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Outdoor Advertising In America Today 121510

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Stats, trends & proof about outdoor advertising

Stats, trends & proof about outdoor advertising


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  • 1. I have long been a fan of outdoor advertising. Its colorful images and concise copysatisfy my impatient nature. For me, it’s the Zen of advertising, forced by its size andfleeting audience to make its point quickly and clearly. This is a good thing and one thathas become even more valuable over time as media noise levels ratchet up. What’smore, outdoor has global appeal, and as the evidence shows, it’s highly effective whenwell done.…which is why I’m delighted that Jose asked me to come to your lovely country andshare what’s new and noteworthy in outdoor advertising. Even during these harsheconomic times, there is much good news to share, whether you are an advertiser or anoutdoor company.My remarks today will focus on industry facts & figures, trends and news and will endwith highlights from OAAA’s 2010 Media Plan of the Year Awards which were presentedlast week in New York. 1
  • 2. So let’s begin…Outdoor Advertising in America is currently a $6 billion business, representing dozens ofvenues and featuring a full composite of brand categories and businesses.As you can see*, it’s BIG in more ways than one, yet smaller than it could be… frankly,smaller than it should be. It has so much to offer and how you use it is limited only byyour imagination and pocketbook.* [Note: live presentation includes a rotating showcase of OOH venues] 2
  • 3. But before we delve into the specifics, let’s back up for the 30,000 foot view sincewithout a clear sense of context, we may miss the mark and not be as effective as wecould be.First and foremost, the market is becoming increasingly complex. New products, newcategories - both locally grown and global - are continuously vying for the consumer’sattention, requiring a constant reassessment of media strategy.Next, we are living through the deepest, and likely to be the longest, economicmeltdown in our lifetime. Priorities have shifted permanently and how money getsspent and to what degree is forever changed.In addition, our environment is in a fragile state with consumers actively preferringproducts and services produced by companies who are respectful of our naturalresources.Our world was forever changed on 9/11 with the war on terrorism altering everythingfrom our sense of safety to our travel habits. We’ve become indisputably a globalsociety and as marketers, must consider the ramifications of what we say and do.Finally, we live in a state of sensory overload… with media surrounding us 24/7, withbreaking news coming to us in real time via mobile devices and from infinite sources.The challenge then is how DO we break through? 3
  • 4. Ah yes… the media landscape… as cacophonous and overwhelming as a swarm oflocusts. It used to be SO SIMPLE: billboards & radio & print media… and then networktelevision came into play, followed by cable…But nothing could match the onslaught of digital media and social networks whichchanging how we gather news and share information. Add to this all manner ofexperiential media and you begin to get the picture.Clearly, coming up with a smart media strategy is not for the faint of heart… it takes gutsand bravado… 4
  • 5. … it takes chutzpah?Well surely in this example I grabbed off the web that takes ‘make you look’ to a wholenew level…Of course, these sort of OUT THERE tactics will grab eyeballs but at what cost?At the end of the day, you need not just to get attention but also to build brandidentity…Sexy, sure, also smart. 5
  • 6. So getting serious… what do advertisers REALLY want? What is the sweet spot that balancesWOW with sales gain and likeability.From years working both sides of the fence and tracking trends along the way, I think there are 5things:First, especially today, advertisers need the facts… they need stats and information to justifytheir investments – vs other media, vs other venues, against their target audience, etc. Themore substantiated information you can provide, the greater your chance of being considered.Next, they want VALUE which is not the same thing as a low price…. Value is where price meetsperformance and if you can PROVE what your well documented media has done, that willmatter far more than bargain basement rates.Third, they need short lead times and the ability to alter changes if/ when the market changes…refer to slide 4 if you want to know why: it’s simply the way of today’s world.Fourth, they want to know you’re a responsible company who is socially sensitive. We live in aworld of pink causes & green causes, gay rights & animal rights and a company without heartisn’t going to get too far in this environment.Finally, having done all that, they need their message to be memorable… perhaps even iconic…but at the very least, one that spurs consumer awareness & use. 6
  • 7. Ok so we’ve laid the groundwork… now let’s take a look at some U.S. stats, knowingthere are many more where this came from: www.oaaa.org 7
  • 8. I know I’m dating myself but I can remember when outdoor advertising was ONLY whatappeared in the first column (excepting of course the digital component) yet today thebreath and depth of what this industry has to offer is enormous. Were you to count upwhat’s noted here, there are over 1 million units but of course, there are many morethan that…. AND the list keeps growing. 8
