Outdoor Advertising Channel
“Use your indoor voice…outdoors”
Obinno W. Coley
2327 Richland Prairie Blvd
Shiloh, IL 62221
(618) 222-7358 Home
(618) 580-6889 Cell
(618) 398-5450 Fax
Imagine…a television network that maneuvers outdoors
Imagine…a commercial that you can observe from an automobile
Imagine…an outdoor advertising company that can contact all major cities
and every minor town
Imagine…an outdoor advertisement platform that a target market will watch,
pay attention to and retain the information
Advertisers are always looking for another way…ask yourself this question:
Is it impossible to have a piece of Time Square in every city?
This is IT! Now quit imagining and INVEST!!
Table of Contents
Table of Contents…………………………………………………………………3
Products and Services……………………………………………………………..8
City of St. Louis Permission Letter……..……………………………...….24
City of St. Louis Proposal Letter…………………………………………..25
Dr. Stroop Experiment……………………………………………...…...…27
Rough Sketch of Pole Structure……………………………………………28
The Outdoor Advertising Channel (OAC) is a new media platform that allows
advertisers to display commercials outdoors on traffic signals. The City of St. Louis has
agreed to experiment with this new traffic device called the Intelligent Traffic Board
(ITB) and a copy of that agreement is included on page 24.
The primary goal of the OAC is to target industries/companies that do not spend
any money on outdoor advertisement by simplifying the process from indoor
advertisement to outdoor advertisement. The television advertisement industry is a $48
billion a year industry and the outdoor advertisement industry is a $6 billion industry. So
there is a $42 billion gap between television and outdoor advertisement. The OAC plans
on capturing that gap by simplifying the process from indoor to outdoor through
technology. The OAC will also be addressing this untapped market with no major
competitors. For legal reasons the top three companies in the outdoor advertisement
industry (Clear Channel, Viacom & Lamar) will not be able to follow in our footsteps and
a copy of one of those agreements is included on page 26.
Currently the OAC is in the seed stage of the business cycle. We want to be the
number 1 company in outdoor advertisement industry in revenues. Our revenue goal is to
generate $20 million a month in each market, out of a total of 50 markets. We would
need an initial invest about $500,000 just to test the product. We are looking for a
foundation that can provide financial support, knowledgeable advice and connections.
Our management team is in the progress of being assembled. We are open to all
possible candidates but rest assured that each member of the management team will be
qualified for the position.
Obinno W. Coley is the Founder and the creative force behind this new company.
He is responsible for the direction and vision of the company. He has a Bachelor of
Science in Business Management from Eastern Illinois University and is currently
earning his Master Degree in Advertisement/Marketing. He is responsible for obtaining
permission from the City of St. Louis, for recruiting the University of Missouri-Columbia
to conduct the research and for securing Union Metal to build the pole structure.
We are now in the processes of searching for the funds to build a prototype and to
test the concept of the ITB. Our exit event will be an IPO.
INITIAL INVEST FUNDS
Category Amount Percentage
Video boards $120,000 24%
Poles $40,000 8%
Contracts/Electricians $50,000 10%
Lawyer/Attorneys $100,000 20%
Permit/licenses $50,000 10%
Salary $80,000 16%
Research 10,000 2%
Other $50,000 10%
The origin of the OAC started in Charleston, Illinois at Eastern Illinois University
in the spring semester of 2001. It first started out as a class project to develop a new
technology or to improve on an existing one that would improve our society. During the
search for a topic, I came across an article about red light runners and chose that to be my
topic. As I was reading about the red light cameras (RLC’s), I knew something had to be
better. That is when I remembered the concept about the pedestrian countdown device
and thought that motorist could have some of the same benefits too. At that same time, I
was taking a marketing class studying advertisement and that is when I combined the two
ideas. I envisioned a product that would stop red light runners and had the ability to
display a message. From that, one project grew into the Intelligent Traffic Board (ITB)
and the Outdoor Advertising Channel (OAC) concept.
At first it was just about a countdown feature until I came across Dr. Stroop’s
experiment, which is also included on page 27. This experiment states if the brain had to
choose between a color and a word, the brain would choose the word because words are
more important than color. But if the color and word were the same, it would be easier
and faster to process and have a greater meaning. So instead of just having a yellow light,
you would have the words “SLOW DOWN” in yellow. If you can stop cars from entering
the intersection when the light is yellow, you then stop cars from entering that same
intersection when the light is red.
