International Display Advertising Increases Future Ad Network Revenues In New Agreement With Display Points
SAINT PETERSBURG, Fla., Aug. 14, 2013 /PRNewswire/ -- International Display Advertising, Inc. (PINKSHEETS: IDAD) ("Display Ads") The Company is excited to announce that it has restructured a new agreement with Display Point Technologies LLC (Display Points) that will modify the licensing fee structure to provide a net 400% increase in revenue over its existing agreement.
In the previous contract, IDAD was to receive 4% of all gross Ad Network revenue from international venues outside of the United States. With the new arrangement, IDAD will now receive 20% of all gross Ad Network revenue and subsequently pay a 20% royalty to Display Point Technologies, LLC which allows IDAD to keep a net 16% of total International Ad Network gross revenue. For example, IDAD's existing licensing agreement with Bamboo Beat Media in South Africa will now yield projected annual revenues of $20 million USD annually instead of $5 million that was anticipated under the previous agreement.
Display Points feels that IDAD is better equipped to serve the diverse needs of the international community due to its unique positioning and upcoming personnel appointments. The new agreement will allow Display Points to focus primarily on network infrastructure support while IDAD will focus on licensee evaluation, training, marketing and maintaining good licensee relations. In each market that IDAD expands the Display Points Network they will be establishing satellite offices to assist country licensees, their advertisers and venues in optimizing the network capabilities.
Dave Hazzard, President of International Display Advertising, Inc. stated, "Although this new agreement has led to the issuance of 56.25 million restricted common shares to Display Point Technologies and consequently increases IDAD's share capital by approximately 129%, I believe very strongly that the compensatory 400% increase in revenues to the Company will boost shareholder value far more than ever could have been done under the previous contract. I am truly elated for the future prospects of major success marked for IDAD regarding profitability, growth and optimization to shareholder value!"
About the Company; International Display Advertising (IDAD) owns the international rights to market, distribute and sell the proprietary interactive digital media of Display Points an interactive digital media company that competes in the Digital-Out-Of-Home (DOOH). IDAD has also developed a location-based Internet advertising platform called Display Points Plus that allows restaurants and advertisers to coordinate efforts outside the venue. IDAD is focusing on engaging consumers with on table browsers/displays in destination locations like restaurants, bars, hotels, and other consumer venues, thus creating a place-based media platform. IDAD enables advertisers to access their target audience in venues where they are captive, out-of-home, and ready to spend money. Unlike web browsers with ad blockers, mobile devices with pull interactive ads, or TV with DVR, IDAD places "browsers" on restaurant tabletops and in consumer venues where ads cannot be blocked.
Within this IDAD offers advertisers a targeted and measurable consumer interactive media vehicle they can customize by market and venue to assure the most efficient buy. Consumers will be exposed to a combination of informational content (weather, news, sports scores, movie times etc.) restaurant promotions and menu offerings and advertising. IDAD provides advertisers all the benefits of online digital communication, the ability not just to deliver a static ad message, but also to engage their audience.
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SOURCE International Display Advertising, Inc.