Business Plan: Mobile Edge Advertising Essay
Mobile Edge Advertising is an exciting new venture that seeks to capitalize on the emerging advertising market on mobile phone applications. We will design interactive applications that blend our clients brand image along with functional features. These features can range from simple expense calculators, to elaborate online ordering systems, and games. We believe that associating a clients brand with these functions will encourage downloads and multiple uses, providing a very effective advertising method. Companies such as Lexus, Coke-a-Cola, and Dominos have already expressed satisfaction in using apple apps as a form of advertising.
In house development of applications can be extremely expensive, ranging from 10,000-100,000 euro for an application with a web interface. Our company’s products will be far less complex and rely on the creation of basic templates for creating applications. As a result our costs will be significantly less and we will be able to target a section of the market who otherwise could not afford to have an advertising presence in the Apple or Android application market.
In 2006 the amount of money spent on advertising was 1.4 billion Euros in Ireland alone. With the current economic crisis that is gripping Ireland companies will be looking for ways to
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From an investment standpoint this is an industry that has significant growth potential. From the third Quarter of 2009-2010 over 1/3 of all cellular phones sold were Smartphone’s with the capability of downloading applications. This market share is expected to increase exponentially as the price of this technology is reduced. In addition our company has extremely low start up costs, with labor being the only significant cost associated with our operations. We are seeking a 40,000E investment for 20% of our company. Our valuation is based on 2 times our projected first year sales. We feel that this is a fair market number reflecting the risk associated with a high technology startup. This money will be used to actively recruit a talented programmer that will be able to bring our vision to a reality.
III. General Company Description Edge Advert will be a mobile phone application company specializing in developing advertising applications for small to medium business. We will design applications specific to each clients desires. We will be the cost leader in the industry using pre-designed templates that we will maintain intellectual property rights over. By minimizing the cost we will be able to reach a segment of the market that is currently unable to afford mobile phone applications.
Our applications will integrate our client company’s logo and brand message into an interactive program. We will distribute these applications across all application platforms including Iphone, Blackberry, and Google Apps. By integrating the brand with functional or games it will encourage downloads and provide effective repeat advertising. Our business philosophy is to minimize costs without sacrificing quality. This will allow us to reach a large market of businesses that can benefit from our products and services.
Mission Statement To provide our clients with an effective, affordable advertising in an area previously reserved exclusively for wealthy companies. Company Goals Short Term: We would like to sell 96 applications in the first year. First Three Years: We would our early customers to find value in our advertising method and increase the level of services they desire Long Term: Our goal is to transform the current application market into one that seamlessly combines function with brand promotion Target Market: Our Company will focus on small to medium sized business that would not be able to afford to have a brand presence in the android or apple application stores. It is our belief that this effective method of advertisement will become a vital component to most companies overall marketing strategies.
Product Road Map As our services become more complex it allows us to open up additional revenue streams. This will grow our potential profitability exponentially from years 1-3. In year 1 we are limited to charging only for our application as there are few ways to track the usage of our applications. In year 2 we will be able to actively track every time a customer opens our application and record their actions, this allows us utilized a standard web advertisement fee structure of CPM (clicks per million). In year 3 we will be able to allow in application ordering. This will allow us to charge our clients fee based on percentage of sales generated through our application.