Uber of the sky, JetSmarter targets financial professionals with new ads

jetsmarter targets financial professionals with new ads

Perhaps the biggest financial story of the past few years has been the “sharing” economy –  ridesharing apps like Uber and homesharing like AirBnB offer clear benefits for both buyers and sellers, and have cut into profit margins for the taxi and hotel industries in many cities.

Now, the trend towards app-based travel planning and ridesharing is targeting a new audience: Finance professionals looking for luxury travel. Whereas owning a private jet has traditionally been a badge of pride for leading investment banks and brokerage firms, there are downsides to ownership as well: Even the most active of private planes sit idle a majority of the time, and even when they are in service, they fly empty as often as 30 percent of the time.

Enter companies like JetSmarter, a marketplace for private travel with mobile phone apps that link top execs looking to travel with plane owners looking to fly.

The app has copied the Uber model by booking “empty legs” — essentially “hitching a ride” on luxury aircraft that are currently traveling with empty seats en route to pick up passengers in other cities.

Advertising to the financial community

To advertise the app, the company announced a seven-figure TV ad campaign on April 15, with a series of 30-second spots targeting the business and finance sectors, with two new 30-second TV spots aimed at the finance sector, to be aired on finance and business channels CNBC, CNBC Europe, CNBC Russia, Bloomberg, Bloomberg Europe and Bloomberg Russia.

In contrast to previous ads, which appealed to a super-rich sense of exclusivity and privilege — high-end businesspeople in flash sports cars, pulling right up to a waiting private jet, greeted by personal attendants ready for the private flight –the new spots highlight JetSmarter’s accessibility to wealthy, but not necessarily top-end, customers.

The ads features driving music (instead of the previous softer tune) and emphasize the app’s ability to create free time for users to then spend with their families. Seen in this way, JetSmarter wants to appeal to individuals who make things happen. The ad claims that “life isn’t about what happens to you. It’s about what happens for you.”

The placement of the TV ads runs counter to some recent trends in the finance and technology advertising industry. Last year, the Wall Street Journal reported that online lenders such as Lending Club and Prosper have taken their ad campaigns offline, and off screen, choosing instead to concentrate efforts and budgets on old-fashioned direct mail advertising.

All of which is not to say at JetSmarter’s TV ads stand alone: The company also uses advanced SEO and SEM to make sure it ranks high up in Google’s search results. For example, if you enter “private jet rental service” in Google’s search bar, the first result is an ad from JetSmarter.

Lastly, there is mobile and internet advertising, and of course mouth-to-mouth referrals. The company sends users mobile notifications and email newsletters to potential users to keep them updated on special offers.

Flexibility is key for financial types

JetSmarter CEO Sergey Petrossov said his app has been downloaded 350,000 times in the three years since being released, with a monthly growth rate of 15-20 percent and partnerships with more than 800 air carriers and some 3,200 aircrafts worldwide. The average JetSmarter ticket costs around $20,000, but that is on top of an annual membership fee ($13,175 for the first year, $9,000 annually after that).

Necessarily, a significant portion of the target audience are finance professionals, both because they are likely to be able to afford to high price tag, and also because the sector pivots on one the strengths of the luxury travel industry: flexibility. When necessary, private flights can be arranged in just six hours.

A country club in the sky

And finally, of course, there is status. Although JetSmarter’s TV ads claim that private jet rental is “not a status thing, it’s a smart thing,” there is a clear intonation throughout the 30-second spot that the service on offer is not intended for the light-of-wallet.

Rather, the company is trying to appeal to its audience’s sense of exclusivity. Petrossov himself says his target clientele are technology-savvy individuals aged between 25 and 50 who earn at least $1 million a year. He also calls the in-flight experience a “country club in the sky” where “members enjoy our community, particularly for the ability to network in-air, and to meet interesting people.”

It is a point that is backed up by Oren Alexander, a leading producer at real estate brokerage firm, Douglas Elliman (and one of JetSmarter’s “global ambassadors,” influencers the firm is using to help spread its message), who called the app – and his on-board experience “a complete game changer”.

“I flew on a jet to Florida on a Sunday night,” Alexander said. “Without mentioning names, I was seated next to one of the biggest developers in downtown New York.

“Would I have had his ears for three hours otherwise? No.”

A version of this story originally appeared on Digiday.

Insider Trading Dashboard: Everything you need to know

With the daily news of hedge funds being raided and expert networks being investigated, I wanted to put together a resource sheet for those looking to delve a bit further into the insider trading game.

Research

Decoding Insider Trading (Cohen): This new paper looks at a methodology to isolate insider traders acting on good information from noisy trades.  By looking at individual trades — versus looking at all insider activity — investors can mimic better-performing trades, boosting performance of insider trading strategies.

Law and Economics of Insider Trading: A Comprehesive Primer (Bainbridge) 84 pages of insider trading awesomeness.  This 2001 paper deals with everything from the origins of current laws prohibiting insider trading to defining an insider to making a case for and against regulating insider trading. For a smaller, more concise paper on insider trading, see Bainbridge’s Insider Trading: An Overview

Stock Market Anomalies: What can we learn from repurchases and insider trading (Core, Guay, Richardson, Verdi)

How Informative are Analyst Recommendations and Insider Trading (Hsieh, Ng, and Wang) Evidence points to insider trading and analyst recommendations giving conflicting signals.  This paper documents that and provides theory why this may be the case.

