Return on investment in public transport entertainment

The return on investment (ROI) of our companies is a factor to be taken into consideration in an increasingly competitive market. Understanding what, how, when and where to invest is essential to monetize our investments and obtain the financial strength to carry out the growth plans of companies.

First steps towards return on investment

Before investing in entertainment for the public transport sector, it is necessary to know the market, to know our customers and also to know the services offered by our competitors.

Differentiating ourselves from the competition is the first step in being able to become a reference point within our niche market, thus improving the company's reputation and sales .

Today entertainment , both on in-vehicle screens and on passenger devices , is a reality on the market; therefore, the leading companies in the sector tend to differentiate themselves by investing in higher quality and quantity of content for passengers.

How to calculate the ROI

For the calculation of the ROI in the aforementioned investment we can consider:

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

Thus obtaining, in percentage, the return with reference to the initial investment.

Types of income

It is essential to focus on the revenue factor, breaking it down into direct - or of the entertainment platform - and indirect revenue.

• Direct revenues are those that we obtain directly thanks to the broadcasting of advertising of the entertainment platform thanks to commercial agreements. This is the point on which more is being worked on in order to offer the operator an attractive value.
• In the case of the indirect revenue of a platform such as entertainment, we have already highlighted the increase in the reputation of companies in conjunction with the improvement of the brand image. Other factors that fall within the aforementioned group are: the increase in the number of passengers, the possibility of offering new routes, the increase in end-user satisfaction and, therefore, a higher company value.

In the current market situation, those who exclusively link the investment in entertainment for users to direct revenue from advertising will lose the opportunity to lead the market as let's not forget that the reputation and image of companies continue to be a factor. key to the end user.