The importance of effective web marketing to almost any successful business today is clear, especially when looking at the tech sector as a whole. Google (GOOG) has a market cap exceeding $200 billion, is one of the 10 most valuable companies in the world, and derives over 95 percent of its revenue from online ad sales. Facebook (FB) is expected to reach a valuation of close to $100 billion in its upcoming IPO, and the company’s also heavily reliant on online ad sales for its revenue.
As more and more of people’s lives take place online, marketing one’s company on the internet has become a necessity. However, the nature of online advertising is such that it can offer the opportunity to target ads to specific consumers in ways that marketing executives used to only be able to dream of.
SearchCore (SRER) Offers Targeting Web Marketing
One company stands out in its capacity to target specific, niche verticals, and that company is SearchCore, Inc. (SRER). SearchCore is a technology company that’s dedicated to offering search and review services for specific industries so that consumers can locate, review, and share their experiences with other similar users.
SearchCore is currently focused on the medical cannabis industry, where it offers the premier site for finding medical cannabis services in WeedMaps.com. Any consumer interested in finding the closest marijuana dispensary or doctor who can prescribe marijuana can find those services by consulting WeedMaps. What’s more, users can share reviews and write-ups of their experience at different facilities, much like one would on Yelp (YELP).
Where WeedMaps really offers value is in its ability to target a specific niche, giving advertisers an ability to reach a very specific audience with their marketing spend. And SearchCore is looking to expand this same core concept into other verticals. By offering the premier search and review site in any number of different consumer industries, SearchCore can give online marketers a chance to find their target audience and focus their spending there.
Big Steps in 2011
SearchCore made some bold strides forward in 2011. With the release of its 2011 full-year earnings on March 22, the company showed that its business plan has real potential for rapid growth. Total revenues of $11.9 million represented a 256 percent spike over 2010, and EBITDA of $1.8 million was a year-over-year increase of over 215 percent. An operating income of $1.5 million was a 218 percent improvement, and income from continuing operations was up 172 percent to $1 million.
All told, SearchCore is already showing increasing revenues and profits even as it just begins its expansion into new markets. If the company can replicate its success in the medical cannabis segment in new industries, it could mean that SearchCore’s already rapid growth it destined to pick up the pace even more.
I'm long SRER. Medical marijuana is not going away, it is expanding. I like the moves SRER has made lately, they are well positioned. Some friendlier legislation from Uncle Sam would help, but even without the pop that would provide I see steady growth for this company.