Locafy Secures Media Contract with Total Potential Contract Value of Up to US$6.5 Million
Rhea-AI Summary
Locafy (LCFY) has secured a media contract with a potential value of up to US$6.5 million with one of the largest media companies worldwide. The initial phase involves implementing sponsored articles worth approximately US$500,000 in potential annual recurring revenue, representing 8% of the total removed articles. Locafy's Article Accelerator solutions will help address SEO challenges following recent Google policy updates that resulted in sponsored content removal. The company plans to publish content on niche websites with high Domain Authority, focusing on specific business categories like health and finance, without leveraging news properties' authority.
Positive
- Secured potential contract worth up to US$6.5 million
- Initial phase represents US$500,000 in potential annual recurring revenue
- Partnership with major global media company validates technology
- Solution addresses critical industry-wide SEO challenges
Negative
- Initial phase only represents 8% of total potential contract value
- Revenue realization dependent on successful content implementation
- Contract value described as 'potential,' indicating uncertainty in full realization
News Market Reaction – LCFY
In the trading session that priced this news, LCFY gained 15.61%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Initial Phase – if Published, Articles Represent Approximately US
$500 k (ARR), or8% of the Agreement's Total Potential
- Agreement Empowers Global Media Group to Potentially Recover Millions in Lost Revenue and Target High-SEO Value Keywords Across Lucrative Online Search Categories
- First high value, niche category content website to go live this week
PERTH, Australia, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Locafy Limited (Nasdaq: LCFY, LCFYW) (“Locafy” or the “Company”), a globally recognized software-as-a-service technology company specializing in ”entity-based” search engine optimization (SEO), today announced that it has partnered with one of the largest media and information services companies worldwide. The collaboration will address critical SEO challenges impacting the partner’s widely read news website and specialized content platforms, aiming to restore revenue from sponsored content, enhance advertiser visibility, and shield content against recent and potential future SEO penalties resulting from search engine algorithm changes.
Following recent SEO policy updates, including Google’s new enforcement actions related to site reputation and search ranking penalties, many publishers have faced the removal of sponsored content from their platforms, impacting both revenue and formerly valuable product offerings. Locafy’s proprietary Article Accelerator solutions offer an effective response to this industry-wide challenge, enabling publishers to safely reintegrate valuable content while minimizing SEO performance risk.
“This agreement underpins our planned transformation into a global publishing business, where we utilize our proprietary technology to publish niche content on website properties we own,” said Gavin Burnett, CEO of Locafy.
Pursuant to the agreement, Locafy will implement sponsored articles representing approximately US
Locafy’s publishing solutions enable the media company to leverage its sizable client base to offer national SEO solutions while shielding their masthead brands entirely from any potential search engine penalties.
“Rightly or wrongly, many prominent US media companies were recently penalized by search engines for publishing sponsored content within their editorial websites. While it seemed these media companies and publishers diligently followed all the rules, the practice was deemed “site abuse” to publish paid content which benefited from the high Domain Authority of the main news site, to promote what was considered “non-relevant” third party content,” said Burnett.
Locafy’s strategy is to publish this same content on specific niche websites that have high Domain Authority and only focus on a specific business category without leveraging the authority of any online news properties.
“Over coming months, we intend to publish multiple, high-value niche content websites and ensure they remain contextually relevant to the content they are promoting. Our client’s content will be published on niche domains targeting high-traffic keywords in lucrative sectors like health, finance, and other high-SEO value markets. These dedicated sites are designed to capture premium search rankings, ensuring sustainable relevance and revenue from targeted keyword segments.
"These strategies will collectively help secure premium search rankings for the media group's sponsored content clients, bolstering visibility across key advertising categories and generating measurable website traffic and engagement.
“This collaboration with one of the world’s most well-known media brands highlights the unique value and impact of Locafy's SEO technology. We believe that our Entity-Based approach provides a comprehensive solution to challenges many publishers face following recent SEO changes. By optimizing their sponsored content at scale, we support revenue recovery and drive visibility for advertisers, demonstrating the transformative power of our solutions in a dynamic digital media environment,” said Burnett.
Through this partnership, Locafy will assist the media group in delivering outcomes to advertisers, strengthening client relationships and attracting new business. This initiative reflects Locafy’s commitment to scalable, innovative SEO solutions that empower media organizations to thrive in a rapidly evolving digital landscape.
For more information about Locafy’s technology, including educational blogs and case studies, please view Locafy’s investor relations website at 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
Forward-Looking Statements
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Investor Relations Contact
Matt Glover and Matt Szot
Gateway Group
(949) 574-3860
LCFY@gateway-grp.com
