"Limelight Media Group, Inc. (OTCBB:LMMG ) announces today that it is creating a Mobile Media Division and has hired Stewart Layton to serve as President of the division. The Division has been formed to take advantage of recent significant business opportunities in the outdoor mobile advertising space. Upon the anticipated closing of the agreement with OTR Media for the acquisition of the majority interest in OTR Media, Mr. Layton will assume the President position of OTR Media."
Limelight has been skulking around the digital signage industry for some time now, but their decision to start a mobile media division is a bit confusing to me. I think it must mostly refer to car-side and truck-side advertising, considering the wording of this paragraph:
"Digital Signage and Truck Side Advertising are the fastest-growing sectors in the out-of-home media industry. The OTH industry represents over $7 billion in advertising revenue per year and has experienced a predictable growth exceeding 8% per year. Over the last 20 years, the industry experienced only one down year in 1992. Fixed expenses are growing only at 3%-4% per year, which allows for increasing bottom line revenue recognition. Profit margins are nearing 60% with an expected growth rate of 12%-14% and an after tax revenue growth of 15%-18% per year. Considering that the number of vehicles on the road has doubled over the 20 years, this media option is attractive to advertisers, for it is a low-cost alternative for the number of impressions reached. With the fragmentation of audiences in traditional television media, the industry is expected to continue on its profitable growth cycle. The Company forecasts that revenue recognition in this sector will be about $700,000 during 2005 and $5 million in 2006 as the infrastructure is developed to generate sales."
Read the press release here.
Friday, March 04, 2005
Posted by Bill Gerba at 10:06 AM