Nihilism to answer your questions:1. Significant revenue: Yes....

Nihilism to answer your questions:

1. Significant revenue: Yes. The total online advertising expenditure for Mobile Advertising for the 12 months ended 30 June 2012 was $47.5m, with growth over the twelve months of 212 percent. Of the mobile advertising, general display advertising accounted for 60.3 percent, and search advertising accounted for 39.7 percent for the three months ended 30 June 2012. In the same quarter, smartphone advertising accounted for 67.7 percent, and tablet advertising accounted for 32.3 percent.
(Source: http://www.iabaustralia.com.au/index.php?/news/story/online_advertising_industry_breaks_through_all_categories02)

Now, I can assume our WIFI revenue model is structured to some extent on a pay per click system adopted by most online advertising. Industry averages say that you can expect anywhere from 10c – 50c a click, let’s keep it pragmatic and say 20c p/c multiplied by a 3million fully penetrated monthly audience, consequently giving us a Annual Gross revenue of $7.2million, conservatively!

Realistically I don’t believe we can achieve 3million clicks per month; however I do believe we can charge a higher premium for clicks given that we are first to market with a new exclusive advertising space with an ability to target a vast metropolitan scope. Also note that our advertisers (Chrysler Jeep Dodge, Nissan and Kia for the Northern Motor Group, and Telstra) are now shifting their marketing campaigns away from social-media and into new spaces!

2. Low operating costs: Yes. The beauty about the online realm is the low overheads!

3. Low implementation costs: Yes. I would assume that this is heavily discounted given our partnership with Netbay.

4. To a lesser extent – sustainability: Yes. If the model proves to be successful (which it already has internationally) then the long term outlook looks bright as there will always be a demand for WIFI and with the NBN just around the corner, could open to the door to whole new set of possibilities!

All of this is IMHO – I invite all to discuss the revenue from the WIFI further, as I believe this is the only factor holding GCN afloat right now.