Reaching the kids: Gamelancer Media (GMNG:CSE)

The hardest trick in media today is reaching younger Millenials and Zoomers: basically people born after 1990. Net natives never seen without a smart phone in their hand.

Conventional media does not signify in these kids’ lives. Network TV? Radio? Newspapers??? Nope. If it is not online young Millenials and Zoomers don’t know it exists.

What about online? The trouble with online is that there just so much content - Instagram, Snapchat, Tiktok, Twitch, YouTube - driven by video. Short video for the most part. How can brands reach their younger target audiences?

It was a question which Gamelancer Media (GMNG:CSE) wanted to answer.

I bought several thousand shares of Gamelancer on a tip from a savvy Gen-X friend. But not before looking at its very up-to-the-minute website Gamelancer.com.

These people have a model which makes a lot of business sense to me. Here’s how Gamelancer Chairman and CEO, John Dwyer describes it in the company’s most recent press release announcing its @Gaming channel on TikTok has reached 10 million followers

“Viewers can watch videos on TikTok without being inundated by programmatic ads, instead ads are curated short-form videos that are produced to live organically on the platform. Gamelancer’s network ownership + creative content + content distribution strategy was built specifically to address the needs of blue chip brands looking to connect with GenZ & young Millennials on TikTok, Instagram & Snapchat.”

So that is the concept and 10 million is a pretty decent sized audience. But that is just one of Gamelancer’s 27 channels totalling over 34 million followers on TikTok, Instagram and Snapchat, and growing by over 1.2 million new followers every month. It has 1.8 billion monthly video views.

This audience has been enough to attract revenue from major brands like Samsung, RBC, Belkin and the NHL.

How much revenue? The million dollar question. The answer? In a November 16 press release Gamelancer announced: “it has generated $343,045 in monthly recurring revenue from short-form OTT video ad sales.”

It is well worthwhile taking a look at Gamelancer’s deck. If you are a Boomer like me you will understand about half of it. The projections are wild. The key element for me is the exposure to very significant audience growth which is already being monetized. The focus on big brands makes sense too as those brands need to reach “the kids” now that they realize conventional advertising is not getting the job done.

The one big question: when does that revenue reach profit? Right now I don’t know but I will be reaching out to the company to find out.

I will be taking a deeper dive in the next few weeks. Right now, a starter position in Gamelancer Media is inexpensive and diversifies me away from the horrors of the junior resource market. (Which will come back, the question is, when?)

[Disclaimer: This is not investment advice. I am not an investment professional. I am down about 30% at the moment on my overall portfolio. I will write about companies that I hold. I will disclose any holdings. Do your own due diligence. Do it hard. Call the CEO.

I currently own shares in Gamelancer Media which I intend to hold but which I may sell at any time.]