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BP For Deamah v2
BP For Deamah v2
Executive Summary
The Digital Out-of-Home (DOOH) or Digital Signage industry in Kingdom of Saudi Arabia, with its
wide range of deployments, diverse venues and multiple formats continues to enjoy
unprecedented growth.
Despite the significant revenues that the DOOH industry has achieved to date, the strategic
planning behind Deamah DOOH networks has taken a secondary role to deployment issues. There
appear to be far too many “if you (network operator) build it they (advertiser or ad buyer) will
come” views towards revenue generation with DOOH. The glamour of digital can be seductive,
leading many companies to shortchange the process of properly evaluating and strategizing the
“real” revenue potential. Based on case studies, some companies are making mistakes by
overlooking the key elements of success for Digital Signage which is hindering their ability to
optimize revenue and profitability. For Deamah, thoughtful, focused and diligent in maximizing
revenues always comes in first place.
Media buyers have lately been under pressure from advertisers to buy media that provides more
accountability and higher ROI than traditional media. The No.1 thing is audience, the ability to hit a
certain target demographic, and more importantly, a large number of individuals in that
demographic, is what media planning and buying is all about.
Some of media buyers have challenges in understanding Deamah as a new media offering. What
they need is enough information for them to make an intelligent media purchasing decision. Make
it easy for them. Demographics, target audience, type of locations, traffic, etc. are all part of the
value proposition media buyers use when making media purchasing decisions and budget
allocation. Deamah started gathering these information from its strategic partners, to be ready
during project kickoff and marketing. By understand and execute the critical success factors of the
business, the estimated growth and profit can be achieved.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Company Overview
Business Objectives
Toward the digital out-of-home (DOOH) key player in Saudi Arabia and Gulf countries;
Becomes a public traded company after 3-years of operation
To introduce the concept of "Green" advertising and integrated corporate communication
tool and platform;
Establishment a nationwide media network as Digital Out-of-Home (DOOH) for advertising &
public awareness network:
a) located at star-rated hotels and service apartments (phase 1) at holy cities, Makkah
& Madinah under SHOMOOS, of Al-Elm Company (year 2010 - project secured)
b) located at Armed Forces Medical Services Hospitals اﻟﺨﺪﻣﺎت اﻟﻄﺒﻴﺔ ﻟﻠﻘﻮات اﻟﻤﺴﻠﺤﺔ
(year 2011 – project secured)
c) located at 12 public universities under Al-Elm Company (year 2011 – project
identified)
d) located at Riyadh International Exhibition Center (year 2011 – project identified)
e) located at commercial valued of star-rated hotels and furniture apartments
nationwide, under SHOMOOS, of Al-Elm Company (year 2012 – project secured)
1 Advertising targeted at business owner, and individuals who buy or influence the purchase of industrial goods
or services for their companies. Industrial goods are products that become a physical part of another product
(raw material or component parts), are used in manufacturing other goods (machinery), or are used to help a
company conduct its business. Business services such as insurance, travel services, and health care are also
included in this category.
2 Advertising targeted to professionals such as armed forces, doctors, lawyers, dentists, engineers, or professors
to encourage them to use a company’s product in their business operations or daily life. It identified specific
group of people and income group as the end-users.
3 Advertising targeted to global marketing channel members such as wholesalers, distributors, and retailers.
The goal is to encourage channel members to stock, promote, and resell the manufacturer’s branded
products to their customers.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
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Market Targeting
Advertising with digital signage (selling airtime):
a) in hospitality or accommodation industry
b) in higher education industry
c) in healthcare industry
d) public awareness, to Saudi Arabian government agencies
e) Multinational companies, who which export to Saudi Arabia or doing business with
Middle East and Muslim countries
Government agencies, multinational companies, and corporate (project basis/digital
signage retails)
Figure: How deamah define markets and segments, and understand value
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Advertising
Haramain ( )اﻟﺤﺮﻣﻴﻦChannel, Mamlakah ( )اﻟﻤﻤﻠﻜﺔChannel and Seasonal Channel
Strategic partner with Shomoos, Al-Elm Company
Geographical Segmentation
Selling airtime by dividing the market segment into different geographical units in high
traffic; such as cities and target of group of audiences based on provided statistic report by
Shomoos, of Al-Elm Company and kind of products. These products operate in one or a few
geographical areas, or to operate in all areas but pay attention to geographical
differences in kind of needs and wants.
MSD-HealthCare Channel
Strategic partner with General Administration, Armed Forces Medical Services
Mix Segmentation
Selling airtime by dividing the mix market segments into geographical and psychographic
(targeting of Saudis medium to high income class). Product positioning as the only
advertising platform targeted Saudi, who within medium to high income.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
(1) POS/Promotional Budgets: Funds that are traditionally directed to POS displays or
promotional activities might be more effective if a portion of these funds is directed to
Deamah DOOH network. POS budgets are used primarily for price reductions or display
activity. Redistributing some of these dollars to a DOOH in store network will improve overall
consumer awareness more than the price reduction alone, potentially resulting in higher
overall sales.
