| Wed 29 May 2002, 0:00 | | New Media Platforms Secure R50m Of Revenue For Pri |
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New Media Platforms Secure R50m Of Revenue For Primedia
Primedia Limited
PRESS RELEASE
Primedia today announced major new innovations for the South African market
- Rank TV and Rank Branding - created by ComutaNet, its specialised taxi,
bus and train advertising company. These innovations will almost double the
size of ComutaNet`s existing business and will further add to the strategic
objective of re-balancing Primedia`s portfolio.
After two years of planning, negotiating and testing, Rank TV is set to
bring an audiovisual medium to millions of South African commuters via large
permanent screens, which will be placed in the most frequented taxi ranks
across the country. An agreement has been signed with the SABC, who will be
providing much of the content, including essential broadcasts such as news
and sporting events, as well as special broadcasts such as the State of the
Nation Address and other newsworthy items.
Following an investment of R20m to establish the business, Rank TV has
already secured, ahead of launch, revenue of R25m over two years, and
significant additional revenue is anticipated as the opportunity is sold
into the market.
Commenting on the new initiatives, William Kirsh, CEO of Primedia, said:
"These are ground-breaking initiatives from Primedia, the first of a number
of developments which have low downside risk, significant up-side and which
can immediately contribute to cash flow. Rank TV is particularly exciting.
As a daily broadcast medium, it gives Primedia`s first foothold into the
television broadcast market."
ComutaNet`s experience of satellite broadcasting through its satellite radio
station, Commuter FM, will assist it in beaming all advertising and canned
material directly from its studios in Sandton, facilitating speedy
amendments to content advertising and announcement messages.
Using the most advanced technology available, the televisions (12m.sq) have
been designed to provide unparalleled picture and sound quality, and ensure
longevity in an outdoor environment.
Alan Prentice, Chairman and Founder of ComutaNet, said: "Each day, 18.4
million economically active South Africans commute via taxi ranks. Rank TV
offers advertisers the opportunity to communicate with those people at a
time of day when traditional media cannot reach them."
Rank Branding has been established in parallel with the TV medium and offers
advertisers the chance to completely brand a taxi rank, including billboards
and all signage throughout the rank. 10 ranks have already been fully-
branded and a further 7 are currently being installed.
Rank Branding has to date, successfully secured R25m of revenue over two
years.
Taxi associations stand to benefit from the
monthly rentals they receive from ComutaNet and are able to pass these
benefits onto the commuters through: improved destination boards, improved
sanitation in the ranks (dustbins), improved comfort (benches), and a
greater feeling of pride towards the rank as a result of it being more
appealing and user-friendly.
Kirsh concluded: "These two innovations are valuable new additions to
Primedia`s specialist marketing division and underscore the growing
importance of non-traditional media. This is the start of a growing trend
of new innovation at Primedia."
-ENDS-
Media enquiries to:
William Kirsh, Primedia CEO (011) 506 3000
Rob Pinker, Brunswick (011) 442 8803
083 326 7794
Taryn Proksch, Brunswick 083 273 1301
Notes to Editors
ComutaNet
Through ComutaNet, a wholly-owned subsidiary of Primedia, marketers have the
opportunity to reach over 70% of South Africa`s adult population - many of
them difficult to reach through traditional media. On buses, taxis and
trains, on station platforms and taxi ranks and on trailers, they see, hear
and physically experience ComutaNet`s advertisers` messages many times each
day.
Star Music:
The company started 13 years ago as Star Taxi Music. That business is still
an important part of the company`s mix and today 90 minute cassette tapes of
top local and international hits, interspersed with advertisements, are
distributed free to 22 500 taxi drivers. There are different tapes for
different regions, allowing advertisers to target their messages. Star Taxi
Music reaches 9.5 million different people - more than twice as many as the
country`s biggest radio station. In order to monitor usage of the tapes,
regular independent research is conducted. Star Music even have "ghost
riders" on the taxis, undercover researchers who note what the drivers are
listening to.
