Can I give you some advice? Hang up before you are hung out. Have a nice day.
Rakuten could buy Local Corp
My favorite for a merger of Local Corp is Rakuten
Rakuten Marketing Drives the Omni Experience
Newly unified services structure and branded website introduces Rakuten Marketing's best-in-class, omni-channel offering
Rakuten Marketing September 23, 2014 10:00 AM
NEW YORK, Sept. 23, 2014 /PRNewswire/ -- Rakuten Marketing, the global leader in omni channel marketing and a division of Rakuten, Inc., today introduced its vision for the future of digital marketing – the omni experience. Omni experience goes beyond the operational view of omni-channel marketing by viewing the experience through the eyes of the consumer, and orchestrating the customer experience across all channels so that it is seamless, integrated, consistent, and can be easily tracked. Cornerstone to the Rakuten Marketing omni experience are the cross-channel insights gathered through the combination of Cadence, the cross-channel reporting platform launched in January, and attribution provided by the company's recent acquisition of DC Storm. The newly unified and restructured line of business and branded website maintains Rakuten Marketing's core services – Rakuten Affiliate Network (formerly LinkShare), Rakuten Attribution (formerly DC Storm), Rakuten Display (formerly MediaForge), and Rakuten Search – which independently deliver best-in-class advertising solutions, and together transcend marketing borders that drive the omni experience.
"The consumer experience has been largely overlooked. Consumers don't perceive your brand in channels; they perceive the overall experience with your brand. Advertisers need to market to consumers during each phase of their sales journey thinking about the best way to influence consumers at each touch point," said Tony Zito, President, Rakuten Marketing. "This requires streamlined insights across channels, devices, social networks, and offline performance that enable marketers to make better decisions and drive better performance.
Local Corp has five patents for Enhanced Directory Assistance, a method where a business pays to play its ad when a consumer dials directory assistance, is thrusting Local forward as a key player in the monetization of the multi-billion mobile advertising business. Not just voice, the patent covers text, and voice-to-text, so it's broad and more valuable. Carriers and other online local business websites are using EDA more frequently and will eventually confront Local's patent so there's a great opportunity for future licensing deals.
The value of a phone lead
One reason the pay-per-call industry is growing so dramatically is that businesses are realizing the value of a single phone lead. Conversion rates are consistently higher for phone leads as compared with other types of leads. While phone sales is nothing new, the concept of marketers billing on a per-call basis is relatively new. As local businesses realize the value of phone leads, they’re willing to pay well for them.
Mobile technology and the pay-per-call industry
Another reason for growth in the pay-per-call industry is the advent of mobile click-to-call. Never has it been easier for potential customers to be connected with sales representatives by phone. Click-to-call is driving a very large number of high quality leads to businesses.
Phone Calls = The New Ad Currency of the Smartphone Era
By: Mike Boland 16 May 2014
For the last few months, you may have noticed an increase in the conversation on this blog and elsewhere about call monetizaton. Sometimes referred to as Pay-per-call (a branch of call monetization), this includes charging businesses for inbound phone leads.
Like search marketing in its early days, call monetization is picking up fast. And in a lots of ways, it’s branching out from search. In fact, Google’s efforts with call monetization are characterizing and validating the opportunity to the broader market.
The reason this is culminating now is the growth in smartphone and resulting growth in mobile search. As we keep saying, mobile search carries a great deal of commercial intent from users. And don’t forget the mobile device is also a phone.
Source:BIA Kelsey Less
By 2018, BIA/Kelsey estimates that mobile search will generate 73 billion calls to businesses in 2018, up from 30 billion in 2013. This trend indicates a major shift is underway in the tech and media worlds: the tighter embrace of phone calls as a lead form for paying advertisers.
Most important questerion: Who are the potential buyers? After my estimate Yelp, IACI, Groupon, Yahoo, Alibaba (China) and Rakuten (Japan) are my favorites for large bids for Local Corp. Also able are Google , Amazon, eBay, and Microsoft
That are by 23.4 million outstanding shares only 234 market-cap and by 105 million revenues in 2014 only 2.2-times-revenues.
As for the new acquisitions, I don't think the market understands their impact yet. I think ask.fm is a great acquisition. I think all their recent acquisitions have been excellent but management hasn't disclosed many numbers yet so the market doesn't know how beneficial they are yet. The market is also worrying that the search and website business is too dependent on google, but they are slowly moving away from their dependence on google.
There is a small chance that they make a couple more big acquisition and this is a $100 stock in a year. And I think that is some of the excitement that drove it up to $73. But until the company releases numbers, excitement is just excitement and very different from hard numbers. And based on their guidance, this is a mid 60's stock.
So at this point, stay long and strong and you'll be fine. There could be more corrections along the way, but the core businesses (4 of them between targeted advertising, matching, video services, and home services) are all strong and growing. They will all be not only around in a decade but likely all much bigger businesses.
I hope this post was helpful.
As usual, market movements are typically not any one thing, but multiple things concurrently happening.
I would think that a fair price for this stock based on the last earnings is in the mid-60's. Yes it got up to $73 on excitement based on the potential of match on the last earnings call. Management said it could potentially have 500 million of ebitda if i remember correctly in 2016. So basically match as a stand alone business has a lot of value. But the truth of the matter is that they aren't ready to spin off match yet. They are still building it, and may never spin it off as they said in their last earnings call. They are pairing it with tutor which is another company in the business of matching individuals. And they are adding diet which is a great thing to sell people wanting to date. And they are just starting to monitize Tinder. So lets say there is a lot of potential in it. In fact, as a standalone business it could be worth around 50 or 60 per share. But management likely won't spin it off until they have another growth area to pursue which I don't think they've found yet.
