ORANGE, Calif. - ZIPTECH Media Inc. announced the launch of its proprietary MBS℠ (Media Buying System), which enables national television advertisers to target their ads to individual retail store locations or specific ZIP codes across the US. The launch heralds a new breakthrough in television advertising efficiency.
MBS is a data-driven television planning and buying system designed to transform the effectiveness of TV advertising. For the past three years ZIPTECH has been perfecting the System with thousands of cable TV systems and selected clients. ZIPTECH’s databases now map the exact locations of thousands of retail stores in 44,000 ZIP codes to thousands of specific cable TV systems, enabling automated purchasing of advertising inventory. National advertisers can selectively target retail store locations that produce the best results for them, promising to dramatically reduce TV advertising wastage.
One client involved in ZIPTECH’s tests reported a 24% increase in overall sales simply by realigning its untargeted national cable TV advertising into a blend of national cable and locally focused cable TV around its most productive stores.
“It simply makes sense to put more advertising support into your most productive areas,” said Dr. Iman Foroutan, CEO of Orange, CA-based ZIPTECH Media Inc. “Previously, local spot TV covered only 210 DMA’s, with massive performance disparities within those markets, so there was no great opportunity to be much more efficient than national TV. Now every advertiser can be much more focused, at an affordable cost.”
ZIPTECH rates are similar to national advertising cost per thousand impressions, or CPM’s. Usually, highly targeted advertising media charge large premiums over bulk mass media options, but ZIPTECH is passing the efficiency gains it has achieved on to advertisers. This opens the door for many different kinds of national brands to advertise on television, because their out of pocket costs to reach only their key productive areas are dramatically reduced.
By way of illustration, a 30 second commercial on a popular national cable TV show may cost $100,000. An advertiser who diligently studies their market and determines that most of their business comes from just 1,000 ZIP codes (a common finding) may target their campaign to just those ZIP codes through ZIPTECH, and achieve effective reach, as an example, for $20,000.
“Our system is designed to align sales to advertising in a way that has not been easily possible before,” continued Dr. Foroutan. “After all, if you have the choice, why would you ever advertise in areas where no one is buying?”
ZIPTECH can work closely with major media agencies, which often place significant TV campaigns on behalf of their clients, providing a specialized and proprietary service that is too onerous for the agencies to perform themselves.
“The system has worked so well for our clients that we have decided to launch it to the national TV advertising marketplace,” said Foroutan. This week, the Company is running national ads in Bloomberg Business Week and The Wall St. Journal to expose the service to both clients and agencies. The ads present a case for store-specific TV advertising since national TV directed to specific households is not yet available. Because some stores are up to 20 times more valuable to advertisers than others, it makes sense to support the top performing stores. This is particularly true around Walmarts, which outperform other stores in many categories. “There’s a limited amount of local cable TV advertising inventory available around key stores,” added Dr. Foroutan. “So we expect various category competitors to move quickly to gain the upper hand around the most valuable stores at the most valuable chains.”
ZIPTECH Media Inc. (ziptechmedia.com) is a new kind of media efficiency company, which uses superior data management and systems to provide more efficient advertising solutions to its customers. The Company is based in Orange, CA.