Fleet Advertising Media Group, NxGen and Terion Announce an Alliance to Provide Internet Tracking and Reporting Services for Audited Statements in Fleetside Advertising.
APPLE VALLEY, Minn. & MELBOURNE, Fla.--June 20, 2001--NxGen Telematics, Inc., Apple Valley, MN announced today that it has signed an agreement with Fleet Advertising Media Group, Inc., St. Paul, MN to be its supplier for the Terion FleetView(TM) Trailer Monitoring System. "The GPS systems are critical in the sales and monitoring of FleetAds(SM)", said George Gearner, FAMG's CEO and Chairman of TACA (Truckside Advertising Council of America). Without the ability to track from 6:00 am to 6:00 pm seven days a week in two-minute increments, there is no accountability for auditing. The Out of Home advertising industry (which includes billboards, kiosk etc) prides itself in accountability. FAMG tested the Terion units for more than forty-five days where they performed beyond expectations. Since the Traffic Audit Bureau for Media Measurement (TAB) announced the ability to audit Truckside Advertising (FleetAds(SM)) through its Mobile Advertising Report Generator (MARG) System. Many in the industry have tested and sought a GPS tracking system that could consistently data log in two-minute increments (a TAB requirement), while making the data available to clients through the Internet. NxGen Telematics, Inc., and Terion the market leader in mobile untethered tracking systems for trailers have cooperated in every way to meet the requirements established by TAB for two-minute reporting. Additional services will not only offer audits through TAB data through its MARG system (users must be full members of TAB to use this service), but also report individually or as a group demographic data by day, time, route and street addresses. These extra added value services will give clients the ability to monitor and measure the effectiveness of their ads on a daily basis in real time.NxGen Telematics, Inc., a new telematics provider of wireless Internet technology and Terion, the leader in trailer tracking hardware and software technology, announced an alliance today that links NxGen Telematics to Terion's Mobile Internet national FleetView(TM) Trailer Monitoring System. Under this agreement, NxGen will purchase 10,000 FleetView(TM) systems over the next twelve months and integrate its cutting-edge telematics technology and reporting services with Terion's FleetView(TM) tracking hardware and software, enabling advertising agencies and clients the ability to launch and monitor advertising campaigns quickly and measure their effectiveness in less time than other forms of Out of Home media.
NxGen Telematics, Inc., will provide sales and marketing services to the trucking industry to tap into this new media revenue stream created by advertising on the sides of their trucks and trailers. NxGen will make available to media companies the use of fully customized reporting services for measuring the effectiveness of their advertising. This technology will enhance the agencies' ability to target specific demographics and to demonstrate the effectiveness of how this new form of advertising translates into increased brand awareness and sales. Fleet advertising firms using this hardware and software are supplying added value by offering the ability for immediate access to up date TAB's MARG system data, versus the standard annual method. This will cause repositioning and a new pricing structure for FleetAds(SM) based on the accuracy of the data.
The data is indisputable. The HPMS (Highway Performance Maintenance Standard) data supplied by the U.S. Department of Transportation makes it possible to measure traffic density. NxGen Telematics' core server platform will provide media advertisers, agencies and clients a host of services via subscriptions. These services can be purchased separately or through the media provider. Through robust reporting products, clients have access to content from all of their advertising vehicles. Eventually, the industry will be able to create their own custom content filters, receive already categorized and packaged content reports, integrate reports directly from specific demographic data bases and integrate these reports with information gathered from advertising data log files, all in real-time. Those with their own direct licensing agreements with media subscribers can use NxGen's products to manage and maintain their own private databases for each client and compare any combination of like advertisers to measure the results and effectiveness of each campaign in a given city.
NxGen's Media Platform is the advertising industry's first software-based, plug-and-play platform to integrate vehicle ad browsing with alerting and reporting capabilities. NxGen believes its Internet connection for clients and agencies is the first comprehensive service of its type in Truck or Out-of-Home Advertising. "We offer a turn-key mobile Internet solution, for both the trucking industry and advertisers. The trucking companies gain added asset management services and a new revenue streams that offset rising fuel and operational cost, while offering advertisers a less expensive and more effective form of advertising. We bring to the table an opportunity to create revenue-generating services that grow exponentially as the Fleet Advertising Industry grows. By partnering with Terion, NxGen Telematics is able to further leverage our services to other leading mobile advertisers and media companies nationwide," said Tom Swiech, President of NxGen.
