Criticize please!

[Squandered Halfpints]

Hi fellow YE's:

I have thought of a possible business venture for some time now. I have just recently wrote up the steps I'm going to take in making it a reality. I haven't run into any problems yet, and I'm not sure if I will. To make sure I'm not missing anything I would appreciate any criticism.

Its no secret, and I'm sure many people have thought about it when they're sitting in the jon. Its restroom advertising (i.e. ads above urinals and in stalls). I have read a similar thread on this site and have found nothing stopping this business from coming to fruition in my area.
1) Graffiti - this can be very easily deterred. I know of a type of case which will protect the ad and will be very difficult to tamper with.
2) "Its already been done" - Yes, it has. but not in my area. There are plenty of very popular bar/restaurants/high traffic public areas with no advertisments in the restroom. I see no reason why I should wait for a large restroom advertising companies to use this space. Futhermore, they probably aren't interested. I will begin as a small business who advertises for privately owned local companies in various local venues.
3)No more ad clutter! - I know. I'm am the last person who would want to contribute to the world of advertisment nauseam. But I'm sure I'm not the only person who would rather read an ad, than look at the dried up urine on the floor or read some racial slander carved in the door in front of me.

I shouldn't have any problem selling the ads, and I will give the advertising venue a share of my profits. Amount based on their popularity, restroom cleanliness, and time spent as a client.

I know this isn't a get rich quick type of idea and it isn't innovative. But "indoor advertising" is a fast growing extremely young industry that is for the most part, a large untapped resource for profit. It will take a lot of work, and its success will be determined by the amount of work I put into it.

--I would greatly appreciate any criticism, insight, ideas, or helpful information. For people who have seen this type of advertising in their area, please let me know what type of companies were advertising (local,franchise, corporate), your location, and where the ad was located. It would also be very helpful if you were able to tell me the company doing the advertising and their size. Or any other information along these lines that you think would be helpful. Thank You.

[shmoeusn]

I was in a bar recently that had an audio preview of upcoming movies. It was a pretty good attention grabber when your minding your business and all of a sudden, you here a movie exerpt.

[jasaunders]

Profit sharing is probably not the best business model for your idea. What made you come up with this idea? Why not charge flat rates like everyone else?

[rogercbryan]

I've started seeing bars with flat screen TV's in the restrooms playing advertisements... so this business model works...

[clp11479]

i think selling ads would be a little more challenging them you are making it out to be. here's your dilemma...

if you find advertisers first they'll want to know what locations the ads would be in and you don't know how receptive establishments will be to the idea.
if you find restrooms first you won't know if you can sell the ads.

not sure which one would be best to start with...

[rogercbryan]

Chicken and the egg..... good point Chris... If you are going to do low budget wall posters I would start with getting the space from a few bars / restaurants. You'll need to know your advertising expense at the bar in order to be able to correctly price your services to the advertisiers. If you are going to do a little more expensive advertising (flat panle TVs) you may be forced to TRY and get advertisers first. A bit tricky.... but still a good business model in my mind as the market is not yet saturated. This is just my opinion.

[Squandered Halfpints]

Chicken and the egg..... good point Chris... If you are going to do low budget wall posters I would start with getting the space from a few bars / restaurants. You'll need to know your advertising expense at the bar in order to be able to correctly price your services to the advertisiers. If you are going to do a little more expensive advertising (flat panle TVs) you may be forced to TRY and get advertisers first. A bit tricky.... but still a good business model in my mind as the market is not yet saturated. This is just my opinion.

Yes, this will be a business supplying low budget wall posters. Both the advertising venues and advertisers will be paid/charged based on the amount of foot traffic, (I plan on investing in multiple infared pedestrian counters to obtain exact comparable figures of different advertising venues). The wall posters will be produced with a reletively low budget, so I'm going to start with the advertising locations as the first potential clients. I haven't decided what % of the profit they'll receive, but it will be relative to the price charged for the ad in their location. This is the answer to Saunders post asking "why don't I charge a flat rate." I will also consider an advertiser's alternative advertising outlet's prices (i.e. print ads, radio/T.V broadcasting, and other indoor/outdoor advertisments).
-Thanks for the responses. If there are any other suggestions for my pricing model, it would be greatly appreciated.

