NEW YORK, NY and LOS ANGELES, CA and LONDON, UNITED KINGDOM--(Marketwired - Dec 22, 2015) - Digital Brand Media & Marketing Group, Inc. (OTC PINK: DBMM) is welcoming substantial investment in 2016 to develop its brand, Digital Clarity, in conjunction with a strong investor outreach program directed at intelligent target markets that are global and not restricted to the US alone. The program will be significant and reflective of the global interest in experienced Digital Marketing companies. The use of Social media such as twitter in investor awareness is growing dramatically, and since the whole panoply of social media and digital technology platforms represent the Company's expertise, a strategic, integrated internally-directed program is a logical next step.
DBMM's growth has been vertical, and now it needs capital to match. There are few industries today in the midst of a meteoric rise such as digital marketing is experiencing. The whole consumer paradigm has been disrupted. Digital ad spending will grow 17.2% to $160 billion in 2015 and another 13.6% in 2016. The capital infusion into DBMM is necessary to support the client growth taking place and the need for increased infrastructure in London, New York and Los Angeles to support new clients in each of the geographies. Since our press release in late October 2015 included mention of more new clients, DBMM is growing the client base further. The Company is developing a digital footprint for a multi-billion dollar company who acquires distressed brands and executes turnarounds of each brand, and an Asian telecoms company is in the pipeline. The New Year will also begin a relationship with an iconic New York dinnerware brand which sells globally, but needs a digital strategy. Those are a few; there are others in the wings which will be brought on board coincident with an infrastructure expansion to support each client individually.
Reggie James, Co-Chief Operating Officer and Senior Vice-President Marketing & Communications, commented: "An increasing number of corporations are raising the profile of digital strategy stewarded at the Board of Directors level and executed by the Chief Marketing Officer (CMO). Since DBMM's entry is always at the BOD or senior principal level, the narrative we have been honing in advising boards on their digital brand enhancement strategy, is reinforced. Right place, right time, right product!" Gartner, a market research and advisory firm, stated that CMO's budgets were increased 10% this year and are expected to rise another 11% again in 2016 with digital commerce focus to include analytics and lead conversion. http://goo.gl/nsrPgT
The Company has reached a stage of growth from which it can evolve away from short term financing indicative of the micro-cap market, to a business which is scaling up dramatically and can attract mezzanine financing, or significant high net worth investors who are attracted to the industry and the growth potential. As mentioned previously, an acquisition to add more scale of clients and talent will augment the organic growth already taking place. Discussions are underway with several such entities.
To position the capital raise properly, the 10-K being prepared will reduce all of the debt which has been eliminated thus far, as well as the extinguishment of derivative liabilities and interest expense being carried on the balance sheet. The aged debt removed in the 1Q2016 will be included in the 10-K and is one of the upsides of the delay associated with the filing. The 10-K is audited and that document will serve us well in the aforementioned discussions. In addition, DBMM's PR's which describe the evolution of the digital marketplace are part of the foundation for the Business Plan DBMM is executing, and reinforces the space in which we are operating which is becoming more and more welcoming as our margins remain between 35-55%. This makes for a very attractive outlook with a simple business model utilizing technology enhancements and social media additions without having to fund the tech. All the Company has to do is adjust the analytics and algorithms and model the client's value proposition. Because of the holiday season and year-end requirements of the professional advisors, the 10-K will be ready in the New Year. DBMM expects it to be the most positive and best forward-looking 10-K to date.
James went to restate, "DBMM's business model is supported by industry growth and the market in which we operate, and the only barrier to growth is sizable investment into the company to drive scale. Hampleton's recent M&A report is a good source for the digital marketing sector."
Furthermore, Publicis Groupe's Zenith Optimedia expects digital media to pass TV in 2018, with nearly $68 million in ad sales compared to $66 billion for TV. It also predicts mobile ads will account for 50.2% of Internet advertising in 2018, surpassing desktop ads for the first time. As interesting, is the traditional advertising is giving way to word of mouth and sharing information, which brings us full circle back to the importance of social media in the equation. Digital Clarity's algorithms evolve to stay on top of all developments in technology, the web, mobile and social. Twitter's evolution to include periscope is a perfect example -- 72% of customers who bought an item online after browsing in-store.
DBMM sees 2016 as continued growth in scale and talent and clients and influence.
About Digital Brand Media & Marketing Group, Inc. (DBMM):
DBMM Group crafts, designs and executes digital marketing strategies across multiple ad platforms and social media networks for a broad array of clients to help each of them establish a uniform brand identity across the digital universe. The product offering is a unique value proposition of intelligent analytics provided by an experienced digital marketing and technology team.
Safe Harbor Provisions:
The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in DBMM's reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.