"Terion conducts business with some of the largest trucking companies in the United States, Canada and Mexico. These companies understand the value that asset management contributes to highly personalized customer service and delivering on time. We see a bond that is forming between the trucking companies, media advertisers, advertising agencies, allied fleet services and their clients that is mutually beneficial."
About Terion
Headquartered in Melbourne, Florida, Terion, Inc. is an industry leading business-to-business wireless application service provider using two-way data communications. The Company currently operates in the United States, Canada, and Mexico. The Company's patents and other intellectual properties include digital high-frequency technologies originally developed under contract by Harris Corporation as a nationwide backup communication system. Terion has adapted this technology for commercial applications, providing a low-cost communication alternative with full geographic coverage. The Company also has applications and intellectual property in cellular and PCS technologies. Terion is initially focusing its product development and business strategy toward meeting the needs of transportation customers in the NAFTA trade region, followed by additional markets both domestically and internationally.
Terion's investors and strategic partners include Penske Capital Partners, Delphi Automotive Systems, Daimler Chrysler, KteCom, LLC, a company affiliated with Knight Transportation, HVFM-II, LP in which Harris Corporation is the major investor, Madison Venture Corporation of Vancouver, Canada, SCP Private Equity Partners II LP, a private equity firm sponsored by Safeguard Scientifics, Inc., ING Barings LLC, Northwestern Corporation, Crossbow Ventures, and ACI Capital America Fund.
About NxGen Telematics, Inc.
NxGen Telematics, Inc., is a new telematics company with fresh new approach towards telematics. NxGen's management has spent the last six years testing and working with virtually every manufacturer and supplier of wireless global tracking systems. It was NxGen's conclusion after coming very close to becoming an OEM in this market that there were too many players and the advancements in technology were taking place faster than the products could roll off the assembly line. While investigating this industry, we found others were having the same difficulties finding systems that really performed to their touted marketing promises. Most literature of the wireless GPS technologies expresses the hopes and dreams of the supplier than their ability to deliver today. Having no aspirations of wasting resources to compete in an already crowded OEM environment for global tracking system (GPS), NxGen Telematics, Inc., decided to look for a candidate that would offer the best hardware and software to build the foundation of NxGen planned telematic services. That company is Terion. We spent six years testing and evaluating equipment from everywhere, and none came close to the Terion FleetView(TM) Trailer Monitoring System. Their Internet back-end support out surpassed anything available in the market and their GPS hardware proved to be, the most rugged and dependable in the field.
NxGen is integrating Terion's FleetView(TM) trailer management data with NxGen's back-end platform that will massage the tremendous amounts of data collected and filters them into up-to-the-minute, real-time management reports. These services will then link with client databases arming them with the power to handle the competitive demands of their business. For advertisers and agencies alike, this will be the strongest monitoring tool they have ever had available for measuring and targeting performance in the Out-of-Home market.
There is a need in the market place to help companies realize how to use these services to better manage their assets, employees, advertising etc. Information is power and the amount of data to be downloaded and interfaced is staggering. It is NxGen's intention to be the first company to bring plug and play packages to our clients that make it easy to use our services online twenty-four hours a day.
There are management benefits in addition to adding new (FleetAds(SM)) revenue for trucking companies and other types of service companies, as well. Companies will be able to monitor dispatching, routing, drivers habits, collecting and monitoring time on the road, proof of delivery, service calls, breaks, lunches and misuse of company assets. The cost savings alone in payroll hours, overtime, wasted fuel and profit/loss for a company fleet would be substantial. A trucking companies running advertising on the sides of its trucks may collect hundreds of dollars per month per vehicle. Not only is that company adding additional dollars per year to their bottom line, they have enhanced their control over their business. With better asset and employee management comes room for additional growth, increased driver and terminal productivity. Reduced response times, stronger financial returns, streamlining and cutting the cost of doing business provides management with a competitive edge. It should take a trucking company less than a year to realize their return on investment, leaving future years for increasing profitability and stronger growth.
