DIGITAL BRAND MEDIA & MARKETING GROUP, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-K) – Marketscreener.com

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The Company developed a document called the Creds Deck which provides a description to prospective clients of Digital Clarity’s value proposition http://www.dbmmgroup.com/wp-content/uploads/2020/11/Digital-Clarity-Creds-Deck_DB64F.pdf.
Most analysts are clear that as we head toward the end of 2022, the challenges globally though different from the pandemic will still have an impact in 2023.
Though the general business sentiment is pessimistic, Digital Clarity has adapted its model to continually seek to focus on areas that will allow the business not only to survive during the turmoil but thrive as we come out of the challenging economic backdrop.
WHY DIGITAL EXPERTS CONTINUE TO BE IN DEMAND
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The B2B buyer journey is complex. This is why experts like Digital Clarity need to be involved from the start.
Winning B2B organizations are shifting to a more hybrid sales force by implementing actions that support success.
RELENTLESS DIGITAL GROWTH POSITIONS DIGITAL CLARITY AS A LEADER
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THE SHIFT TO DIGITAL IS PERMANENT
HOW MACHINE LEARNING IS ENHANCING DIGITAL MARKETING STRATEGY
MACHINE LEARNING AND DIGITAL MARKETING
With Google launching new “smart” features such as Google Smart Bidding, Smart Display Campaigns, and In-Market Audience to help businesses maximize conversions, it is clear that the future of PPC lies in machine learning.
To become more strategic and take PPC campaigns to the next level for its clients, Digital Clarity:
? Get to grips with the metrics that are most valuable to your business ? Understand obstacles that could get in the way of meeting your goals ? Know the underlying performance drivers to make more strategic decisions
DIGITAL CLARITY EMBRACE GOOGLE‘S MACHINE LEARNING MARKETING SUITE
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DIGITAL CLARITY PERFECTLY POSITIONED FOR THE FUTURE
According to Gartner’s Digital Business Acceleration report: Where to Focus Now, Enterprises have the intention of becoming more digital due to COVID-19.
Disruptive buyer dynamics are rewriting the rulebook for B2B sales, demanding digital-first engagement with customers. The rise in digital sales will be driven by marketing that creates demand and trust in brands.
THE GROWTH OF THE DIGITAL OMNICHANNEL
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OMNICHANNEL IS THE STANDARD, NOT THE EXCEPTION
McKinsey says that the equilibrium is no accident. As B2B buyers flexed to remote and digital ways of engaging, they found much to like. The use and preference for e-commerce-self-serve, for example-has continually grown year on year.
DIGITAL CLARITY PERFECTLY POSITIONED FOR GROWTH
B2B customers now regularly use ten or more channels to interact with suppliers.
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Some of the channels of focus are:
B2B DIGITAL MARKETING SERVICES
There is no denying the last year has proved challenging for Digital Marketing Services.
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At its simplest, B2B content marketing is when a brand uses stories, ideas, and insights to engage and influence a business audience.
These data points and research is an area in that Digital Clarity can help companies shape their content strategy. Typically, areas that Digital Clarity help clients are:
? Blog posts – marketers who make blogging a priority are 13x more likely to see
a positive ROI for their efforts.
? White papers – favored by 22% of business leaders, these longer research-based
? Short-form articles – enjoyed by 37% of execs, these have to research-based if
they are to stand out.
? Case studies – these provide buyers with reassurance further down the buying
funnel and can be made sector-specific. Nearly half of all business leaders
appreciate them.
? Infographics – these have become one of the most popular content marketing
tools in recent years.
? Podcasts – increasingly popular lead generation tools with marketers looking
to deliver thought leadership content to buyers on the move.
? Videos – companies using video, experience clickthrough rates that are 27%
higher and web conversion rates 34% greater than those that don’t.
? Email – nearly eight out of 10 marketers report see g an increase in email
engagement over the past 12 months of 2022.
? LinkedIn – generates more than 50% of all social traffic to B2B websites &
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CONTENT IS INFORMATION, AND DISCOVERABLE INFORMATION DRIVES REVENUE
Information drives purchase ease and high-quality sales
All of this looping around and bouncing from one job to another means that buyers value suppliers that make it easier for them to navigate the purchase process.
Digital Clarity has a process that helps shape their client’s content to become more discoverable information, and this increases revenues.
Buyer enablement, or the provisioning of information to customers in a way that enables them to complete information online, like gathering information or making a purchase, is an area that Digital Clarity are helping organizations.
Digital Clarity has started offering a wider array of services to it fast-growing S company in the US. Services include, LinkedIn strategy, content positioning and SEO.
Digital Clarity has been on a large business development push and attended various networking events in London. The events include Enterprise Cyber Security hosted at the London Stock Exchange as well as diverse events in DeFi and InsureTech.
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Other examples are representative of the diversity of client base. DBMM’s approach using a client’s analytics and executing an individualized model to increase ROI as the prime objective, spans a wide range of industries.
Core industry verticals for Digital Clarity include: B2B, SaaS, Digital Transformation, FinTech, Unified Communication Companies and discretionary advice for professional service providers and consultants.
THE GROWTH OF DIGITAL MARKETING & CONSULTANCY SERVICES
THE NEED FOR PROFESSIONAL CONSULTANCY AND THE OPPORTUNITY FOR MASSIVE GROWTH
THE GROWTH OF DIGITAL TRANSFORMATION WORLDWIDE
THE IMPORTANCE OF STRATEGIC MARKETING CONSULTANCY
Across industries, organizations are accelerating digital transformation processes for long-term growth and profitability. Yet: “53% of the organizations surveyed remain untested in the face of digital challenge and their digital transformation readiness therefore uncertain.” This report from Gartner highlights the need embrace change.
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Adobe says that Business-to-business (B2B) commerce will continue to undergo a major transformation as companies adopt the latest technologies to find new customers, improve their supply-chain efficiencies, and provide a more personalized user experience to their clientele.
Digital Clarity has created a unique Diagnosis Workshop that helps brands identify needs as well as assess the opportunity available. The core focus is to help reduce wastage and increase results.
DIGITAL CLARITY HAS A COMPETITIVE ADVANTAGE
We believe the path to successful customer acquisition lies in understanding a client’s business – not just running a campaign. We seek to help clients understand that success has to be objective and measurable.
Digital marketing is not a cost but an asset. Not a line in a spreadsheet but an emotive force that if done right, will bring real business change and growth.
Marketing has to be at the heart of the business. Delivering real innovation in digital marketing requires not just knowledge but authority and bravery. We think digital. We drive results.
We help our clients to understand their goals and objectives, using digital marketing to drive new business opportunities and retain their current customers.
HIS Markit, a research firm, reported: “Each dollar that companies spent on advertising in the United States last year, led to $9 in sales.
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THE GROWTH OF B2B SOCIAL MEDIA
? 76% of B2B organizations use social media analytics to measure content
? U.S. B2B business will spend an estimated $1.99 billion in 2022, and $2.33
GROWTH IN LINKEDIN ADVERTISING SET TO SOAR BEYOND 2023
Almost all B2B content marketers (96%) use LinkedIn. They also rated it as the top-performing organic platform.
For paid social posts, the picture is similar but not identical.
In just one-year, since the pandemic. digital adoption has happened at five to ten times the projected rate.
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GROWTH IN INVESTOR AWARENESS AND OUTREACH.
DBMM’s place in the industry reputationally is strong, particularly for its size. The industry environment continues to grow exponentially, and digital marketing and company transformation is an essential strategy for any commercial activity, and thus has become embedded in planning.
The Company resolved in 2015 to eliminate any consideration of using convertible debentures as a financing vehicle. Accordingly, the Company has not issued convertible debentures since 2015.
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This has been a successful strategy thus far:
Lastly, in March 2022, we reached an agreement with a holder of convertible debentures to satisfy obligations aggregating $85,000 in consideration of 30 million shares of the Company’s common stock.
We had $9,000 in cash and our working capital deficiency amounted to approximately $5.9 million at August 31, 2022.
During fiscal 2022, we used cash in our operating activities amounting to $389,000. Our cash used in operating activities was comprised of our net loss of $626,000 adjusted primarily for the following:
Change in fair value of derivative liability of $201,000 and loss on extinguishment of debt of $83,000;
Additionally, the following variations in operating assets and liabilities during fiscal 2022 impacted our cash used in operating activity:
We generated cash from financing activities of $389,000 which primarily consists of the proceeds from the issuance of loans payable.
We had approximately $10,000 in cash and our working capital deficiency amounted to approximately $5.5 million at August 31, 2021.
During fiscal 2021, we used cash in our operating activities amounting to approximately $437,000. Our cash used in operating activities was comprised of our net loss of approximately $701,000 adjusted primarily for the following:
The accompanying consolidated financial statements have been prepared on a going concern basis. The financial statements do not reflect any adjustments that might result if The Company is unable to continue as a going concern.
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Comparison of Results for fiscal 2022 and 2021
We currently generate revenue through our Pay-Per-Click Advertising, Search Engine Marketing, Search Engine Optimization Services, Web Design, Social Media, Digital analytics and Advisory Services.
Geopolitical conflicts and uncertainties as well as risks of recession, high inflation alongside energy costs, and interest rate rises and means global conditions remain downbeat going into 2023.
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Our revenues increased during fiscal 2022 when compared to the prior year, primarily as a result of increased advisory services revenues.
Cost of sales during fiscal 2022 decreased when compared to the prior year, primarily from streamlined service delivery process in service delivery.
The general and administrative costs during fiscal 2022, when compared to the prior year, is at comparable levels.
The increase in interest expense, which include interest accrued on certain notes and loans, is primarily due to greater weighted average interest-bearing debt obligations.
The other income reflects the recognition of tax credits related to expenses incurred in the UK.
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