Business strategies for elevator advertising media networks owners
Updated: Nov 29, 2022
Happy Friday everyone, and here we are back with our new article.
The success of In Elevator advertising and Indoor advertising media networks business largely depends on a balanced business strategy, a smart and juicy advertising selling model and the right format of digital media inventories. Within this article, we bring necessary industry insights to consider which will fit your business best! LETS GO!!!
FIRST, LET'S HAVE A LOOK AT THE BASIC ELEVATOR ADVERTISING NETWORK DEPLOYMENTS BUSINESS STRATEGY MODELS. EACH OF THEM CAN CONSIDERABLY BOOST YOUR SALES, AREA COVERAGE AND POSITIONING ON THE MARKET.
MODEL 1: SELF-OWNED INVENTORY ELEVATOR ADVERTISING MEDIA NETWORK
With this business approach, you build up your own media network. Inventory like LCD screens and advertising projectors will be your assets. You will need to maintain inventory, provide technical support to it and stay in touch with property management companies. This strategy will give you full control over your advertising network. You will have your own ads sales department and you will collaborate with other advertising agencies or media companies.
MODEL 2: ADS IN ELEVATORS NETWORK PROVIDER
Set up a media network and rent it out to local or international media companies. In this case, your duties will consist in providing media planning services and technical assistance to your advertising network tenants. If you lease your network to several media agencies, this can guarantee sustainable growth to your business.
MODEL 3: IT IS A MIX OF THE TWO PREVIOUS MODELS
The easiest way to explain the essence of this strategy is to draw an example. For instance, you install your media devices in several locations in a city shopping mall. Ads run through your in elevator advertising media network every day, from 8 am till 10 pm. You can split each hour of broadcasting into several time slots and distribute these time slots among multiple media agencies. Besides, you reserve some broadcasting time for your own sales department. Thanks to this approach, you will be receiving a steady income from in elevator digital advertising mediums rentals to third-party agencies and will be able to look for new profitable tactics yourself.
When we talk about the size of the elevator advertising digital media network, we will consider the physical locations and the number of ads in elevators media devices for network scaling.
SO, WHAT IS THE OPTIMAL SCALE OF THE INITIAL IN-ELEVATOR ADVERTISING MEDIA NETWORK IN TERMS OF LOCATIONS AND
The larger your advertising in elevators digital media network, the more revenues it will bring you. But most likely, your investment budget will be limited at the start. Judging by our experience, we can say that at the initial stage, an in-elevator advertising network should contain from 50 to 100 locations in the city. Each location can have more than just one elevator. This is the approximate number of locations that brands usually want to cover when they decide to promote their goods or services in one city. For instance, a new food delivery app wants to cater to the residents of particular neighborhoods. Its management checks how many of these districts your elevator advertising or indoor media network covers. If you cover most of the app's target areas, its team will be likely to sign a contract with you.
Let's analyze the potential revenues and sales from one single ad campaign that your elevator advertising digital media network can generate. Please note that numbers of digital signage devices might vary depending on the country and city.
On average, when running one ad campaign in elevator advertising media network, its selling price will be between 20 to 60 USD. This is the cost for an ad video or image of 10 to 15 seconds in one location with daily impressions of 60-150 times on each media device.
The average duration of an advertising in elevators campaign is 14 days. During that period, the ad will be shown not more than 300 times on each device through all the media networks daily.
If the selling price of running an ad equals (on average) 40 USD per elevator advertising media device, you can sell one campaign for at least 4000 USD for 100 media devices.
Your offer will look as follows:
10 sec of in elevator advertising campaign video or a static image
300 shows minimum per day or 4200 shows in two weeks per one elevator screen location
100 media devices with 42000 shows
The elevator advertising campaign budget will be estimated at around 4000-6000 USD before tax payment and without internal costs.
The numbers above were given as an example. Having daily impressions of minimum 300 times on each media device is not the only possible way out. You can apply any advertising loop models you wish and check which one works best.
We provide solutions for advertising in elevators and any indoor facilities media networks. We ensure that the advertiser and the media network business owner will get the max ad exposure rate to the targeted audience with guaranteed views and analytics tools.
SOME TIPS ON SELECTING EFFICIENT LOCATIONS FOR ELEVATOR ADVERTISING DIGITAL MEDIA NETWORK DEPLOYMENT
When you ask advertisers about where they would like to catch their potential customers, the answer will probably be: everywhere. These are the types of locations where people pay the most attention to advertising.
Residential, living compounds - advertising in elevators, main entrances, elevator lobbies and parking areas.
Business centers and shopping malls - advertising in elevators, main entrances and elevator lobbies.
Retail chains - multi-floor stores where elevators are in use. Products "power sales" stations.
