Crowd Media (ASX:CM8) extends Talking Head partnership with SourceFlare

• Crowd Media (CM8) extends its business partnership with SourceFlare following a successful proof of concept (POC) of the Crowd Talking Head technology
• The two companies have now struck a new heads of agreement under which they will extend the Talking Head POC for a further three months
• Crowd says the initial deal Crowd generated more than US$100,000 in revenue in three months and validated the application of its tech to reduce online lead generation costs
• Crowd and SourceFlare share a mutual belief that there is a larger revenue opportunity in the media search space available by upscaling the CM8 tech
• Shares in Crowd Media are up 4.55 per cent to 2.3 cents just before market close

Crowd Media (CM8) has extended its business partnership with SourceFlare following a successful Proof of Concept (POC) of the Crowd Talking Head technology.

The two companies have now struck a new heads of agreement under which they will extend the Talking Head POC for a further three months, with increased budget guidelines.

The revised deal will increase the budget allocation applied by SourceFlare towards the POC and will also increase the licensing fee payable to Crowd Media to US$55,000 (A$82,000) for three months to the end of November this year.

Crowd CEO Idan Schmorak said the amount of business being done through search engines was “exponentially larger” than a decade ago, meaning the media search industry was ripe for disruption.

“By introducing conversational AI as an alternative means of interaction, the Proof of Concept has validated our thoughts in a short period of time so we look forward to upscaling our tech to generate more leads at lower acquisition costs for SrcFlare clients,” Mr Schmorak said.

Meanwhile, SourceFlare CEO Gilad Cohen said it was “exciting” to see the results from introducing the Talking Head technology into the SourceFlare platform so far.

“The results to date have been promising, so we look forward to scaling this tech which enables businesses to revolutionize how they engage with prospective customers in such a competitive landscape.”

Crowd’s Talking Head technology is designed to blend AI-based conversation tech with computer-generated digital avatars to help companies develop a new type of business-customer interaction.

Customers and platform users can ask questions or bring concerns and complaints to an AI-based professional to receive in-depth answers in real time.

Under the initial POC deal with SoureFlare from back in May this year, Crowd integrated this technology into SourceFlare’s marketing platform to optimise customer acquisition funnels and lead generation. In return, Crowd licenced SourfeFlare’s digital advertising platform to expand the reach of its tech.

Crowd said the deal generated more than $100,000 in revenue for its business in three months and validated the application of conversational AI to reduce online lead generation costs.

Crowd and SourceFlare said they shared a mutual belief that there was a larger revenue opportunity in the media search space available by upscaling the CM8 tech.

Shares in Crowd Media were up 4.55 per cent to 2.3 cents just before market close.