Innovative pricing is expected to increase revenue through increased sales velocity, scalability, and subscription revenue opportunities
Successful trials show that Locafy Technology's SEO performance often exceeds existing base subscription fees
Price your SEO campaigns to match the global $273 billion Google Ads market
Perth, Australia, April 11, 2024 (Globe Newswire) — LOCAFI LIMITED. (Nasdaq: LCFY, LCFYW) (“Locafy” or the “Company”), a globally recognized software-as-a-service technology company specializing in programmatic “entity-based” search engine marketing, today announced a new value-based pricing model that is expected to drive significant growth. We announced the release of an SEO product with With subscription income. We believe this model is the first of its kind in the automated SEO industry.
“A core objective in digital marketing is to drive visitors to a client’s website, typically measured in ‘clicks’,” said Gavin Barnett, CEO of Locafy. “Based on the success of free and paid trials of our proprietary Keystone technology with news organizations, publishers, and direct clients, our technology is the best in the industry at driving additional “clicks” for our clients. I'm sure he's the one.
“Using market-based ad price comparisons, we find that the 'clicks' our technology provides are worth hundreds or even thousands of dollars per quarter in added value above and beyond what we typically charge our customers. “Often,” Barnett continued. “This change to our pricing model is designed to capture increased revenue commensurate with the value that Locafy’s technology provides.”
The digital advertising market is dominated by Google, with online advertising revenue reported to exceed USD 238 billion in 2023.1 Globally, more than 80% of businesses use Google for Pay-Per-Click (PPC)-based online advertising campaigns, with clients paying an average of USD 3.12 per click, but depending on the business category can be expensive.23 For example, some legal keywords cost more than $50 per click.Four
“We are confident that our customers will adopt this pricing model as well,” Barnett said. “Because we take the financial risk out of SEO campaigns and provide a solid return on investment for your SEO spend, this pricing model is appealing to digital agencies and businesses who have previously been skeptical of SEO services. We believe it resonates with owners. Overall, our clients are actually paying to have their business found in online searches. We help our clients rise to the top of searches and dominate the online advertising market. We believe we can provide a solution that allows you to pay only for the value you receive at a rate already determined by.”
Locafy has begun quantifying the effectiveness of value-based pricing. In a recent preliminary free trial of this pricing model, one industrial client reported over A$8,000 in additional advertising value in his one quarter calculated from her PPC value for relevant search terms. . This client also reported a significant increase in keyword reach outside of the keywords assigned PPC values, resulting in genuine new visits to the client's website while avoiding additional PPC costs. Locafy's ability to attract people is highlighted.
With Locafy's new performance-based pricing model, clients who pay the same rate can expect to increase Locafy's revenue by approximately 50%. Although the value provided varies from industry to industry and market to market, the company has consistently delivered value that meets or exceeds what clients pay using established advertising practices.
Locafy plans to launch its first marketing campaign in the coming weeks to hundreds of clients, partners, resellers, and an active database of more than 250,000 subscribers. We then plan to expand our marketing to the millions of businesses listed in our global business directory network.
For more information about Locafy's technology, including educational blogs and case studies, please visit Locafy's Investor Relations website. investor.locafy.com.
About Locafy
Locafy (Nasdaq: LCFY, LCFYW) is a globally recognized Software-as-a-Service technology company specializing in local search engine marketing. Founded in 2009, Locafy's mission is to revolutionize the US$700 billion SEO sector. We help businesses and brands increase their search engine relevance and visibility in specific neighborhoods using a quick, easy, and automated approach. Learn more about. www.locafy.com.
Forward-looking statements
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Investor information contact information
Tom Colton or Chris Adusei Poku
gateway group
(949) 574-3860
LCFY@gateway-grp.com
1 Tiago Bianchi, “Google: Advertising Revenue 2023,” Statista, February 1, 2024, https://www.statista.com/statistics/266249/advertising-revenue-of-google/
2 Rohit Shewale, “Google Ads Statistics in 2024 (Revenue, Revenue, Facts),” DemandSage, February 26, 2024, https://www.demandsage.com/google-ads-statistics/#:~:text= 45%25 %20of%20Small businesses%20 have a market%20 whose%20 products%20 and %20 services
3 “What is Average CPM and How to Calculate It?” DashThis, accessed April 10, 2024, https://dashthis.com/kpi-examples/average-cpm/#:~:text=A%20good% 20cost%20per% 20mille, an%20average%20CPM%20of%20%243.12
Four Mark Irvine, “Google Ads Benchmarks for Industry” [Updated!]wordstream.com, accessed April 10, 2024, https://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks