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 A NEW WORLDWIDE BUSINESS OPPORTUNITY
OUTDOOR ELECTRONIC VIDEO ADVERTISING BOARDS
FEASIBILITY STUDY


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INTORDUCTION

Electro MEDIA Int'l has been in the outdoor electronic advertising business since 1992, when outdoor LED technology was developed. We started as an end-user and quickly became suppliers of the best Quality/ Price LED signs, Worldwide. Unlike most manufacturers who only sell equipment, we can propose a "Complete Business solution".
 

 
THE CONCEPT

Electronic video boards are considered the hottest outdoor advertising medium of the 3rd Millennium. Thanks to the development of new TRUE COLOR, ULTRA-BRIGHT LED technology, outdoor electronic billboards are now capable of performing like a real OUTDOOR TV, even under direct sunlight. What else other than an attractive, animated giant outdoor advertising video screen can grab people's attention on a busy street, whether pedestrians or inside a car or a bus, stuck in a traffic jam? Regular poster billboards, even though attractive when newly installed, can become boring, dull and even unnoticed after only few weeks, compared to electronic video advertising screen that refreshes itself constantly.
Operated by PC, this type of board can display any TV commercial, any Live event, any useful information, and any breaking news instantly, from any remote location. The picture is bright and beautiful, especially at night, with millions of bright colors on display. Sound can also be added on special events, turning this board into a giant outdoor TV. The ideal location for this type of advertising board is a very busy street (either full of pedestrians and/or vehicles with slow traffic), or a major intersection. It's not recommended to be installed on hi-speed highways or major streets, even if car traffic count is high, because people won't have time to see many ads. or video clips.

 

 
THE INVESTMENT

Getting into an electronic advertising business is becoming a quite affordable venture, and RETURN is very attractive. An interesting point is that this type of equipment can be financed through LEASING, which is a very attractive financial tool.
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The investment consists of 3 parts: Board(s) cost, Location(s) rent and permit fees, Office and operating costs.
 

A- Board cost:
- An average size board (approx. 20 M2 - 220 sq.ft.)
costs between $20,000 and $50,000 (depending on resolution & LED type)
 
- A good size board (approx. 40M2 - 440 sq.ft.)
costs between $40,000 and $75,000.

- A large size board (approx. 80M2- 880 sq.ft.)
costs between $70,000 and $150,000 USD.

NOTE: Prices are only indicative and include steel frame, installation etc...


B- Location and permits costs:

A prime location should be secured, through place rental and permit acquirement. This varies from country to country, city to city, and location to location. No correct estimation could be made, because prices vary so much, even though a decent location is estimated at $12-24.000 yearly. 
But there is a new and very interesting concept, that can save location rent and make you eventually more money than a "fixed" board, by placing an electronic video board over a truck or trailer, and move it from one hot or prime location to another, at different times of the day or days of the week, or placing the truck on sporting and political events, concerts etc...In this case, you just need to get a permit, and invest on a truck or trailer, but we strongly believe that return could be tremendous, although investment is limited.
 

C- Office, employees and operation costs:
Usually, around 100 M2 - 1000 sq.ft. office is necessary to run a business like this. A 6 to 8 people team is also required to run this office: A Manager, a Secretary, 2 Sales reps. (or more depending on each market), 1 computer graphic Designer and 1 part-time accountant.
Operating costs are basically office expenses (employees, phone and power bills, etc..) plus power bill incurred by board. Here too, no correct estimate could be made because it varies so much from one Country to another. But a decent average is $10.000 - $20.000 a month.
 

 
THE RETURN

The return on investment and successive profit could be very attractive and even tremendous, in some cases. Here is how we calculate it: Advertising on electronic video boards are sold in number of SPOTS per day, for a period of time. Usually, ads. are displayed in 10, 15, or 20 seconds SPOTS, 10 to 50 times per HOUR, depending on frequency requested by client. An average COST per SPOT varies from $0.01 to $1, depending on many factors: message length, board size, location and especially local market competition in every Country. For example, a 10 sec. spot, displayed 360 times a day (1 hour) on a board located in a major city, @ 10 cents a spot, will cost $36/ day or $1000/ month. If board is running 24 hours a day (usually 18 hours), this means you can earn $24.000 monthly! And this is if your are asking 10 cents/ spot only. Suppose you are asking $0.50 or $1, your return will be as much as $240.000/month! A decent average however, is $0.25 per spot; thus a realistic return of $50.000 per month. If you deduct $15,000/month for expenses, this leaves you with a NET PROFIT of $35.000/month or $420.000 YEARLY before taxes. Meaning that in worse cases, you can return your investment in LESS than A YEAR, and keep making money for many years (5-7) before a replacement is needed, usually for a better quality and cheaper board cost.

 
CONCLUSION

Outdoor electronic video advertising boards are really
a business opportunity worth considering. And
Electro MEDIA Int'l  is the company you can rely on to establish such business, because of its wide experience in the field, plus the excellent equipment  we supply at an unbeatable price.


So don't hesitate, contact us NOW for a quote!


Click Here to learn more about outdoor advertising regulations 

 

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Copyright 2007 Electro Media Int'l. All rights reserved.