TECHNOLOGY company Lumacom has expanded its international sales, securing contracts to install its flagship electronic billboards in Turkey and Russia.
The Turkish order is part of a joint venture agreement with New York-based property company Kiska Group. The agreement includes an up-front order for two LumaPanel signs for the prominent Marmara Istanbul Hotel.
The signs are valued at $1.1 million, of which Kiska will contribute half, and all recurring net advertising revenue will be shared 50:50 between the two companies.
The Russian order, from advertising firm Trinity Neon, will be used by soft drink giant Pepsi for its advertising and marketing campaign in Moscow.
Lumacom co-founder Oscar Sala said the new orders allowed the company to establish reference sites in Europe to support its global expansion, which currently includes Spain and the US.
The expansion strategy involved setting up signs in areas with large exposure, and allowing people to appreciate and understand the technology, he said, leading to networking, creation of revenue and, ultimately, further growth.
“[Lumacom is] laying out reference sites in major regions, and from there other installations are forming,” he said
The new orders come four months after the publicly listed company received its first order from the US, through its New York-based partner Totius Media.
That sign is yet to be installed, but will be displayed in New York’s Times Square.
Lumacom’s billboards are now a familiar part of the Perth skyline, having been used by construction company BGC and the Aberdeen Hotel.
Mr Sala said although the company remained based in Perth, it quickly realised that other areas around the world could provide more growth.
The sign’s uniqueness is due to the scientific principle of psychophysics. Studies have found the human brain can compensate for physical gaps in a digital image, as long as the image is moving.
This means if a person is watching a high-density digital image, up to 90 per cent of the pixels can be removed, yet the viewer will still see a complete picture.
Lumacom has taken this technology a step further and replaced the pixels with Light Emitting Diodes (LEDs).
This has allowed the company to create billboard-style video screens that can be seen from a distance of more than two kilometres.
This large reduction in the number of lights means the signs are cheaper to purchase and maintain than conventional electronic billboards.
Mr Sala said although the principles associated with psycho-physics had been around for many years, the advent of the LED allowed the company to broaden the initial concept of the idea.
He said Luma Signs were mostly targeted at advertising companies, although companies such as BGC had purchased the signs outright for their own uses.
The company’s future growth strategy also includes installing signs in sporting stadiums, where they can be used to display information and for replays.
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