OUR MARKET
The goal of netnetnet is to leverage the entire spectrum of its products to advance the largest lifestyle company for outdoor & in-store communications platforms in Europe, Russia, the Far East, Mexico, Central and South America.
Who benefits from our revolutionary products and offerings?
- Final consumers - They can have a direct impact via text messaging, for example, enabling them to obtain further information and thus communicate and interact with the retailer. Promotions and competitions can be easily deployed via these interactive exchanges, thus sustaining motivation and creating customer satisfaction.
- Retailers and vendors – Digital signage affords them the opportunity to adapt advertising quickly to customer requirements and reach their target groups much better. Digital signage is a powerful marketing and advertising tool on account of its ability to substantially minimize coverage waste. Digital signage’s emotive, full motion format causes a purchase impulse to be directly triggered, particularly when it comes to products in the immediate vicinity.
- Venue owners – netnetnet has developed an attractive revenue-sharing model for each advertising space sold for site owners and retailers/department stores.
- netnetnet – Its enormous market potential lies in its ability to quickly gain market share and advertising space. We are positive that the interaction between consumers and retailers/vendors via digital signage is the key to success of our company.
| | netnetnet occupies a market niche, enabling it to reach a sizable, for the most part untapped customer base. |
DIGITAL SIGNAGE MARKET
The value of the global advertising market in which netnetnet competes is currently valued at a phenomenal $427 billion (source: ZenithOptimedia – Publicis). This market is broken down into seven traditional advertising media: movie theaters, TV, radio, Internet, outdoor advertising, newspapers and magazines. Outdoor advertising currently accounts for 9.15% of the entire advertising market in the UK (comparable with most other countries), and continues to gain in popularity and market share year for year.
We have compiled a number of key facts & figures from various international market studies of relevance for netnetnet’s market:
- Whereas Point-of-Sale (POS)/Point-of-Information (POI) advertising accounted for a total of 3% of the world’s marketing budgets in 2004, this figure increased to 6% in 2006 and is projected to reach 8% by 2010.
- The total annualized growth rate for POS/POI advertising amounts to 21%, making for a higher growth rate than Internet advertising at 15%.
- The digital signage or narrowcasting industry in the U.S. accounted for a volume just under $2 billion in 2006, and is forecast to grow between 20% to 30% during the next five years.
- The largest share at slightly less than 60% is accounted for by video advertising networks & screen areas.
| | These figures document a substantial redistribution of advertising budgets from traditional advertising to new media. |
EFFECTIVENESS OF DIGITAL SIGNAGE
CPM is one of the key decision criteria in planning media campaigns and distributing advertising budgets. CPM (Cost per Mille or Cost per Thousand) is in reference to the cost involved in reaching an estimated 1,000 persons within the target group. The table below shows the average CPM in 54 countries of the world for movie theaters, TV, radio, Internet, magazines & newspapers, and outdoor advertising.
| Media | | TPK US Dollar | | Media | | TPK US Dollar |
| Movie theaters | | 59.43 | | Internet | | 16.38 |
| Magazines | | 11.14 | | Newspapers | | 9.23 |
| TV | | 7.06 | | Radio | | 6.32 |
| Outdoor advertising | | 5.37 | | | | |
This listing clearly shows outdoor advertising to be the most cost-effective of all advertising types. Technological innovations combined with outdoor advertising’s unparalleled position as a mass media makes it an extremely attractive option. The probability of impulse purchases is significantly increased since digital signage allows the advertised product to be offered to the customer directly in store or by utilizing mobile network technology, making this genre of outdoor advertising one of the most effective marketing tools ever, putting it head and shoulders above all other media.
