Agreement Sets Stage for the Integration of iSIGN's Smart Antenna into Kiosks for Major International Airports, Transit Systems and Government Offices
TORONTO, Oct. 27, 2015 /CNW/ - iSIGN Media Solutions Inc. ("iSIGN" or "Company") (TSX-V: ISD) (OTC Pink: ISDSF), a leading provider of interactive mobile proximity advertising solutions, and its reseller partner for airports in the Americas, Rich Multimedia Technologies Inc. ("RMT"), today announced an agreement closing a Letter of Intent ("LOI"), previously announced on October 6, 2015, for an Original Equipment Manufacturer ("OEM") and Licensing Agreement ("Agreement"). The Agreement defines the terms and conditions to integrate iSIGN's Smart Antenna into RMT's Tele-Digital Store Front Kiosks ("Kiosks"), paving the way for a dramatic increase in advertising revenue and much broader footprint for iSIGN's mobile network.
The Agreement is effective for a period of five years, with the option for further renewals. Under the terms of the Agreement, RMT will be responsible for all costs of integration redesign and the purchase and integration of Smart Antenna components into the Kiosks at RMT's factory in China. RMT will also be responsible for all costs incurred by iSIGN for any revisions required to its back-end reporting system, customization and dashboard changes and functionality integration. iSIGN will cooperate fully with RMT and its manufacturer and will review and approve the integration and any back-end reporting changes.
Under the terms of the Agreement, the licensing fee will be based upon the number of Kiosks built during the term of this Agreement and any renewal periods, starting with an initial build of 5,000 Kiosks. In addition to the licensing fee, iSIGN will receive a data management fee based on activation of the licensed Kiosks. The combined licensing and data management fees will generate revenues to iSIGN up to a maximum of $3 US per day for each Kiosk, upon activation.
The target date for RMT's manufacturer to be ready to start integrating Smart Antennas into the Kiosks is the end of November 2015. Once Kiosks are activated, they will form the world's first integrated out-of-home system offering mobile proximity advertising, an RMT exclusive.
"Signing this Agreement was important to us," said Mark Steven, RMT's Vice President of Global Business Development. "It allows us to more directly control the overall cost of our Kiosks and puts us fully in control of the exclusivity that this Agreement gives us. We look forward to at least a 35% increase in advertising revenue with the additional of iSIGN's proximity messaging and real-time interaction with travellers' mobile devices."
Currently, RMT has 318 of their best-in-class Tele-Digital Store Fronts, which include free phone and mobile phone re-charging services, located in three airports in the US. RMT plans to deploy approximately 5,000 Kiosks in Mexico City's international airport, transit system and government facilities over the next 90 to 120 days. Additionally, RMT plans to roll out 3,600 Kiosks in multiple major international airports in the US and Canada by the end of 2016.
The annual passenger foot traffic at the three US airports where RMT's Tele-Digital Store Fronts are currently installed total 63.8 million. The addition of Mexico City's airport would add another 31 million in traffic. RMT's projected rollout into the top 10 major international airports by the end of 2016 will add an additional traffic count of 514.6 million. The vast majority of these travelers will be in the airports for extended periods of time, with their smartphones on and ready to receive iSIGN's proximity messaging throughout the airport concourses.
Third-party advertising sales will be handled by AllOver Media, LLC ("AOM"), iSIGN's advertising reseller partner, as the Kiosks become part of iSIGN's National Mobile Network ("NMN").
It is estimated that the RMT network, reaching roughly 600 million travelers annually, could generate approximately $250 million in advertising revenue per year, based on current results in three US airports and the addition of iSIGN's patented mobile technology.
"This airport network has the potential to greatly extend and increase the reach of advertising at a very reasonable cost," stated Alex Romanov, iSIGN's Chief Executive Officer. "We're excited about working with RMT to create the world's first out-of-home mobile network."
iSIGN plans to continue expansion of its NMN and its audience of consumers, while offering advertisers and other potential network locations new business opportunities. To learn more about iSIGN, please visit www.isignmedia.com.
About Rich Multimedia Technologies
Rich Multimedia Technologies and its executive team has a 25 year plus proven track record in the telecommunications; advertising; in-airport media and retail travel business. With our partners we represent the leading international brands' and In-airport retail concessionaires. We are committed to working in close partnerships with brands, airport operators and suppliers to bring the mobile traveller on-the-go an unrivalled shopping choice and experience. We are relentless in our search for new concepts that will help develop existing and new markets. www.richmediatechnologies.com
About iSIGN Media
iSIGN Media, based in Toronto, is a data-focused, software-as-a-service (SaaS) company that is a pioneering leader in gathering point-of-sale data and mobile shopper preferences to generate actionable data and reveal valuable consumer insights. Creators of the Smart suite of products, a patented interactive proximity marketing technology, iSIGN enables brands to deliver targeted messaging, personalized offers and loyalty perks to consumers' mobile devices in proximity and with real-time proof of redemption. iSIGN's data gathering capabilities provide analytics on price points, typical purchases, in-store dwell time and other shopper metrics that identify emerging consumer behaviors. These insights enable smarter business decisions and provide increased ROI metrics for more transparent marketing. iSIGN delivers relevant, timely messages on an opt-in basis at no charge to consumers, transmitting rich media to consumer mobile devices via Bluetooth® and WiFi connectivity in complete privacy as opposed to iBeacons, apps, downloads and required surrendering of personal information. Proven to increase brand engagement and customer loyalty, iSIGN generates preference-based, predictive "clean data" without compromising consumer privacy. Partners include: IBM, Keyser Retail Solutions, Baylor University, Verizon Wireless, TELUS and AOpen America Inc. www.isignmedia.com
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SOURCE iSIGN Media Solutions Inc.