Last Tuesday, iSign Media (TSXV:ISD) announced it had completed the broadcasting trial trial of its Interactive Marketing Solutions (IMS) 3.1 software and Bluetooth antennas at certain Mac’s Convenience Stores.
The company said it was determining the level of public acceptance for proximity marketing-deals that would be messaged to cell phones within range of the stores antennas. iSign says the response was positive and Mac’s has agreed to roll out the technology to all 565 Mac’s stores in Ontario later this month.
iSign CEO Alex Romanov, said: “We’re very pleased that the trial is completed,” adding, “I had no doubt in my mind that it would be anything but successful. Now that this trial is behind us, we are looking forward to moving ahead with growing the advertising on the Mac’s network.”
Clarus Securities analyst Sean Peasgood says iSign is, increasingly, looking like an early stage success story. He says this test proves the strength of the company’s technology. He also likes the fact that iSign has engaged several strategic partners to open new sales channels, and that licensing deals are proving out market acceptance for proximity marketing. In a research update to clients last week, Peasgood reiterated his BUY recommendation and $0.85 target on iSign.
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Back in 2007 iSign, a fledgling digital signage company with about fifty installations in Vancouver, developed a method of using the Bluetooth frequency to broadcast content from the sign to mobile phones that came within proximity. That slick technology attracted Alex Romanov, who had once built startup Alpine Stereo into a company that held over 52% of Canada’s high end car audio market. Romanov bought the company and almost immediately made a deal to unveil it in Asia with a company called Best Denki, (which means “Best Electric” in Japanese). The company’s first deal, in 2008, was a success. iSign equipped nine stores with hardware and software, and was identifying over half-a-million phones per month, with a 23% download rate.
Peasgood believes iSign’s recent success means North America may finally be ready for proximity marketing. He points out that already in the company’s Q4, which ends July 31st, iSign has booked more than a million dollars in revenue from new Smart Antenna licensing agreements. Peasgood is forecasting revenue of $6.2M for iSign’s fiscal 2013, assuming $3.4-million from the Mac’s deal and 2,230 smart antenna licenses at $100/month.
Shares of iSign closed Friday even at $.195 cents.