Founded in 1995, this business rapidly grew to become one of the largest media companies specializing in out of home media, developing arguably what can best be described as the most successful ambient media advertising concept ever. With control of approximately 5,000 sites scattered throughout the uk, this business is one of just a few companies active in this marketplace, having brought this innovative form of media into the mainstream. operating in one of the uk’s fastest growing media markets, this business offers advertisers the opportunity to reach target audiences that are difficult to approach using more traditional media – and those within the 18 – 35 age groups, male and female, in particular. Operating throughout the uk with regional campaign selections available, this business offers a very cost effective vehicle for any media planner or advertiser focusing on non broadcast forms of advertising. Campaigns of any duration above a fortnight can be accommodated – with this business offering its advertising clients an all-inclusive package of planning and production. particularly effective for product or campaign launches, the media managed by this business has been involved in some of the biggest advertising pushes in recent years including the launch of several major drinks brands and has been particularly effective in public awareness campaigns. achieving sales approaching £1 million, gross margins of almost 80% and pre-tax net operating profits in excess of £300,000 as recently as the financial year ending december 2006, this business has suffered significant cash flow issues recently and as a result has scaled down its operation accordingly. Crucially however the business still controls its 5,000 or so advertising sites – secured by the business on rolling three year agreements. As such it represents an excellent acquisition opportunity for any current media sales organization looking to extend their media interests or alternatively an individual or organization looking to enter the marketplace by acquiring an excellent foundation for significant growth. key strengths: the market for ambient media as a whole was estimated at approximately £140m for 2008, having grown quite rapidly in recent years. Further growth in this sector will come as a result of an increase in the number and variety of currently untapped ambient locations and a gradual improvement in rate card levels as ambient media awareness and demand improves. The market for the services of this business – both from a media owner and an advertiser’s point of view is particularly attractive as more and more of the owners of sites appreciate the incomes that can be generated, making more sites available. In turn, advertisers are increasingly realizing the cost effectiveness of this kind of media and its position as one of the very few channels to reach that elusive group of 18 – 35 year olds. with control of approximately 5,000 sites this is one of the biggest operators in this marketplace – and has a significant base of loyal customers to call upon. this business currently operates from a home office environment and as a result has limited overheads. With low production costs for the ads, appropriately priced campaigns are very profitable indeed – generating gross margins in the region of 65% - 70%, sometimes reaching as high as 80%. Eminently re-locatable and easily incorporated within an existing media sales department, a large proportion of the turnover achieved through this business could be added almost directly to a new owner’s bottom line. key opportunities: there is an outstanding opportunity to re-build extensive revenue streams from this company – which is certainly capable of reaching, if not exceeding the revenue levels of several years ago. With a strong demand for the media controlled by this business, a new owner with a little investment, fresh ideas, motivation, enthusiasm and commitment will have every advantage of building on an excellent platform. in addition to securing additional sites similar to those with which it is currently most associated, this business has had, in the past, the opportunity to move into other sectors which would generate a further high volume of additional high profile sites – the discussions for which are still on-going. In addition the business has in the past invested heavily in the research and development of digital sites which would not only increase the volume of ads which could be shown but would also reduce distribution costs as the changeover of campaigns could be controlled remotely. advertising and marketing: most of the business's current turnover is generated through the existing client base and word of mouth recommendation supported by highly targeted ad hoc direct marketing campaigns to users known to need access to the target audience for which this business is the most effective channel. the business has a very well designed and informative website which is east to navigate and which performs very well in all of the major search engines for all appropriate search terms.