My first step in the process was to contact my university but they did not have a
traffic division like the University of Illinois in Champaign or University of Missouri in
Columbia. Nevertheless, when I did contact those universities I could not get access
because I was not a student. So over the course of the next 7 years I talked to: Red Light
Camera’s companies, other universities, professional engineers, departments of
transportations, outdoor advertisement companies and etc.
Then in I contacted the FHWA (Federal Highway Administration) and they
pointed me to the Mayor’s office. I sent an e-mail to the Mayor’s office of Missouri and
they forwarded the e-mail to the City of St. Louis Street Department. I scheduled and
conducted a presentation in March 2007. I got the approval from Todd Waelterman;
Director of Streets in April 2007 to submit the proper paper works to the FHWA. In
September 2007 the University of Missouri-Columbia said they will do the research and
Union Metal will design the pole structure. Currently, we are seeking an investor to fund
the project. Once all the pieces are in place we will build a prototype, conduct a test on an
indoor site and then submit the proper paper work to the FHWA to test on an actual
intersection. After we get approval from the FHWA, we would establish the principle of
the ITB and then introduce the OAC. First, we would introduce tourist information such
as traffic information, weather conditions and important news. Once enough information
is gathered about the safety of the product we will introduce advertisement messages. Our
exiting strategy will be an IPO.
The OAC will be a new media platform for outdoor advertisers to employ by
using traffic signals with the Intelligent Traffic Board (ITB.) The ITB is a traffic device
used to combat red light runners in urban cities. When the light is green the ITB would
say “GO” in green, when the light is yellow the ITB would say “SLOW DOWN” in
yellow and etc on a Daktronics’ video board. The advertising message would only be
displayed during the red lights when traffic is stationary. In the sense of a television
network, the green lights would be the programs and the red lights would be the
Our product/service will provide national brand recognition & product placement
to help our clients grow their businesses. The use of traffic signals provides three natural
advantages: safe to the public, multiply location and a point of respite outdoors.
This is our pricing strategy:
Category Copper Silver Platinum
National $20,000 $25,000 $30,000
Regional $30,000 $35,000 $40,000
Local $40,000 $45,000 $50,000
*Late Night $10,000 $15,000 $20,000
National, regional and local are the markets a customer can choose from. A
National campaign would be in every city in which we operate. A regional campaign
would include up to four markets and a local campaign would be in a single city. Copper,
Silver and Platinum are the levels of services we provide. Copper is the basic package
containing airplay from Monday-Friday (no weekends and no rush hour) for two weeks.
The Silver package is the same as Copper but a customer can pick one upgrade between
rush hour and weekend for 2 weeks. The Platinum package allows a customer to run a
message 24 hours a day for 2 weeks. There is also a late night package for the late night
industries that would advertise the same hours on television.
Daktronics has an in operation system called Network Operation Center (NOC)
that will handle the scheduling of all the messages. A client would visit our website,
place and pay for the order there. An order would consist of a start date, number of
markets, level of service and the actual message. The NOC would receive an e-mail from
our website with the order. Then they will sort the order and schedule the message in the
correct market, time and frequency. The NOC will generate a report of when and where
that message was displayed. Then we can e-mail all prudent information back to our
client. We will need to hire or outsource a customer service department to handle our
customer’s complaints. Union Metal will manufacture the pole structure. The pole
structure will be design to maintain and manage the video board.
The only production that is necessary will be the “television”. A television is an
intersection that has all the video & pole equipment installed. The production cost will
vary depending on size of city and how many televisions in a city. Keep in mind that this
is a one-time expense.
This is the company timetable:
• Turn in paper work to FHWA
• Get approval from FHWA & City of St. Louis
• Place orders
• Build Prototype
• Introduce video messages
• Outdoor Advertisement Association of America National Convention
The OAC will be the future of outdoor advertisement. This new media platform is
more effective and efficient than billboards because animation will be used. Billboards,
which represented 64% or about $4 billion of the 2006 outdoor advertisement
expenditures, do not even offer the level of service we provide.
The outdoor advertisement industry biggest segment, billboards, has change
dramatically. Traditionally, billboards were just a sheet of paper glued to this giant board
outside. Now companies are using Daktronics video boards as the billboard. So, when a
company wants to change a message they don’t have to send out a crew of people to do
the work. All they have to do now is hit a couple of keys on a keyboard.
