I would have to agree with Goosmurf... to a certian degree. Online ad revenues are fickle and the current media stategy is nebulous.
Supplying to councils/gov/private companies - very bullish (potential for 100 mill per annum in a few years based on global presence).
Revenues from advertising... errr... I am in "wait and see". I would be worried if this model was being persued first but Simon has clearly articulated that the "lower hangin fruit" would be sort out first. So long as not many resources (aka $) are applied to this revenue stream too soon I see it as a low risk-blue sky opportinity.
For an example of the fickleness of online ad revenues look to the debate regarding the impending ipo for Demand Media http://www.businessinsider.com/demand-media-2010-11.
This is not a direct analogy (Demand Media have very low quality 3rd party content - unlike Nearmap's blue ribbon stuff) but does cover some of the issues involved.
Simon's strategy seems to suggest they don't quite know what to do yet - references to getting customer feedback, launching an app etc suggest that initially they will be feeling around in the dark a bit for the next 12-24 months - like i said though, this is ok as long as it does not impact adversely on the more reliable income streams.
Online ads allow advertisers to very accuratley measure their ROI so if an "impression" is not delivery the goods its is dropped very quickly (often via algorithm).
Google adwords/networks etc can deliver revenues but this does sound like what IPR are intending to do.
Don't criticise IPR though if they are not launching this with a clear strategy. Nobody knows the answer to the online ad revenue pot o' gold - if they say they do they are lying. And if you try and copy an existing model you can be sure of one thing - you are getting it wrong.
It is very important though that they get up and running and collecting user data (then more data, then more data, then more data) and keep trying thigs. Online infrastructure is relatievly cheap so experimenting is far less of a financial burden - and misses can yield more answers than hits.
If they have enough knowlege of consumers then the key consumer behaviours will start to become apparent... and then the right strategist just might find a way to a freakin' fortune.
If that sounds like a lot of hard work, well it is. But I think to date Simon has been spot on in delvery on this approach.
PS I wish that Nearmap kept a plane on standby in Europe for the next time this http://www.dw-world.de/dw/article/0,,6082722,00.html happened... if you though the floods brough us attention... just imagine the sales potential for an event like this in Europes backyard.
PPS at work under the pump so apologies for lack of clarity/grammer/spelling etc.
IPR Price at posting:
9.0¢ Sentiment: LT Buy Disclosure: Held
