Grom Social Enterprises, Inc. (GROM): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at Grom Social Enterprises, Inc. to see if their niche-a COPPA-compliant social space for kids backed by animation and potential gaming plays-is translating into real shareholder value. Honestly, the near-term picture is tight: while they are pushing content and safety across their Product and Promotion, the financials show the burn, with a forecasted 2025 EPS of -\$18.16 against a trailing revenue of about \$3.72 million as of early last year. Before you decide on the investment thesis, you need to see the full map of their go-to-market plan. Below, I've laid out the authoritative breakdown of their Product, Place, Promotion, and Price strategy as of late 2025.

Grom Social Enterprises, Inc. (GROM) - Marketing Mix: Product

You're looking at the core offerings of Grom Social Enterprises, Inc. (GROM) as of late 2025. The product strategy here is clearly segmented, aiming to capture value across the digital ecosystem for children and families, from social interaction to content creation and security services. Honestly, it's a diverse portfolio, but the financial reality shows where the current weight is.

The company operates through three primary business segments: Animation, Original Content, and Social & Technology. For the trailing twelve months (TTM) ending around the time of the latest filings, Grom Social Enterprises reported total revenue of approximately $3.72 million.

Here is the breakdown of the revenue composition based on the most recently available full-year data from Fiscal Year 2023:

The dominance of the Animation segment is clear; that's where the bulk of the reported revenue is coming from right now. Let's look closer at what each product line delivers.

Core Product Offerings

The product strategy centers on creating a safe, compliant digital environment and monetizing related content and services. You can see the key components below:

• COPPA-compliant social media network for kids under 13 years of age.
• Original animated films and TV series developed and owned by Curiosity Ink Media (CIM).
• 2D animation production services provided through Top Draw Animation, which has secured over $1 million in new assignments as of July 2024.
• Web filtering and security solutions delivered via Grom Educational Services for K-12 schools and government entities.
• Expansion into the gaming sector via the planned acquisition of Arctic7, Inc.

Content Development and IP Portfolio

The Original Content segment, driven by Curiosity Ink Media (CIM), is focused on developing and maximizing the commercial potential of Kids and Family entertainment intellectual property (IP). Grom Social Enterprises acquired an 80% stake in CIM in August 2021 for $20.4 million. There is still a potential earnout component of up to $17 million tied to performance milestones through December 31, 2025.

Key content properties being leveraged include:

• Santa.com: An original animated feature film slated for global distribution in the Fall of 2025.
• Hey Fuzzy Yellow!: Curriculum-driven content positioned as a preschool series.
• Denver the Dinosaur: An animated series reboot.
• Publishing initiatives, including books rooted in CIM's IP, such as Baldwin's Big Adventure.

Gaming Expansion via Arctic7

The planned entry into gaming is anchored by the Letter of Intent (LOI) to acquire Arctic7, Inc. This move is intended to secure a foothold in the global gaming market, cited as a $185 billion opportunity. Arctic7, founded in 2022, brings development capabilities including full game development, co-development, and virtual production.

Here are the reported financial figures associated with the target:

The strategy here is to integrate Arctic7's expertise for content collaboration and educational gaming initiatives within the Grom ecosystem. Finance: draft 13-week cash view by Friday.

Grom Social Enterprises, Inc. (GROM) - Marketing Mix: Place

The distribution strategy for Grom Social Enterprises, Inc. centers on digital accessibility for its core social platform and leveraging its production capabilities globally to service content demand.

Digital distribution via the Grom Social mobile application.

The primary point of consumer access for the social network component is the Grom Social mobile application, which is designed to be COPPA-Compliant for children under 13 years old. While the company intends to grow its user base to attract advertisers and paid users for premium content, the Grom Social website and mobile app generated nominal revenues to date as of April 2023. The overall company trailing twelve month revenue was reported at $3.72M as of March 31, 2024, with the success of this digital distribution channel being directly tied to increasing the size of the user database. The company maintains a free version of the app as part of its monetization efforts to avoid negatively impacting the user base.