(2) CO-OP funds: These funds, based on retail product sales are used to fund flyers and
newspaper inserts. Co-op funds normally average 3-5% of total sales. When these funds are
used for print advertising, they represent a hard, non recoverable cost to the retailer. Co-op
budget spent on Deamah DOOH network can come back to the landlord in the form of
revenue share (or ownership) on the network. Having a co-operative and motivated
landlord who can assist in helping push funds to digital can have a significant impact on the
top line success of the network. By supplementing this with revenues from traditional ad
budgets, the network operator reduces their dependence on a single revenue source,
increasing the long term potential for success.
(3) Types of Advertisers: Deamah focusing on sources below to optimize the revenue
opportunity.
a. National advertisers: Usually take a wait and see attitude while Deamah is a new
DOOH network. In most cases an advertising agency is managing the budget,
and the flexibility to move money is often limited. It’s essential that the Deamah
DOOH network be introduced at each company’s planning stage. The better
the metrics (research) that can be provided, the higher the probability of
inclusion in the media plan.
b. Local, Regional & International advertisers: They tend to be more flexible and
faster to react to new opportunities. Of the two, Regional & International
advertisers will have larger budgets and may or may not use an advertising
agency. Local budgets are smaller and often seasonal. The challenge with local
advertising is smaller expenditures and more contracts, resulting in a longer time
frame to recoup the sales investment.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Deamah Milestones
SCHEDULED SCHEDULED
MILESTONE
START COMPLETION
Sole Distributor Right for KSA & Middle East Jan, 2008 Oct, 2008
Commercial Advertising LCD R&D & Manufacturing Sample Unit Dec, 2009 Mac, 2010
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Specialization:
Strategic Planning, Management, Business Development, Product Development, Project
Management & Product Marketing, Enterprise Networking
Education:
B.A. (Hons) Computer Engineering
King Fahd University of Petroleum and Minerals
Professional Certification:
Certified Product & Marketing Management, The Association
of International Product Marketing and Management, USA
Certified Business Process Re-engineering for Competitive
Advantage, London, UK
Microsoft Certified System Engineer, Microsoft Corp.
Business and Technical Writing, Marcom
Working Experiences:
Shomoos Business Developer, Apr 2009 ~ Present
Al-Elm Information Security
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Specialization:
Public Relations, Business Development
AlHussein, Abdul Rahman Abdullah
Education:
B.A. (Hons) in Business Administration
King Saud University
Working Experiences:
Managing Director & Owner, Jan 2010 ~ Present
AlSandross Chinese Visa Application Center
Specialization:
Finance, Accounting, and Risk Management
Mr ..
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Specialization:
IT related R&D, Business Development, Public Relations, Software Solution & Architecture,
Administration, Business Process, ERP, DOOH Advertising, Cross Culture Consumer Behavior
Abdullah, Umar Lim
Education:
MBA (Muamalat) - Selangor International Islamic Univ. College
B.A. (Hons) in Shariah, Islamic University of Medina Munawwarah
Professional Certification:
MS Certified Solution Developer .NET (MCSD), Early Achiever
MS Certified Application Developer .NET (MCAD)
MS Certified System Engineer (MCSE)
Working Experiences:
Director of Business Development, Jan 2010 ~ Present
AlSandross International Est.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Specialization:
Software Development & Digital Signage Application Development
Potter, Shen YangTao
Education:
B.A. (Hons) in Management
Nanjing University of Information Science & Technology
Working Experiences:
Project Manager for Nantong China Mobile Project, Apr 2009 ~
Present
SUZSOFT Co., Ltd. (China)
Specialization:
Digital Signage R&D, DOOH Solution, LCD Manufacturing, Global Media Networks Relationship,
Supplier Chain Management
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
The greater the number of screens Deamah installed, the more important targeting
capabilities is. The greater the number of screens, the easier it is to create a
booming advertising campaign with impact. The greater the number of screens and
the different types of screens within a single network, the more streamlined the
buying process can be if provided by a single provider.
c) Engagement.
Once the audience and location have been determined, ad buyers want to make
sure the ad vehicles provide a good experience for that audience. This means that
Deamah needs to be intimately familiar with the attributes of the network, the type
of content, the placement of screens and other advertisers that might be running on
the media network.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Note:
Haramain, an Arabic word, means the two
holy cities of Islam, Mecca and Medina
Mamlakah, an Arabic word, means the
Kingdom, which is Kingdom of Saudi Arabia
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Airtime
(Video Clip/ Digital Poster)
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Standalone/Networking
Kangaroo HD Digital Screen
Standalone/Networking - HD KIOSK
Standalone/Networking
HD Flipping Menu with Touch Screen
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Product Characteristics
They are big. Of the over 2 million pilgrims who travel to Mecca and Medina each year for
Hajj, about 1.5 million are foreigners. A hefty USD31 billion in spending (≥12 percent of the
Saudi GDP) is linked to pilgrims and their needs: transportation, lodging, food, shopping,
and other activities.
They are growing fast. The cross industry new DOOH media networks estimated expanding
their reach and being launched at an accelerating rate.