About Fleet Advertising Media Group:
Fleet Advertising Media Group, Inc. (FAMG) is the first Out of Home media Company audited by the Traffic Audit Bureau. It was the initial funding from 3M Commercial Graphics Division, St. Paul, MN, and FAMG that made possible the two-year study to develop a methodology that made it possible for mobile truck advertising to be audited (announced at a press conference held December 17th, 1999, at the Navy Pier in Chicago). It is FAMG's belief that advertisers are looking for a more sophisticated way of measuring their advertising. FAMG believes they have found the way by utilizing the Wireless Internet and combining real time data with FleetView(TM) tracking to make the auditing process available on request as opposed to the current system of random audits at the end of each year as is currently practiced by the Out of Home industry. These results measured against advertisers daily and weekly sales performance can help advertisers custom tailor their advertising more quickly and thus spend advertising dollars more efficiently. FAMG contends that today's consumers are smarter and more sophisticated, that the old ways of television and radio are becoming less and less efficient in driving today's advertising message. Channel surfing with new and sophisticated electronics like TIVO (personal digital video recorders) and Microsoft's "Ultimate TV", make it possible to skip television advertising all together. What advertiser's need is a way to capture that audience! FAMG satisfies this need! It delivers large, "In your Face" ads. Fleet Ads(SM) are larger than life screens of expression leaving a lasting impression on each consumer. When done correctly they engage the viewer to accept the message. The strength of the design will determine its effectiveness.
The technology of the Internet has heightened consumer's expectations. It is not enough just to be informative. They want to be entertained while they scrutinize with a discernable eye. They expect the next advertisement to tell a story! They expect to be excited, their curiosity aroused, senses peaked which will move them intellectually.
Fleet Ads(SM) do it better and more cost efficiently than any other forms of media. Fleet Ads(SM) arm you with the ability to deliver exciting new ways of reaching the consumer. At FAMG (the first truckside advertising company to be audited by the Traffic Audit Bureau) is doing more than posting an ad on a moving billboard. There is an ongoing effort to devise ways to drive the consumer's focus and awareness to Fleet Ads(SM) with the latest forms of technology.
About TAB (Traffic Audit Bureau):
TAB's primary role is to authenticate the circulation data of Out-of-Home media. In doing so, it seeks to inform and educate the advertising community regarding the quantitative and qualitative value of Out-of-Home media, accommodating new forms as they develop without compromising standards of integrity. In specific instances, TAB also certifies advertising placement. Mission Statement:
| -- | To establish standard practices with respect to the measurement and evaluation of all Out-of-Home media advertising to the extent that such practices are technically valid and financially feasible. |
| -- | To supervise and direct practices in connection with the collection, recording, authentication and verification of traffic and other relevant data related to Out-of-Home media advertising. |
| -- | To prepare and disseminate standardized factual statements setting forth the circulation value and/or proof of performance of Out-of-Home media advertising. |
| -- | To perform such other acts and services as will further the interests of advertisers, advertising agencies, operators of Out-of-Home media plants and all others interested in information having to do with the Out-of-Home media industry. |
How are Fleet Audits currently performed? Once a year each Mobile Advertising Report Generator(MARG) system user will submit to an audit of programs input into the system. This is done on a sampling basis. Every program will have a chance to be selected. The audit will involve rerunning the GPS data for a particular program through TAB's master system to make sure the published numbers match those generated by the system. It will also involve the comparison of actual driver log information, or similar documentation provided by the trucking company involved, to the GPS records used for the report. It is very important that the user have an arrangement with the trucking companies allowing access to the driver data log. The Audit Statement will include a description of every program included in the audit and its gross impressions. It will also produce totaled numbers based on all programs in the audit, for the number of potential truck days, actual truck days, GPS verified truck days, as well as an total average DEC per truck, and the average DEC segregated by direction for all verified truck days.