Return on investment of entertainment for collective transport

The return on investment (ROI) of our companies is a factor to be taken into account in an increasingly competitive market.Hit on; what, how, when and where we invest is crucial to making our investments profitable and obtaining financial muscle to continue with the growth plans of the companies.

First steps towards ROI:

Before we consider making an investment in entertainment for the collective transport sector, we must understand the market, know our clients and also the services offered by our competitors.

The fact of differentiating ourselves from our competition is the first step to position ourselves as a benchmark within our market niche; with the consequent improvement of the reputation and sales of the company.

Nowadays , entertainment, both on board screens and on passenger devices , is a reality in the market, which is why the trend of the leading companies in the sector is to differentiate themselves by investing in higher quality and quantity of content for their passengers.

How to calculate ROI:

To calculate the ROI in said investment we can consider:

[(income – investment) / investment] * 100 = return on investment

Obtaining thus, in percentage terms, the return in relation to the initial investment.

Types of income:

It is essential to focus on the income factor, being able to break it down into direct income – or from the entertainment platform – and indirect income.

• Direct income is what we obtain directly thanks to the broadcast of advertising on the entertainment platform thanks to commercial agreements. This is the section where most work is being done to offer the operator an attractive value.
• In the case of indirect income from a platform such as the entertainment platform, we have already highlighted the increase in reputation of the companies together with the improvement of the brand image. Other factors that are grouped within this group are; the increase in the number of passengers, the possibility of bidding for new routes, increased end-user satisfaction and, therefore, greater value for the company.

In the current market situation, whoever exclusively links investment in entertainment for users to direct revenue from advertising will lose the possibility of leading the market, since we must not forget that the reputation and image of companies continue to be a key factor for the end user.