LOS ANGELES - Thumzup Media Corporation (NASDAQ:TZUP), known for its social media branding and marketing solutions, is finalizing the development of video capabilities for its proprietary ad tech platform. This advancement will enable integration with Instagram Reels, expanding the potential for users to earn from social media posts.
Thumzup's mobile app, which previously only supported monetization of single-photo posts on Instagram, has facilitated over 23,000 such posts, compensating creators around $230,000 via Venmo and PayPal (NASDAQ:PYPL). The forthcoming video feature aims to tap into Instagram Reels' robust engagement rates, which are reported to be 22% higher than standard video posts, potentially leading to more in-video purchases.
Robert Steele, CEO of Thumzup, commented on the enthusiasm within their creator community for the upcoming feature, highlighting the anticipated benefits for users, advertisers, and shareholders. Instagram Reels' significant user engagement, with 50% of time spent on the platform attributed to Reels, underscores the opportunity for Thumzup's growth.
The integration is expected to be transformative, leveraging Instagram Reels' audience of over 726 million unique users. The platform's data shows that Reels are played over 140 billion times a day, with over 35% of Instagram feed posts being Reels. The average engagement rate for a Reel is 1.23%, with typical metrics of 243 likes, 8 comments, and 28 saves.
Demographics indicate that 31.6% of Instagram Reels viewers are aged 25-34, with men making up 54.7% of the viewership. Moreover, Instagram Reels ranks as the third top video marketing channel, highlighting its importance in the social media landscape.
Thumzup's platform, which facilitates cash payments to app users for posting about advertisers' products and services, is available for download on the App Store and Google (NASDAQ:GOOGL) Play.
The information in this article is based on a press release statement from Thumzup Media Corporation.
In other recent news, Thumzup Media Corporation has concluded an additional public offering, securing gross proceeds of approximately $8.2 million. The offering was facilitated by Dawson James Securities, Inc., which exercised an overallotment option, resulting in the sale of an additional 213,750 shares at $5.00 per share. This brings the total number of shares sold in the offering to 1,638,750.
The legal proceedings were managed by Sichenzia Ross Ference Carmel LLP for Thumzup, while ArentFox Schiff LLP represented the underwriter. The offering was conducted following the approval of a registration statement by the United States Securities and Exchange Commission.
These recent developments follow Thumzup's mission to revolutionize the social media marketing industry through its user-friendly advertiser dashboard and consumer app. The company's platform allows users to earn cash for posting about advertisers on major social networks. This information is based on a press release statement from Thumzup Media Corporation.
InvestingPro Insights
As Thumzup Media Corporation (NASDAQ:TZUP) prepares to launch its video capabilities for Instagram Reels, investors should consider some key financial metrics and insights from InvestingPro.
Despite the company's innovative approach to social media monetization, InvestingPro data reveals that Thumzup is not currently profitable, with an adjusted operating income of -$1.95 million over the last twelve months as of Q2 2023. This aligns with an InvestingPro Tip indicating that the company has not been profitable during this period.
However, there are positive signs for potential growth. Thumzup's revenue growth stands at an impressive 209.92% over the last twelve months, reflecting the company's expanding user base and increasing adoption of its platform. This growth trajectory could be further accelerated by the integration of video capabilities, especially considering the high engagement rates of Instagram Reels mentioned in the article.
Another InvestingPro Tip highlights Thumzup's impressive gross profit margins, which currently stand at 78.95%. This strong margin suggests that the company has a solid foundation for profitability once it scales its operations and manages its operating expenses more effectively.
It's worth noting that Thumzup is trading at a high Price / Book multiple of 78.56, indicating that investors are placing a premium on the company's future growth potential. This valuation metric aligns with the company's position as a niche player in the social media advertising industry, as pointed out by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Thumzup, which could provide valuable context for understanding the company's financial position and growth prospects as it expands its platform capabilities.
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