They are valuable. Deamah’s DOOH media network can deliver more measurable sales
impact closer to the purchase decision-making point and are highly relevant to many
products and brands. Marketers that rely on retail channels or target high value clients
and households can increase the relevance of their brand messages and block
competitors from using the most relevant venues.
They can do what traditional media cannot. Deamah’s DOOH media network offer
marketers five advantages over traditional media: measurable sales impact, proximity to
the sale, better ways to target media, greater relevance to the product being sold and
tighter integration with local selling efforts.
Customers like them. The established syndicated media research companies that
evaluate traditional media viewership have conducted over 10 studies outside of Kingdom
that consistently indicate value to, acceptance by and positive response from customers
to this kind of media.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Deliver marketers things traditional media cannot: measurable sales impact; point-of-
purchase proximity; audience focused; customer targeting; purchaser relevance; and local
sales support.
Offer superior cost to sell, market coverage, marketing-resources control and alignment
with customer behavior relative to other media.
Represent an undervalued and high-return media investment, delivering more measurable
sales impact closer to the purchase decision-making point.
Are highly relevant to many products and brands – particularly marketers that rely on retail
channels or target high value clients and households.
Fill an unmet need for national advertisers because they help marketers address the decline
in the audiences of traditional media and the increased adoption of technologies that
allow consumers to skip ads, avoid ads or consume content “on demand”.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Ahead of trend of digital signage and the Saudi Arabian government will incur a deficit as it
goes forward with large infrastructure projects over the next several years in order to keep
the economy and private sector moving. Thus, ahead of trends and demographic strength,
Deamah needs to start stronger, run faster and jump higher.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
f) Maximize of Saudization
Getting strong continuously support from Saudi Arabian government and building barrier;
Deamah has to maximize of Saudization of qualified Saudis within the organization and
business, with the support from Saudi Arabia Human Resources Development Fund ( ﺻـﻨﺪوق
;)ﺗﻨﻤﻴـﺔ اﻟﻤـﻮاد اﻟﺒﺸـﺮﻳﺔthe operation overhead will be reduced for the first 2-year. This also
brings an advantage to deamah going either to initial public offering (IPO) after 3 years of
operations.
Since globalized standard such as ISO had been defined as a process for a better Quality
Management System (QMS), with implementation of it, Deamah can manage its way of
doing things by systemizing it. It also to enhance the quality, productivity, customer
satisfaction, develops the brand and fame of the industry globally. All of these will be
among the barriers to prevent future competition, and the leading status of Deamah.
h) Frontier Business-in-Line with Key Worldwide Digital Signage Manufacturers & Suppliers
To enhance better product R&D, enhancing Deamah’s competitive advantages in the
competition market, Deamah is building frontier business-in-line partnership relationship with
key worldwide digital signage manufacturers and suppliers with benefiting the strengths
and resources of them to have win-win outcomes.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Industry Focuses on rivals within media Looks & find across alternatives
& advertising industry industries
Strategic group Focuses on competitive Looks across strategic groups
position within strategic group within industry
Ad buyer group Focuses on local media Redefines the industry buyer
buyers & better serving the group locally and internationally
buyer group
Scope of product Focuses on maximizing Looks across to complementary
offering locations within the bounds of product & service offerings
the industry
Functional- emotional Focuses on improving price Rethinks the functional-emotional
orientation performance within the orientation of the industry
functional-emotional
orientation of the industry
Time Focuses on adapting to Participates in shaping external
external trends as the occur trends over time
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Market Analysis
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Advertisements spend in other Middle East markets tend to be driven by foreign clients; but Saudi
Arabia is enhanced with its own high-spending local brands - Focus handles Saudi Airlines, STC,
Mobily, Zain, NCB, Microsoft, for example.
As Saudi Arabia is experiencing an economic boom bound to last for over ad decade. It's the
Middle East's largest economy, the size of which is bigger than the economics of all its neighboring
GCC states put together. Massive foreign and domestic investment is pouring into every sector
coupled with unprecedented government spending worth billions of dollars. All this is fueled by
historically high oil prices, soaring demographic growth and one of the largest construction booms
the country ever witnessed.
Excess liquidity from high oil prices and consistently more attractive foreign investment policies,
continue to drive major growth in the Saudi Arabian market, the size of which is growing at double
digit rates in all key sectors. Additionally, government initiatives aimed at liberalizing the market act
as a catalyst for new companies and products to enter this booming economy.
Fuelled by a loosening of social and political restrictions on publications and an increased level of
spending on advertising, the media sector in Saudi Arabia is bucking the global trend of decline
and showing hearty signs of growth. Media spending is raised by between 20-25% in 2008 and in a
display of the nation's newfound prominence on the regional media map, sales representatives of
foreign news outlets are flocking to the Kingdom to sign advertising and sponsorship contracts that
would have previously been signed abroad as part of pan-Arab deals. There is also a nascent
public relations industry as companies begin to realize the importance of cultivating relationships
with an increasingly freer press. Saudi media consumers are benefitting from a more straightforward
print press and a plethora of television channels, though the TV market is dominated by Saudi-
owned Middle East Broadcasting Company (MBC).
