News

Selling ads no stretch for ISOs

If ISOs can sell ATMs, there's no reason they can't sell advertising too. At least that's the philosophy of Ads4ATMs, which offers a sales training program geared to ISOs.

January 7, 2002

When it comes to ATM advertising, the ISOs are willing but the infrastructure is weak, said Carl Davidson of Ads4ATMs.

"There are a lot of well-intentioned ad brokers out there trying to aggregate a national ATM advertising network through the existing networks," said Davidson, president and chief executive officer of the Camarillo, Calif.-based company. "But if there is a national buy, will the equipment be ready?"

Davidson doesn't think so. Noting that many ISOs do not have advertising-ready technology at their sites, he said, "Ninety percent of the databases are worthless. They're just addresses with no actual screens in place."

And, Davidson added, most ISOs either don't have the capital or aren't willing to invest in equipment upgrades with no guarantees that they'll attract paying advertisers.

While Davidson believes it's too early in the game to target national advertisers, local and regional buys are a more realistic goal. He said ISOs will find ATM advertising is an easier sell if they target businesses in their own communities.

"Local businesses like hotels, restaurants, attorneys, bail bondsmen – they'll spend the money and not even blink," he said.

Feeling that more ISOs would commit to equipment upgrades if they had a better chance at generating ad revenue, Davidson's company developed a program called Ad Catalyst.

Those who sign on for the program attend a two-day training seminar in which they learn the basics of selling ATM advertising. They also receive three training manuals and CD-ROMs, including one that walks them through the fundamentals of creating an ad using a digital camera and a laptop computer.

"That way they can sell an ad, take a picture and produce the ad right there on site," Davidson said.

The one-time production cost for a simple static ad created this way -- paid by the advertiser -- is $150, Davidson said. If the advertiser wants to add sound or motion to the ad, the distributor can email it to the Ads4ATMs office, which has a production facility. A full-motion video ad with sound created with the help of the company's design staff is the most expensive, at a cost of $500.

Advertisers pay $200-$500 a month to run the ads, and Ads4ATMs requires a minimum six-month contract.

To participate in Ads4ATMs' program, dealers must agree to place or sell 15-inch universal ATM toppers or ATMs with an integrated topper, both manufactured by Ads4ATMs partner Unlimited Cash. They must also agree to use Ads4ATMs processing services.

Davidson said that Ads4ATMs offers several programs to its dealers. The most profitable for the dealer, Davidson said, is one in which he places equipment at sites which were turned down by a leasing company.

The dealer keeps a one-time set-up fee of several hundred dollars paid by the merchant, shares surcharge revenue with the merchant, and earns up to 70 percent of ad revenues (with the merchant and Ads4ATMs sharing the remainder.) With this program and other placement programs, the dealer must agree to place a minimum number of units, Davidson said.

Davidson said the program most popular with dealers – perhaps because it is the most similar to traditional retail ATM programs – is one in which they sell the hardware and the advertising, earning a commission for the equipment and up to 70 percent of ad revenues.

There's no question that ISOs can sell advertising, Davidson said. "They're used to wearing their shoe leather off, and that's what we need. We just retrain them with certain techniques specific to advertising."