Neo Canada reports profitabilty on mall network and strong prospects for 2009
December 11, 2008 by Dave Haynes
I know a lot of companies selling ad space on DS networks are having a tough go at the moment, particularly with the domestic auto sector in a bit of a pickle. But there are companies making it work, particularly north of the border, where the financial sector is far more regulated and therefore in somewhat better shape.
Neo Advertising Canada was created in 2006 as a result of assets acquisition of former Dan Media by Swiss-based Neo Advertising Group. NeoCanada now operates a new breed of custom-designed networked screens installedin food courts in 60 prime-location shopping malls across Canada. Neo Canada generates revenue from national-scale and local advertising campaigns booked by mall vendors and brands.
Earlier this year the company joined forces with Montreal-based firm Traffic — a major owner and operator of static advertising properties in shopping malls. The alliance allowed Neo-Traffic to build an integrated approach to communicating with mall visitors, thus enhancing the level of client services, instead of competing with non-digital advertising providers.The aggregated coast-to-coast network covers 121 shopping centers with a combined traffic of over one billion visitors a year.
Internal surveys conducted by Neo Advertising Canada showed positive results from Neo-Traffic campaigns that boosted both sales and store traffic.Advertising categories include traditionally strong telecommunications, movies and lottery, as well as newly added ones, such as fashion, beauty, jewellery, auto, travel, food, government and financial services.
The CEO of Neo Advertising Canada, Benjamin Mathieu, attributed the success of the network to the right choice of a business model, strategic partnership with Traffic, and the reliability of the software platform. “We are very pleased with the fact that the technology part is largely outsourced;it saves Neo Canada time and money, and we can dedicate the freed resources to running our media business,” says Mathieu. “BroadSign SaaS ensures close to 100% network uptime and provides us with all the workflow and accountability we need to work with our advertisers”.
*Pic shamelessly appropriated from Screens.tv