Return on investment of entertainment for collective transport

The return on investment (ROI) in the companies is an important point the have in mind in a very competitive market like the one we are. Be successful in what, when and where we invest is a key point to get good rentability of our investments and to increase the financial capacity of the companies to keep growing.

First steps towards the return on investment

Before choosing an investment in an entertainment system for the public transportation we have to understand the market, understand our customers, and also the services that our competitors are offering.
The differentiation is the first step to be a leader in our sector and the consequence will be reflected in the reputation and sales of the company.
Nowadays the entertainment systems are a reality; with integrated screens in the seats or even in the passenger devices, as the trend in the leader companies is to differentiate their services investing in better quality and quantity of the content offered to the final users.

How to calculate the ROI

If we want to calculate ROI in that investment we should consider:

[(ingresos – inversión) / inversión] * 100 = retorno de la inversión

Getting the percentage of return referred to the initial investment.

Types of incomes

It is a must to highlight the importance of the incomes, those can be classified in direct ones – related to the ones we get directly from the platform- and indirect ones.

  • The direct ones are the ones we get due to the advertisement of external content using the entertainment platform. This is the point where nowadays the companies are focused in order to get good rentabilities.
  • Regarding the indirect ones, we already highlighted the increase in the company reputation or image enhancing the sales of the company, increasing its value for the final customer. Other related points are the increase in the number of customers, the possibility to keep growing getting more routes, increase the passenger experience and, of course, increase the value of the company.

In the current market, the ones who will just focus on the direct income from the advertisement platform forgetting about the indirect ones will lose the chance to lead the market, because we don’t have to forget that the reputation of the company is one of the more important points for the final users.