July 2011 Newsletter
Advertisers & AgenciesMedia Sellers
Jump to: Feature Story • Product Spotlight • DO the Math • Word on the Street • Tip of the Month
Feature Story
Make the Plea for Accurate Reporting
Article by Stephen Freitas, Chief Marketing Officer, OAAA
The outdoor advertising industry is recovering and growing. Over the last decade, the industry has added new formats, new clients, and new ways of communicating a brand’s message. These changes have all brought more dollars into the out of home industry, a trend that is expected to continue at a rate of 7.1 percent growth annually, according to MagnaGlobal’s June 2011 forecast.
However, without accurate reporting, the story of the medium’s trajectory will be incomplete. Significant progress in achieving the industry’s goal of increasing market share will go unrecognized and unreported.
Outdoor advertising is unique in how revenue and ad spending are collected and reported. For other traditional media, the process is passive and automatic. With outdoor advertising, it’s compiled company by company, market by market. Without a committed industry, available statistics are bound to be inaccurate.
Three agencies report outdoor advertising revenue, each satisfying a different need: OAAA, Miller Kaplan, and Kantar Media. OAAA works closely with each service to identify methods to streamline and synthesize data collection in order to minimize the work involved with reporting to multiple agencies.
When outdoor companies report revenue by category spend, advertisers and agencies can then access this data to show clients how their category uses the medium. Agencies can also show clients how successfully their competitors’ have used outdoor. Every dollar counts, so if you have a small vendor who may not be reporting or know where to report, then get the word out. Refer to the DOmedia Resources section for the reporting agency contact information. These numbers help you plan spending strategies, and help the trade press report more precise numbers and report more accurate growth based on these numbers.
OAAA receives hundreds of requests each year for revenue and ad spend data. The more accurate the revenue data is, the better OAAA can serve you and in turn, your clients to understand the media landscape, a category, a market, or simply how they stack up against their competitors.
Since the outdoor industry is diverse with many different display formats, it is crucial to include as much information as possible so that no industry segment is underreported. Wouldn’t it be great to be able to collect data on some of the newer product formats? Make a request to your vendors to report, so we can show how confident advertisers are in the medium.
Every month, Miller Kaplan collects revenue data for: bulletins, posters, digital billboards, street furniture, transit and alternative media, digital place-based and cinema. Kantar Media collects ad spend data monthly for all traditional media industries including, broadcast, print, and out of home.
You can assure your vendors that all information collected is held in complete confidence and is never shared with third parties. The information is compiled in aggregate. Each company’s individual revenue will never be reported publicly. If you have any questions or concerns, please feel free to call me at (202) 833-5566 or write to me at sfreitas@oaaa.org.
This data can also be found on the DOmedia Resources Section at http://www.domedia.com
Product Spotlight
Digital Traditional OOH
Traditional outdoor companies have been bringing the digital element to their products for years. The same benefits that advertisers enjoy with digital place-based products - such as shorter turn-around times and lower production costs, are available with traditional media like billboards, bus shelters, newsstands and transit.
Benefits of the medium:
One of the benefits of using digital as an advertising medium is the ability to “narrowcast” by reaching very targeted audiences. However, there is still a need to reach the “masses,” and that has always been an advantage of traditional outdoor advertising. Billboards, street furniture and transit advertising can still target the commuters driving into the city and walking around in the high pedestrian areas.
Digital traditional outdoor products provide increased availability in the more desirable market areas that may have typically been sold out. Other benefits include creative flexibility, social media integration and little or no production cost. An advertiser can also change messaging throughout the day, making the ads more relevant to the consumer.
The ability to create intimate messaging and two-way communication through the use of electronic devices and social media creates added value and engagement. Digital creative makes turnaround and planning time shorter and more cost effective.
How it is used:
Traditional outdoor companies employ different sales strategies for this category. Some sell digital products as a network. For example, a company that has thirty digital billboards in a market might sell them as three 10-unit networks. Other companies may sell digital assets individually to help provide more availability in areas that are quickly sold out. You can find out how companies sell these products by viewing the Pricing / Impressions tab under any Product Profile on DOmedia.
These types of sales strategies can provide an advertiser with the chance to be seen “everywhere” in the market. They provide both reach and frequency with a lower CPM akin to traditional inventory. For instance, if a client buys ten units targeting morning traffic on a daily basis, there is a high opportunity for a large audience to see your message each day.
An advertiser can also use the traditional formats to make an impact. For instance, in addition to the high profile displays available in all markets, many markets have areas providing bigger screen opportunities in high pedestrian areas. New York, Las Vegas, and Phoenix are just a few of the markets providing these opportunities.
How it is measured:
The Traffic Audit Bureau measures traditional fixed outdoor inventory (billboards and street furniture). Look for transit to be measured by TAB in the near future. In the meantime, traffic venue numbers for airports and bus and train stations are typically used. Also, ridership data can be used for advertising inside the trains and buses.
