Business Model Article Series

Today, we turn our attention away from multi-purpose MUVs to focus on dedicated advertising vehicles (DAVs). This is the first in a series of posts about the many different business models one can use in a mobile advertising business. This series focuses exclusively on multi-image dedicated advertising vehicles, excluding the older 2 sided, flat "mobile billboard" trucks. The type of multi-image technology used — scrolling, trivision, video, trained monkeys holding up a series of posters —doesn’t matter. What does matter is that the DAV has the capability to show a series of different advertisements on two or more sides of the vehicle.

There have been a number of successful business models introduced since the turn of the century in the world of DAVs. The oldest DAV concept is the shared use model, in which the DAV owner/operator offers any number of the ad spaces for rent to individual advertisers for a period of time. It’s a simple, and easily understood concept. The DAV owner defines a specific coverage area and hours of operation, hires drivers, and operates the DAV in a manner that will make it very visible to motorists and pedestrians. If advertisers believe that the ad space is effective and a good value, they might sign a contract for one or more of the available spaces on the truck.

To the average motorist or pedestrian — we prefer to call them viewers — there is very little understanding that there is any specific method of operation at all. In practice, there are over a dozen different components that go into the creation of a specific DAV business model. It’s possible to build a successful mobile advertising business that emphasizes any of these components. They include:

Logistics:

• dedicated driving routes
• different routes on different days
• parked in a single location
• rotation among several parked locations
• driven only during rush hours
• driven all day long
• small compact routes for ad frequency
• large routes for greater map coverage
• focus on certain times of day
• focus on certain days of the week or weekend

Clients:

• any number of different clients
• dedicated to only one client
• group of clients that share a theme
• unrelated clients

Length of Term:

• event use
• short term promotion
• monthly
• quarterly
• long term

The mobile advertising medium is flexible enough that it’s possible to develop a business plan that combines any number of the logistics, client, and term strategies listed above. We won’t attempt to discuss all of them, but we will offer detailed reviews of the best and worst of them. Spark’s years of experience with customers in many locations gives us a unique perspective on the relative successes and failures of many different operational and sales strategies.

Watch this blog for the series soon. It will be filed in the category “business models”. If you’d like to share your success or horror stories, drop us a line.