Friday’s Ann raises some very exciting points for those that wanted to know more about the revenue stream for this business.
It is not enough for this app to be ranked within the top 70 apps in the US and top 50 in Australia. Downloads they say is not enough. The reason downloads are important is to do with
“eyeballs on the screen”. Why is this important? When approaching advertisers, the advertisers are concerned with the total number of users they can
reach and how engaged they are.
Friday’s Ann shows that not only is MSM engaging in a highly effective Marketing Campaign (including highly visible PR by Usher and other Social Media Influencers), they have even accounted for
performers being paid to get on the app. Why? Because these performers have a following. And if they have loyal fans that will support them, they will follow them onto the app and vote for them (i.e. be engaged). So by paying to have performers on this app, you are essentially paying for users to be engaged with the app.
There was an article posted by
@Swelly that pointed to a
potential 5 billion user reach resulting from the influence of all these touchpoints – Organic and Paid search campaign, PR, Paid Social Media influencers and paid user acquisition (paid performers to join megastar). Link here: https:/finfeed.com/technology/msm/msm-expand-social-media-reach-5-billion-followers/20170410/
So, in terms of revenue they will have:
- Paid user/performer subscription ($10 per month)
- In app purchases of ‘Gifts’ to performers via ‘Gems’.
- Advertising (think how profitable inapp advertising was to Zygna and Pandora etc – both founders/executives involved in this business to maximise the revenue from this channel) – projected to be $57.7 billion next year!
- Sponsorship
- Possible royalties/management fees etc from discovering talent on the platform and taking management of the performer to thrust them onto the world stage
- And possible licensing deals in the future
They also alluded to
more products being released in their Ann on 4 Oct:
Considering the reviews on the app stores have been fantastic except for some younger wannabe performers like below, could this be the next product?
Megastar kids version?
There are so many reasons to get excited about this business, but the most exciting is the potential for current and future revenue along with the fact that all innovative entertainment companies have had massive growth and launched
multi-billion-dollar revenue streams from the associated business. Think ‘Idol’ franchises, ‘Got Talent’, ‘X Factor’ as well as music and entertainment deals which incur royalties from those that discover the talent e.g. Simon Cowell, Usher (with Justin Bieber etc).
Here some more links and facts about mobile and
app advertising versus TV advertising. Smart Insights is considered the leader by marketers for forward thinking in digital marketing (please check this fact up to know what I mean) and I have included some links below to assist with understanding the potential for advertising through mobile apps:
https://yump.com.au/2016-australian...al-is-increasingly-a-mobile-first-experience/
http://fortune.com/2015/12/07/smartphone-tv-report/
A new study of media and attention by Nielsen Co. confirms what has now become conventional wisdom: Smartphones are winning and traditional television is losing, especially when it comes to viewers in the most desirable 18 to 34 demographic.
Nielsen also says that traditional TV viewing by all age groups peaked in the 2009-2010 season, and has been on the decline ever since. Until that point, the audience for TV had grown every year since 1949.
TV is on the decline:
http://www.marketingcharts.com/featured-24817
So where do advertisers turn to? That screen in your pocket that takes up all of our time and increasingly more of the millennial generation:
And if you’re looking for the
potential to raise revenue from advertising then have a look at this:
http://www.smartinsights.com/mobile...keting-analytics/mobile-marketing-statistics/
From the above table and charts you can see the conversion rate of the smartphone and tablet devices is
more than the traditional media (4.25% vs 3.45%) – what does this mean? Advertisers are feeling the pinch of lower spend through traditional media and are searching for viable, highly targeted mobile advertising options. Where they can advertise to a captive audience who are
ENGAGED. Guess what? Megastar is an app where they are constantly adding performers, adding followers from those performers and even paying top performers to come on the app which in turn brings their followers to the app.
All these users are engaged.
Now remember the competition is really only for 3 months, so keeping them engaged for this long is not hard, and so the potential for advertisers to see the reach and engagement with this audience justifies spending their advertising dollars with MSM. Think about that. Advertisers wishing to reach this increasingly difficult target market,
will be fighting over paying MSM to advertise on this app because it is so effective at keeping them engaged. Just like Facebook, Twitter, Instagram etc. All BILLION DOLLAR companies.
After an 18% gain on Friday, and more last week,
this morning will be most likely the last chance to jump on this F16 flight and take off to multi-bags!
GLTA and enjoy your profits
F1666666666666666