The OAC’s customer base includes all products and companies that need to
advertise. The company plans to concentrate on the companies/industries that spend no or
little money in outdoor advertisement. These clients are perfect targets for our new media
platform and hold the greatest growth potential for the company. The OAC feels that
these market segment’s needs are not satisfied by current options and we can capture the
segment market by simplifying the process through technology.
The most lucrative selling point about this company is having the technology to
attack an untapped market. The television advertising market is about $48 billion (up 5%)
and advertisers spent $6.81 billion (up 8%) on outdoor advertising. So there is about $42
billion that the television advertiser does not spend outdoors. That is the market segment
that we will be targeting, the companies/industries that do not spend money on outdoor.
That gap is because the current outdoor outlet does not suit their demands.
If a company wanted to run an ad outdoors, they would have to find an outdoor
advertising company. First, they would have to create another ad. Then they would have
to wait for a billboard placement to become available. After that, there is the setup
process where the old ad is removed and the new ad is installed. Now this process can
take weeks. In the top markets billboards can range from $50,000-$100,000 for one
billboard. If that same company chooses the OAC, we can edit their 30 second
commercial down to 15 seconds. Then they can go to our website, pick a location, start
date and pay for it and e-mail us the message. Then we can have that message up and
running within 24 hours with no addition production cost.
The OAC recognizes that it is subject to both market and industry risks. The
company's number one risk is the fear of our messages being the cause of an accident.
Now there is no scientific evidence that outdoor display causes/influence car accidents
but we will address this issue in many different ways. The main way is the fact that we
only display our messages at red light when traffic is stationary. If two cars are not
moving, it is against the law of science for them to touch. We also have a red outline
around the message just to remind traffic to stop. Another factor that plays in our favor is
the speed limit in a city versus on the interstate. Another idea is to hire private detectives
that would be our eyes and ears at an accident site. They can survey the property damage
FULL YEAR 2006 SUMMARY
LOCAL BROADCAST: Top 100 Markets
Full Year 2006 Full Year 2005 % Change
LOCAL BROADCAST TV* 18,679,072.5 16,755,544.5 11.5
NETWORK TV** 25,438,400.6 24,938,878.8 2.0
SYNDICATED TV 4,233,423.4 4,222,481.0 0.3
TOTAL BROADCAST TV 48,350,896.5 45,916,904.3 5.3
* Includes both local and national spot activity in the top 100 markets.
**Network figures include WB, UPN and Spanish Language networks.
Source: Television Bureau of Advertising (TVB) from estimates supplied by
TNS Media Intelligence in billions.
Outdoor Advertisement Industry for the last 15 years
The OAC strategy is to achieve name recognition and attract customers by
aggressively pricing our services. Once customers have been acquired, the company will
seek to offer them additional services which will increase margins and provide them with
useful solutions they would not otherwise find. Our planned user is any company or
products that need to advertise. The Outdoor/Indoor advertisement industries are both
billion dollar industries that have shown signs of steady progress.
The company will implement a low-cost strategy. This will be achieved by
working to establish and develop agreements with local advertising agencies to exchange
services for discounted advertising and other exposures. The OAC's market strategy is to
build on its core clients, companies/industries that are not active in outdoor
advertisement. However, to generate initial revenue we will focus on
companies/industries that are proactive in outdoor advertisement.
The OAC will be able to excel in the market because the company is nimble,
highly focused, and motivated. The company can respond quickly to changing
opportunities and take advantage of the latest technologies.
Before any money is generated, the OAC will have to be built on three principles:
safe, effective and profitable. Safety is the most important element the OAC must
achieve. If the OAC increases the rate of accidents no jurisdiction will allow it. The OAC
or ITB must be an effective weapon in the combat against red light runners.
Accomplishing this goal, we will win over the government and local states. Being
profitable for a city is the icing on the cake. If we can achieve the first two goals and put
some money into a city’s pocket, the OAC will become very attractive.
The first step is to get approve by the FHWA. This will be achieved by explaining
to them that the ITB will stop red-light runners. Then we will pitch the OAC to the cities
as another source of income. Once they both agree, a prototype will be built so people
can see what we are trying to accomplish. The first couple of month will be used to
collect the data that states our product is safe and effective. After about 4-5 months of
solid data proving the effectiveness & safety of our product, we then will introduce
animated messages. Now these messages will not be advertisement but more like
informational messages. Informational messages like weather updates, traffic info, terror
alert, Amber alerts etc. Once the three foundational pillars have been established and
messages have been introduced, then we can let the world know about our product. The
2009 Outdoor Advertisement Association of America National Convention in September
will be the perfect place. This gives us a chance to meet our core clients face to face.