Global reach for animation services, operating in the Philippines.

Grom Social Enterprises, Inc. conducts operations across the United States and the Philippines through its three segments: Animation, Original Content, and Social and Technology. The Animation segment is anchored by its subsidiary, Top Draw Animation (TDA), based in Manila. TDA is a leading producer of 2D animation for television markets globally. As of a 2016 report, TDA employed more than 500 employees at its headquarters in Manila, harnessing local artistic talent for international export. The company's total full-time employees were listed as 126 in a 2025 company profile.

Content licensing agreements with major streaming platforms.

A key part of the distribution and monetization strategy involves licensing intellectual property (IP) developed or acquired. The company plans to monetize by franchise, licensing, and merchandising opportunities in addition to hosting content on its own platform. In a recent development, Grom's Top Draw Animation subsidiary secured over $1 Million in new assignments to produce 2D animation content, indicating active engagement in the content supply chain that feeds external distribution channels.

The operational structure supporting content distribution can be summarized by segment:

Direct-to-consumer (D2C) and business-to-business (B2B) channels.

The business model incorporates both D2C engagement through the social platform and B2B revenue streams derived primarily from the Animation segment's service work and content licensing. The company seeks to grow its user base to attract advertisers and paid users, which represents a D2C/B2B hybrid model for the social platform. The Animation segment operates on a B2B service model, providing production expertise to other producers and broadcasters worldwide. The overall company revenue was $3.72M in the trailing twelve months ending March 31, 2024.

US-based operations for technology and corporate functions.

Grom Social Enterprises, Inc. is headquartered in Boca Raton, Florida, United States, where its corporate and technology functions are based. This location serves as the central hub for the company's overall strategy, including the management of its subsidiaries and intellectual property portfolio. As of December 4, 2025, the company's market capitalization stood at $902, reflecting the valuation of its US-based corporate entity and its global assets.

The distribution points for the company's services include:

• The Grom Social mobile application (COPPA-Compliant).
• Direct service contracts for 2D animation production.
• Web filtering services provided to schools and government agencies.
• Potential future franchise, licensing, and merchandising opportunities.

The stock price as of November 9, 2025, was reported at $0.001.

Grom Social Enterprises, Inc. (GROM) - Marketing Mix: Promotion

Promotion activities for Grom Social Enterprises, Inc. (GROM) are intrinsically linked to maintaining a safe, compliant digital environment to attract both the target pre-teen audience and brand advertisers.

Focus on COPPA-compliant (Children's Online Privacy Protection Act) safety

Grom Social Enterprises, Inc. operates its social networking platform for children under 13 years of age with a stated focus on compliance with the Children's Online Privacy Protection Act (COPPA). This compliance is a core promotional message to parents and regulators. The Federal Trade Commission (FTC) finalized substantial amendments to the COPPA Rule in January 2025, which took effect on June 23, 2025. Businesses subject to COPPA must ensure compliance with these changes by April 22, 2026. The updated rule requires opt-in consent for targeted advertising and limits data retention to only as long as reasonably necessary to fulfill a specific purpose for which it was collected. Grom Social Enterprises, Inc. promotes its platform as ensuring parental consent and data privacy safeguards for users under 16. The company develops original video and editorial content, leverages influencer collaborations, and offers sponsored programming to connect brands with children in a controlled and compliant setting.

• FTC COPPA amendments finalized: January 2025.
• New COPPA compliance effective date: June 23, 2025.
• Deadline for Operator compliance: April 22, 2026.

Branded content and sponsored programming for advertisers

Revenue generation for Grom Social Enterprises, Inc. is primarily derived from advertising partnerships, branded integrations, and content licensing agreements, which fall under the promotion umbrella. The company offers branded content and digital marketing services specifically to advertisers targeting the pre-teen demographic. The latest reported revenue for the trailing twelve months (TTM) ending in late 2025 is reported as $3.72M. For the third quarter of fiscal year 2025, the actual revenue reported was $970.24K. The company develops original video and editorial content as a vehicle for these promotional activities.