What Insiders Know about Future Earnings and How They Use It: Evidence from Insider Trades (Ke, Huddart, Petroni) Insiders do trade on this stuff up to 2 years before public release.

Do Insider Trades Reflect Superior Knowledge About Future Cash Flow Realizations (Piotroski, Roulstone) Short answer: yes.

Insider Trade Disclosure, Market Efficiency, and Liquidity (Buffa): Policy implications after finding that informational efficiency and liquidity are lower in more transparent markets

Institutional Investors and Insider Trading Profitability (Markarian, Bricker) Insider profits are inversely related to presence of institutional ownership.  Hedge funds/mutual funds may provide monitoring effect.

MSM (Mainstream Media) on Insider Trading

WSJ on Insider Trading (sub. req’d)

Bloomberg.com: Insider Trading

Google fastflip on Insider Trading

Tradestreaming on Insider Trading

Dealbreaker’s Insider Trading Fest(ivus)

NYT on Insider Trading

Dealbook on Insider Trading

Books on Insider Trading Strategies

Investment Intelligence from Insider Trading: If this book is the bible of insider trading strategies and research, its author, Professor Seyhun is Moses.  Great research into strategies for following insiders.

Profit from Legal Insider Trading: Invest Today on Tomorrow’s News

The Vital Few vs. the Trivial Many : Invest with the Insiders, Not the Masses

Videos on Insider Trading

Hedge fund pick of the week (CNBC): Lorrilard (LO)


Here’s CNBC’s weekly hedge fund pick of the week and another window into piggyback investing for our readers. Every week. Anthony Scaramucci aka ‘The Hedge’, offers insight at the names getting the most buzz across the hedge fund community. Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management.

This week focuses on cigarette manufacturer Lorillard ($LO), which he thinks is inexpensive, defensive and has a nice dividend (> 5%).

Best investment sites for Jim Cramer performance

Jim Cramer, the hyper television investing personality, is more than just an investor, he really is a performer.  I’ve told clients and other investor to focus more on his ideas and how he arrives at his analysis than his actual performance.  Why?  Because that’s what he should be judged by — he’s made an entire generation of people excited about the stock market and empowered to do their own research.

If you are interested in researching Jim Cramer’s performance, here’s a list of resources that should help:

Who is Jim Cramer

Jim Cramer: Wikipedia entry

Jim Cramer’s Books

JIM CRAMER’S GETTING BACK TO EVEN: Cramer offers the most detailed guidance he has ever given on how to invest in a changed market. Savvy investors will not just survive; they will thrive. Cramer begins with six rules for protecting the money you have and making sure that you have the money you need.

Confessions of a Street Addict: When I joined the hedge fund, this book was a must read for all new analysts.  Great look at Cramer’s experiences and performance at his own hedge fund.

Stay Mad For Life – Get Rich, Stay Rich (make Your Kids Even Richer): A bit of a departure from previous books, in Stay Mad for Life, Cramer addresses broader issues of personal financial management that one deals with from cradle to grave.

Jim Cramer Online

The Street.com: Cramer is Chairman of the Board for TheStreet.com and one of the sites numerous investing personalities.

CNBC’s Mad Money: If you haven’t watched Mad Money, Cramer is at his best ranting and taking unscripted calls from the public.  You can get a feel for his encyclopedic knowledge of the market, sectors and individual stocks.

CNBC Mad Money Stock Screener: You can drill down on Cramer’s picks on the show and see how they stack up.

Cramer’s Picks: Seeking Alpha: Seeking Alpha has a daily recap of Cramer’s stock picks.

Jim Cramer Performance

Barron’s 2010: Cramer’s star outshines his stock picks (sub reqd.):

This article actually shows that investors would do better by shorting Cramer’s Mad Money Picks rather than going long them.  See accompanying graphic.

Proof: Jim Cramer Isn’t a Lousy Stock Picker: From the Business Insider, this article reviews a recent academic study (mentioned below) that found:  while Cramer may be entertaining and mesmerizing to many of his viewers, his aggregate or average stock  recommendations are neither extraordinarily good nor unusually bad.

Bolster, Paul J. and Trahan, Emery A., Investing in Mad Money: Price and Style Effects (October 29, 2008): This is the paper referenced by The Business Insider entry above.  The two Northeastern University academics do a really good job drilling-down into Cramer’s effect on stocks.

Engelberg, Joseph, Sasseville, Caroline and Williams, Jared, Market Madness? The Case of Mad Money (January 23, 2009): This more recent study showed that Jim Cramer influences market prices through his recommendations on the show Mad Money and that overnight returns following his recommendations are highest for small stocks, stocks with high idiosyncratic volatility, stocks recommended on days when wealthy viewer-
ship is high, stocks that have performed relatively poorly over the previous twelve months, stocks recommended on days when relatively few recommendations are issued, and stocks recommended during the discussion segment (as opposed to the lightning round).

Must See Jim Cramer Videos

Cramer’s famous “They know nothing” rant on the Federal Reserve.


Famous Jon Stewart – Jim Cramer feud.