...started
operating digital frames in Shenzhen Baoan International Airport, or Shenzhen
Airport, in the middle of May 2008, and will start operating digital frames in
Guangzhou Baiyun International Airport, or Guangzhou Airport, at the end of
May 2008, which will increase the number of AirMedia’s digital frame network
airports to 16. In addition, in mid-May, AirMedia also adjusted the length of
its digital frame’s time slot to 12 seconds per time slot from the previous 15
seconds per time slot.
AirMedia’s TV-attached digital frames, ranging from 46 to 50 inches, run in 20-minute cycles in Beijing Capital International Airport and 10-minute cycles in other airports. AirMedia’s large-size stand-alone digital frames, ranging from 63 to 70 inches, run in 10-minute cycles in all airports. AirMedia adjusted the length of its digital frame’s time slot to 12 seconds per time slot from previous 15 seconds per time slot in mid-May. This adjustment was applied to both AirMedia’s TV-attached digital frames and stand-alone digital frames.
AirMedia’s TV-attached digital frames, ranging from 46 to 50 inches, run in 20-minute cycles in Beijing Capital International Airport and 10-minute cycles in other airports. AirMedia’s large-size stand-alone digital frames, ranging from 63 to 70 inches, run in 10-minute cycles in all airports. AirMedia adjusted the length of its digital frame’s time slot to 12 seconds per time slot from previous 15 seconds per time slot in mid-May. This adjustment was applied to both AirMedia’s TV-attached digital frames and stand-alone digital frames.
Our take:
While Air Media's growth into new airports is not at all surprising, we're intrigued by the company's decision to shorten the duration of their spots to 12 seconds from 15 -- that's 20% less time. Given a 20-minute loop (which equates to 80 15-second intervals), such a reduction would yield 20 additional slots to sell. If Air Media's sales force is effective (and is filling out a high percentage of available time slots), this could well translate into increased sales for the company, provided that (a) they don't have to significantly discount the new format versus the old one, and (b) the attach rate is high enough to offset any losses from discounts.
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