Confidential Case Study- Transitus Market Assessment
Table 1: Cost Comparison of Advertising Media- Cost per Thousand Viewers (CPM, US$)
| Metropolitan Population |
National Newspaper |
National Magazine |
Ad |
Website Banner | Billboards | Bus Boards* |
Transitus MediaDome |
| 1,000,000 | $15.00 | $14.00 | $120.00 | $30 to $70 | $13.71 | Back- | $0.38 |
| 3,000,000 | $15.00 | $18.27 | $3.00 | $0.24 | |||
| 9,000,000 | $15.00 | $20.56 | Side- | $0.12 | |||
| 18,000,000 | $15.00 | $23.20 | $4.50 | $0.07 | |||
| Average | $15.00 | $14.00 | $120.00 | $45.00 | $18.94 | $3.75 | $0.21 |
* The Bus Board CPMs have been calculated using the Gamma-Poisson method which is a different method from what was used for the other media. They are based on peak-hour traffic only since 85% of transit buses are not on the road in off-peak hours. In practice, there would be a small percentage of additional viewers in off-peak hours which would reduce this calculated rate, but without internal lighting, day-time only operation should be included.
Innovative Uses of the MediaDome
The nine sided MediaDome is suited to campaigns for world brands. The sleek profile and 360 degree viewing angle of the MediaDome, combined with full color, vinyl graphics and true color representation derived by using transluscent white polycarbonate and halogen bulbs, provide the advertiser with a significantly improved billboard product. Visibility after dark and the 24 hour, 365 day operation of most cabs together with the above features enhance the MediaDome's appeal to world brand advertisers. Major potential clients are likely candidates for regional or national arrangements which provide them with exclusivity within their product group. The ease with which the images can be replaced and their relative low cost are additional considerations in keeping the message fresh.
The business model includes tying together a national and international network of cities using one or more of the MediaDome models. A web-enabled system allows advertisers to e-mail their artwork to the company and receive final design for final approval the same way. Further, the company can control the production quality of the vinyl images in a few centers and deliver them by overnight service to the installation group in each locale. In this way, Transitus was able to turn around an order for a taxi billboard campaign in a matter of two weeks or less. It should be possible to roll out a national campaign in a two week period or less.
Taxi backlit billboards can be used in other ways. The MediaDome is well suited to uses such as sponsored Public Service Announcements (PSAs). Since taxis travel extensively in city centers, the MediaDome can be used to build a national Missing Kids Network. Each taxi cab equipped with a MediaDome showing a missing child's color picture, age and last known location together with a contact telephone number and a sponsor's name would be seen up close and personal by thousands of persons each day. Even when parked at a taxi rank, the billboard is doing its work. In this way, the MediaDome network can be seen as an information network providing information and news at a lower cost per thousand (CPM) than any other major medium. The number of persons who see a taxi cab per day varies depending largely on the size and density of the city; it ranges from a low of around 13,000 viewings per day in cities with 1,000,000 persons to over 70,000 persons per day in very large metropolis'. Starting with as few as 25 MediaDomes in a city will provide significant market coverage whether the message is about missing children or a new product or service.
Transitus Wind Down
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