By: AllPennyStocks.com News

Wednesday, October 17, 2012

Mobile marketing is hot-button business with it now seemingly a component of every major brands marketing efforts. Billboards and other types of traditional advertising still have their place in the industry, but more interactive forms of marketing are taking the top billing of importance in today’s digital world. The value of engaging audiences was the topic of our latest corporate spotlight on Intertainment Media Inc. (OTCQX:ITMTF) in which we discussed the growth rate of online advertising. A junior building a solid reputation in the mobile marketing arena is Augme Technologies, Inc. (OTCBB:AUGT) through its Hipcricket subsidiary. Augme, headquartered in New York City with offices throughout the U.S., provides strategic services and mobile marketing technology to leading consumer and healthcare brands. It acquired Hipcricket in 2011. Augme also acquired JagTag, a start-up that specializes in bar codes and QR code, during the year.

Augme paid $5.3 million (mostly in stock) for JagTag in July. Hipcricket was snared in August for $44.5 million with funds coming in the form of $6 million in cash and $38.5 million in common stock. At that time shares were averaging about $3.25 per share.

Hipcricket is a full service mobile marketing and advertising company that empowers brands, agencies and media properties to engage customers, drive loyalty and increase sales. Hipcricket’s comprehensive mobile ad network taps into the buying power of the mass market with industry-leading capabilities to target customers via location and highly-specific demographic information. To connect clients and consumers, the company utilizes every mobile channel possible, including video, SMS, 2D/QR codes, mobile websites, advertising networks, branded apps, social media and more.

The company has a client portfolio that contains some of the world’s most well-known brands, such as MillerCoors, Macy’s (NYSE:M), Clear Channel (NYSE:CCO), Perrier, Ford Motor Company (NYSE:F) and Lionsgate (NYSE:LGF), to name just a few. Lionsgate recently used the services of Hipcricket for the launch of the blockbuster film, Hunger Games.

The company reported today that it completed 29,000 campaigns in the second quarter of fiscal 2013 ended August 31, representing a record high number of campaigns during a quarter. The new total was 38 percent higher than the number of campaigns in performed in the first quarter and pushed the total number of completed campaigns for Hipcricket to more than 225,000. Further, without disclosing names, Augme said that several of their major clients increased their marketing efforts by executing more campaigns than ever before during the latest quarter.

The increased campaigns translated to higher revenue for Augme. Revenue during Q2 sequentially improved by 22 percent to $6.2 million from $5.1 million in the first quarter of fiscal 2013.

“Clients are succeeding in driving sales, engagement, and loyalty through Hipcricket’s mobile marketing and mobile advertising solutions,” said Doug Stovall, Hipcricket Executive Vice President – Sales and Services. “This has led to an increase in activity from customers, as well as additional companies reaching out to us to enable them to reach their audiences via mobile devices.”

Shares of Augme have been on a tumultuous ride for the last few years, rising as high as $4.77 each in early 2011 from 81 cents in mid-2010 to currently near five year lows currently at 68 cents. Today’s news has buoyed share value modestly, with shares edging ahead 4.2 percent as the closing bell nears.

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