[capforge]

This is an extremely easy business to test out, so why not just go for it? Go talk to 20 restaurant or bar owners, and offer to rent the space for whatever the going rate might be, or as low as they will accept, whichever is less, and then let them know you will be back to install the ads in a few weeks. Once you have some ad space optioned, then go out and sell the ads. Sell for at least double the cost of the rent, and try and get at least 3 month commitments- you don't want to be going out there every few weeks changing ads. Once the ads are sold, then you can go back to the restaurants, put up the ads and give them their checks. They may have forgotten their agreement to give you the space, but when you show up with a check for them they aren't going to back out of taking it.

The best part of this is- if you can't convince any places to accept ads, you are out zero dollars. If you can, then the advertisers pay upfront, so now you have cash to print the ads, buy frames, etc.

PS- I'm in San Diego, and I've seen lots of bathroom ads around town, so while it isn't virgin territory, in a way, that just proves it is acceptable here and you can probably make it work- if you are good at sales.

[Squandered Halfpints]

This is an extremely easy business to test out, so why not just go for it? Go talk to 20 restaurant or bar owners, and offer to rent the space for whatever the going rate might be, or as low as they will accept, whichever is less, and then let them know you will be back to install the ads in a few weeks. Once you have some ad space optioned, then go out and sell the ads. Sell for at least double the cost of the rent, and try and get at least 3 month commitments- you don't want to be going out there every few weeks changing ads. Once the ads are sold, then you can go back to the restaurants, put up the ads and give them their checks. They may have forgotten their agreement to give you the space, but when you show up with a check for them they aren't going to back out of taking it.

The best part of this is- if you can't convince any places to accept ads, you are out zero dollars. If you can, then the advertisers pay upfront, so now you have cash to print the ads, buy frames, etc.

PS- I'm in San Diego, and I've seen lots of bathroom ads around town, so while it isn't virgin territory, in a way, that just proves it is acceptable here and you can probably make it work- if you are good at sales.

Thanks cap. Out of curiosity, are you able to tell me a little more info. on the ads you've seen around town? (specific locations - both the area in SD and actual venue, advertising company, placement in restroom, etc).

[capforge]

I remember seeing them at PB Bar & Grill, Rock Bottom in UTC, the Bull and Bear in La Jolla and a few others I don't recall right off the top of my head. I have no idea who the ad companies are, since I never cared to look...

[jasaunders]

Almost every bar and club in Chicago has bathroom advertising, couldn't tell you the company offhand either, but they advertise for big national brands in many cases.

[Angle Orange]

there is an iternational company called "the letter corporation" they do a host of alternative advertising including bathroom adds just google TLC

[ScottRobertson]

Halfpints: I've been thinking about an advertising business for quite a while now - I am PM'ing you so that we can bounce some ideas/thoughts around =)

[akula]

I would greatly appreciate any criticism, insight, ideas, or helpful information. For people who have seen this type of advertising in their area, please let me know what type of companies were advertising (local,franchise, corporate), your location, and where the ad was located. It would also be very helpful if you were able to tell me the company doing the advertising and their size. Or any other information along these lines that you think would be helpful. Thank You.

what you're talking about is absolute rubbish...it's a solution in search of a problem, and it ignores all current trends in the advertising market..including pay for performance pricing and contextual/behavioral matching..
you need to drop this opportunity and focus on something else

[Squandered Halfpints]

what you're talking about is absolute rubbish...it's a solution in search of a problem, and it ignores all current trends in the advertising market..including pay for performance pricing and contextual/behavioral matching..
you need to drop this opportunity and focus on something else

I don't understand what you mean by a solution in search of a problem. And it being a trend that ignores all current advertising strategies is what makes it a business venture worth pursuing -minimal competition.

There would be almost no startup cost, and its success would rely solely on salesmanship. If its success is only mild, at the least, it would be an awesome resume builder for a young person like myself.