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August 2006

 

The History of Submedia

The concept for Submedia was simple--Creator Joshua Spodek wanted to turn miles of dark subway walls into revenue for transit systems while entertaining passengers and providing advertisers with a high-impact medium. Based on the idea of the circular 19th century children’s toy called a Zoetrope, the system would use movement to turn a light box with static images into a motion picture outside of the train’s window.

Having shared the idea with college mate Matt Gross, the two set out to build their first prototype. After numerous trips to the hardware store from Josh’s parent’s garage, the duo rolled out with their first system and diligently hit the path to potential investors. The idea was a near immediate hit as it won the backing of some prominent investors Another early indication of Submedia’s viability was the news media’s early acceptance of the idea. After signing the first transit system, Atlanta’s MARTA, the media began covering the company with a near feverish pace before the first advertiser was even signed.

Crediting sheer tenacity, Submedia, an unknown player with no real clout to spend, soon landed its first advertising contract with Atlanta-based Coca-Cola to promote their Dasani bottled water brand. This announcement spurred even more media windfall--the kind left usually for major mergers or the top news of the day. The Wall Street Journal broke the story with a front page Marketplace feature and additional major national news outlets including The New York Times, Associated Press and Newsweek soon followed—all prior to the launch of the company’s first display.

Things were looking good just as the market began to turn down. The dot-com boom quickly turned into a dot-com bust and investors began to realize that the plethora of internet based businesses would never live up to their market capitalizations. Fortune Magazine even began a dot-com R.I.P. list that with as many as 100 companies per bi-weekly issue.

Nonetheless, Submedia plowed forward towards a launch for their first system in Atlanta. The press conference was looking to be a hit with all major news outlets, including CNN, to be in attendance on September 11, 2001 at 10:30am. The shocking events of that day were witnessed by Submedia’s team in the lobby of an Atlanta Marriott just minutes before the press conference was to begin. As the Submedia team of young professionals headed back to New York in a rented van, their determination to succeed was higher than ever. A few weeks later, Submedia did launch their first display in Atlanta. Yet the slowing economy and the abrupt downturn in ad spending made the job harder for the company to reach its full potential. But, again, the true viability of the company’s idea was validated through its survival as hundreds of other companies continued to fail. Eventually, a leaner Submedia emerged and a winning strategy allowed the company to experience worldwide growth. Advertisers quickly embraced the new form of advertising. Submedia had unwittingly created a way for advertisers to repurpose television commercials in the out of home advertising market while reaching a captive and engaged audience. As TIVO and DVR devices continue to erode the effectiveness of broadcast ads, Submedia provides a new medium for the campaigns where the audience not only pays attention but looks forward to it. One advertiser was so inspired by the medium, that it made a Super Bowl Commercial featuring the technology.

The displays themselves have also evolved moving above ground with the recent addition of walking displays. Using the same idea as in-tunnel displays with some engineering tweaks, these interactive and engaging displays use the movement of walking to drive motion pictures.
As viewers walk along the display, a movie follows them, matching their speed. Now appearing in major metropolitan markets including New York and Chicago, the walking displays have opened up the opportunity for Submedia to help find and secure locations desired by marketers.

Present day, Submedia’s network of 37 displays span 15 cities, 9 countries and 3 continents, with new displays going up in three of the remaining four continents. Nearly every major global advertiser in every major category has graced the tunnel walls and sidewalks that reach millions of people in a single day through this innovative, high-recall medium. Current and past advertisers include AT&T, American Express, Benetton, BMW, Budweiser, Cadillac, Calvin Klein, Channel, Chase Bank, Ford Lincoln Mercury, General Motors, the Cartoon Network, Coca Cola, Discovery Communications, Honda, Infiniti, Johnnie Walker, Johnson & Johnson, Lucas Films, Nissan, Renault, Royal Caribbean, Siemens, Snapple, Sony, Target, United Airlines, SEAT, Philips, Allianz Panasonic and Warner Brothers.

Through a highly developed international footprint, advertisers are now taking advantage of the opportunity to create national and global campaigns that revolve around Submedia’s in-tunnel and walking displays—often by simply repurposing their television commercials as Honda, Lincoln and Lexus recently did for a new automotive launches in the US.

As Submedia continues its expansion around the world, both above and below ground, it is continually seeking to expand its portfolio of unique and high-impact mediums so that advertisers may continue to enjoy creative expansion and flexibility along with better results.

 

 
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