After we establish a line of communication with our core clients, we can then attack our
market segment. I believe with our product, internet and industry trends we don’t need to
hire a sales force. A referral program and word-of-mouth strategy with compensation for
successful referral would be effective.
The OAC currently has a strategic relationship with the FHWA, City of St. Louis
Street Department, University of Missouri – Columbia and Union Metal. These
relationships benefit the OAC by giving us creditability and resources. In the future, The
OAC will join forces with a major television network to be the official news channel of
the OAC. This will bring in additional revenue.
The top three companies in the outdoor advertisement industry in 2007 by
revenue are: Clear Channel Outdoor, CBS Outdoor and Lamar Advertising Company.
These top three companies will not be able to compete against the OAC due to legal
reasons. Lamar and CBS have signed non-disclosure agreement that would prohibit them
from following in our footstep and Clearchannel would be prohibited by e-mail
correspondence. This paper trail will either stop them completely or give us enough time
to establish our company as the number one player in each market. The number one
product in the Outdoor Advertisement Industry is billboards, which represents more than
60% of the money generated in the industry.
The OAC will take away market share from those competitors and address a new
market segment that is not currently being address based on six criteria:
Point of Respite
Can’t escape the message
The first competitive advantage is price. In the Outdoor Advertisement Industry,
the price of a billboard varies. That price depends on the city and location of that
billboard within that city. The more traffic volume the higher the prices are. So a
billboard ad can range from $3,000-$100,000 depending on the market. We plan to
revolutionize the industry by offering one low price: $20,000/market for a national
campaign. Adopting this low-cost strategy will simplify the process for doing a national
campaign and it is a lot cheaper in certain markets.
The next competitive advantage is contacting the public at a point of respite
outdoors. The majority of billboards are located along side interstate one after another.
The average speed on the interstate is 55 MPH. So drivers don’t have the ability to read
each billboard because they have to operate their vehicle. The OAC has the capability to
contact the public at a point of respite outdoors, at traffic signal. Traffic signals provide a
natural period of relief outdoors. This 30 second-1 ½ minute relief points give the OAC
an opportunity to display a message to the public where everyone in the car can focus on
the message. This higher level of focus will increase brand recognition.
Another competitive advantage is the ability to have an animated message. Even
though some of the top companies in the industry are using a Daktronics video board,
they can not display an animated message. Since these boards are located along side the
interstate where traffic is always moving, they don’t have the permission to display any
animated message. All they can do is a still picture for about 6-8 seconds. Our video
boards will be located in urban cities at traffic signals where car are going 0 MPH.
The next competitive advantage is having multiple locations. A billboard is
stationary and only faces one direction of traffic. The OAC allows a client to have an
animated message at a point of respite for a reasonable price in numerous locations
through a given city in both directions at an intersection. A city can have between 5-35
“televisions” all depending on the size of the city.
Another competitive advantage is the general public can’t escape the message. A
motorist has the option to look at a billboard and a typical motorist doesn’t read/look at
every billboard. You can also escape the message on radio. When an ad comes on, you
can escape it by changing the station but you cannot escape the OAC. You have to wait
until the light changes and you have to pay attention to the light to know when the light
changes. Since the video board is located next to the light, you will have to watch the
The last major competitive advantages the OAC will have over billboards are
pedestrians. Like we stated earlier, most of the billboards our located along side the
interstates and pedestrians are not allowed to walk there. Our boards will be located in the
city where there is a higher volume of pedestrians. So not only are you displaying your
message to motorist but also to pedestrian all in one effort.
Other advantages that the OAC has over the competitions are cost-effectiveness
and dealing with municipalities. The Daktronics’ video boards being used by our
competitors are the gigantic. With the size of the video board we will be using, you could
buy 3 at the price of 1 of the giant boards. Billboard companies have to abide by strict
government rule and there is not a strong need for the Federal government to generate
additional funds. The OAC will be governed by the cities in which we operate and cities
are desperate for additional income. This desire for additional income will allow us to be
a hot commodity.
These competitive advantages will give us the ability to take away market share
from competitors that have preceded us in the market. They will also attract other clients
that are not currently being addressed in the market place. When you add in the fact that
the top three companies in the industry cannot follow in our footstep, you have a business
model with a low risk to fail and a strong probability to succeed.
