Reach x FrequencyGents…thanks for the detailed posts on your recent meeting.
The Cengiz “cooper angle” does make sense. It’s a key part of what they do and very important source of their revenue. As I gather they were to be the mine operators, there limited expertise in mining gold probably gave pause for thought.
Some other good info was uncovered.
Great job...Kudos!
I also wanted to share a couple of thoughts on all the various comments regarding MNR’s need for promotion. It is indeed very important. After all, promotion is one of marketing’s “4 P’s”…a cornerstone of any successful market mix strategic plan.
Let’s look at the world of natural resource newsletters first.
First of, you don’t get the Coffin Bros to cover any company. Hard Rock Analyst is an independent newsletter and covers only plays that they deem worthy. They don’t recommend companies that solicit coverage for payment. And the companies that they do publish are not charged anything for their analysis.
Their revenue model is purely subscription based…and Eric & David aren’t cheap. Having said that, if anyone wants to give them a “heads up”, it may be worth the effort, but I wouldn’t hold my breath.
There is also the “paid promotion” newsletter -- an “infomercial” category. They will do a write-up on a junior for a fee – cash or equity – or some combination. Some claim they will still only cover companies whose projects and people they believe in, but, as they are getting a fee, one does wonder where the independence is.
Peter Grandich and Mickey Fulp’s The Mercenary Geologist quickly come to mind. The latter has just done some recent great reports and his website (and free newsletter alert) are well worth a visit.
As for pure traditional advertising itself, keep in mind that putting an advertisement up and hoping they an audience will read it and “buy” your product…well, it just doesn’t work that way.
Indeed, even if someone sees our MNR ad, chances are almost certain, they won’t even later remember that ad or the name of the company in it.
Let me explain.
Advertising is measured in one principal way using two key variables: reach x frequency.
“Reach” is the target demographic that reads the newspaper, website or media where you your ad is place. “Frequency” is the amount of times you need to place your ad for it to have an effect...for it to be remembered.
Trust me, I’ve run national ad campaigns; you need a LOT of frequency for an ad to get to a “top of mind” position…where you begin to recall a given ad. And that means a lot of money.
Why? Because most ads are filtered out between the process of ‘short term’ to ‘long term’ memory. To survive, our brains are wired to recall only the tiniest fraction of every sensation we process in the course of a day.
What web site were you on before reading this post? Can you remember any ads? And without lookup around, you can name one ad on Stockhouse right now?
I'm on these boards every day, but it's only now, that I making a conscious effort to look the 'all new' Passat CC from VW!
How many ads can you recall seeing yesterday…or last week?
Don’t get discouraged. Very few people can remember more than an ad or two – and most can’t even do that -- from the newspaper they read in the morning or the news they just saw on TV or via the web.
It takes lots and lots and lots of “frequency” for ads to ‘stick’….for consumers even to recall they seen your ad. That’s why consumer product companies spend millions of dollars to establish a new brand. That’s why successful advertising almost has one key ingredient: it’s EXPENSIVE.
Now ask yourself this: when was the last time you bought a junior exploration stock?
If you haven’t done so since the Oct ’08 crash, consider yourself typical.
The gold market may be heating up, but there’s still a ton of fear out there. If retail investors are attracted to gold, it will be probably for physical bullion or a “producing” gold mining company…and that usually spells a ‘major.’
So I share Peter’s concern about spending “cash” on pure adverting right now.
And while I don’t know Grandich’s or Fulp’s rates, this approach might be a way to go because, in addition to MNR featuring the downloadable reports on their website, the authors will send out their coverage to their “opt-in” database of free subscribers.
That’s important because these databases are filled with consumers predisposed to taking the high level of risk in a junior –non-producing – exploration junior. Or, in other words, it’s the right target demographic.
And if I did have an ad on Kitco or similar natural resource target site, it helps to have what are seen as "non-company opinions" on MNR's website once I get there. Besides, you have to read the fine type to know these are 'paid for' reports.
That’s assuming the updated 43-101 resource numbers will be sufficiently positive to warrant paying for such a report.
Buying a junior mining company is hardly the same decision process as purchasing a bar of soap.
The “analysis” in such reports may get MNR on the radar screen of buyers predisposed of buying risky juniors…when the market starts to recover.