AdZey.com-investor information PDF Print E-mail
Written by Jacob Murphy   
Thursday, 25 March 2010 17:45

Dear Investor,

 

Thank you for expressing an interest in investing in our advertisement system. The following article is broken down into the following 5 areas:

1. A description of how the system works.

2. The benefits for you as a company.

3. The benefits for advertisers.

4. The benefits for vendors.

5. The benefits for prospect.

1. A description of how the system works.

The system was designed to combine the uber targeted advertisement we're used to seeing online with the element of otherwise unobtainable trust achieved using print adverts' with emphasis put on saving costs and achieving high conversion rates.

Every week over 16 million items are sold by eBay merchants, millions more by Amazon not to mention the thousands of independent e-stores.

By allowing advertisers include promotional material in these packages we can target specific customers by the following criteria: interests/needs, payment methods, trust in online purchase, geographical location, gender and budget.

(Those marked in blue are vast improvements on the current most targeted system, those marked in red are impossible using the current most targeted system)

For Example, an online store that sells iPod accessories,accepts PayPal and delivers only within the United States may choose to have their advert shipped with all new iPods sold using PayPal in the United States.

People who purchase a new iPod are likely to want to purchase accessories for it, by ruling out those people who do not have access to the correct payment system, those people who live outside the delivery area and people who cannot afford to purchase the seller can achieve an extremely high conversion rate at a low cost.

What happens when an advertiser makes an order?

1.Using a system similar to Google Adwords, advertisers bid against each other to have their advert included with an item.

2.When a winning bid is placed the advertiser uploads their advert as a graphical file to our website.

3.An order is automatically sent to one of your printing facilities where the advert is printed on cheap, lightweight newsprint.

4.The system automatically chooses which vendor/s is/are best suited to ship the ad with their items.

5.The boxes of ads are dispatched with the next delivery of newspapers to the vendors' local shop.

6.The vendor collects the box of adverts at their local shop and includes one with each relevant item they sell online.

 



 

2. The benefits to you as a company

The reason this system could be so spectacularly profitable is because it was designed to"piggyback" on newspaper/magazine publisher's current infrastructure allowing an additional income with very low setup/maintenance costs.

Allow me a moment of your time to explain.

As you saw in section one of this article the system uses currently available resources in a new, innovative way. The only additional costs arise from the development and hosting of a website and some retraining of staff which would be extremely low

 

Marketing---------------------------------------------------------------------------------- Contacting past advertisers.

 

Print adverts in your newspapers.

Cost:Free-high (depending on budget and requirements)


Printing-------------------------------------------------------------------------------------
Some costs incurred to ready printers for smaller orders and to train staff.

 

Very low running costs.

Cost:Low

Delivery------------------------------------------------------------------------------------ Using currentnewspaper distribution system.

 

Cost:Free

Setup--------------------------------------------------------------------------------------- Developing biddingsoftware,

 

Developing simplegraphic software.

Web design

Cost:$10,000-15,000


If properly streamlined, and efficiently designed costs could be as low as $0.04 per advert. Market research has shown average sale prices could be as high as $0.20 with a minimum purchase of 1000 ads this would give a minimum profit per sale of $160,  this would require just 1600 sales per day to reach the 100 million dollar annual profit I estimated by 2012.  This is an extremely conservative estimate. In reality profit could well exceed 1 billion dollars p/a within 5 years.

 



 

3. Benefits for advertisers.

The benefits of the system to advertisers should be relatively clear at this point.

Using this system advertisers can achieve unprecedented targeting, by Interests/needs, payment methods, trust in online purchase, geographical location, gender and budget.

At just $0.20 average cost per-advert (about 88% less than comparable cost using Google adwords) advertisers' can have direct access to interested, serious prospects with a high likelihood of gaining a quality, returning customer.

Benefits to advertisers of our system over a PPC campaign:

Research has shown prospects immediately trust printed adverts above online ads and are more likely to feel safe making a purchase.

­­

Prospects must type the URL into their web browser, this increases the likelihood of them remembering the website and returning to make repeat purchases.

Advertisers can target by Payment Method, this is of pivotal importance to stores which only accept payment by PayPal or credit card.

Advertisers can increase their web profile and generate "buzz" at a low cost.

 

 


 

4. Benefits to vendors.

(note: vendors refers to the online sellers who ship adverts)

If the system is correctly implemented vendors will not have to do any work that they are not already doing. The weight of adverts printed on newsprint will be negligible and will not increase their shipping costs.

There are two main ways in which they will benefit.

1. Directly, they may choose to consider the payments for shipping adverts as an extra income.

2. Indirectly, they may choose to use the payments for shipping adverts as a means with which to subsidize the items they sell. They will be able to sell their items cheaper while making the same profit on each item. Doing so (especially on eBay)  is likely to vastly increase the volume of sales they make.

 


 

5. Benefits to prospects.

If correctly implemented prospects should receive adverts in which they have genuine interest at least 95% of the time.

If highly successful the system should cut down on the amount of junk mail people receive, reducing peoples refuse charges and helping the environment.

 

 


 

As you can see, this system would be very simple, and highly profitable for you to implement, profit made with this system could be used to subsidise your newspapers giving you an even larger market share, alternatively you could use it to develop your online news systems ensuring you're at the front of the pack and ready for next generation publishing.

I am willing to sell up to 65% equity in AdZeys' operations in the country/countries in which you publish. Due to the varying setup costs in different countries costs will need to be discussed on a case by case basis.

Thank you for your interest,

Jacob Murphy –AdZey.com founder & CEO

Email- This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Office Phone- 353 21 4832583

Cell Phone-086 835 7897

(I live in Ireland, while I am more than happy to accept calls 24/7 contact by email is preferable)

Last Updated on Thursday, 25 March 2010 18:25