Plan B Media Public Company Limited (PLANB) has received positive sentiment as soon as the announcement of PLANB and CPALL Public Company Limited (CPALL) will cooperate in the advertisement business by displaying an advertisement in 7-Eleven.
PLANB is the leading Out-of-Home (OOH) advertising company which owns the billboards along main highway, public transportation buses, department stores, especially the ads in Thailand’s six major airports (Suvarnabhumi, Don Mueang, Phuket, Hat Yai, Chiang Mai and Chiang Rai) as well as the jumbotron at the entrance of Central World.
More importantly, PLANB has VGI Public Company Limited (VGI), a former competitor, as a partner to create synergy between the two companies. Meanwhile, the broadcasting and marketing rights for Olympic 2020 are also owned by PLANB.
As for the installation of a digital screen for advertisement in 7-Eleven, PLANB expects to cover 5,000 stores within 10 years. 2,000 stores will be equipped with this new advertising method within 2020, and will install in at least 1,000 stores by 2021 with investment more than 2,000 billion baht.
PLANB aims to install the digital advertising media at three locations in 7-Eleven; 1) Above the beverage freezer. 2) Above food freezer and other beverage. 3) Above the shelf of other displayed products. All three locations are the best spot to catch customers attention.
The most interesting part of this deal is the advertisement that will be displayed on the screen. The more advertisements PLANB receives, the number of ads PLANB will be able to display.
This will also lead to a new target as 7-Eleven’s customers are middle class and lower class, thus, a perfect chance for any company aiming to make a marketimg on these social classes.
It is expected that PLANB will earn 1,200 million baht per annum from this investment or more than 20% of the overall media capacity.
This is what PLANB will get from the deal while CPALL is kind of like a silent partner that requires to put zero effort into this deal.
It is a win-win situation for both companies. However, the direction of share prices did not move upward to response to the deal. Could it be that this deal is not big or good enough?