Our Business Model
We will be installing video digital advertising kiosks, screens and other digital video displays of different sizes and configurations (see the examples on this page), subject to the decisions of the Board of Directors and/or executive management, based upon the expected demand from prospective advertising clients and specific layout of the locations – ranging from big (over 500 sq. ft.) custom-made screens in large shopping malls (video walls) to smaller 85-inch floor-standing units in smaller grocery stores, gas stations or fast food restaurants.
The principal source of revenue will be the sale of the advertising slots. It is estimated that advertisement videos will run for 10 hours a day, 30 days a month. This time will be divided into batches, each batch comprised of 100 30-second slots. Each kiosk will be displaying 360 batches per month (36,000 videos).
30% of advertising time will be allocated to various nonprofit and social causes free of charge. Remaining 250 batches will be sold at an average price of $3 per 1 batch per 1 kiosk per month, so 1 kiosk can hypothetically bring revenue of $750 per month. It is not possible to sell 100% of all slots , so a coefficient of 80% will be applied, i.e. expected average revenue will be around $600 per 1 kiosk per month.
The actual price per batch will depend on multiple factors – type and size of location, geographic area, type of products or services advertised – and may vary accordingly.
Advertising slots will be sold through major national advertising and marketing agencies, as well as directly to advertisers by in-house sales team staffed by experienced executives.
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Our Advantages – why customers and advertisers need us
One of the most important aspects of advertising in public spaces is to engage the consumer in a way that will make him or her spend some time in front of the advertising kiosk and get the advertising message without getting distracted. Our company has come up with 2 unique and ingenious methods which will compel consumers to spend between 1 and 5 minutes in front of the screen thereby enhancing the effectiveness of advertising, which will allow us to attract more advertisers. These features are as follows:
1. Advertising bank products such as mortgages, car loans, credit cards and other financial products which will be aggregated on an in-house digital platform collected from over 10,000 banks, credit unions, mortgage lenders and other financial institutions; consumers will be provided with the best terms and rates available in their particular location. Thanks to touch screen functionality they will be able to apply on the spot or download product offer through QR code provided on screen. The Company will be paid a commission by the banks for each financial product it sells.
2. Company will run raffles, sweepstakes, giveaways and contests with fantastic, really valuable prizes such as smartphones, travel tours, even cars; since participation will not require so-called “consideration” from the customer (i.e., payment either in cash or in kind), licensing of such lotteries is not required or not very onerous to comply with (depending on applicable federal and state regulations).
With a chance to win a great prize and no payment required, a lot of consumers will want to take part. Since registration will take some time consumers will have to watch the ad for at least 2 minutes. Each such interaction will be recorded and this data will be provided to the advertisers, so that they can understand what kind of engagement and results they are getting from our kiosks.