Locafy Secures Media Contract with Total Potential Contract Value of Up to US$6.5 Million
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.
Locafy (LCFY) ha stipulato un contratto media con un valore potenziale di fino a 6,5 milioni di dollari USA con una delle più grandi aziende media a livello mondiale. La fase iniziale prevede l'implementazione di articoli sponsorizzati del valore di circa 500.000 dollari USA in potenziali ricavi annuali ricorrenti, che rappresentano l'8% del totale degli articoli rimossi. Le soluzioni Article Accelerator di Locafy contribuiranno ad affrontare le sfide SEO seguendo i recenti aggiornamenti delle politiche di Google che hanno portato alla rimozione dei contenuti sponsorizzati. L'azienda prevede di pubblicare contenuti su siti web di nicchia con alta Autorità di Dominio, concentrandosi su categorie di business specifiche come salute e finanza, senza sfruttare l'autorità delle proprietà di notizie.
Locafy (LCFY) ha asegurado un contrato mediático con un valor potencial de hasta 6.5 millones de dólares estadounidenses con una de las empresas de medios más grandes del mundo. La fase inicial implica la implementación de artículos patrocinados por un valor de aproximadamente 500,000 dólares estadounidenses en ingresos recurrentes anuales potenciales, lo que representa el 8% del total de artículos eliminados. Las soluciones Article Accelerator de Locafy ayudarán a abordar los desafíos de SEO tras las recientes actualizaciones de políticas de Google que resultaron en la eliminación de contenido patrocinado. La empresa planea publicar contenido en sitios web de nicho con alta Autoridad de Dominio, enfocándose en categorías de negocio específicas como salud y finanzas, sin aprovechar la autoridad de las propiedades de noticias.
Locafy (LCFY)는 세계 최대 미디어 회사 중 하나와 최대 650만 달러의 잠재 가치가 있는 미디어 계약을 체결했습니다. 초기 단계에서는 약 50만 달러에 해당하는 잠재적 연간 반복 수익 가치의 후원 기사를 구현하는 작업이 포함됩니다. 이는 총 삭제된 기사 중 8%에 해당합니다. Locafy의 Article Accelerator 솔루션은 최근 Google 정책 업데이트에 따라 후원 콘텐츠 제거에 따른 SEO 문제를 해결하는 데 도움을 줄 것입니다. 이 회사는 뉴스 속성의 권위를 활용하지 않고 건강 및 금융과 같은 특정 비즈니스 카테고리에 집중하여 높은 도메인 권한을 가진 틈새 웹사이트에서 콘텐츠를 게시할 계획입니다.
Locafy (LCFY) a conclu un contrat médiatique d'une valeur potentielle allant jusqu'à 6,5 millions de dollars US avec l'une des plus grandes entreprises de médias au monde. La phase initiale implique la mise en œuvre d'articles sponsorisés d'une valeur d'environ 500 000 dollars US en revenus annuels récurrents potentiels, représentant 8 % du total des articles supprimés. Les solutions Article Accelerator de Locafy aideront à relever les défis SEO suite aux récentes mises à jour des politiques de Google qui ont entraîné la suppression de contenus sponsorisés. L'entreprise prévoit de publier du contenu sur des sites web de niche ayant une haute autorité de domaine, en se concentrant sur des catégories commerciales spécifiques telles que la santé et la finance, sans exploiter l'autorité des propriétés d'actualités.
Locafy (LCFY) hat einen Medienvertrag mit einem potenziellen Wert von bis zu 6,5 Millionen US-Dollar mit einem der größten Medienunternehmen weltweit gesichert. Die Anfangsphase umfasst die Implementierung von Sponsored Articles im Wert von etwa 500.000 US-Dollar an potenziellen jährlichen wiederkehrenden Einnahmen, was 8 % der insgesamt entfernten Artikel entspricht. Die Artikelbeschleunigerlösungen von Locafy werden dazu beitragen, SEO-Herausforderungen zu bewältigen, die sich aus den jüngsten Google-Politikänderungen ergeben haben, die zur Entfernung von gesponserten Inhalten führten. Das Unternehmen plant, Inhalte auf Nischenwebsites mit hoher Domain-Autorität zu veröffentlichen, wobei der Fokus auf bestimmten Geschäftsbereichen wie Gesundheit und Finanzen liegt, ohne die Autorität von Nachrichtenangeboten auszunutzen.
- 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
- 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
Insights
This
The partnership with a major media company addresses a critical market need following Google's recent SEO policy changes. By helping publishers recover lost sponsored content revenue through niche, high-authority domains, Locafy is positioning itself in a potentially lucrative market segment. The scalable nature of their solution, combined with the media partner's extensive client base, creates significant revenue expansion potential beyond the initial phase.
The contract's value relative to Locafy's current market cap suggests substantial growth potential if successfully executed. However, investors should note that the full contract value is contingent on implementation success and client adoption.
Locafy's entity-based SEO approach represents an innovative solution to a widespread industry problem. Their strategy of creating dedicated niche websites with high Domain Authority specifically tailored to content categories is technically sound and addresses Google's recent penalties against sponsored content on news sites.
The technical architecture allows for scalable deployment across multiple high-value verticals like health and finance, while maintaining content relevance and avoiding cross-domain authority issues. This approach should provide more stable and sustainable SEO performance compared to traditional sponsored content methods, potentially creating a competitive advantage in the digital advertising space.
- 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
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