SOURCE: AXcess News

AXcess News

January 19, 2010 19:08 ET

AXcess News: CrowdGather's Forum Network Approach Outpacing Social in Content Value

RENO, NV--(Marketwire - January 19, 2010) - While Facebook and LinkedIn commanded a huge audience of mostly young users in the US, CrowdGather, Inc. (OTCBB: CRWG) was outpacing the social networks in content quality that in turn could draw higher advertising returns when weighed against unique forum user participation.

eMarketer reported that Facebook's traffic has grown to 350 million users worldwide, though US traffic is still dominated by mostly young users. In the US, traffic grew by 4.5 million users, a remarkable figure if Facebook could only convince ad buyers of the value in social comments, though that jury is still out. reported Tuesday that the social network was planning to upgrade its Insights tool to allow page owners to "track impressions and interactions against each post." Still, social sites such as Facebook and LinkedIn have yet to overcome the tunnel vision faced by social network users whose posts, while brief, lack quality and draw little interest to advertising being displayed there, which is why the social networks struggle to find new ways of luring ad dollars. CEO Sanjay Sabnani says the value's in the content, which is why the Company's forum network approach is working over the business model Facebook and other social networks use in luring ad dollars. Basically, says Sabnani, "content is king."

"Forums are the help desk of the internet -- they are where you end up when you have a question that requires an expert answer," explained Sabnani.

Sabnani went on to say that, "The major difference between the network CrowdGather is creating and social networks such as Facebook and LinkedIn is the fact that our sites contain very high value user generated content while the others excel at mapping and tracking relationships."

Acquisitions are providing Sabnani's company with significant revenue growth, according to CrowdGather's Executive Summary which states that CRWG believes it can grow CPM revenue of forums that join its network from current .20 to .30 CPM rates to as high as $2.00. So far CrowdGather has managed to double the CPMs of its initial portfolio of forums backing Sabnani's statement that content is king.

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