Medical centers (either state-owned or private-owned) - advertising in elevators, waiting areas and lobbies. For some locations, it is better to use projectors instead of advertising screens, because a short-throw projector source of light is more comfortable for patients and makes them feel relaxed.
Sports centers -advertising in elevators and lobbies.
Beauty salons - advertising in elevators and waiting areas.
WHICH HARDWARE AND (CMS) - CONTENT MANAGEMENT SYSTEM TO CHOOSE
However, LCD screens have their limitations. The average screen size for in-elevator and lobby advertising falls within the average range from 10 to 32 inches. If you want a bigger screen, its installation might turn into a challenge. Also, LCD screens are omnipresent and people are used to them. They will hardly produce a wow effect on the audience.
Advertising short-throw projectors look modern and elegant and fit the interior design for the elevator and lobby environment. Depending on the location, environment projectors can be mixed with LCD advertising screens.
Short-throw advertising projector - Ei-Mini Lifter will grab people's attention because it is more innovative and offers an unusual approach to ads. It converts the elevator doors or a plain wall into an advertising media space. When a consumer sees such an ad for the first time, they will be impressed.
While selecting hardware for an in-elevator and Indoor media network, you should take the following factors into account:
Where is the elevator located?
What are the elevator environment conditions?
How large is its cabin?
What are the demographics of people who use this elevator?
As for the media software, the selection of solutions on the market is very vast. When searching for a perfect CMS (content management system), you should take into account your working habits. We recommend our clients to buy SaaS (software as a service) CMS platforms.
Some entrepreneurs believe that they can rely on old-school USB memory sticks to distribute content through their elevator advertising digital media network. At first, such an approach might work. But soon, such business would start to experience serious troubles. Most importantly, it will not be able to scale properly. It will have high chances to close down in a few months.
Purchase only CMS software that is supported in your country. You need to have access to instant software updates and a proper technical support line.
Another meaningful factor is the ability to run advertising loops campaigns. Customers who had previous experience in the Digital Signage industry tend to neglect this aspect when choosing CMS software — and that is a big mistake. The traditional Digital Signage differs considerably from the DOOH media networks business.
Your CMS software media players should support the most common OS Systems like Windows, Linux and Android. Quite often, it happens that a certain piece of software works wonders with Windows, but starts to fail and face too many limitations as soon as you switch to Android. Make a shortlist of products that suit you and test all of them in a free trial mode. CMS developers like DisplayForce, today offer demo periods at no cost.
HOW TO SELL ADS THROUGH IN ELEVATOR ADVERTISNG DIGITAL MEDIA NETWORKS?
Today, the most popular selling model is direct selling, also known as loop advertising. It is simple and it brings steady income to the media network business. But is it the only way to sell advertising?
There are other selling models which are getting more popular among advertisers.
For instance, the CPV (costs per view) model. To use it, the media network must have a video analytics tool for analyzing advertising campaigns.
Or, programmatic ads buying through open RTB platforms. We will talk about this type of buying and selling ads in our next articles.
It contains advertising video analytics algorithms that will enable you to sell ads based not on loops but on the number of views and programmatic. Once the campaign is over, this software will generate a report that you can share with the customer. The report will include the following information: numbers of views /per cost, time, dwell time and demographics (age, gender, location and impressions of the ads viewers).
HOW MUCH DO YOU NEED TO INVEST TO LAUNCH YOUR IN ELEVATOR ADVERTISING DIGITAL MEDIA NETWORK?
Again, the exact expenses depend on the country and city where you launch your business. Here, we will share just approximate calculations.
For instance, you start with 100 locations.
You should be ready to invest around 80-120K USD for purchasing hardware and software.
Add on top around 30% for goods deliveries, export-import, VAT and storage expenses.
Installations costs per one location equal 50-250 USD.
The costs of spaces leasing depend on your communication skills and the city where you run your business. We will not try to give any examples here.
Also, we cannot predict the salary that you will need to pay to your staff. But we can say that at the initial stage of running an elevator advertising business, it should be enough to hire 3-6 people.
Be ready to invest around 150-250K USD in your business in the first 6 months.
What you will get are a solid business frame, advertising assets network and a predictable business. You should be able to reach ROI in about 2 years, which is rather fast.
Hopefully, this information came in handy. The strategies and costs given in this article were general and approximate.
If you need more precise calculations and have further questions, feel free to contact us. Our Eastidea experts will help you to make the most of your elevator advertising, raise your brand awareness, cut costs and increase your revenues.
Stay tuned to our blog, and explore the next E-IS FOR ELEVATORS ADVERTISING
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In our next articles we will talk about:
Advertising in elevators Size matters
Advertising in elevators Features of digital advertising sales models
Advertising network in elevators Who is this business for and why management companies and lease developers are turning to it more and more
Content in elevator advertising Harmony is the key to success 5 essential steps