Leveraging influencer collaborations to reach pre-teen audiences

A stated component of the promotion strategy involves leveraging influencer collaborations. This tactic is used to connect brands with children through age-appropriate content on the platform. The company focuses on building strategic alliances with content creators as part of enriching its platform offerings. Specific financial data detailing the spend on or revenue generated directly from influencer collaborations is not publicly itemized in the latest disclosures.

Public relations centered on child safety and family-friendly media

Public relations efforts for Grom Social Enterprises, Inc. center on conveying the platform's commitment to child safety and family-friendly media. This messaging supports the core product offering, which is a social media network for children under 13 years. The company is also involved in broader entertainment projects through its acquisition strategy, with an associated entity contributing to the David Ayer series 'Lollipop' and Francis Ford Coppola's film 'Megalopolis.'

Investor relations activities to support the OTC-traded stock

Investor relations activities support the stock trading on the Over-The-Counter (OTC) market under the ticker GROM. The company's securities were suspended from Nasdaq trading on August 19, 2024, following a notification of delisting due to the share price closing below the $1 threshold for 30 consecutive business days. As of December 4, 2025, the stock price was reported at $0.0001. The company has finalized an agreement with Generating Alpha Ltd., which will lead to a new financing venture, with Grom Social Enterprises, Inc. committing to use 35% of the net proceeds from this financing to repay outstanding principal on convertible promissory notes. The latest SEC filing noted was an SEC STAFF ACTION on June 16, 2025. The forecasted annual earnings per share (EPS) for 2025-12-31 is -$18.16 per share.

Here's the quick math on key financial metrics relevant to the business operations supporting promotion:

Grom Social Enterprises, Inc. (GROM) - Marketing Mix: Price

Price for Grom Social Enterprises, Inc. (GROM) is structured around multiple revenue streams that reflect the value proposition of its COPPA-compliant, brand-safe digital ecosystem for children and families.

The foundation of the pricing strategy centers on monetization through advertising partnerships and content licensing agreements, which is where the bulk of the top line is generated. For a recent period, the revenue breakdown shows this concentration:

The Trailing Twelve Months (TTM) revenue figure, as reported up to March 2024, stood at approximately \$3.72 million. This TTM figure is a key indicator of the scale at which the pricing for advertising and licensing is currently operating. For context on recent performance, the revenue for the quarter ending September 12, 2025, was reported as 0.87 (in millions).

A secondary component of the pricing structure involves a subscription model for the Grom Social platform and content access, designed to engage parents and caregivers directly. While specific consumer subscription prices aren't detailed as a primary revenue driver, the existence of this model suggests a tiered access or premium feature pricing strategy alongside the ad-supported base.

The Animation segment's significant revenue share implies that content production fees for third-party animation services, or the monetization thereof, are a critical element of the overall pricing realization. The company also explores partnerships for nutritional supplements, though that segment had no operations as of its initial intent.

From an investor perspective on profitability tied to pricing realization, the forecasted annual Earnings Per Share (EPS) for 2025 is a negative -\$18.16 per share. The latest reported TTM EPS was -\$10.13. The net income for the latest reported quarter (ending September 12, 2025) was -\$3.96 million. As of December 4, 2025, the market capitalization was \$902.

Effective pricing strategies must reflect the perceived value of brand safety and COPPA compliance to advertisers. You're looking at a micro-cap where revenue scale directly dictates the impact of any pricing changes. Here's the quick math on the revenue components:

• Animation revenue alone covers over 83% of the total revenue base.
• Social & Technology contributes just over 10%.
• The TTM revenue as of March 2024 was \$3.72M.
• The 2025 forecasted EPS is -\$18.16.

Finance: draft 13-week cash view by Friday.