Just one month since launching their specialist media business MOTIO, microcap advertising firm XTD (ASX: XTD) has secured a national advertising platform by securing the exclusive rights to Caltex’s in-store screens.
With the Caltex network of petrol station convenience stores comprising more than 500 locations across Australia, the 5-year-deal with Engagis, operator of the screens, will provide MOTIO with exclusive access to more than 1,000 HD digital displays within Caltex stores.
“The full motion, high definition network, with displays positioned in the most viewable locations offer brands the opportunity to communicate at the moment of maximum influence in a perfect intersection of time, place and intent,” said XTD Managing Director, Adam Cadwallader.
“This, combined with anonymised customer data, enables MOTIO to offer tactical, audience-based campaigns that match true consumer behaviour.”
Under the agreement, MOTIO will use their audience distribution via the screens to sell media and advertising opportunities to brands and agencies, in turn receiving sales commission on a per sale basis.
Launched in May 2020 when XTD purchased oOh! Media’s (ASX: OOH) health network assets for $300,000, MOTIO also sells similar advertising to health brands to be displayed on their 77 digital displays in healthcare and dental clinics.
Since being appointed as CEO and Managing Director of XTD in August 2019, Cadwallader has led a notable turnaround in XTD’s revenue model, with the company reporting a $214k profit for the half-year ending 31 December 2019, a significant improvement on the $1m loss over the corresponding 2018 period.
With these new exclusive rights to Caltex’s in-store displays, XTD expects revenue over the next 12 months to increase by a minimum of 10%. XTD shares responded well to the news, reaching a high of $0.042 in the first hour of trade, a rise of 40% on the previous $.03 close.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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