VMG yesterday claimed the “launch of world’s first combined advertising and touch-screen ‘Iconic Pod'” – we have covered these before and also been ‘first’ in publishing the first ever pictures (see here) – NOW we need to get some pictures ‘in situ’ so to speak!
The most interesting thing in the announcement made to the Alternative Investment Market (AIM) community was that they published a very nice revenue figure when they said, and we quote “Advertising on digital screen network to generate £3.7million net revenue per year” – that will be music to the ears of investors and should also gee up the media sales, screen advertising sector in general in the UK.
Deployment of the Iconic Pods (100 double side portrait screens) commences in phases in late September and early October 2008 and will bring the total of installed screens to 240 for VMG’s shopping mall network. This network will now reach a monthly audience in excess of 50 million consumers.
Clear Channel Outdoor UK who do the media sales on behalf of VMG will be pleased that the initial fleet of 100 units will be installed in shopping malls across the UK ahead of the 2008 Christmas period, which of course is traditionally one of the biggest spending quarters in the advertising year.
VMG said in the announcement “The Board believes that, assuming cautious utilisation, and based on standard advertising values of traditional print posters in the mall environment, VMG will receive an annual net revenue of £3.7 million from these 240 screens”
Mike Cottman, Executive Chairman of VMG, told us “The launch of our Iconic Pods is a fundamental sea-change in the development of mall advertising in the UK. We have created a product that will provide a platform for the national market to rival the success of digital out of home advertising worldwide and generate significant revenue for the Group. The financial support from Trafalgar Capital has enabled us to develop this world-first product and make what will be the largest portrait-style digital network in the UK.”
This is great news for the industry – for too long the shopping mall sector has been blighted by landscape TV-on-a-stick or small-TV-hung-from-ceiling scenarios and it is great now to see sizable digital portrait panels / posters being properly deployed.
Once Clear Channel Outdoor UK get up to speed selling the panels we see no problem in VMG easily hitting the revenue numbers they are talking about.