An estimated 70% of advertising on pan-Arab media is targeted towards Saudi Arabia. Yet, there is
a dearth of local expertise and a limited understanding of the culture on the part of foreign
marketers. In an effort to find the key that will unlock market potential, advertising research is on
the rise and is showing promising results. Meanwhile agencies in the Kingdom are starting
recruitment drives to bring local Saudi talent into the industry. Digital advertising has registered
100% growth in 2008, with outdoor LCD billboards being a well-received industry development.
Overall, money spent on advertising is expected to grow between 20% and 30% in 2008, but the
biggest obstacle to growth will remain human resources.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Digital signage has evolved into a highly efficient, appealing means of providing multimedia
content for Saudi government agencies, business owners, brand marketers, and advertising
agencies, who realize its benefits of awareness, informing, promoting, and entertaining specifically
targeted consumers. The days of providing static content are behind us.
Labor- and material-intensive, static, traditional advertising signage, such as posters and billboards,
partial of its will be replace by flat monitor screens and quite-active digital content, in a network,
controlled from nearby or afar, via the Internet.
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KSA holds the edge in religious tourism, with more than 5 Millions of Muslim pilgrims from various
parts of the world who visit Islam’s two holiest sites i.e. Mecca and Medina each year. It is estimated
that religious tourism in Saudi Arabia, generates around USD $ 7 Billion annually.
The Saudi Travel and Hospitality Industry are robust and continue to show a significant potential
and promise due to inter-regional travel and the continuing maturity of the Tourism Industry and the
Business Sector. The Kingdom of Saudi Arabia is the cradle of Islam and the homeland of the two
Holy Mosques. Therefore, it occupies a special status in both the Arab and Muslim worlds. Saudi
Arabia has a vast geographical area, diverse climate and natural resources, rich cultural and
social heritage, an open economy, advanced infrastructure, and low customs duties as well as the
existence of an integrated system of tourism facilities.
Mecca and Medina have been attracting large numbers of religious tourists, although they are off-
limits to the wider and cash-rich market of non-Muslim tourists. Inter-regional travelers and religious
tourists are on the increase each year, as are business travelers. This growth has been driven by the
booming economy of the Gulf region and of Saudi Arabia in particular. Hajj and Umrah pilgrims
represent close to 100% of visitors heading for Makkah and Medina. Saudis constitute 25% of this
segment, usually visiting the two cities in July and August. Thus, religious tourism, being the
backbone of the Tourism Sector and ultimately for the Hotel Sector, will be the main growth driver in
the coming years. Apart from this, Saudi government’s budget allocation of SAR 385 B to overall
infrastructure of tourism sector in its 2009 budget, which is higher by 10.9% compared to 2008
budget, will also be a major boost for the Saudi Hotel Industry.
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Deamah Business Case for Digital Out-of-Home Project CONFIDENTIAL
Figure: No. of Religious Tourist Nights Spent in Arrivals by months (in thousands)
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10,000.0
Press
8,000.0
Newspaper
6,000.0 Magazines
4,000.0 Television
Radio
2,000.0
Outdoor
0.0
Internet
2002 2003 2004 2005 2006 2007 2008 2009
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Figure: The Origin Destination of Religious Tourists Arrivals – Part 1 (in thousands)
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Figure: The Origin Destination of Religious Tourists Arrivals – Part 2 (in thousands)
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Financing
Strength: CAPEx can be accurately established. The technology infrastructure and capital
expenditures related to DOOH deployment are well understood with the numerous supply
options serving to validate required investment levels. While the levels of technology
functionality continue to rise across the technology ecosystem, the price/performance of
individual elements is trending favorably.
Strength: OPEx can be adjusted to scale. Operating expenses such as network operations,
playlist administration, etc. can be contained during deployment start up and growth,
expanding only as the size and complexity of the network is warranted.
Opportunity: CAPEx and OPEx are declining as new suppliers emerge. Growth of DOOH has
included industry entry by larger technology and services providers. As each brings its
supply strengths and capacities to DOOH, the costs of infrastructure and operations will
decline.
Threat: Scalability and success are concomitant. The abilities to expand Deamah network
and its contribution to advertiser and communicator goals both effect and are affected by
each other. This “what comes first – the chicken or the egg” analogy applies at the genesis
of the network and then quickly shifts to have network growth fueled by its value.
Technology
Strength: The technology works. The “technology ecosystem”, which is a supply chain for
digital media presentation has been strength of DOOH and is attested in the reliability of a
broadly deployed range of Deamah networks.
The “leading edge” is common. Deamah’s suppliers offer leading edge technology and so
the real issue is in selecting enough functionality to allow the network to be increasingly
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Weakness: New suppliers such as branded commercial LCD (Panasonic, Samsung, etc) lack
application expertise, especially application customization. The successful planning, design,
deployment and operations of DOOH are based on knowledge of digital technologies,
business management and communications practices. While strengths in one or more areas
may instill confidence for such supplier or end user to move forward with initiatives,
weaknesses in other knowledge areas will quickly emerge as the technologies are
expected to meet ever increasing communications needs. In the interest of revenue
achievement or project advancement, project planning is at times inadequate. Thus,
Deamah is working with manufacturers and suppliers in the line of operating media network
than purely manufacturing and selling commercial LCD.
