The Cost per Thousand (CPT) — or Cost per Mile (CPM) — is the calculation of advertising cost per thousand audience measured. The proposed audience targets for both AVTN and NewsNet247 are considered highly conservative as a percentage of overall television reach by satellite and cable platform. Average CPT Values have been applied by Country or Region as appropriate to the projection modelling methods used. Audience volumes have been projected with a non-linear ramp in the first year of transmission (TX #1); after which annual growth at an Industry average measure has been applied in TX #2 to TX #4. Given that OTT, VOD, SVOD, IPTV, and IP Radio access is likely to be the result of television access by reach and resulting audience, target projections for those outlets have been calculated on the same basis as a percent of available reach and likely audience conversion. This has been modelled using distribution data available to the project from Satellite providers. Overall the approach has resulted in a consistently conservative operations model.

This cautious approach should ensure the Network is able to succeed in achieving sustainability, but also exceed expectation.

Demographics

The Network

Based on the statistics available to the Network, the average combined US and UK generic and business news audience has very similar characteristics to those of the Global Business and Leisure Traveller.

The Global Middle Class is defined by households with daily expenditures of $10 to $100 per person (at Purchasing Power Parity) and is growing.

AVTN

In discussing the more than 3.8 billion Aviation stakeholders that AVTN intends to provide Business orientated programming to, it is important to recognise that those that fly, or are involved in the provision of aviation services represent the World’s more affluent classes. Subsequently, the overall Aviation demographic is extremely attractive to premium brands in the television, radio and online advertising markets. In the US alone Domestic air travellers are likely to earn 18.4% more than the average citizen; and Business travellers 65.7% more.

  • A significant portion of all trips are to visit friends and family.
  • The volume of Tourists is substantial and is increasing year-on-year.
  • The volume of International Students is increasing year-on-year.
  • Pilots, Flight Crew and Technical Personnel all represent another key area of the AVTN television and Radio demographic.

NewsNet247

NewsNet247 will benefit from a wide and varied demographic, but due to the nature of the target markets, shares considerable crossover with AVTN.

High Net-Worth Individuals (HNWIs)

A significant proportion of the jobs and businesses in General Aviation are reliant on work and contracts associated with HNWIs. According to Bombardier, aircraft deliveries to HNWIs, often defined as those with a net worth of $50m or more, account for approximately one third of the overall business jet market, and many are sold to those with a net worth in excess of $1 billion USD. HNWIs in the band $500m to $999m are as important, and the volume of individuals in this bracket is increased in-line with other wealth demographics. The HNWI population is estimated at 16.5 million, with a wealth estimated at $63.5 Trillion.

Military Demographics

Air Forces will provide an interesting cross-section of age groups, dependents and non-military personnel, for the consideration of advertising and defence interest. The Proposal contains demographic data from the US Air Force as an example.

A400M prepares for takeoff as part of the air display at FIA2014

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