  • 9. If you remember nothing else today, make note this slide as it plainly illustrates just howmuch potential outdoor advertising really has.On the left, you’ll see how consumers spend their time.On the right, how advertisers spend their money.Notice anything odd?In the case of TV or radio or the internet, the parallels are fairly well aligned given theproduction values required for the respective media.But take a look at print & outdoor…Print, a decidedly dying media still garners 27% of media spend against a 7% consumertime investment.Outdoor, on the other hand, is wildly under spent in nearly inverse proportions to print:27% of time is spent out of home but advertisers are only spending 5% of their revenuewith the medium.I believe we are on a tipping point with outdoor poised to steadily increase its share tolevels that better reflect its consumer audience potential. 9
  • 10. Last, let’s look at the spending track over the last decade. Holding steady following a9/11 advertising dip, outdoor began to climb to upwards of $7.3 billion beforesuccumbing to the financial crisis that hit in 2008. While revenues fell, they did so farless than other media and if 2010 is an indicator, outdoor is on the rise once again. 10
  • 11. So that’s the facts… let’s look now at is trending in outdoor today… 11
  • 12. Number one on the hit list has to be digital billboards and it’s easy to see why. It’s oneof those tactics where everyone wins.For the advertiser, production time and expense is cut; the ability to change copy,sometimes instantly, is enabled; and for the first time ever, outdoor can be bought on‘dayparts’: coffee ads AM, beer ads PM and so forth…For the outdoor company, after its initial capitol investment, the real estate becomesmore valuable as a revenue generator.And to top it off, it’s environmentally friendly, eliminating production and transport ofsubstrates.What’s more, digital outdoor can help the community get important messages outbroadly and expediently, as it does now with AMBER Alert announcements or MostWanted postings.In the example shown above, Cine Latino, a top rated Spanish film channel in the USused digital outdoor to raise awareness of its offerings in order to build awareness andincrease subscribers. In addition to a full campaign of outdoor advertising, it ran 10digital billboards, posting a changing reel of provocative copy lines to heighten interest.Net/ net, it worked: Over the two-month testing period, total brand awareness ofCineLatino increased significantly as a result of the outdoor campaign. In particular,brand awareness among viewers who had never watched CineLatino increased 15percent, while awareness among non-pay TV subscribers increased an impressive 24percent.Visit www.oaaa.org to access the full case study. 12
  • 13. A corollary to the digital billboard is digital place based media. These venues provide adifferent means of communicating with consumers, offering a more targeted approachand enabling video which is not allowable on large format billboards.In this case study for Delta Airlines (also featured on OAAA’s website), digital screenswere deployed to reach business travelers, making them aware of Delta’s manyinternational destinations, since perception in the U.S. was that Delta was primarily adomestic carrier.A four month campaign was created to intercept business travelers at cafes, ferryterminals, gas stations and health clubs with digital place-based advertising.A post campaign survey conducted in May 2009 showed:• 15 percent increase in awareness of Delta Airlines• 28 percent increase in awareness of Delta as an international carrierOne last note: while digital place based media looks and sounds a lot like television, itisn’t… it’s a new type of media communication and the message needs to be createdand designed accordingly. As with any outdoor advertising, the medium IS the messageand should be developed as original content with that in mind. 13
  • 14. Sometimes tactics are engaged ‘just because’ they can be done, irrespective ofeffectiveness.This example developed by the Belgium office of Ogilvy for FORD, a kiosk in a mall ‘talks’to prospects, controlled by a person within a booth close up who manages theconversation.Attention grabbing to be sure but is this enough? 14
  • 15. Another example of what’s new and trendy is a digital display which can react to peoplepassing by. In these displays, the model’s eyes follow you as you pass, which can eitherbe creepy or fun, depending upon your perspective. 15
  • 16. Hot off the press is this iphone app developed by JCDecaux and available currently onlyin France.The app can be pointed at any JCDecaux display unit and clicked to download specialoffers, movie trailers and more.While such techniques have been used on a one-off basis, Decaux is taking them to thenext level by involving its entire network.It’s working the sweet spot between outdoor and the internet via your always in handmobile device.I think they’re onto something. 16