A further concern is in the abilities of suppliers to design and architect systems that use
digital technologies based on Internet Protocols. DOOH can be complex compared to
“closed,” one-location audio/visual systems, yet digital signage appears to be a natural
extension of other visual presentation media and systems.
Threat: Supply options are increasing design and sourcing complexity. As new suppliers seek
DOOH industry revenues, new options for technology, services, pricing structures and supply
sourcing are made available. The investigation of these can delay funding commitments.
Threat: A broadening supply pool is dispersing revenues and challenging margins. The
broader based of suppliers can result in the dispersion of revenues across the wider supply
base and the erosion of quality as pricing is reduced in response to competitive pressures.
Human Resources
Strength: Expertise exists in each area of business, technology, ad sales, legal, etc. and the
growth of DOOH is attracting talent. The excitement and opportunities around DOOH make
it attractive as a professional choice, service area and target market.
But information and education program in KSA are little available to accelerate supply and
management capabilities; Deamah is working to have such extensive education program
cooperation with local public universities at the 2nd year of operation.
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Threat: Loss of employees minimizes training ROI and may have opportunity costs. The
trimming and down-sizing that characterizes economic downturn reduces costs but may
also reduce the prospects for prosperity.
Application Demand
Strength: “Critical mass” of displays will be deployed, which allows advertisers to reach
targeted audiences based on demographic profile, Designated Market Area (DMA),
geography and even the activity in which they are involved (shopping, transit, café,
workout, religious activities, etc.) with deep cooperation of Shomoos, Al-Elm Company. A
Compound Annual Growth Rate (CAGR) in display deployment of 25%+ is forecast. This
growing critical mass substantiates the value of marketers and other communicators to
consider, plan and use Deamah DOOH.
Strength: Through the application of Deamah DOOH positive results which will be achieved
such as sales lift, increased engagement, message awareness and recall, reduced
perceived waiting times. Improvement to the “location experience” is regularly cited as
achieved through Deamah DOOH. Advertisers, communicators, location providers (i.e.
retailers, QSR, etc.) will consistently found that DS/DOOH networks achieve very positive
results when the medium presents suitable content to targeted audiences.
Opportunity: Communicators seek media that can better target and engage audiences,
and demonstrate proven results. The economic will benefits of using Deamah DOOH as a
more cost effective approach will prevail as the installed base of DOOH displays continues
beyond a “tipping point.”
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Business Model
Strength: Business models for Deamah DOOH are stable. The kinds of resources and
processes that are required to provide value to communicators are well known, and as the
industry has matured the costs associated with network deployment and operations have
become fairly well known. Equally, the types of funding and sourcing are generally known,
so the business models are known and stable, allowing for ongoing refinement to increase
valuation.
An area of innovation is in the blending of internal and external capabilities for proprietary
digital signage network design and ongoing operations. The investment decisions are
based on solving a big problem, delivering an audience and capitalizing on emerging
behaviors. A successful of Deamah networks has absolute clarity on how delivering high
value to communicators.
The tighter audience targeting and day parting that is easily possible and an inherent
strength of Deamah DOOH allows it to motivate engagement with other communications
vehicles and provide high return on marketing investment in situations where consumer
action is intended.
Threat: Revenue and pace forecasting have many external dependencies. While business
costs can be accurately estimated, revenue forecasting is challenging, which can deter
investment and build-out decisions.
Efficiencies
Strength: New infrastructure for efficiencies improves the value proposition and positioning
of the entire industry. Operational collaboration and corporate aggregation are providing
efficiencies in Deamah advertising sales and network operations.
Advertising sales collaboration has proceeded on the basis that the offer of the larger
display inventory of multiple networks aimed at achieving a single, larger ad insertion order
is more compelling and better uses the time of media planners and buyers as well as ad
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sales personnel, than the overlapping and duplicated efforts associated with ad placement
on many individual networks.
Individual networks are collaborating in particular in situations where each network offers a
similar target demographic or locations.
The suppliers of tailored media management software and other technology elements are
also encouraging network collaboration through the introduction of similar networks to
each other. Given the critical importance or high value of advertising revenues to networks,
it could be expected that primary suppliers will accelerate their efforts to improve the
efficiency of ad revenue achievement.
Within Deamah Global Business Alliance Network, it might also selecting several ad sales
agencies focused on DOOH offer services that can dramatically improve the efficiency of
ad/campaign planning, placement and selling.
Media conflict and collision is changing every media business model.
Opportunity: Growth of the industry at large increases the viability of new elements and
approaches that improve efficiencies. As Deamah will be the first-to-entry the DOOH
advertising market in Mecca and Medina, high growth rate and ROI is expected due the
huge demands on these world strategic places.
