The Business Model

Overview

The business model driving DRP is a proven model that accomplishes the following: Generates new advertising revenue through a dedicated software application and, user-generated advertising Insulates existing advertising revenue Generates a new revenue stream in online through ordering, an online transactional based platform. Provides the best software and functionality to your entity, your clients and ultimately your end users.

YNot Advertising launched DRP over six years ago and currently has the DRP business model operating in multiple markets across the country. Through this experience, DRP has been enhanced to offer your clients and end users the best experience possible with the most flexibility and functionality. Whether your clients are buying advertising or your end users are searching and ordering food, DRP ensures that you will maximize revenues from both parties while keeping costs to a minimum. Software is only half the battle and if there is no proven business model behind a unique software offering, the software is worthless.

The DRP business model is based on three ideals: The Market:  Local Restaurant Search The Industry:  Local Advertising through Customized Targeting  & Local Consumer Activation/Purchasing The Competitive Advantage:  Local Execution & Connection to Achieve Trusted Content Relevance

When combining the rise of local search, particularly local restaurant search, and the ability to provide the most trusted, up-to-the minute content for searching, the business model’s value proposition to your end user is unmatched – driving local advertising and online ordering revenues for your entity.

 

Point of Decision Advertising

PODA technology is the backbone to the business model and is the key feature of the DRP software. The key aspect of PODA and the business model is the ability to transform advertising inventory INTO the content that is actively sought out by the end users. As a result, the system allows for optimized advertising sales to local restaurateurs by providing a method to reach consumers with the most effective advertising, at the point of decision. 

PODA is a "pull" advertising system in which the user generates the advertising, making the ad buy decision much more transparent for the restaurant and bar clients.  In addition to being transparent, the system also allows for flexibility with contract terms, the start and end dates for the advertising purchased. Lastly, by combining the online ordering platform and phone tracking application with PODA, you, as the advertiser, are able to prove the effectiveness of the advertising, resulting in increased ad spends and renewal rates.

 

Localized Positioning & Branding

According to a recent report published by Marchex, Inc., 2008 Perspectives on Local and Online Advertising, the evolution of the Internet began with Communications, that led to Search, followed by Commerce, and ends with the latest Social Networking trends of today. Marchex has done significant research and market analysis to support the assertion that the current mega trend brewing in the internet’s evolution is LOCAL. YNot has proven that the DRP software and business model is well positioned to take a dominant position in the “Localization” of the Internet.



According to WebVisible and a Neilson Ratings survey, 86% of Internet users in 2007 searched for local products and services, which is up from 70% in 2006. YNot has been taking advantage of this growing trend for the past six years by providing DRP to local communities.

Further, 90% of online local searches resulted in local offline purchases (Source: Kim, John – Senior Director of Advertising Product Marketing for Yahoo! Search). YNot has been successful because its platform influences both online and offline consumer purchasing behavior in a measurable way.   

Lastly, all of the DRP subscribers have the ability to brand their local platform. This local branding will result in local brand affinity that will help maintain the edge on other local & national competitors.