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Rental center

Brief description

Description

General advantages

Advantages_for_users

Advantages_for_developers

Advantages_for_content providers

Marketing

Planned profit

Conclusion

Presentation

Investment

 
  1. Introduction

  2. Advantages in comparison with Internet advertising

  3. Advantages in comparison with television advertising

  4. Advantages in comparison with advertising in press

  5. General advantages

  6. Conclusion


Introduction

The aim of this project is to persuade advertisers to redistribute advertising budgets between television, the Internet and the press. Therefore let's consider all three sectors of the advertising market .

Ads provided by the rental center have significant advantages over existing types of ads (Internet, television and press advertising), because they integrate advantages of these types of advertising. Now we will describe one by one advantages of ads provided by the rental center in comparison with competitive type of advertising. Then we will consider advantages over all types of advertising.

This analysis is based on ad rates on the Russian television and in the press. This approach is caused by two reasons:

- this information is available on the web site of the Russian representative of Gallup Media (www.gallup.ru)

- low ad rates in Russian mass media in comparison with ad rate in Western Europe and North America.

This allows us to carry out the comparative analysis of ad rates of the rental center with the most competitive ad rates in western countries.

As regards television ad rates in Western Europe, the USA, etc., ad rates are approximately the same, because there are two important factors: the positive one (a broader audience of solvent viewers) and the negative one (the presence of a great number of television channels and high ad rates).

Advantages in comparison with Internet advertising

·  The ability to cover a wider audience of users by attracting home users, including casual Internet users.

·  The ability to deliver targeted ads will increase click through ratio.

·  The technology of delivery of targeted ads does not depend on cookies. So none of external factor can influence its functionality (for example, whether cookies are enabled or disabled). This is important in the light of the law passed by the European Parliament and prohibited cookies.

·  A new method of ad demonstration (based on time of demonstration), the ability to view ads offline and the ability to set parameters for viewing ads will allow the user to pay much attention to ads. As a result this will increase response to ads. In fact while working online, the user may miss an advertisement or puts it off and then forget about it. This is impossible while working offline with ads apart from a rental program and. Thus, this ability will destroy the stereotype that it is possible to view Internet ads online only.

·  The advertiser can control information processing (ads) . Thus, the efficiency of offline ads is similar to online ones and even higher. This is achieved due to rules of viewing information (for example, after viewing a certain number of banners, the user must push a key).

· The advertiser can set parameters for viewing information. For example, the user clicks on a banner that advertises Christmas gifts at a discount, but then puts this information off. After Christmas holydays this information will become useless. The advertiser can set a time interval during which the user must view information. When this time interval expires, the processing of this information will be not counted and the advertiser will save money.  

· It is impossible to disable banners with a special program.

Advantages in comparison with television advertising

Television ad rate is 1.2 cent for consumer goods (which do not require a targeted delivery) and 3.6 cents for specialized advertising (aimed at a target audience). This is the cost of one-minute ad spot for one user. As the main advantage of Internet advertising is its targeting, there is no sense to work with ads that do not need targeting (consumer goods). Our main clients are advertisers of specialized goods.

According to our estimates, the cost of one user of the rental center will be about two times lower than on television for a target audience. The cost of specialized ads will be higher.

In addition to attractive prices, the rental center has a number of other advantages:

·  Guaranteed delivery of ads to customers. None of television channels provide precise statistics (how many people did view this or that ad, etc).

· The interactivity and feedback for customers.

·  General advantages 

Advantages in comparison with advertising in print mass media

To make exact calculations, we considered ad rates in specialized print magazines of different subject matters (information technology, cars, construction). These magazines have a highly targeted audience and you can see below their average ad rates:

- 22 cents for image ad unit (back cover or double page) for one reader,

- 2,4 cents for ad unit (20-25 sq. cm. or the minimum size unit) for one reader.

Thus, ads provided by the rental center are two times cheaper and image ads are more than four times cheaper. Ads provided by the rental center affect consumers more heavily  and provide a number of benefits described below.

General advantages

·   The user agreed to view ads will not dislike ads, because having agreed to do it, the user will provide true information on his or her preferences to receive ads of a certain subject matter.

·   The ability to set parameters for displaying ads will allow the user to pay much more attention to ads and this will results in the growth of response to ads.

·   If information interests the user, he or she can add it to the archive and set parameters for further detailed review, which will allow the user not to interrupt the current work.

·   The ability to conduct advertising campaigns and easily administrate them using demographic and other information . The advertiser can use the user database of the rental center to choose a target audience and set ad display options (such as the number of impressions of an ad to one user, its periodicity, etc). For example, to deliver the ad of nappies, it is preferable to choose the category of users having babies. To sell books, the advertiser will choose the category of users who like reading, etc. User will provide this information during registration.

·   The ability to get analytical reports on results of an advertising campaign. The database will contain statistics of user interaction with ads and the advertiser can find out at any time what category of users (age, profession, etc.) prefers this or that ad. This will allow the advertiser to change the strategy of advertising campaigns to increase its efficiency and decrease costs.

·   The attraction of solvent audience (home users).

Conclusion

The advantages mentioned above will make it possible to change priorities in advertising and to attract traditional offline advertisers (chewing gum, washing powder, cosmetics, etc.). Such advertisers spend a lot of money on advertising (for example, Procter & Gamble, Nestle) and the ability to deliver their ads over the Internet to a wide audience of users (including offline ones). New formats of ads (television commercials have already become boring) will change the attitude of users to them. It is enough to remember the beginning of the era of Internet advertising and high click-though rates. People like new things, especially if they are really original and not just minor improvements such as new types of banners that cannot revolutionize Internet advertising.

 


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