Trouver Trade recently conducted a market research for one of the most widely used US-based Stock Screener apps. With the approval of our customer, we bring forward some of the insights from the market research.
Stock Screeners are web based or mobile applications that allow users to find and shortlist stocks using various criteria such as industry, sector, market cap, share price, etc. With the gradual increase in stock trading among Americans, Stock Screener apps have also become highly popular and an extremely reliable asset for the investors.
According to Gallup's April Economy and Personal Finance survey, 58% of American adult population own stocks in 2022, which is slightly higher than the 56% measured in 2021 and 55% measured in 2020.
The US Demographics Statistics report published by the Census Bureau of USA suggests that the current adult population is 261,355,754, which is 77.9% of the total US population. Combining the above two data points, we can estimate that approximately 151,586,337 US citizens are active in the stock market in 2022.
The stock market's involvement in widening wealth inequality is highlighted by the fact that 89% of all U.S. stocks held by the public are now owned by the top 10% of earners in the country. About 11% of stocks held by individuals are owned by the bottom 90% of Americans, down from 12% prior to the Covid-19 pandemic. Professional traders, who make up 10% of the population use advanced software and reports to predict movement of stock prices. Household traders, who make up 90% of the population, mostly rely upon stock screener application for market-related updates and advisory. These 136,427,704 household traders make up the primary users of mobile based stock screener application.
No. | Table of Content |
1 | CUSTOMER SEGMENTATION |
2 | NON-CUSTOMER SEGMENTATION |
3 | TOTAL ADDRESSABLE MARKET SIZE AND PAID SUBSCRIBERS |
4 | MARKET ENTRY STRATEGY |
CUSTOMER SEGMENTATION
1. Informed investors
These investors tend to take a well-rounded approach when it comes to investment. They are careful to stay up-to-date with the market, using a variety of sources to fill in their understanding. While confident of their own financial acumen, they are also willing to listen to the advice of experts in order to act decisively. They often seeks out for quick information from authentic sources for taking calls on their investments. They frequently excel in their careers, have a strong work ethic, and could look for the same sense of control and accomplishment in their investments.
2. Busy investors
These investors want to have complete control of their investments but often too busy to keep themselves updated with the latest trends in the market. In their busy schedule, they would love to rely upon information from authentic sources for taking calls on their investment. These aggressive investors may also be big spenders who would rather take a gamble on market volatility than wait it out. They frequently have personality traits in common with business owners, for whom monetary success serves as a scorecard.
3. Cautious investors
The Cautious investors are typically the ones who are careful and prioritize financial security. When faced with a choice, they take their time and want to consider all of their possibilities. Their quest of the ideal decision may result in their never making one at all because they are afraid of making mistakes. They so fall within the category of passive investors. This category frequently includes older investors who are more concerned with protecting their money and have a shorter time horizon for recovering losses.
4. Casual investors
The Casual investors frequently let investments ride once they have been made, assuming that everything will work out. These passive investors frequently rely on their financial advisors' counsel. They often favour secure assets with a track record of success. Sometimes, investors' lax attitude toward investments reflects their hope that, if you just let things happen naturally, everything will turn out for the best in the end.
NON-CUSTOMER SEGMENTATION
1. Technical investors
Instead than responding to every market movement, Technical investors prefer to study the analysts' reports and examine the data. Even though they may spend a lot of time staring at computer screens, they believe their effort is rewarded if they see a pattern before others do. They frequently invest in the newest technologies out of a desire to gain an advantage in the markets. These engaged investors take a very active role in the selection and management of their investments.
2. Emotional investors
The Emotional investors make investments with their hearts, not their heads. For instance, regardless of the stock's performance, people are prone to invest in businesses whose goods they use and like, or to cling onto real estate in a failing neighborhood out of sentimentality. They may choose a mix of an active and passive strategy, ready to make investments in which they have a strong sense of commitment yet reluctant to sell up those whose value has declined.
