So I’m talking in recent years and more in recent months — about the emerging market for Digital Signage.  It’s compelling.  And getting more so.

Interactive 2

What’s an ROI Based on a 100 node network on a 10 year plan with a flip in year 3-4?

 — anticipates and promotes a very green-field view of the Digital marketing future.
— recognizes the acquisition of Premium regional window space as crucial … we call it  “Retail Estate”

There is minimal value in the infrastructure (3 year depreciations, usually.)  

Assumes 10 locations (average) in 10 towns at the premium sites therein with the best PVRE  – “Publically Viewable Retail Estate.”  (I know, cute.)
Long term window leases, 10 years(?), minimum.  Obtained at extreme low cost (compared to their valuation in 5 or 8 years.)
 Back of the Napkin Sketch - DSN ROI
WHAT?   So if costs are 2X the estimate ($5M) the ROI is $12M plus?   The bottom line is that it’s the leases for PVRE that are the influencing critical path item.  Ssssshhhhhh…
  • Let your mind wander over “how to structure” those leasing relationships with those, poor, starving retailers who just happen to be blessed with Premium Located “PVRE.”
  • I’d like to know what you think.  Is model is conservative? … even if the valuation is off or revenues or costs of doing business.
  • Who’s doing this?  Why aren’t you?  I might be!
  • Hmmm… my next post on this might be how to select partners.

BTW — there were no cocktails involved in imagining this sketch.


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