The management team is in progress of being assembled. I am open to all possible
candidates but rest assured that each member of the management team will be qualified
for the position.
The company's management philosophy is based on responsibility and mutual
respect. The OAC has an environment and structure that encourages productivity and
respect for customers and fellow employees. The company's goal is to create an
Creativity can flourish
Generating new ideas is well rewarded
Management structure is relatively flat and communication is encouraged
Mutual respect and sharing of knowledge is encourage
Obinno W. Coley, Founder & CEO is the creative force behind this new
company. I am responsible for the direction and vision of the company. I have a Bachelor
of Science in Business Management degree from Eastern Illinois University and I am
currently earning my Master Degree in Advertisement/Marketing at Webster University.
I got my first taste of business by working for my father’s business, Sunrise Valley
Landscaping & Home Remodeling. Working for my Dad, I developed a keen sense of a
dollar and also my creativity in advertisement. I developed a “Logo Block” that we
would place on our customer’s lawn so people walking by could get the contact
information to my father’s company. I am also responsible for obtaining permission from
the City of St. Louis, getting the University of Missouri-Columbia to conduct the
research and for securing Union Metal to build the pole structure.
Video boards (VB) = $30K Poles (P) =$10K
2 Two-Way Streets 1 Two-Way & 1 One-Way Street 2 One-Way Street
4(VB) x $30K= $120K 3 (VB) x $30K= $90K 2(VB)x $30K= $60K
4(P) x $10K= $ 40K 3(P) x $10K= $30K 2(P) x $10K= $20K
$160k $120K $80K
*The cost of an intersection will vary depending on what type of street
*Keep in mind most streets that are in the down town area are one ways
(at 2 Two-Way Streets per intersection)
I = Intersection C=City
5 (I/C) x $160K = $800K per city Extra small size city
10 (I/C) x $160K = $1.6M per city Small size city
15 (I/C) x $160K = $2.4M per city
20 (I/C) x $160K = $3.2M per city Medium size city
25 (I/C) x $160K = $4M per city
30 (I/C) x $160K = $4.8M per city Large size city
35 (I/C) x $160K = $5.6M per city Extra large size city
*You can add an addition $1M towards the set-up cost to each estimate for: contractors,
electricians, taxes, permits/licenses, NOC, attorney fee & etc
Growth Cycle for first 12 months
Months/Number of commercial per month
# of 1 2 3 4 5 6 7 8 9 10 11 12
Markets 0 50 100 200 300 400 500 600 700 800 900 1000
1 0 1M 2M 4M 6M 8M 10M 12M 14M 16M 18M 20M
*An invest of $9 million ($4M for 25(I/C) + $1M for set-up cost + $4M for first 2
months of expenses)
*Each commercial is being sold at $20K
*Monthly expenses is estimated at $2M per market, which includes: rent, NOC,
maintenance, customer service, website & etc
* At 6 months we make enough ($8M in sales – $2M expenses = $6M profit) to invest
$5M into another market.
* At 7 months we are operating in 2 markets:
500(commercials) x $20K(price) = $10M x 2(# of markets) = $20M
20M - $4M(monthly expenses in 2 markets) = $16M(profit)
$16M / $5M(cost to a add city) = 3(new city) + 2(city already in)=5 cities for 8th month
Customer Spends per Commercial in Each Market at National Rate
# of Markets Copper Silver Platinum
1 20K 30K 40K
5 100K 150K 200K
10 200K 300K 400K
20 400K 600K 800K
30 600K 900K 1.2M
50 1M 1.5M 2M
100 2M 3M 4M
The Stroop Effect
Read the words on the right out loud and as fast as red
you can. Just say the colors. yellow
Now, don't read the words on the right--just say the yellow
colors they are printed in, and do this aloud as fast green
as you can. blue
You're in for a surprise! blue
If you're like most people, your first inclination was to green
read the words, 'red, yellow, green...,' rather than the blue
colors they're printed in, 'blue, green, red...' red
You've just experienced interference.
When you look at one of the words, you see both its color and its meaning. If those
two pieces of evidence are in conflict, you have to make a choice. Because
experience has taught you that word meaning is more important than ink color,
interference occurs when you try to pay attention only to the ink color.
The interference effect suggests you're not always in complete control of what you
pay attention to.