Startup Idea: Advertising Subsidy Businesses

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I came up with this idea after doing some hardcore due diligence on the advertising space through my curiosity. I had always heard of companies only generating revenue off advertisements, but never fully understood why. Through my research I found that if companies could get unique hyper-targeted advertisements then they would pay a high premium to generic ads.This area I found to be a blend of sponsorship and advertisement which companies separate in terms of their marketing budget.

This is a company I was never able to fully articulate because I could not narrow it down to one idea. The business plan was something I understood, but I could not figure out the best place to start.


1

I was never fully happy with the name for a lot of reasons, but it was Partner. The logo is something I always liked, which was based off an image I saw on Google and edited.

 

2

This was a slide that I felt advertisers wanted to see. From personal experience I know that whenever I see “Advertised” or something highlighted online then I always ignore it.People have even gone as far as downloading ad blockers so they don’t have to see anything. I wanted to create a type of hyper targeted advertisement in peoples lives that was unavoidable.

3

I wanted businesses to be able to eliminate costs by replacing certain inventories with free-branded inventory. This would hit businesses bottom lines’ immediately and benefit the advertiser by advertising in a unique style.

 

4

The marketing budgets for companies around the world are massive, but I wanted to look at sponsorship spend. When I tracked this number down in IBISWorld, I made sure to note the way it was divided up because sports make up such a significant amount of global marketing. The $6B figure was the result.

5

The layout of the website was simple to me. I thought an advertiser would come to the website and specify the type of person they wanted to reach. I wanted them to be able to specify geography, age, income level and whatever else they thought was relevant. Then the businesses would have profiles reflecting the demographics of their customers, so it would be like choosing a place on Airbnb.

6The business model reflected that if 1% of US market share was acquired then the company could have $6MM of annual revenue.

 

 

8

To my surprise there were actually a decent amount of competitors in the space, however, when I dove into the businesses traffic – I was interested to see that none had taken off. There was no clear market leader in the space and everyone was trying to target a different niche.

 

9

Everyone’s favorite wrap-up page that I’ve always felt is a little idealistic, but still represents a purpose.

 

 


After creating the presentation I wanted to show a couple examples of advertisement and business pairings. These examples are below:

dfvdfBreaking down how much it would cost an advertiser to customize a cup, coffee sleeve or napkin for any local business. This could be as simple as a local coffee shop no longer having to buy any of these products and being able to use branded ones for free.

 

11

The advertisers is paying 30 cents for each advertisement cup and it is saving the fraternity what would amount to over $1,000 a semester.

 

 

12

The advertisements would go beyond simply providing items for fraternities, but national partnerships could be created providing discounted alcohol and chasers for these groups while providing brand loyalty for the other products to college educated students.

 

13

Airbnb is hurting boutique hotels because they don’t have the brand loyalty programs like Hilton’s or Marriott’s. This would give these hotels and even Airbnb hosts the chance to display products for their guests during their stay. At the end of the stay the guest could be offered a discount to purchase the product.

14

All boutique and family owned businesses would be the most likely clients even down to boutique gyms. Members of these gyms always like free stuff and this would be a great win-win to match these members with new fitness products as they clearly have expendable income to be spending on a gym.

15

I thought this was a fun spin on the idea that you are able to get rid of desserts/pastry chefs and just outsource them to a local place. There are also unique luxury products that could be displayed like the Coravin or Riedel wine glasses.

 

16It surprises me that alcohol companies don’t do more sponsored nights with local bars, especially for micro-brew type products. I also think it would be interesting if there were partnerships with bars and food places so people would just go from one bar at the end of the night to get food at a defined placed because of a promised discount.

Thanks,

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