Markets available:
In recent years, large traditional outdoor companies have been very aggressive in building out their digital inventory. There aren’t many markets left that do not have digital billboards. Not only are we seeing growth geographically across the US for digital bulletins and posters, but also for other traditional formats. In major cities, you can find digital displays on bus shelters, newsstands, and buses.
New Technology:
Over the years, improved digital display technology has allowed for much higher-quality creative executions. The technological advances are apparent in the use of creative elements, for instance, advertisers can choose to display current headlines, flavor of the day, mortgage rate updates, etc.
New technology has also allowed for social media campaigns, two-way communication, audio and interactive campaigns. There is also technology available that allows for creative to be changed as popular items are being sold. “Wisdom of the Crowd” is a technique allowing store inventory systems to “decide” which items will be displayed on the creative execution.
Some of the new technology even allows for interactive displays as well as measurement of shopper engagement. An advertiser can find out who actually looked at the displays, the percentage of shoppers who were engaged, and even when the customer (time/day) looked at the ad message.
Who provides the products:
ABC Regional Sports & Entertainment Sales
American Outdoor Advertising
Asian Targeted Media, Inc.
Atlantic Sign Media
Border Billboard
CBS Outdoor
City Reach, Inc.
Clear Channel Outdoor
DDI Media
Digital Spectaculars
Emerald Outdoor
Fourpoints Communications
Jersey / Premier Outdoor Media
Kessler Outdoor Advertising
Key-Ads Outdoor Advertising
Lamar Advertising
Las Vegas Billboards
McIntrye Outdoor Advertising
NextMedia Outdoor
Reeves Media
YESCO
DO the Math
DOOH InfoGraphic: It’s All Around Us
This infographic shows how strategically placed Digital Place-based Advertising Screens and Digital Out of Home Signage can be used to target the consumer in the various venues she visits throughout the day – while in transit, at work, shopping, running errands or socializing.
The growth of the Digital Place-based advertising medium is projected to grow rapidly this year at 16.7% (revenue) and its time agencies and advertisers embrace the medium in the same way they have done with online and now interactive mobile advertising.
source: www.DigitalSignageToday.com
Word on the Street
Our picks for the most newsworthy OOH content
This past month was digital heavy. Susan Danaher explained how the digital place-based industry can move forward together, DOmedia broke 500 media sellers searchable in the largest OOH Marketplace, Digital Signage Today released an eye-catching DOOH InfoGraphic, and indoorDIRECT bagged the Taco Bell deal. See our our top news picks from the last month (ish).
1. Susan Danaher Explains What It Will Take to Move Industry Forward
DOmedia Blog - July 5, 2011
Sue Danaher, President of the Digital Place-based Advertising Association (DPAA) explains what it will take for the industry to move forward. Standardization, creative execution, increasing awareness and accountable measurement are just a few of the topics covered in this post by the industry veteran.
2. DOmedia Marketplace Exceeds 500 Media Sellers
DOmedia Blog - July 12, 2011
DOmedia welcomes the latest companies that joined the largest out-of-home media marketplace in the industry. With over 500 media providers listing their media in the DOmedia Marketplace, it is safe to say, if it’s out there, it’s in here!
3. Digital Signage: It’s all around us
Digital Signage Today - June 23, 2011
This infographic shows how strategically placed Digital Place-based Advertising Screens and Digital Out of Home Signage can be used to target the consumer in the various venues she visits throughout the day – while in transit, at work, shopping, running errands or socializing.
4. RMG At The Crossroads: Let’s Make a Deal
Ken Goldberg, digital signage blog - June 23, 2011
In some of the least surprising news in recent memory, word came out Wednesday that RMG Networks is mulling an IPO in which it would raise $250 million in equity financing. The timing is not shocking considering the overheated reaction to the LinkedIn IPO, the warm reception for Pandora and the astronomical valuations contemplated for the arguably fatally flawed Groupon. RMG, which is funded primarily by Silicon Valley VC stalwarts Kleiner Perkins and DAG Ventures, was clearly headed toward a new round of financing to drive growth and take advantage of RMG’s momentum.
Indoor Direct - June 30, 2011
indoorDIRECT announced it is installing the largest in-store restaurant entertainment network in the country in all 5,600 Taco Bell locations by 2015. Advertisers will have the opportunity to reach 48 million Taco Bell customers each month on indoorDIRECT’s Point of Sale Network (no audio) and Dining Room Network (42 inch tv screens with audio). The company is also supporting free Wi-Fi in the restaurants.
Tip of the Month
Ask Sellers for Data
If you come across a seller that does not have the information you need, simply hit the Request Profile Improvements link at the top of the media profile. This link sends a notification directly to the seller and indicates the information you would like them to provide. You can request everything from audited research to rate card information and creative specifications.