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Featured Pick of the Week
DND Technologies, Inc.
Publicly Traded Ticker Symbol
OTC: DNDT
Recent DNDT News:
June 14 – DND Technologies (DNDT) Acquires MatchingAds.com
DND Technologies (PINKSHEETS: DNDT) today announced its acquisition of a majority interest in MatchingAds, Inc., a full service Internet-based classifieds solution provider that operates with local TV stations’ websites.
“We completed our acquisition of an 80% interest in MatchingAds as a DND subsidiary a few weeks ago, and we have now fully assimilated its business plan into our operations,” said David Pollei, DNDT’s President and CEO. “MatchingsAds currently operates in Phoenix with a Fox affiliate and we believe that MatchingAds is an excellent addition to DND Technologies.”
For more information on DND Technologies and its subsidiary, MatchingAds, Inc., please visit their web sites www.dndtechnologies.com and www.matchingads.com.
DND Technologie’s focus is to build an online classified ads network with synergistic help from major media outlets. They have already built their first site for the FOX TV station in Phoenix, and are in the process of finalizing similar deals with FOX TV stations in other major US markets. With the marketing muscle and clout of the local stations, DNDT will have considerable marketing help in getting local online users to utilize the platform, and local advertisers to advertise on the platform.
Online Classified Ad Growth
In 2003, the market for classified ads in the United States was $15.9 billion (newspapers), $14.1 billion (online) according to market researcher Classified Intelligence. The worldwide market for classified ads in 2003 was estimated at over $100 billion. Perhaps due to a lack of reporting solidarity Market Statistics vary concerning the total market for internet classified ads. The Kelsey Research Group lists online classified ads as being worth $13.3 billion, while Jupiter Research provides a conservative appraisal of $2.6 billion (2005) and the Interactive Advertising Bureau lists the net worth of online classified revenue at $2.1 billion (April 2006).
Newspapers have continued their downward trend in classifieds revenue as internet classifieds grow. Classified advertising at some of the larger newspaper chains has dropped 14% to 20% in 2007 while traffic to classified sites has grown 23%.
As the online classified advertising sector develops, there is an increasing emphasis toward specialization. Vertical markets for classifieds are developing quickly along with the general marketplace for classifieds websites. Like search engines, classified websites are often vertical in nature with sites providing advertising platforms for niche markets of buyers of sellers.
2009 Market Report
The number of online adults to use classified ads websites, such as Craigslist, has more than doubled since 2005.
The number of online adults who have used online classified ads has more than doubled in the past four years to 2009. Almost half (49%) of internet users say they have ever used online classified sites, compared with 22% of online adults who had done so in 2005.
On any given day about a tenth of internet users (9%) visit online classified sites, up from 4% in 2005.
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Online Classified Ad Useage more than doubled from 2005 to 2009 |
These are the main findings of an April 2009 survey by the Pew Research Center’s Internet & American Life Project survey. They highlight the growing importance of such sites to internet users and reflect the changes in the audience for classified ads – both those who place them and those who make purchases – that have devastated a key revenue source for traditional newspapers.
| Newspaper Ad Revenue dropped by nearly half from 2005 to 2009 |
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The figures also underscore the growing social role of online classified ads. In the world of online classified advertising, Craigslist is by far the most used website in the United States. In March 2009, classified sites averaged 53.8 million unique visitors, up 7% from February.1 Craigslist had 42.2 million unique visitors in the month of March.2 The free, no-frills, user-generated and self-policing classified ads site has grown tremendously since its start in 1996 in San Francisco. As of April 2009, Craigslist had established itself in over 500 cities across 50 different countries. Some other online classified sites include Gumtree (primarily UK) and Kijiji (worldwide).
Classified ads sites are a one-stop-“shop” for everything from jobs to apartments to furniture to movers to puppies. However, users don’t buy anything directly on classified websites – they use the sites to set up meetings, and transactions are conducted in person or by mail – a characteristic which separates online classifieds from auction or shopping websites like eBay and Amazon.
DNDT Investor Highlights
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DNDT Recently Acquired 80% Ownership of MatchingAds.com |
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MatchingAds.com is rolling out a Classified Ads system for FOX TV stations and it’s first site in Phoenix is live with more to come in the near future. |
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Company Goal is to have coverage in more than 120 major US markets in the next few years. |
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Company should grow quickly with the marketing and advertising support of the major television media partner they are currently working with. |
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They will generate revenue from advertising on the classified ads sites in a shared ad revenue model with their media partners. |
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More than 49% of online adults use classified ads sites and the percentage is growing. |
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Online Classified Ads market is a multi-billion dollar market and growing and DNDT looks to capture a nice piece of the U.S. Market. |
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Cooperation with other major media networks besides their current affiliation with FOX is likely. |
DNDT Summary
Newspaper classified advertising is dying. It’s just a matter of time before it is pretty much gone altogether. At the same time, online classifieds advertising is booming thanks to the likes of Craigslist and other smaller online players.
DNDT thinks it is in a good position with better technology than Craigslist and a substantial media partner in FOX TV broadcasting which will help market and expand the useage of the DNDT MatchingAds.com Classified Ads network.
We like the opportunity that exists with DNDT so put it on your watchlists today and maybe pick up a few shares. Not many investors know about DNDT yet so now is a great time to get in on the ground floor. Do your homework and due diligence right away, and remember you heard it here first from BullseyeMicrocaps.com
Happy Trading!
BullseyeMicrocaps.com Staff
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