Crowd Media extends AI chatbot tech contract with digital advertiser Srcflare

After launching a trial in May this year with digital advertising firm Srcflare, Crowd Media (ASX:CM8) has today announced it will extend its partnership with the former, a move Crowd expects to see a material increase in revenue. 

Srcflare specialises in advertising and digital marketing strategies, where the name of the game is customer conversion: in normal people’s language, getting website visitors to actually buy something. 

This is where Crowd Media’s AI chatbot tech comes in. By creating super-realistic CGI human “avatars” (read: people who do not actually exist) to converse with customers in a typical “chat” window which pops up as customers browse an e-store. 

Crowd provides a wide range of services using this capability, packaged as its Talking Heads platform.

These AI-powered avatars are like chatbots of the 2010s, taken to their extreme. 

Crowd combines CGI and high-powered english language AI which can replicate a human-like conversation. Put those things together, and you get a technology which can persuade website visitors into engaging with a website for longer, and, persuade visitors to purchase. 

3 month extension

The success of Crowd’s original trial run with Srcflare speaks for itself, given that Crowd pulled in USD$100k with Srcflare between May and August. Srcflare launched Crowd’s technology for several of its clients with e-stores; Crowd, in turn, took a cut from sales. 

Srcflare now believes Crowd’s tech offers it a larger revenue potential, and so the two players have executed a heads of agreement (HOA) contract to extend the POC partnership for another 3 months. 

Srcflare has extended the contract, even as Crowd ups its licensing fee to USD$55,000. It is unclear if the first licensing fee from March ended up factoring into Crowd’s quoted $USD100k revenue. 

Logical synergy 

“The industry is ripe for change in business practices where the amount of business being done through search engines is exponentially larger than a decade ago,” Crowd Media CEO Idan Schmorak said. 

“By introducing conversational AI as an alternative means of interaction, the partnership has validated our strategy in a short period of time. We look forward to upscaling our tech to generate more leads at lower costs for Srcflare clients.” 

Srcflare CEO Gilad Cohen echoed his counterpart’s sentiments. 

“Crowd Media’s technology provides an opportunity for businesses to gain a competitive edge when it comes to engaging prospective customers,” Cohen noted. 

“Results to date have been promising and we look forward to scaling this tech.” 

Busy year for Crowd Media 

Back in July, Crowd expanded its legal licensing strategy into the EU and Middle East and North African markets. 

Coming to consumers in the Netherlands, Portugal, and the United Arab Emirates; Crowd launched two entertainment apps with mobile network approvals targeting two key e-markets — a children's bedtime story app, and another for astrological horoscopes.

Also worth noting is the multilingual coverage of the three networks provided, underscoring Crowd’s ability to see its conversational AI tech enter international markets. 

Crowd Media's charts show the impact risk-off sentiment rattling global markets has had since July

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Crowd Media was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.