One stock you may not have discovered yet that could represent a really interesting avenue toward building exposure to the emerging social media marketing boom is Clubhouse Media Group Inc (OTCMKTS:CMGR).
This is a unique story. CMGR is perhaps the most potent social media influencer in the world right now. It is a bit like a talent agency for influencers. The influencers under its umbrella have a reach apparently exceeding 100 million followers generating over a billion impressions per month – an “impression” occurs any time a social media app or web browser displays a particular piece of content.
According to the company, impressions are the primary metric used to determine how valuable an influencer’s reach is for the purpose of influencer-based marketing. Based on impressions generated from content produced by Clubhouse Media Group’s influencers, the Company’s network surpassed a rate of more than 1 billion impressions per month on a trailing 30-day basis in January.
So, basically, this is a gargantuan apparatus for directing human attention. For investors, that has enormous potential value. Attention is everything. What good is the best running shoe ever made if no one knows about it?
The value is at the intersection of quality and attention. That makes Clubhouse one-half of the value equation for just about everything on earth, in theory. You get the idea. It’s a big deal.
Let’s Go to Vegas!
It’s also a big deal that Clubhouse Media Group Inc (OTCMKTS:CMGR) is expanding to a physical location on the Las Vegas strip according to recent company communications.
That’s actually wildly important for the narrative in CMGR because it opens up new markets.
Think about this way: if they have influencers solely confined to one geographic and cultural thematic ecosystem, then the product categories available to deal-making are going to be similarly limited.
And, since their reach is so large, cutting off any new major product categories is a huge opportunity cost.
By expanding into the Vegas scene, you add the 21+ crowd, and luxury accommodations, and international leisure travel, and pay-per-view sports, and casino gaming, and, probably most importantly, spirits.
Amir Ben-Yohanan, CEO of Clubhouse Media Group, remarked, “We believe this is an ideal location to expand our total reach in demographic, economic, and geographic terms. Our ability to reach new end markets directly expands our capacity to drive shareholder value and harness the enormous growth opportunity that forms the foundation of our value proposition.”
Vegas unlocks clear value in an already valuable equation. But the question that arises then is: where next?
The company has talked about international expansion, and has already built a space in Europe at Clubhouse Europe on the island of Malta, so one can imagine any number of value-added moves if CMGR continues this geographic growth. Given the scope of its reach, any new dimension it adds to the demographic function could be worth multiples in eventual operational cash flows.
Given that Clubhouse Media Group Inc (OTCMKTS:CMGR) may be set to take the pole position on the planet in terms of capacity to deliver a coordinated social media marketing footprint with absolute scale, any new product niche that becomes available to the company in terms of deal-making has the capacity to deliver enormous new shareholder value.
With its move to enter the Vegas strip cultural thematic environment on an influencer basis, the biggest new product category value-add might be the spirits market. With over a billion impressions a month (and growing.. fast), it’s not a stretch to imagine upcoming deals with major spirits brands like Budweiser, Absolut, Heineken, Bacardi, and Johnny Walker.
In fact, it might surprise you to find out that, worldwide, alcohol sales totaled more than $1.5 trillion in 2017, and have only grown since. Experts see this market reaching $1.75 trillion by 2024.
As CMGR establishes itself on that playing field, it stands to dominate the social media dimension of the equation for spirits advertisers once it gets a foothold on the Vegas cultural theme, driving enormous value for its shareholders.
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