Turning location-based advertising into real business
Public transport holds great potential as an application area for LBA, since passengers may frequently be interested in new information during a repetitive journey. Furthermore, tram routes for example, often pass through urban centres with many retail outlets that may wish to advertise. The project developed several business models based on different revenue streams involving various types of organisation. In one scenario the public transport operator provides access to an audience by purchasing display equipment to provide infotainment to passengers. A content supplier company then provides high-quality information and advertising based on the location of the vehicle along its route. The content supplier then shares in a revenue stream generated from the retailers along the route who pay the public transport operator for the advertisements. A second model foresees an additional role for an advertising company, acting as intermediary. Retailers again pay the transport operator, which provides the technical infrastructure for LBA. The advertising company then provides location-based infotainment content as a specialised service, acting as the link to the content supplier. The third scenario sees the advertising intermediary take on supplying the technical infrastructure as a 'one-stop shop' complete LBA service. Public transport systems can then quickly implement LBA by purchasing a complete hardware and software solution from the advertising agency. The operator then shares the revenue stream from the retailers by paying the advertising solution provider and the content supplier. Public transport is therefore seen as a sector ripe for early adoption of location-based information and advertising services. The project team also suggest that each of these revenue models could equally apply to fixed-screen advertising in public spaces.