3. Financial Institutions
Financial institutions are companies that are engaged in the business of dealing with investments, and currency exchange in addition to financial and monetary transactions. These companies employs technical investors who manage funds of a pool of individuals and invest in growth stocks in exchange of a share of the net profit.
TOTAL ADDRESSABLE MARKET SIZE AND PAID SUBSCRIBERS
Assuming that another 10% of the market consists of technical investors and emotional investors who would not require the assistance of stock screener mobile apps, the Total Addressable Market in the USA is estimated at 122,784,934.
There are around 50 stock screener applications accessible through mobile and web portals that provides updates on the US stock market. Moreover, the latest market information about US stocks can also be obtained from online trading platforms in a limited capacity. Speaking about stock screener apps, around 10 portals are immensely popular with 75% of the total user base. Remaining portals are less popular among users and have only 25% of the total user base.
The following table provides the average subscription plan, monthly visitor rate and the number of paid subscribers for the Top 10 stock screening portals in the USA.
Stock Screener Potrals | Avg. Monthly Subscription Plans ($) | Number of App Downloads | Monthly Unique Visitors (App + Website) | Annual Revenue ($) | Number of Paid Subscribers (App + Website) |
Market Watch | $ 22.99/mo. | 1 Million + | 2.5 Million | $ 7 Million | 1 Million |
Yahoo Finance | $ 24.99/mo. | 10 Million + | 6.2 Million | $ 10 Million | 3 Million |
Investor's Business Daily | $ 34.99/mo. | 100,000 + | 10.8 Million | $ 24 Million | 5 Million |
Stocktwits | $ 7.99/mo. | 1 Million + | 5 Million | $ 7 Million | 250,000 |
Seeking Alpha | $ 29.99/mo. | 1 Million + | 17 Million | $ 26 Million | 2.6 Million |
Simply Wall Street | $ 24.99/mo. | 100,000 + | 5 Million | $ 3.4 Million | 5 Million |
Benzinga Pro | $ 99.00/mo. | 100,000 + | 16 Million | $ 5 Million | 100,000 |
Stock Master | $ 12.99/mo. | 700,000 + | Unknown | $ 1.3 Million | 250,000 |
Investing.com | $ 13.99/mo. | 10 Million + | 11 Million | $ 101.8 Million | 6.5 Million |
Stocks + | $ 14.99/mo. | 1 Million + | Unknown | $ 2 Million | 800,000 |
The average cost of subscription of the Top 10 stock screener platforms is estimated at $28.69 / mo. while the total number of paid subscription in the Top 10 portals stand at 25,000,000. The total number of paid subscribers across all stock screener platforms in the US market can be estimated at approximately 33,000,000.
MARKET ENTRY STRATEGY
New stock screener platforms trying to enter into the US market can start with a paid subscription rate of $7.99 / mo. to match the lowest subscription rate that any of the Top 10 portals offer. This pricing strategy along with the bouquet of benefits of the app would attract new paid subscribers.
Assuming that the app would be capable of converting 10% of the unpaid consumers from the addressable market into paid subscribers with its amazing deals and acquire another 5% of the paid consumers from other platforms, we can estimate that the Total Addressable Market Size for Paid Subscribers for a new stock screener portal is nearly 10,550,000.
Most importantly, there must be a strong marketing plan in place. Marketing must start at least 3 months before the launch of the portal to generate awareness. Social media must be used extensively for reaching out to the target consumers. Influencer marketing in social media channels is also recommended.
For a detailed marketing plan, do contact Trouver Trade Research & Technology Private Limited. We have experienced marketing consultants with wide industry experience and reach to provide you the best marketing strategy you need for any kind of business.
About Trouver Trade
Trouver Trade Research and Technology Private Limited is a business development firm based in India that provides services such as market research, growth hacking, business intelligence, and development of innovative technology platforms that help businesses with their marketing exercises.
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