- SRAX
has launched a Stock for Ads Program, allowing clients to pay for media
solutions through stock payments
- The
company also offering customers subscriptions to its SRAX IR platform,
helping publicly listed companies track shareholders’ behavior and manage
investor outreach
- In
spite of sharp increase in online audiences, major advertisers have been
forced to slash marketing budgets, leading to drop in ad prices
As of April 18, nearly six out of every ten people around
the world were forced or urged to stay at home, measures which have contributed
to a stunning fall in global consumption (http://ibn.fm/xmBTk). In the United States, retail sales
plunged by 8.7 percent in March (http://ibn.fm/nCAZD), the biggest decline on record –
prompting major corporations to respond by slashing their marketing
expenditures. With the ongoing situation in mind, digital marketing
pioneer SRAX Inc. (NASDAQ: SRAX) has launched an innovative
Stock for Ads Program. The initiative is designed to support their clients
through this critical period by helping them procure media solutions in
exchange for stock payments as a way to help businesses continue to engage with
their customers and conserve cash (http://ibn.fm/plFRd).
Consumer spending accounts for more than two-thirds of U.S.
economic activity, yet economists are predicting that consumption could decline
by as much as 41 percent in the second quarter, relative to the same period
last year (http://ibn.fm/VxURU).
However, U.S. ecommerce sales have been a bright spot within the sector, with
online spending increasing by over 40 percent year-over-year since the state of
national emergency was declared (http://ibn.fm/iXJXU). In fact, February marked the first
month in US retail history where online shopping surpassed that carried out
within ‘brick and mortar’ stores (http://ibn.fm/IHjWn).
Companies hoping to capture a portion of these sales are
handcuffed by budget restraints, however. According to the World Federation of
Advertisers (WFA), which represents companies such as Unilever, Coca-Cola and
Visa, 81 percent of large corporate advertisers are opting to defer ad
campaigns, with over 57 percent of members revealing they had been obliged to
reduce budgets “greatly or somewhat” due to the virus outbreak (http://ibn.fm/VjBaA). SRAX has
stepped in to address this unmet need through its stocks for ads program, being
able to assist businesses capitalize on the significant captive audiences
currently confined to their homes by helping companies increase their online
presence without compromising their fiscal health.
“We understand what it means to be a publicly traded company
and we want to help businesses continue, not halt their marketing efforts,”
SRAX CEO and founder Christopher Miglino stated in a news release (http://ibn.fm/cZTHp). “With our
custom media plans, businesses can attract and engage customers with digital
ads, covering expenses up to a year in exchange for stock of their company.”
In addition to its marketing services, SRAX has offered its
publicly traded corporate clients subscriptions to the Company’s investor
intelligence and communications platform, SRAX IR. The platform, which enables
companies to monitor their shareholders’ buying and selling behavior, carry out
virtual investor meetings and develop insights which can be used to engage with
current and potential investors, has become increasingly relevant given the
heightened volatility in global markets.
Online advertising has been embroiled in an extraordinary
paradigm this year. Facebook recently publicized that time spent by users
across all of its apps has risen by 70 percent over the last few weeks (http://ibn.fm/IsDm6) while
Snapchat reported a 50 percent increase in video calls through its app.
However, and in spite of the increase in online audiences, the sheer breadth of
companies freezing ad campaigns has led to a steep drop off in revenues for
digital media platforms. Expedia and Marriott have been the latest companies to
announce that they were slashing their marketing expenses, the former
announcing an 80 percent cut in its annual ad spend while Marriott has halted
all of its marketing efforts entirely (http://ibn.fm/BQAQr). This has led to digital ads costs
declining sharply as Google, Twitter and other online ad companies have found
themselves saddled with too much inventory.
In the brief history of digital media, there has never been
a situation where a rise in online audiences has been met with a decline in
advertisers seeking to attract their attention. Rather, companies have
traditionally sought every opportunity to increase their marketing with research
firm IHS Markit revealing that each dollar that companies spent on advertising
in the United States last year led to $9 in sales (http://ibn.fm/QGoHm). Through
its Stock for Ads program, SRAX has provided companies who would otherwise have
been forced to reduce their marketing in a bid to conserve cash an invaluable
opportunity to bolster their online presence during a tenuous time for the
industry.
For more information, visit the company’s website at www.SRAX.com
NOTE TO INVESTORS: The latest news and updates
relating to SRAX are available in the company’s newsroom at http://ibn.fm/SRAX
About MissionIR
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primarily focused on strategic communications. We have executed countless
communications programs to address the needs of companies ranging from
start-ups to established industry leaders, gaining valuable experience and the
expertise necessary to determine the most effective strategy for any given
situation.
For more information, visit www.MissionIR.com
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