Threat: The more broad the potential for efficiency improvement, the more challenging its
realization. The saying goes that “to make an omelet, you have to break the eggs.” So, the
chock point for the project is the investments.
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Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015
Marketing & Operations 885,732 1,174,213 1,350,345 1,552,897 1,785,832 2,053,707
Human Resources 1,627,600 3,801,200 4,751,500 5,939,375 7,424,219 9,280,273
General & Admin 381,772 763,544 878,076 1,009,787 1,161,255 1,335,443
Purchase of Assets 4,946,625 6,294,938 6,924,431 7,616,874 8,378,562 9,216,418
7,841,729 12,033,895 13,904,352 16,118,934 18,749,867 21,885,841
11%
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2,500
2,000
1,500
1,000
500
-
Year Year Year Year Year Year
2010 2011 2012 2013 2014 2015
in Total 1,000 1,500 1,650 1,815 1,997 2,196
No. of New LCD 1,000 500 150 165 182 200
Shares Distribution
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2010 2011 2012 2013 2014 2015
Stackholders - 40% 0 0 917,687 1,773,083 2,887,480 4,814,885
Investor(s) - 60% 0 0 1,376,531 2,659,624 4,331,219 7,222,328
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6 12,037,213
5 13,406,155
4 13,298,120
3 13,000,569
2 13,237,284
1 8,625,902
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At this point Deamah is a proven winner and investment bankers have agreed to take it public
within 12 months. Mezzanine or bridge financing, or a short term form of financing used to prepare
a company for its IPO. This includes cleaning up the balance sheet to remove debt that may have
accumulated, buy out early investors and founders deemed not strong enough to run a public
company, and pay for various other costs stemming from going public.
The funding may come from a venture capital firm or bridge financing specialist. They will pay back
from the proceeds of the IPO.
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Gross Revenues (SR)
79,200,000
69,200,000
59,200,000
49,200,000
38,600,000
28,600,000
50,000,000
45,000,000
40,000,000
35,000,000
Saudi Riyal
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Year Year Year Year Year Year
2010 2011 2012 2013 2014 2015
Series1 16,160,00 21,660,00 27,870,00 33,705,00 39,523,50 45,323,85
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20,000,000
Saudi Riyal
15,000,000
10,000,000
5,000,000
0
Year Year
2010 Year Year
2011 2012 Year
2013 Year
2014
2015
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Year Year Year Year Year Year
2010 2011 2012 2013 2014 2015
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Deamah LCD Deployment Bid Year
2,500 2,196
1,997
1,815
2,000 1,650
1,500
1,500
1,000
1,000
500
-
Year Year Year Year Year Year
2010 2011 2012 2013 2014 2015
in Total No. of New LCD
Deamah DOOH Sales Projection
Year 2015
Year 2014
Year 2013
Year 2012
Year 2011
Year 2010
Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015
Series1 28,600,000 38,600,000 49,200,000 59,200,000 69,200,000 79,200,000
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Marketing Plan
One of the most critical components for the long term success of Deamah DOOH network is
research, especially when the primary source of revenue is advertising. Without it, there are no
metrics that media personnel can use to establish the relative value, audience coverage or
effectiveness of the network relative to its costs.
Audience Quantifiable
Airports have definable gross audience measurements through ticketed passengers. The more
quantifiable the audience and the larger the numbers of potential viewers, the better the revenue
opportunity.
a) Audience Qualifiable
The demographics (and lifestyles) of the audience are paramount before many advertisers
will include Deamah as a new media in their advertising plans. Advertisers are looking for
information about the audience viewing the network. They want to have accurate
information on demographics - age and sex, income levels, occupations etc. This data is
critical, allowing advertisers to align their communication objectives within Deamah DOOH
network. That’s why Deamah is working closer with local government agencies, such as
Shomoos, SCTA, etc.
b) Audience Desirable
Certain audiences and demographics tend to command more advertising budget than
others. As an example, higher income earners are attractive to a wide range of luxury
goods marketers as are business-to-business consumers, which Deamah secured partnered
with General Administration, Armed Forces Medical Services. The more defined the venue
and its audience, the higher the probability that it’s desirable to a wider range of products
and services.
Without adequate research data, Deamah DOOH network’s long term success is questionable.
Research is expensive but absolutely vital; but with the strong IT support, by design a research
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system will help to reduces at the future. So no short change this investment as it will continue to
pay huge dividends through improved sales and profitability for Deamah.
Other marketing elements are also vital to revenue generation and one of the most critical is the
Deamah DOOH rate structure. Rates can only be effectively developed with reliable audience
data as its cornerstone. Detailed operation, sales and administration costs plus a basic
understanding of other like or competitive media will help create a viable rate structure for the
DOOH network. Most media are based on Cost per Thousand (CPM).
The changeability of digital introduces an increased opportunity for exposure, so intrinsic research is
necessary to determine the average number of advertising exposures for each viewer. From this a
CPM can be determined. The primary target audience and the quality of the venue will also play
an important role in determining rates; and Deamah sourced most of the information from the
related authorities.
