B2 Digital Enters Into Agreement with a Direct Marketing Agency to Leverage B2 Digital's New Digital Ad Insertion System Thursday November 3, 8:00 am ET
Potential Revenues Could Exceed $40,000 Per Month Once Fully Implemented MESA, Ariz.--(BUSINESS WIRE)--Nov. 3, 2005--B2 Digital (OTCBB: BTWO - News), a provider of pay-per-view and digital services, announced today that it has entered into an agreement with DJM Direct Marketing Inc. ("DJM") to air the marketing agency's product advertisements in Hotel Movie Network-subscribed hotel rooms that are equipped with the company's proprietary digital ad insertion technology running over the major cable TV networks.
The agreement with DJM consists of two unique revenue models, a "per inquiry" and an online mall model, that can create a consistent inflow of revenue. The "per inquiry" model is where the cost of commercial airtime is based on the amount of leads the media outlet guarantees it can provide. The "online mall" model extends the advertising revenue agreements outside the hotel and into the travelers' homes and offices via a percentage of revenue share agreement. A percentage of revenue share agreement requires the company to create an online mall where featured goods and services can be ordered. B2 Digital is paid a commission for products ordered through their system or originating from the Web address of their online mall. J. Michael Heil, chief executive officer of B2 Digital, said, "The company's 10,000-plus room base can effectively deliver commercials to more than 100,000 travelers per month. The company anticipates realizing revenues in excess of $40,000 per month from the sale of airtime across its properties once the ad insertion system is fully rolled out. The addition of these two new revenue models provides B2 Digital with potential recurring revenue streams." Robert Russell, chairman of B2 Digital, stated, "With the deployment of our new digital ad insertion system, we can sell ad space to mainstream advertisers, deploy per inquiry ads, and promote our pay-per-view movies, all of which we expect to add to our top-line growth. These new capabilities should gives us a marketing edge that will help grow our room base."
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