By: Tomas Ronolski - AllPennyStocks.com News

Friday, January 8, 2016

According to a report by Forbes, the Software as a Service or SaaS market is expected to grow from $49 billion in 2015 to $67 billion in 2018. The market is expected to grow at a compound annual growth rate (CAGR) of 8.14%. Forbes’ outlook for the SaaS market is based on forecasts and market estimates published by research and advisory consultancies, which include International Data Corporation (IDC), Forrester, Gartner, Ovum, Wikibon and others.

In a separate report, Forbes, citing a report from research firm Gartner, notes that in 2014, 47% of total CRM software revenue was generated from SaaS-based CRM applications.

The robust outlook for the SaaS market augurs well for 3TL Technologies Corp. (TSX-Venture:TTM), the developer of Platform3. Platform3 is a SaaS consumer marketing platform. The platform allows Consumer Packaged Goods (CPG) companies and consumer brands to engage shoppers through their mobile device and influence their purchasing decisions.

Yesterday morning, Canada-based 3TL Technologies announced that its wholly-owned subsidiary 3 Tier Logic signed a license agreement with an advertising agency to provide the company’s Platform3 digital marketing technology for the promotion of a major soft drink brand owned by a Fortune 500 beverage company. The promotion is being conducted at the U.S. locations of the world’s largest retailer.

As per the terms of the licensing agreement, the receipt scanning module of Platform3 will allow a campaign whereby consumers purchase the required amount of soft drink products at the U.S. locations of the retailer while earning rewards that can be redeemed for online movies and TV shows from the website of a leading online content provider.

Commenting on the development, Rob Craig, CEO of 3TL Technologies, said that the agreement reinforces TTM’s confidence that Platform3 is providing value to major brands that are looking for ways to influence consumers’ purchasing decisions at the point-of-sale in retail locations. Craig further said that since focusing the company’s resources on the U.S. shopper marketing segment, the company has signed license agreements directly and through agencies, with a growing number of consumer packaged goods companies that have large annual budgets for in-store promotions. Craig added that the company spent the second half of 2015 establishing relationships with advertising agencies and decision makers at major brands that are keen to allocate budgets to mobile digital solutions that allow rewards and the collection of valuable consumer data. Based on the sales pipeline, the company expects to generate breakthrough sales in 2016.

While yesterday’s announcement was a positive development for the Company, shares of TTM have been sliding for the past 52 weeks and are currently near their 52 week low. Perhaps yesterday’s news will turn out to be the spark needed in order to turn around shares in the short and long term, although trading today has been non-existent since the news hit, which doesn’t bode well for shareholders.

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