Loop length only affects frequency of exposure. It doesn’t impact CPM’s. Deciding on the optimum
mix of content to advertising and the loop length is largely judgmental. The shorter viewing
opportunity, the shorter of the loop length (and the length of the spots); results the lower the CPM.
More captive, higher quality audiences like hotels, furniture apartments in Mecca and Medina, and
airports generally a higher CPM. Once the Deamah DOOH network is established and demand
builds, this may become a viable option for attracting new advertisers locally and internationally.
Support material needs to reflect the vision of the Deamah DOOH network. Print and video
material is both essential elements in the marketing kit. Official Web portal also play a vital role in
providing information and brand re-call, since the focus of pilgrim is concentrate on religious
activities. As the network gains traction, additional information on advertiser successes or
testimonials, or category ROI effectiveness studies will help generate support from potential
customers.
Marketing executives should take two actions to ensure their organizations are fully capitalizing on
the potential of Deamah DOOH networks to stay ahead of the competition:
1. Understand the potential of Deamah DOOH networks to drive growth. Marketing executives
should make sure their agency partners are considering these valuable channels as part of
the marketing/media mix, and that their agency partners are capable of planning,
measuring, buying and advertising on these networks.
2. Budget these channels into advertiser/ad buyers upcoming annual marketing plans.
Working to let marketers who sell through retail channels or target professionals, young
shoppers, and “mass affluent” households should include Deamah DOOH networks as
primary, complimentary or exploratory channels. These marketers will get the highest
immediate return from media investments in Deamah DOOH networks if these channels:
Highly relevant to their selling approach
Under priced relative to the value they deliver
Provide more measurable sales impact from their media spend
Offer the ability to block competitors from using these channels through category
exclusivity or share of screen.
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If Deamah wants to effectively communicate with audiences, especially pilgrim in Mecca and
Medica, do so in a way that will not intuitively feels like an advertisement or too commercial. The
word of mouth marketing is among the marketing strategies, which pilgrim while back to home
land will passing of information and “message” to persons around; by refer to Deamah’s official
portal access for details. Deamah working to build global virtual trading hub for Muslim and Halal
products at the 2nd year of operation.
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Sales Plan
Setting up a dedicated sales force is an expensive proposition and represents a long term
investment for Deamah. There are other options available to Deamah, especially during the launch
phase. Rep agreements with Al-Elm’s resellers are common in the industry as are agreements with
aggregators. A number of these aggregators are developing multi-venue and multi-platform digital
networks. Their advantage is they are single source under Al-Elm Company, they simplify the buying
process and have no ownership stake, their role is predominantly sales, in return of sales in
commissions and incentives.
Deamah at kickoff will focus on all national, regional and local sales opportunities; and also
Malaysian government since having a strong relationship with. Deamah also will implements
introductory offers to encourage early sales support and spend the time monitoring and refining
the sales proposition as required. A hands on approach, especially early on will pay off longer term.
The more opportunities covered, the greater the likelihood of success for Deamah.
Deamah DOOH Sales Projection
Year 2015
Year 2014
Year 2013
Year 2012
Year 2011
Year 2010
Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015
Series1 28,600,000 38,600,000 49,200,000 59,200,000 69,200,000 79,200,000
E-Reseller: Deamah can saves on distribution or reseller costs, which can be 10~25% in a
conventional media by not going fully through the resellers and the existing media buyers in the
market at year 2011. Advertiser or ad buyer will enjoys the rebate or discount if reserved airtime
through the internet and Deamah call centers; and also early-bird discount while they paid in
advance.
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Pricing Calculation
CPM calculation:
Media CPM = [media spend/number of impressions] x 1,000
Then:
Media CPM = [media spend/[number of acquisitions/(CTR x CR)]] x 1,000
Exposure: One person with Opportunity to See, OTS, also called an Impression.
Audience: The total exposures or impressions for a specific media vehicle during a defined time-
period, e.g. Hajj or Ramadhan season.
Gross Impressions: The sum of all impressions for a campaign or specified portion of a campaign.
Gross Rating Points, GRPs: Gross Impressions as a percent of the relevant populations; also the sum
of the rating points for a campaign of specified portion of a campaign.
Target Rating Points, TRPs: Target audience Impressions as a percent of the relevant target
population.
Reach: The net percent of the target population with an “opportunity to see” the advertising
(audience reach) in a given timeframe.
Frequency of message delivery among those reached: Often expressed as an average, but could
be a frequency distribution of exposure levels.
Cost per thousand, CPM: The cost of a vehicle, or campaign divided by the total impressions, in
thousands – the basic method of pricing media.
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Saudi Medica Channel is a specialized healthcare TV network, located in more than 400 patients
waiting areas within 56 governmental and private hospitals & polyclinics allover Kingdom.