So as the excitement faded over the match / tinder valuation, the market then went into a correction taking it below its mid-60's fair price point. But now it is rising again, and the next earnings conference call will help the stock find a direction again.
If you have a long enough horizon, this stock should do fine. It is run by an extremely smart business man, it generates plenty of cash, it understands how to acquire to grow, and it pays a small dividend while you wait. My guess is that this stock will average 80ish in 2015 and in the $100 range in 2016 (after averaging in the 60's this year, in the 40's in 2012, and in the 20's in 2010). This is obviously a wild guess so don't hold me to it. But they are continuing to make smart acquisitions, building their core businesses, and opportunistically repurchasing shares when it makes sense
This drop is mystifying to me given the magnitude of it and over such a short period (with much of the drop preceding the market meltdown). I don't know if it has to do with disappointment that the spin hasn't occurred yet or what. I also am concerned that the Company is not purchasing any of its stock in the open market. If I recall correctly, they purchased no stock in the prior quarter and, if they are purchasing this quarter, it makes the drop even more frightening!
Thanks for the response. So I guess we are all just hanging in there waiting for the Ebola scare to lighten up. Where do you project that Iaci should be a year from now? What do you think are it strengths going forward? Thanks..
Local Corp Potential Buyout
Most important question: Who are the potential buyers? After my estimate Yelp, IACI, Groupon, Yahoo, Alibaba (China) and Rakuten (Japan) are my favorites for large bids for Local Corp. Also able are Google , Amazon, eBay, and Microsoft.
Corporation Launches Mobile Display Ad Network
Targets Market Expected to Reach $16.3 Billion by 2016
IRVINE, Calif.--(BUSINESS WIRE)--Apr. 9, 2014-- Local Corporation (NASDAQ:LOCM), a leading local advertising and technology company, today announced the launch of its new mobile display ad network for advertisers and publishers.
The company’s new mobile display network provides advertisers with additional reach and exposure for their brands through the distribution of relevant display ads across Local’s extended network of mobile-enabled sites and apps.
“The launch of our mobile display ad network is a natural progression as we focus on becoming a mobile-first company. It also demonstrates one more way we are connecting advertisers with the increasing number of mobile-enabled consumers."
“According to eMarketer, US mobile display ad spending is expected to grow from $8.1 billion this year to $16.3 billion in 2016. “We are excited to utilize recent investments in our technology platform to further advance our mobile footprint in this growing market. We delivered impressive year-over-year network growth of over 140 percent in 2013, and the release of new mobile products for our advertising partners will continue to provide additional revenue opportunities for the company.”
The mobile display network distributes targeted mobile display ads from top advertisers to consumers through leading mobile-optimized sites and apps, including the mobile-enabled version of Local Corp.’s flagship site.
The result will be an excellent article of John Rampton from June 1, 2014 in Search Engine Journal.
Wikipedia about Patent & Patent Application examples by Pay-Per-Call
Patent & Patent Application examples
2000 - A number of US patent applications have been filed by Ingenio since 2000. Including one for “Method and apparatus to provide pay-per-call advertising and billing”. Additional applications by Ingenio are mentioned here.
2004 - Google’s senior research scientist filed US patent application covering Advertisements for devices with call functionality, such as mobile phones.
2005 - Callgen filed UK patent application UK0504574.5 covering the application of Pay-per-Call in Affiliate Marketing. A number of individuals applicants filed US application US7689466 for Dynamic Pay Per Call listings (Patent was granted in 2010), and US application for an Integrated pay per click and pay per call listings (patent 8239273, granted 2012).
2007 - Local Corp grant patent 7,200,413 relating to a referral model such as pay-per-call listings.
2007 - RingRevenue files patent 8,238,540 for managing a pool of phone addresses.
2008 - Click Interconnect Inc auctioned a number of U.S. Click-to-Call and Pay-per-Call patents.
2012 - Local Corporation Granted U.S. Pay-Per-Call Patent 8,306,208 for a pay-per-call Enhanced Directory Assistance method or system.
And I am sure, that this patent will be part of the a newer list of Wikipedia, too:
Local Corporation Granted U.S. Mobile Pay-Per-Call Patent
Third Enhanced Directory Assistance Patent Focuses on Mobile Implementations
IRVINE, Calif.--(BUSINESS WIRE)--Mar. 6, 2013-- Local Corporation , a leading online local media company, today announced that the U.S. Patent and Trademark Office has granted the company patent number 8,359,049, which covers a mobile, pay-per-call Enhanced Directory Assistance method.
You must only substitute xxx through the right letters
Local Corp's powerful shopping infrastructure is unparalleled
Benefit from our dynamic shopping engine that indexes products from over 120,000 retail stores nationwide. Powered by the patented Krillion localization engine, we capture the most current product, pricing, and inventory information across leading consumer brands to deliver locally relevant, up-to-the minute shopping content to your audience
Local Corp. Uses Krillion API to Grow in New Markets
Friday, July 18, 2014 (ProgrammableWeb)
Expertise in working with APIs and big data is paying off for Local Corp. Local built a $100 million business by aggregating huge amounts of data and then serving ads to consumers searching for local business and product listings. Local is now using APIs to extend its local-search business into fast-growing markets such as mobile shopping apps.
"Krillion by Local" offers powerful API access to real-time data about 120,000 retail stores, 4,300 shopping categories and 3 million product SKUs.
Local acquired local-search startup Krillion in 2011 for its local-shopping data engine. Local invested heavily in Krillion's technology development, leveraging Local's expertise in working with large data sets to scale Krillion's API resources. Local reaches 10% of U.S. Internet users through its sites and syndication network and serves more than 3 billion ads a day. These huge traffic numbers are supported by sophisticated back-end technology. Local made it easier to get data into Krillion programmatically, and its product data set grew exponentially.
Krillion by Local now powers local-shopping experiences for apps