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Digital signage zero cost

The infrastructure gave way to a new business vertical in the company and Space Networks was created, a division with which the company serves as a technology integrator and managed services provider.


The Digital Signage industry in Mexico, better known as DOOH (Digital Out Of Home), is in an accelerated growth, changing the rules of the game in the offer of massive advertising and at the same time micro segmented.

Promo Espacio, a subsidiary of TV Azteca and founding partner of DSLatam (Asociación Digital Sígnage Latinoamérica), bet since its foundation in 2006 on this segment, expanding the multiplatform product portfolio of the television station and today is the third most profitable business of TV Azteca, and provided a communication tool that would transform the shopping experience in Elektra stores.

- Publicidad -

The digital signage integrator had a great challenge to solve in the Elektra and Banco Azteca stores. Due to the high volume of users they serve, people spent a lot of time in the queues, becoming a negative visitor. 

"In Promo Espacio we transform this process into a different experience, with our vast experience in programming and entertainment, we turn the waiting time into an entertaining, informative and cultural moment of great relevance for customers, finding the perfect space for the promotion of all the products and services offered at Elektra and Banco Azteca, as well as for many other brands, companies and government entities interested in the target, but with a peculiarity, here you can communicate all the benefits of your product or service in great detail, through infoteinment content, "said Guillermo Pautazzo, Director of Programming and Content of the company.

Thanks to the excellent results, Promo Espacio quickly transformed into a mass media outlet, from 200 branches it grew to 800 in less than two years, reaching more than 11 million people weekly as an advertising medium. 

This strategy, together with the high technological development that the company has and its great efficiency, catapulted the expansion to other points of contact, to expand its offer in different socioeconomic levels and today it has a presence in Banco Azteca, department stores, in the International Airport of Mexico City, in the family medicine clinics of the ISSSTE, shopping centers of different targets, casinos and hotels, achieving an international presence in Central and South America in places like Punta Cana, Costa Rica, Guatemala, Jamaica, Panama and Curacao among others, all this adds up to more than 9,700 screens operating with a reach of more than 18 million people weekly.

Now, the volume of audience is not everything, the challenge is to market all these eyes that are added day by day with the growth of the company to make it profitable, that is where the strength and experience of TV Azteca makes the difference, which today has a commercial team of more than 400 people nationwide that offer the multiplatform concept including Promo Espacio as the spearhead in the outdoor and alternate media segment.

In this way, the company has managed to increase its turnover and has maintained sustained growth in profits of more than 20% in the last three years and today it is going for 50% of the market share.

Roberto Caballero Oramas, Commercial Director of the company, indicated that Our relations with advertisers are very close, we are their allies and trusted advisors, we jointly seek the success of their advertising campaigns and complement their efforts with all the products and services of the MULTIPLATFORM of TV Azteca. Our medium is extremely flexible, we can make multipoint national campaigns in our 7 commercial networks at the same time or on a single screen, we adjust to the needs of each Client, without minimum amounts".

- Publicidad -

A new division
This infrastructure gave way to a new business vertical in the company and Espacio Networks was created, a division with which the company works as a technology integrator and provider of managed services of the type "Turn Key Solution" and "Hardware As a Service", where all the "know how" of Promo Espacio is made available to other companies that want to venture into this industry.

Espacio Networks has all the necessary menu to orchestrate a complete symphony or serve only part of the chain in a DOOH network:

-    SIDI Platform
-    Content Production
-    Digital Signage Studio
-    Network Design and Architecture
-    Operation and Monitoring
-    Equipment and Installation
-    Technical Support
-    Lease

Zero cost business model
With everything we have already mentioned, Promo Espacio is the only company on the market that can offer a Zero Cost model for its partners, but how does it work? In this regard, Jaime Vázquez-Mellado Carbajal, General Director of Promo Espacio stressed that "it is very simple, we take the risk and through advertising sales the cost of the network is paid, this is possible thanks to the fact that we have the 5 fundamental axes to achieve the success of a Digital Signage network".

The five axes mentioned by the manager are:

1.- Our SIDI platform, developed 100% by the company, which does not ask anything of the best platforms in the market and being our own allows us to reduce costs to the maximum.

- Publicidad -

2.- The experience and production capacity of the second largest company generating content in Spanish in the world, in this industry content is key to correctly impact the target audience. 

3.- A highly experienced commercial force with a national presence and specialized in the multiplatform sale of media.

4.- Strategic alliances with the best technology suppliers, thanks to the high demand we generate with all the companies of Grupo Salinas, achieving economies of scale in the purchase of equipment.

5.- The financial support of Banco Azteca. 

"In this way, we analyze together with the Partner what is needed to implement an impactful and cutting-edge network, as well as its scope and capabilities. With this, a Business Plan is generated under the lease scheme where the interested partner puts practically only the floor, does not have to spend capital and we take care of the rest, "explained Jaime Vázquez-Mellado Carbajal.

He added that the partners gain many other things immediately by integrating a Digital Signage network in their companies, such as improving the experience of visiting their flats, modernizing and revolutionizing their image, integrating a tactical tool to communicate with their users with relevant institutional and / or commercial messages and in real time, generating savings from day one and in the long term eliminating the use of printed matter also helping not to generate garbage and taking care of the environment, all these points are the primary benefits of having a Digital Signage network, and if they were not enough reason to dare to make the leap, there is the possibility of generating additional income.

This model applied by the company makes them unique. To achieve this, they look for three types of business partners: those who already have an operational network without marketing it and are looking for ways to lower their costs; those who already have a commercial network and have not achieved the expected objectives; and those who want to implement a new network and have as a barrier the initial investment.

"We are the only solution in the market that will allow partners to have a state-of-the-art Digital Signage network without worrying about the amount of investment, since we will take care of recovering their resources in spades, this is what we call Digital Signage Zero Cost. Now what we are looking for is who dares to enter this expanding industry to revolutionize their company and take it to the next level in communication and image" concluded the General Director of Promo Espacio.

Richard Santa, RAVT
Author: Richard Santa, RAVT
Periodista de la Universidad de Antioquia (2010), con experiencia en temas sobre tecnología y economía. Editor de las revistas TVyVideo+Radio y AVI Latinoamérica. Coordinador académico de TecnoTelevisión&Radio.

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