By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, June 4, 2013

Mobile marketing is growing quickly, but still realistically only in its infancy as a byproduct of a still burgeoning mobile industry in general. Everyone knows the potential and the importance of developing mobile initiatives. Social media giant Facebook (Nasdaq:FB) has been heavily scrutinized since its IPO for lagging in mobile technologies to monetize its advertising platforms. Social game maker Zynga (Nasdaq:ZNGA) said on Monday that it is laying off more than 500 employees and restructuring, in part, to align its efforts to capitalize on mobile and touchscreen technologies that are revolutionizing the gaming business. A truly intriguing component of mobile advertising is the emergence of augmented reality and the impact that technology will have on the mobile world. Augmented reality is a portion of the offerings of Snipp Interactive Inc. (TSX-Venture:SPN) as an international provider of mobile marketing solutions. The company recently launched “Snipp Khayai” in the Middle East, an augmented reality experience for brands.

Snipp has worked with major brands and other organizations, including Ford (NYSE:F), Wal-Mart (NYSE:WMT), Yum! Brands’ (NYSE:YUM) Taco Bell and ESPN, to name a few.

Last Friday, Snipp said that it banked record revenue in the first quarter as it reported net income for the first time in its six-year history. Albeit still a small amount, sales totaled $174,331 in the quarter ended March 31, up 85 percent from $94,235 in the year prior quarter. Largely attributable to a non-cash gain related to a decrease in fair value of derivative liabilities, net income rose to $135,163 in Q1 2013 versus a net loss $697,959 in the year earlier quarter.

The first quarter of 2013 marked the fifth consecutive quarter of improved revenue. For all of 2012, sales totaled $511,854, up 35 percent from 2011.

That news was followed on Tuesday with Snipp announcing the launch of a new mobile campaign in the Middle East for Burger King (NYSE:BKW) called “Go Mega,” an interactive shootout-style soccer game for mobile devices. Consumers scan the QR code on Burger King boxes to launch the game, which has players defending a goal while collecting Burger King burgers. The top three eligible scorers will win a grand prize of two tickets to Spain to watch a Spanish Soccer League match in Barcelona.

Atul Sabharwal, co-founder and chief executive of Snipp, said, "We are thrilled to have worked with Burger King to launch this game in the Middle East. It is a simple, yet effective way to capture hungry consumers and provide incentives and sweepstakes to reward them.”

Snipp designed and developed the HTML5 mobile site and provided strategic advice and support around content and creative assets.

"Burger King is a brand that loves to engage, to be part of life," said Angelos Arampatzis, Marketing Director at Burger King Kuwait. "The Go Mega campaign resulted in a significant growth in our social media sites and increased our interactivity with the customers,” he added.

In their quarterly report last week, Snipp said that it has four key initiatives that it expects to bear fruit to drive significant revenue and profitability for the company. These include the launch of its eWinery Mobile Marketing solution in the second quarter to the more than 600 customers currently using the eWinery program. Pricing packages from $250 to $5,000 per month will be offered to wineries wishing to use the new mobile solution. Another is the SnippCheck mobile receipt processing solution launched in February. Other initiatives include unveiling new products and a continuing ramp-up of international sales through established in-roads.

Shares of Snipp have risen from 7 cents each to as high as 10 cents subsequent to the earnings news late last week, but are still far from 52-week highs at 24 cents set last August. The company has a market cap of approximately $4 million at Tuesday’s trading price of 8.5 cents.

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