Research Boost – is our premium service for companies looking to engage investors at scale. Though, we provide research on equities for free we also provide an add-on service for clients of our research service to further broaden reach via mass media channels. This helps bridge communication so investors can better understand and follow along with the quantitative metrics that define the value of a company.
Free Tier – where we provide a free model for companies that leverage our organic channels of traffic. In the free tier we provide research and distribute our research via news aggregation channels and email list. This does not leverage paid for sources of traffic, nor does it provide advanced analytics. Though we will participate on quarterly earnings calls and provide updates to our readership when necessary.
Research Boost = Viewership
From initiating research coverage on Genprex (GNPX) — the stock price increased by 50% over the next 30-days, and was also 30% higher 90-days following the publication of the research report. We drove meaningful traffic (5x traffic relative to news articles on small cap stocks) to a comprehensive research report that’s equivalent in length to Investment Bank “Coverage Initiation” reports.
Volume was also meaningfully higher relative to the prior 90-day period rolling average. Review the Genprex coverage initiation here.
We acquire traffic from Facebook ad-bid manager where we apply A/B testing, custom data sets, and Facebook Ad Pixels to deliver the highest click-through rate possible on the Facebook Ad Marketplace, which reduces our CPC metrics.
We also acquire traffic from LinkedIn, where we develop custom ad-sets that are relevant to investment minded portfolio managers and investment professionals so our research hits the right audience.
Our research is syndicated via Google News, and it enables us to be featured along various other news outlets. It also improves our search rankings in comparison to blogs and various other non-journalistic media.
We employ a number of proprietary strategies to improve our search rankings, so that key search terms are likely to lead to more organic search related traffic for our published research on companies under coverage.
We acquire Twitter traffic via our proprietary bidding on Twitter Ads. We also distribute materials via various social accounts on Twitter as well.
We use various influencer marketing channels where we believe there’s a good organic click through rate from our carefully curated influencers.
We have a comprehensive mailing list that reaches relevant audience segments, inclusive of retail investors, investment managers, and financial professionals, which we have built over time.
(coming soon) We’re currently in the process of expanding our syndication partners. Our biggest priority in 2020 is to secure Yahoo Finance placement for our published materials.
Research Boost Package
Quarterly earnings preview & review reports (short-summary recap reports)
Media strategy review & consultation
Traffic/Audience metric reporting and review
Paid Viewership Acquisition
1. How does your research differ from sell-side equity research?
It’s nearly identical to sell-side equity research, but with an exemption from requiring FINRA registration due to the exclusion given to independent research providers, and our positioning as a media franchise. The financial terminology for our model is un-bundling of research from investment banking, and because we include agency, consulting, and media we’ve created enough differentiation to not require SEC/FINRA oversight. Also, we do not gate our research service, nor do we solicit the research with the intent of earning brokerage commissions yet we can rate stocks, and publish those ratings publicly, so as long as we disclose our financial positions in any of the companies we rate, and disclose our compensation terms.
2. What value do companies obtain from the research service?
Companies receive immense value from subscribing to our monthly research model, as we provide pro-bono consultation when defining their media strategy, while also orchestrating quality research that establishes financial expectations among an investment-minded audience. By making the research readily available — investors can better understand the core investment thesis, and the prospective value of a company in a format that’s simple to understand while amplifying media communications. We don’t view ourselves as a PR firm, though we engage with your companies pre-existing PR efforts and help amplify that communication at aggregated scale.
3. When buying research coverage are we guaranteed a buy rating?
No, we’re not guaranteeing a buy rating on all stocks under coverage. It’s not helpful to the company, and it’s not helpful to shareholders. There are cases where companies miss estimates and targets, and without the ability to reduce expectations to a threshold that’s beatable we position the companies poorly in our coverage universe by not giving them the ability to deliver over/under by providing a static buy rating. Therefore, we view the ratings and estimate targets as being fluid, and contingent on the performance we anticipate from our coverage universe. When the company under-delivers we lower our estimates and adjust our ratings to ensure companies are better situated to deliver stronger results. Not to mention we need to maintain objectivity with our audience or we cannot maintain the media-like nature of our model, and so the objectivity of our ratings must be maintained. Historically, the lead analyst has maintained coverage at 84% buy ratings, 14% sell ratings, and 2% hold ratings.
