LUM 0.00% 2.3¢ lumacom limited

some interesting research....

  1. 1,286 Posts.
    Spent about an hour this afternoon browsing outdoor advertising on google. Have come up with some interesting facts....

    Even though outdoor is only a tiny 2 per­cent of overall ad spending, its effect is growing, particularly in one-of-a-kind locations such as Times Square and Sunset Boulevard, where exposure is impossible to calculate. Signs there can pop up on the news, in movies and in magazines, and that doesn't even take into consideration the millions who walk through the areas weekly. "We can't even ten an advertiser how many impressions they are getting," says Brian Turner, president of Sherwood Outdoor, which sells 60 site "spec­taculars" at One and Two Times Square and 1600 Broadway, making it the 12th largest out­door company in terms of revenue.

    A wide range of advertisers Coca Cola, General Motors' Cadillac division, Samsung, Prudential, NBC, Budweiser, New York State Lottery, even The New York Times pay six-figure monthly rates to hold space for 10 years, a far cry from the days when the signs used to turn over every six months. Times Square is so much in demand that Inter City is building a 50 story hotel and 300 ­foot tower at Broadway and 47th Street that, when completed in November, will accommo­date a total of 75,000 square feet of outdoor advertising. "[The tower] is the largest struc­ture ever built exclusively for advertising," says Bob Nyland, president of Inter City Pre­miere advertisers include American Express, Apple, AT&T, HBO, Hachette Filipacchi, Levi's, Morgan Stanley, Nokia and the U.S. Postal Service.

    What does this mean for Lumacom? Well if Inter City are building a 300 foot tower to cater for the demand in outdoor advertising within the New York precinct it has to be considered unbelievable that our sign at 4TS cant attract an advertiser. The fact that the daytime image is static is obviously some downside but it is still a unique product and worthy of a niche place. I am less concerned about the height of the sign now, the above mentioned tower proves that theory wrong. LUM are almost 1 year into a 5 year deal so if the area to the west of Conde Nast does get built up over the next few years LUM can simply walk away at the end of 5 years.

    I am thinking more and more that I can smell a rat. Putting an advertiser on the sign shouldnt be much harder than selling water in the sahara.
 
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