Connect with us

Snapshots

Alive Advertising: Itz & Ari Arenstein

Family business breathes new life into outdoor advertising with innovative new medium

Juliet Pitman

Published

on

Itz & Ari Arenstein of Alive Advertising

A new type of billboard has not only changed the urban landscape but the entire outdoor advertising industry as well. Drive through some of Johannesburg’s major intersections and you can’t help but notice the television-type screens that advertise anything from newspaper headlines to supermarket specials. The company behind it all is Alive Advertising, run by uncle-and-nephew team, Itz and Ari Arenstein.

Itz relates how the idea for the business first came about: “I saw one of these screens at a show at Nasrec and realised there was money in it. I wondered if we could turn it into an advertising medium, which it wasn’t being used for at that time.” The idea niggled and grew and one day, sitting at a friend’s radio fitment centre watching the traffic pass by, it became clear how the business could make money.

“It could work just like an ordinary billboard at high-traffic intersections, but with many added benefits,” he explains. The first stumbling block was cost. “A local manufacturer was making the screens but they were expensive,” he says, “So we went out and designed a sales package and sold the space on the first screen before we invested money in buying it.”

Without a product to show sales prospects and considering they were pioneering a new medium, it must have been quite a sales pitch. “We ended up with six clients and on the strength of those orders, purchased our first screen and put it up in Braamfontein,” recalls Itz.

This meant that the business covered its costs from day one. It’s a model they have maintained since the beginning; selling advertising space before making a capital investment in the screens.

“As the concept started to work, we looked around for new spots,” he continues, and therein lay one of the company’s biggest challenges. Alive Advertising pays a landlord for the space to erect the screen but it also needs permission from the local council to erect the screen in a particular location.

“And that is not easy, let me tell you,” says Itz, relating how it has taken seven years to get the necessary approval to erect the first screen in Pretoria. However, perseverance has paid off and today the company has 22 screens in centres around the country.

These screens are seen by 2,4 million people a day and here’s where Alive Advertising has a unique selling point. “Unlike a traditional billboard which is static, our billboards change all the time. One of our billboards has 17 spots, not just one, and the advert comes up 480 times a day,” says Itz.

So although the screens are expensive, the number of spots the company can sell on one particular screen has enabled them to keep the costs of advertising down. Clients pay approximately R10 500 per month for a spot on a screen, which has opened up the outdoor advertising market to small and medium businesses in a way that was previously impossible.

“In addition, they are guaranteed 480 slots a day every day for an entire month,” says Itz. He adds that production costs are also very low. Whereas a television advert production carries a hefty sum, Alive

Advertising will design an advert for a client at R2 000. “An advertising agency won’t even look at you for that price,” says Itz. A sophisticated technological back-end, designed in-house by the company, provides the flexibility to change an advert in the space of two hours.
This gives the ads an immediacy that is simply not possible in other outdoor media. “It’s opened the doors for companies to advertise in such a way that is a call to immediate action. They can advertise specials that they’re running or a newspaper can display new daily headlines,” he says, adding that flexibility is the name of the game.
“We have customised everything in order to offer clients what they need, when they need it.” It’s real-time, real value and real innovation. Enter the age of the advert that lives.

Juliet Pitman is a features writer at Entrepreneur Magazine.

Snapshots

How Nic Haralambous Launched His 6 Year In The Making, Overnight Success

Nic Haralambous launched 8 failing businesses. He used the lessons learnt from that failure to ensure the success of his new business Nic Harry.

CEOwise

Published

on

By

ceowise-entrepreneur-magazine-thumbnail-designs-nic-haralambous

Nic Haralambous, the founder and CEO of Nic Harry who started off selling bamboo socks online and now has brick and mortar stores with a larger product range around the country. Nic has also written a book titled Do. Fail. Learn. Repeat. which is a brutally honest look at entrepreneurship and follows Nic’s entrepreneurial journey. Learn from his failures and how he used them as the foundation of his success.

Related: (Podcast) Speak More Honestly

Continue Reading

Snapshots

Vuyo Tofile Of EntBanc Group Talks About Finding Solutions And Partnering To Offer The Most Value

Vuyo Tofile offers his advice on how to know if you’re ready to scale and how to get it right the first time.

CEOwise

Published

on

By

ceowise-entrepreneur-magazine-thumbnail-designs-vuyo-tofile

Vuyo Tofile, CEO of EntBanc Group (Pty) Ltd, which is a privately held enterprise and financial technology group. They empower small businesses with the right tools including products such as mySMEtools, which is used by over 46 000 small businesses. Learn about partnering for success, develop tools and resources that your customer base needs, and how can you scale?

Related: Do You Have That 1 In 100 Business That Can Scale And Land An Investor?

Continue Reading

Snapshots

Eben Uys Shares His Concept Behind Mad Giant Brewery And How You Can Make Your Business Stand Out In A Crowd

“You just need to start” says Eben Uys, don’t make up excuses why you aren’t ready. Just start.

CEOwise

Published

on

By

ceowise-entrepreneur-magazine-thumbnail-designs-eben-uys

Eben Uys, Co-founder and CEO of Mad Giant, a Brewery in the heart of Johannesburg, South Africa. Eben brings new life to craft beer and has made his brewery and restaurant Urbanologi, a destination hub. His advice: “You can do things that give you short-term gains, but it might not benefit you in the long term. Try a lot of things over a long period of time and build a reputation and a network.”

Related: 10 SA Entrepreneurs Who Built Their Businesses From Nothing

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending