| Lenssen
says, "As a result of digital technologies and the rapid proliferation of
new media, advertisers across Europe can now buy highly desirable spots on an
extremely local basis. "The rates are remarkable: for example, a 30 second
prime time spot on MTV, running only in the city of Rotterdam, costs as little
as Euro 25. "However, no matter where you are in Europe, producing
a commercial suitable for such a spot today still requires an upfront investment
of at least Euro 20,000 and possibly much more. Based on our long experience making
commercials on a pan European basis, we believe there is a huge opportunity to
break the barriers preventing local businesses from harnessing the power of video
advertising. "The key will be providing a library of modularly designed,
pre-produced commercials that advertisers can rent from us and then easily personalize
with their specific information or branding materials. Our basic license will
cost only a few hundred Euros. It will entitle exclusive use of an advertisement
in a limited geographic area and for a limited period of time. Longer or greater
exclusivity will be available but will cost more." The Spotzer
commercial library will include category defining advertisements which can be
customised for use by any particular business of the category targeted. The library
will also include more thematic or universal advertisements which can be customised
for use by businesses in a variety of categories. Mezzina says, "By
spreading the cost of production over multiple advertisers, in different geographic
markets, different industries, and at different points in time, We can dramatically
lower the cost of advertising for local businesses. We will also greatly increase
the ability of local advertisers to experiment with video advertising and with
specific messages and medium. The quality of the video advertisements available
to local businesses will improve as well." Lenssen adds, "In
the same way that companies such as E-Bay and Google have shown that the aggregate
spending power of the "little guy" is enormous. We expect to tap into
significant new resources for video advertising by empowering local businesses,
a segment traditionally ignored by advertising agencies. At the same time by developing
a self-service process that clients completely control through our website, we
expect to capitalize on growing consumer comfort with accessing services and conducting
business transactions online." |