4. Are the pricing tiers static based on market capitalization?
The pricing tiers are guidelines for companies based on market cap and our anticipated internal cost when managing larger accounts vs. smaller accounts. In some cases, it makes sense for a smaller market cap company to move to a bigger package, or for a larger company to move to a lower package, which is dependent on the amount of news/activity tied to the company’s internal PR efforts when engaging with shareholders, and the relative audience metrics needed to deliver a multiplicative boost relative to conventional news media metrics.
5. What kind of media metrics should we anticipate from your research?
Generally speaking we’re looking to deliver a 5x to 10x increase in viewership relative to the anticipated media traffic a company generates. Say, for example the average news article on Apple (AAPL) generates 20K views. We would look to generate 100k-200k views on that specific research report, and so by definition our job is to amplify reach upon publishing research on a company. The traffic is indexed against comparable companies of similar size, and so we look to deliver a 5x-10x factor improvement relative to that index, which is why our traffic boost is a big factor in our scaling cost structure for larger companies.
6. How often do you produce research on a company?
At minimum (over the course of a full-year) we would produce a coverage initiation report, and quarterly earnings reports. Though, it’s contingent on the amount of news worthy events the company generates, and so if there’s material news we would cover those additional activities. Keep in mind, larger companies tend to produce more shareholder news, and so by extension it creates more opportunities to publish equity research. Whereas smaller companies may have fewer events or newsworthy announcements dispersed through a year, and so we modify our approach contingent on the outreach strategy, and the volume of material events tied to the company. Also, we tend to include companies under coverage in sector reports and other materials that helps with amplifying outreach.
7. What's your refund/cancellation policy?
We generally don’t provide refunds on the monthly payment model, because we use those resources to acquire traffic, and since we can’t get a refund for traffic acquisition we cannot offer a refund to our research subscribers. Also, we provide a 30-day notice window for cancellation, whereby a company can notify in 30-days via electronic mail, etc. that they intend to cancel, which will obligate us to fulfill our work for the next 30-days, and then cancel your annual service contract.
8. What are your distribution channels?
Like any media silo, we have access to conventional sources of traffic such as Search/News traffic which accounts for 60% of global media traffic. Our value proposition comes from our ability to acquire traffic beyond those sources, and so we deploy social ad campaigns to acquire traffic over and beyond what’s ordinarily attainable, and so we refer to this as media amplification. Also, when sourcing traffic we’ve been successful in driving down the cost of that traffic, as we take extraordinary measures to drive down cost-per-click metrics, while also ensuring that the traffic is high-quality in nature and meets the demographic profile companies are looking for. We have fine-tuned our approach to market to peers or other executives within your industry, high net-worth individuals, and also buy-side managers. We also deploy e-mail campaigns, and optimize for search traffic using our proprietary search ranking strategy.
9. Why do you feature sell-side commentary in your research?
We feature sell-side commentary in our research, because companies spend insane dollar figures maintaining investment bank relationships via advisory fees, and so by extension those advisory fees produce the sell-side research. By definition, we look to amplify existing PR materials, which is also inclusive of sell-side research, and so by re-purposing the content in a format that’s openly accessible we expand exposure for those research materials. Hence, we reference our research partners, so the resources you spend on advisory fees can be repurposed into a media format that’s accessible for non-brokerage clients of those Investment Banks.
10. Can you assist with landing PR engagements?
We generally overlap our strategy with the PR engagements that companies have already secured. Though, we’re looking to include PR introductions, and media collaboration as a part of a broader strategy to improve the visibility of companies under coverage. When pertaining to media exposure we will be securing more media partnerships though we cannot guarantee positive exposure, as the editorial strategy of differing media platforms don’t directly overlap with our own editorial policies. Furthermore, we cannot guarantee that these other media platforms will provide the interview, or provide their platform. In some cases interviews on other platforms don’t directly overlap with our investor-focused editorial strategy, and so the interview is geared more towards a generic viewing audience that’s more dispersed as defined by Nielsen metrics, or too narrow of an audience, limiting the value of the PR engagement.