“At the beginning of 2021, we committed to building our portfolio of Esports and iGaming assets, and this new acquisition brings us one step closer to our goal of being one of the strongest equities in this industry…Advertising will continue to be the largest revenue generator within Esports, and TheSMACK.gg gives us another avenue for growing our market share within this space. This acquisition also provides strategic advertising resources for our existing pool of assets, such as HypeX.gg ‒ The Social Gaming Platform, and Advertiise,” said Laurent Benezra, President and CEO of Intema.
Having just recently signed an LOI with Advertiise Technologies on April 13, 2021, Intema is quickly building a name for itself in the Esports market. The Company has an extensive history of marketing with over 20 years of experience related to compliant email marketing including predictive marketing, behavioral email campaigns and custom integrations intended to help optimize businesses. However, Intema is currently in the midst of transitioning into the Esports market which is expected to reach US$1.79 billion in 2022. With the goal of becoming “one of the strongest equities in the industry,” Intema has made a series of acquisitions including Hypex.gg, Advertiise Technologies, and now TheSmack.gg.
In order to successfully pivot into the Esports market, Intema appointed Leigh Hughes to its advisory board and retained Jonathan Kowit and Jennifer Lazarus as executive marketing advisors on March 29, 2021. Keep in mind, the Esports market is expected to grow at a CAGR of 20% between the projected forecast period of 2021-2026. Moreover, advertising is expected to be the largest source of esports revenue within the industry. By strengthening its advertising and marketing capabilities, Intema has prepared itself to take advantage of the seemingly infinite ad potential in the Esports market.
“We are extremely excited about this transaction and its implications for user acquisition and brand growth for Intema, HypeX.gg and Advertiise. In the Esports industry, building engagement around niche communities is key to driving participation and a positive UX. This transaction anchors Intema’s position in Esports and iGaming. TheSMACK.gg’s complementary services will prove invaluable,” said Evan Ryer, CEO of HypeX.gg.
Intema’s latest LAO to acquire TheSmack.gg is intended to further support the Company’s HypeX.gg platform. Intema initially acquired HypeX.gg on February 9, 2021, marking the Company’s first Esports acquisition. Since then, HypeX.gg has become Intema’s flagship Esports tournament and social platform. The platform brings together multiple facets of the Esports community in one centralized platform, providing cash rewards, influence, and engaging community interactions. Moreover, HypeX.gg offers Esports betting through its fully licensed, safe and secure online platforms.
Furthermore, HypeX.gg is an advertising platform specializing in endemic and non-endemic advertising opportunities. For context, endemic advertising refers to advertisements that are relevant to a specific market while non-endemic advertising focuses more on the consumer than the market itself. In addition to having over 50,000 users, HypeX.gg has also held multiple tournaments and established partnerships with over 20 different brands and organizations internationally. HypeX.gg offers retail brands, organizations and companies an innovative platform to advertise themselves on. Additionally, by eliciting specific consumer behaviors on behalf of the brand, HypeX.gg is able to offer a significantly higher ROI on a company’s advertising budget.
Similar to HypeX.gg, TheSmack.gg is a provider of Esports related products and services that enable brands to participate in endemic and non-endemic advertising opportunities. TheSmack.gg’s retail service line includes product branding, digital advertising and marketing campaign design intended to increase brand engagement and equity within gaming demographics. By acquiring TheSmack.gg, Intema’s HypeX.gg platform has obtained additional strategic advertising resources that can be leveraged in the Esports ad market.
Intema has also announced that is has launched a marketing campaign through Agora Internet Relations. The marketing campaign is meant to raise visibility and awareness for Intema on key online platforms while also facilitating an increased understanding of the Company’s development and market opportunities in Esports. The marketing campaign is planned for 12 months at an annual cost of $100,000 plus HST and will be paid entirely in common shares of Intema.
Intema’s growth is comparable to Fansunite Entertainment, a company focused on technology related to online sports betting. More specifically, Intema’s HypeX.gg platform can be compared to TGS’ Pepper platform which offers betting services for live online Esports events. However, Intema has made a series of strategic moves to promote growth while Fansunite has not made any significant announcements since its partnership with TGS last month. With this in mind, Intema is poised for growth and may be worth keeping an eye on as the Esports market continues to develop.
Intema’s share price opened at $0.46 and currently sits at $0.455 as 9:30AM ET. This indicates that there has been no significant change following the Company’s latest news.
Full Disclosure: Intema Solutions is a marketing client of Equity Guru.