RE: Expected news23 Aug 2019 15:35
23 August 2019
Iconic Labs Plc ("Iconic Labs" or the "Company")
Q&A Document
Following the RNSs released in recent weeks and the Q&A released on 16 August, Iconic Labs would like to clarify several queries from shareholders with regard to its strategy and operational matters; accordingly, it has compiled the following Q&A. The Company would like to emphasise that the Board and management team are working hard to build a revenue-generative new media and technology business with a long-term growth strategy.
Can you explain the business model/strategy?
Iconic Labs is a media and technology business focused on providing online marketing, content and technology driven products. The Company plans to create six complimentary divisions that will allow it to provide a broad-based, all-encompassing offering allowing clients to build their online branding and presence, generate significant revenues as well as building its own brand platforms and products that have long term capital value. In the immediate term, the Company is targeting revenue from agency and consultancy engagements and has already been successful in this arena.
With the addition of the Social Alchemist, which already has a number of online brands/platforms, the Company has the opportunity to start developing its publishing content division and increasing the value of these brands. The agency/consultancy and publishing content divisions are highly complementary as the agency can help clients create advertising assets and then use its online brands to distribute the assets/campaigns online. Iconic Labs is therefore able to access potential clients' budgets assigned for both 'creative' and 'media'. This method of cross-selling has previously been used successfully by the management.
As the business matures, the Board will add more synergistic divisions that will offer distinct and additional revenue streams. The development of online brands and the creation of content is the foundation of revenue creation and property brands/distribution platforms can be further monetised over time through licensing content to other businesses and selling e-commerce products to the brands' audiences.
What is the size of the market that you are targeting?
The size of the UK digital advertising market is estimated to be in the region of £14.7 billion, an 11% increase from 2018. This is anticipated to grow more than 10% over the remainder of 2019 and be worth over £16.2 billion by 2020. The Company is creating the relevant structure to capitalise on this and pitching for direct online advertising campaigns from clients as well as securing revenues indirectly through third party channels such as Facebook and Google.
As the Company adds new divisions, it will be able to target additional markets but currently the focus is on gaining traction in the UK digital advertising space, providing bespoke advice and implementation for building brands online traction.
How is the s
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