SOURCE: Digital Caddies

Digital Caddies

March 13, 2012 08:00 ET

Digital Caddies to Leverage Lucrative Online Ad Market

PHOENIX, AZ--(Marketwire - Mar 13, 2012) - Digital Caddies (PINKSHEETS: CADY)

With the evolution of tablet technology and wireless connectivity, the landscape and opportunity to open up an advertising and social media channel to the golfer via the golf course has never been better.

Digital Caddies provides golf courses an end to end solution utilizing tablet technology and wireless connectivity to provide rich golf-related content that is valuable to both the golfer and the golf course. The content for the golfer is specifically designed to promote interaction between the golfer and device such as valuable playing information, real-time distance information, scorekeeping and much, much more. This keeps the golfer engaged for over 4 hours at the average golf course and thus provides an excellent opportunity for advertisers to interact directly with golfers in ways that have not been possible before.

Investment Highlights:

  • Large market opportunity - Digital Caddies operates in a high margin business, serving a large addressable market
  • Focused, targeted business model - is dedicated to solving the needs of golfers, golf courses and advertisers, thus opening up a lucrative new revenue stream.
  • Highly scalable business model - By leveraging the tablet PC's capabilities and using existing wireless infrastructure, the company can quickly scale to provide a large inventory of premium ad spaces for the billions of dollars being spent on web and mobile advertising.

Advertising Opportunity

  • Billions of dollars are spent every year on advertising
  • Every year a larger proportion of ad dollars are being allocated to online and mobile advertising market
  • The tablet-based wireless service installed on golf carts allows Digital Caddies to easily leverage this transition in ad spending

Market Pricing for Online Ads

  • Advertising costs are measured in Costs Per Thousand impressions ("CPM")
  • An impression on television is based off estimated viewership
  • An impression in a newspaper is based off circulation
  • An impression online is an ad displayed for anywhere from 15-30 seconds
  • The CPM rate fluctuates based off the demographics and location of the audience.
  • The more that is known about the audience the higher the price
  • Sample CPM rates for traditional advertising are; TV $30 CPM, Radio $25 CPM, Newspaper/Magazine $20 CPM.
  • CPM rates for Websites/Mobile/Apps can range from $0.50 to $30 depending on the number of views, demographics of the audience and length of viewership.

The Golfer Demographic
According to the National Golf Foundation, the most trusted source of information and insights on the golf business, there are almost 30 million golfers in the United States and they play an estimated 500 million rounds of golf. They comprise a highly affluent demographic:

  • Average household income of $80,000
  • Over 50% have college degrees
  • Over 40% are managers, professionals or executives
  • Over 90% are home owners
  • Over 50% are baby boomers who control 70% of the net worth in America and have more discretionary income and spend more money per capita than any other age group and account for more than 40% of all consumer demand
  • This high quality affluent demographic commands a premium CPM rate.

DIGITAL CADDIES BUSINESS TO BUSINESS MODEL
Digital Caddies will provide qualifying golf courses a FREE end-to-end solution utilizing tablet technology installed in the golf cart and wireless connectivity to provide rich golf related content that is valuable to both the golfer and the golf course. The content is specifically designed to promote interaction between the golfer and device while they play their round of golf keeping them engaged for over 4 hours. This provides an excellent opportunity for advertisers to interact directly with golfers in ways that have not been possible before.

Key Statistics

  • Digital Caddies gets a golfer audience for 4-5 hours while they play golf.
  • Average course in United States completes over 30,000 rounds per year
  • 30,000 rounds produces an ad inventory of over 10M impressions
  • Initially Digital Caddies could get a CPM rate in the $7 range (far below other online golf related media channels who market their CPM rate as high as $30)
  • 10M impressions X $7 CPM rate = $70,000
  • Digital Caddies currently has about 150 customers using legacy non-internet enabled devices that will be converted to the new service
  • Company has existing recurring revenue that covers operating costs
  • Revenue from advertising pays for the service so with little to no cost to the golf course, adoption for the new service should be rapid

ABOUT DIGITAL CADDIES
Digital Caddies (www.digitalcaddies.net) provides various golf-related content and services. The primary service is a tablet-based system installed on golf carts at golf courses. The interaction between the golfer and the device provides the unprecedented opportunity to collect valuable player information and utilize web- and mobile-based advertising to reach the affluent golfer directly while they play the game.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: general economic and business conditions; competition; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies; research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Patient Access Solutions Inc. Securities and Exchange Commission filings available at http://www.sec.gov.

Contact Information

  • Contact:
    Investor Relations
    888-635-0649