear.  If you put a $50 a day budget in place, then once you have received $50 worth of clicks to your website or ad, your ads will not display anymore.  This allows micro cap companies to project advertising expenses and monitor how and what they spend marketing dollars on.  
  3. Investor Relations firms that traditionally issued press releases and set up road shows for OTC companies are now turning to online solutions to bring awareness to otherwise unknown public and over-the-counter traded firms.  An IR firm can now have an ad show up when someone on the Internet searches "micro cap company" or "penny stock", providing for more efficient IR services (source: Cervitude Investor Relations)
While the systems are still being built and perfected with companies like DoubleClick AdExchange be acquired by Google, the wealth of oppurtunity is being taken advantage by the smarter micro cap Inc.

The MicroCapCompany Team
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About the Author: Nicholas Coriano, JD is an Entrepreneur &  Business Consultant.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations.  Learn more about him here. He is the author of Rules For Entrepreneurship available now on Amazon.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations (a micro cap investor relations firm) and offers compensated research reports and business plan writing services for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email CervitudeNetwork@gmail.com, If you would like to advertise on The Blog, click here.  

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