GlobalCast Networks (GCN): The Future of Advertising
GlobalCast’s primary product is a patented smart screen powered by m-cast, a flat panel display which utilizes motion picture advertising to attract customers. This out-of-home advertising medium will engage interactively with customers making it a very powerful advertising and marketing tool.
Digital signage is a business akin to real estate. The more real estate (LCD displays), the more potential GlobalCast has for increased revenue. Launched in January 2000, Focus Media (NASDAQ: FMCN) has become extremely successful, creating a USD 4 billion market cap with just 110,000 screens in 11,000 locations as of January 2007. A major analyst for a top Asia Pacific private equity firm recently stated that, “. . . there is space for 5 or 6 additional serious competitors to Focus Media and Clear Channel (the international market leader) in China alone.”
In order for GlobalCast to achieve its aim it is seeking to raise 100 million USD in its initial round of funding followed by 150 million USD in year two. These funds will be used to establish operations in China, India, and South East Asia and to build relationships that will be a launch pad into the European and American markets in year three.
Their target is to deploy over three quarters of a million screens within the GlobalCast Network by the end of year five.
“Advertising is, actually, a simple phenomenon in terms of economics. It is merely a substitute for a personal sales force – an extension, if you will, of the merchant who cries aloud his wares.” - Rosser Reeves, Reality in Advertising
Investors will recognise the following major benefits of working with GCN:
- Market leaders in the quality of the location and audience
- Market leaders in interactivity and dynamic media
- Market leaders in offering flexibility through remote access
- Market leaders in data capture, delivery and measurement through CREDITZ
After 5 years, GlobalCast revenues may reach 1.1 billion USD with a network of 790,000 screens. These financials are tax neutral, do not include depreciation and amortization calculations, and serve as a guideline to indicate the financial opportunity.