Through our mobile applications and web portal, people use MassRoots to share their cannabis content, stay connected with the latest legalization news and follow their favorite dispensaries. With more than 900,000 users, MassRoots is one of the largest and fastest growing platforms for cannabis enthusiasts.
As of late May 2016, MassRoots has grown to more than 900,000 users. Over the coming months, the Company plans to introduce new features for users and fully index the network's public content on Google for SEO value, which we expect to accelerate our user growth.
While MassRoots’ consumer-facing network launched in July 2013, we did not start generating advertising revenue until we crossed a half million users in mid-August 2015. Our clients have primarily been ancillary businesses marketing their products to cannabis consumers through endorsed posts on MassRoots, sponsored content on our blog, and mentions in our email newsletter. It is not necessary for a user to join MassRoots in order for us to generate revenue from them – we are finding that many people will visit our website, join our email newsletter, or view a dispensary’s profile without registering for our MassRoots network.
During the first quarter of 2016, we signed advertising contracts with a value of $324,530 with 37 of the leading cannabis brands in the industry. As many of these contracts were for 3, 6 or 12-month campaigns, only a portion of the value was realized during the first quarter of 2016, and the rest will be realized over the coming quarters, building a solid foundation on which we can expand.
During 2016, at least 8 additional states are expected to have some form of cannabis legalization on the ballot, including California, Arizona, Massachusetts, Nevada, Florida, Ohio, Maine and Michigan. These eight states contain roughly 40% of the United States population and if their initiatives successfully pass, ArcView Market Research projects the cannabis industry could grow from $3.3 billion in 2015 to $10.2 billion in 2018.
MassRoots is uniquely positioned to play a key role in helping these legalization initiatives pass by utilizing our social channels to mobilize voters. If passed, these initiatives will greatly expand the markets in which MassRoots is available, accelerating our growth and potential revenue.