CRWG CrowdGather Inc (PK)

CrowdGather to Monetize its own Forum Advertising Inventory

By Ken Nagy, CFA

CrowdGather, Inc. (OTC Markets:CRWG) is an Internet company that specializes in the development and hosting of forum based Web sites.The firm endeavors to monetize a network of online forums and message boards. Forums remain a much undervalued part of the internet pie with $4.5 billion and CrowdGather is the only public company dedicated to monetizing this area.  More page results equate to more revenue as page views have jumped from 12 million to 220 million per month through several mergers. The Company’s focus is now on monetizing its own forum advertising inventory as well the termination of the previous Adisn revenue model.

Management expects a solid Q3 and Q4 as they expect to carry the Company’s positive momentum into fiscal 2013 as they work toward completing a number of initiatives that should help add to high margin revenue growth.

The Company re-launched its corporate website in an attempt to better position itself for advertisers, forum owners, and prospective investors. The new look and feel features the Company’s ad supported business model and the benefits of its network for advertisers, forum owners, and general community users.

Additionally, the Company is focused on deploying the redeveloped ad server obtained during the June 2010 Adisn acquisition in late Q2 fiscal 2013. Management expects the ad server, coupled with the improved quality of the network, will further improve its RPM during fiscal 2013.

CrowdGather  estimates that the ongoing removal of non-monetizable content that also conflicts with its terms of service may reduce its total monthly page views by 20 to 30 million, to approximately  180 to 190 million monthly page views network wide. However, the Company does not expect any significant impact on revenues from the reduction and anticipates an immediate lift to RPM.

The Company is in the process of migrating its third-party hosted sites, such as Yuku.com, to its own network operating center, in Los Angeles, California, as part of the Company’s risk mitigation and cost savings strategies.

The relocation is anticipated to improve uptime, speed, and stability for its sites, and to also result in savings of $12,000 to $25,000 per month due to the difference between the lower cost equipment lease payments and the higher cost third-party hosting charges.

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CrowdGather (PK) (USOTC:CRWG)
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