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Appendix:
The Impact of Hajj & Mecca
In recent years, Islamic religious tourism has been expanded far beyond the Hajj. Many Muslims
from all over the world now perform the Umrah year round. The fasting month of Ramadhan is
particularly busy season, as many Saudi residents also flock to the Holy Places. At the month draws
to an end, Muslims celebrate the anniversary of the first revelation of the Qur'an. On the last 10
days of the fasting month, some three million people perform “Terawih” prayers in the Holy Haram
Mosque at the night, more than at the Hajj. Meanwhile during the daytime, they do shopping,
buying presents from the holy land for their beloved family members, and friends.
With year round visits now to the two Holy Places, there are no published figures that break out
gross revenues generated by the Hajj, but they are estimated to be in the billions of dollars,
including annual government expenditures.
Unlike the impact of the Hajj on many foreign visitors, whose journey is a mystical, once in a lifetime
experience, the Saudi experience while visiting the Islamic Holy Places, during the Hajj or at any
other time of year, is a local, accessible reality. The sites are the physical and geographical
manifestation of the birth of Islam. This blending of the highly sacred and the familiar
commonplace has permeated Saudi society to such an extraordinary degree that it can be felt in
virtually every human endeavor from politics to business to simple recreation.
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Figure: Key statistics of the Saudi Tourism Sector – Inbound Religious Tourism
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The emergence of the long tail been identified as a complete spectrum and direction of
Deamah’s globalization roadmap starts with advertising in different scales, from the Haramain
Channel, at the “head” of the curve, through mid-sized Mamlakah Channel at the “shoulder”, and
on to an extended “tail” of Seasonal Channel, each with profit margin. The project has significantly
different characteristics along the curve, leading to a variety of business models and approaches
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to scaling businesses. The secret of the business is how-to using all resources within Deamah,
positioning and execution the channel to be recognized globally as international branding and
promotion platform. Deamah is working closer with Malaysian and Chinese government, securing
support and reorganization, in accordance with the government interests of export trade to Muslim
worlds and Middle East.
Audience focus. Haramain Channel has wide accesses broad audiences, whereas further down
the tail highly selective niche audiences, by geography or interest, can be garnered.
Cost of content creation. The customized design of advertising LCD is associated with high
production values, which support both, digital poster (graphic) and video clip. Production costs are
rapidly reducing for advertisers who advertise with digital poster.
Media Personalization
Personalization is a large part of the future of Deamah. Yet to enable personalization of content
and advertising, there are multiple requirements including compiling data about audience
members, and content serving platforms that allow content and ads to be altered on the fly
depending on the viewer. There are four levels to personalization of content and advertising, each
of which leads to increased value.
Nil. Most content and advertising is not personalized. It is not currently possible to
personalize content on mass distribution channels such as Haramain and Seasonal
Channels.
Content. Personalization is possible by being associated with audience specific content with
the provided report from Shomoos, Al-Elm Company. The report enhances marketing with
enabling personalized advertising on targeted audiences within Deamah advertising
networks, effectively.
Individual. Personalization for the individual requires both audience profiles, possibly
generated through provided report from Shomoos, and the ability to identify audience
members individually.
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ROI-driven advertising – Companies focused here, like STC, Mobily, Zain, will use granular audience
profiling, targeting and measurement to enable efficient and effective ad campaigns. Insights
obtained through greater granularity can enable delivery of direct digital messaging to the micro
level and a deeper understanding of audience response and, therefore, potentially higher ROI.
Consumer-centric marketing – Companies using this model would employ broadly integrated,
contextual campaigns that bridge advertising and marketing formats, and enable addressability,
measurement, interactivity and “know-me” messaging for desired consumers. In the next five years,
we expect these leaders to arise in earnest and take a disproportionate share of market value.
Content owners – To retain existing audiences and market share, this group is primarily focused on
cross-platform reach, including offering opportunities to package advertising formats across both
traditional and new media platforms. Specific emphasis is put on premium content placement so
marketing messages is highly relevant to the associated media content.
Media distributors – To grow advertising market share, Deamah is working takes advantage of its
direct access to Governments, consumers and knowledge of their behaviors, focusing on
delivering insights, including granular measurement, interactivity and more sophisticated targeting
– typically on one specific platform such as Haramain, Seasonal or Mamlakah Channel.
Ad agencies – To assist Deamah’s advertising clients, Deamah will focus on both granularity and
integration through parallel efforts to deliver client centricity across individual agency units while
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focusing on delivering ROI-centric marketing. Thus, Deamah won’t involve in any kind of content
production, but sourcing within ad agencies locally or internationally.
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With the Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to the
Kingdom of Saudi Arabia, Mr. Yang HongLin & Consul co. Advisor to the Ambassador
(http://www.chinaembassy.org.sa/eng/sgxx/t391995.htm)
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With former Prime Minister of Malaysia, Tun Abdullah Ahmad Badawi at Prime Minister’s Office,
Putrajaya, Malaysia
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With the Advisor to the Custodian of Two Holy Mosques (King Abdullah), HRH Prince Dr. Bandar
bin Salman AlSaud
With the former Ambassador of Malaysia to the Kingdom of Saudi Arabia & Imam and Khotib
of Al-Masjidil An-Nabawi, Sheikh Dr. Abdul Bari AlThubaiti
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