RoadStar:
Star Music has just launched the "RoadStar". This is an interactive mobile
sound and stage trailer that is used for live band promotions around the
country. The RoadStar is extremely effective in generating large audiences.
Commuter FM:
A recent addition to ComutaNet`s audio division is Commuter FM, a digital
satellite radio station broadcasting on the platforms of Metrorail railway
stations nation-wide. The radio station is hosted by leading DJs who
intersperse music, African and sports news and ads with the latest train
traffic reports, reaching 520 000 people, with the intention to grow that
number to 800 000.
Taxi, Bus, Train and Trailer Advertising:
ComutaNet`s visual division includes bus, taxi and train advertising
(internal and external) and trailer advertising. An estimated 15.7 million
commuters using this transport see ComutaNet`s messages, and even more road
users are exposed to them as they pass by. ComutaNet has recently developed
Interactive Stage Trailers that allow for direct interaction with consumers
using a branded platform and industrial theatre. These trailers are mobile
and allow for precise regional targeting at all commuter bases around South
Africa.
Promotions and Sampling:
The company also has a division, Commuter Reach, that handles promotions and
sampling. ComutaNet`s 40 bases at taxi ranks around the country are a
crucial part of its success. The company has permanent staff at each of
these bases, working with taxi associations and drivers, sourcing taxis and
signing them up for advertising. Vinyl application of the advertiser`s
graphics takes place at the bases in just four hours.
The 40 bases, together with 50 gazebos, are used for promotions, sampling
and education on behalf of clients nationally. The client "owns" the kiosk
for the week and it is branded with their product logo. ComutaNet`s
permanent staff are fully briefed on the product being promoted and whatever
activities are planned, which might include competitions and handing out
coupons and samples. ComutaNet has a dedicated sampling unit that handles
all logistics and ensures an even and smooth distribution with minimal
duplication. Regular commuters have come to expect and look forward to
seeing a different product or services featured each week and see the kiosks
as an information source. ComutaNet also does dipstick research around the
country at the same time as the promotion.
ComutaNet has unequalled opportunities to deliver this huge and sought after
consumer audience of 15.7 million commuters to advertisers. Leading brands,
including Coca-Cola, Disprin, Black Cat, Shoprite Checkers, Metropolitan
Life, OMO, Surf, and Vodacom have successfully used ComutaNet and regularly
make these media options part of their media schedules.
Research
ComutaNet has invested heavily in research and the most recent analysis of
urban commuters indicates that:
* 77% of South Africa`s commuters use taxis as their preferred mode of
transport
* 78% of commuters are household purchase decision makers At least 70% of
commuters fall into the LSM 4, 5, & 6 categories
* 87% of commuters are between the ages of 16 to 49 - the most economically
active age group
* On the way to and from work, during `drive time`, these consumers are
unaffected by media clutter, as they are not exposed to any traditional
media. Because there is no other media or activities to vie for attention,
they are welcoming of an entertainment interlude, which includes advertising
messages. This means no wastage.
Rank TV Programme Content
1.2 million viewers each day
Rank TV delivers something for everybody, with the programme content being
made up of:
* Up-to-the-minute news. SABC`s Morning Live will be broadcast live each
weekday.
* Local and international music videos will appeal to a broad spectrum of
commuters who have embraced music as an integral part of their daily lives.
* Sports highlights will remind viewers of some of the most memorable
moments in sporting history from both the distant and the recent past
* Educational and life skills programmes will tutor viewers on essential
aspects of day to day living, including how to build a house; how to
effectively operate a banking account; living with Aids in the family and on
a lighter note, the latest fashion trends. This can be added to with
previous Levers footage on hair care (footage that resides with the SABC)
* Live sport - taken directly from the SABC`s and other broadcasters` feed -
as it happens.
* Live events and programming from other broadcasters.
* Advertising
* Sponsorships
Date: 29/05/2002 01:36:45 PM Produced by the SENS Department