  • 17. The last round of images shows wild ways of taking your basic billboard a step further.These are what I’d call ‘special occasion’ billboards, to be used one off to make a splashand get people talking…While on that subject, don’t underestimate word of mouth as pivotal to a successfulcampaign. Whether it’s via press coverage on the major media or social media pick upson facebook & twitter, such buzz drives awareness and sales AND what’s more, doesn’tcost you a dime.In this example developed by North Carolina agency BirdSong Gregory, Bloom foodmarkets turned heads and turned on palates by blowing hot air over a charcoal/ peppermix. While exact sales gains are not known, Bloom’s CEO went on record saying he waspleased with the results. 17
  • 18. … sometimes emitting fog rather than aroma does the trick as in this example posted bylong time outdoor fan and OBIE Hall of Fame winner, TARGET stores. 18
  • 19. … upping the ante with the use of props on walls in this clever execution for Chevy’selectric car, VOLT 19
  • 20. … and taking it a step further Nationwide Insurance used a series of larger than lifedisplays – on walls, billboards, stairs, etc to ‘make a splash’… again, the net gain is notmerely in the traffic passing by, but in the news pick up for the work itself. 20
  • 21. Last, here’s a teaser tactic cleverly deployed for an upcoming A&E program launch,Mindfreak.Create intrigue and anticipation with a teaser display before finally revealing the mainevent.Of course, these little production numbers can cost as much as a TV ad – anywhere from$200M to $2.0mm – and are best used as part of rather than instead of a fuller outdoorcampaign.By the way, have you noticed just how often media companies, particularly televisionnetworks, use outdoor advertising?Stay tuned as there is more of that to come… 21
  • 22. Of course, one trend that never goes out of style is a great idea… like a black cocktaildress, it’s essential to a smart outdoor campaign… one that turns heads and gets results.It needn’t be expensive either, nor should it be limited to national brands. This uberclever mobile campaign was developed and produced by Michigan based ECP forspiritual activist and author, John Orthberg to raise awareness for his books, his blogsand his thinking. Creative Director Rob Jackson told the 2010 National Conventionaudience that the items piled on top of the hearst were actually pieces borrowed fromagency staff basements and attics…. 22
  • 23. Let’s switch to some left brain activity again to explore what initiatives are making news. 23
  • 24. Perhaps the biggest news right now is TAB’s brand new ratings system for OOH calledEYES ON. Five years in the making and winner of the Advertising Research Foundation’sGreat Minds Award (GOLD), the system provides measurement for out of home that isfar more robust than what exists for other media. Rather than measure what’straditionally known as ‘opportunities to see’ (OTS), EYES ON measures ‘noticing’ whichof course, is of the ad itself. NO other media can provide that sort of measure, since allother media are content delivery devices, with advertising being an afterthought.Probably the most important advantage EYES ON provides is the ability to place outdoorup front in the consideration process of national advertisers, since EYES ON uses thesame currency (ratings & GRPs) as traditional media do, enabling it to be incorporatedinto established planning systems. Early consideration increases likelihood of use and anincrease in out of home spending overall.Currently, EYES ON is available only for billboards and bus shelters in America with otherforms of media planned for roll out over time. I believe discussion is underway aboutbringing it to Puerto Rico as well. Visit www.tabonline.com to learn more. 24
  • 25. What EYES ON is doing for the planning process, new proof of performance systems aredoing for the buying process.One of these systems is Intelligent Proof which provides a web based, interactivedashboard offering both macro and micro posting details to allow quick problemresolution and insure what you bought is indeed what you got.To be clear, these systems are not intended as policing devices, but rather as safety netsfor both agency and outdoor company. In the good old days, an advertiser could ‘ridethe market’ to get the information they needed but today, there are too many venuesspread out over multiple cities making the monitoring of results an overwhelming task.An independent system is your best bet. Visit www.intelligentproof.com to learn more. 25
  • 26. Another ‘just in time’ idea is a solution for what to do with all those billboard vinyls thatare put out to pasture when campaigns are done. As mentioned earlier, consumershave heighted sensitivity about environmental issues and one company – AdVinylize – isworking with both agencies & outdoor companies to pick up, clean and repurpose thevinyls into attractive, useful items… as noted here, each billboard can yield 25-50 itemsdepending on size, and these items can be offered for sale in company stores, asgiveaways to customers or trade show carryalls.And AdVinylize has just begun offering a select group of products for sale on line directlyto consumers. Visit www.advinylize.com to grab one for youself! 26
  • 27. Finally, the outdoor industry has been quietly making investments to insure its productsare environmentally friendly.PVC substrates are slowly giving way to PE materials for use in both billboards andposters… almost 85% of posters are now printed on PE fabrics and the major billboardcompanies will be converting much of their inventory over in the next few years.More efficient lighting solutions are enabling 4 bulbs to be replaced by 2 in many casesand as discussed earlier, digital billboards eliminate production costs altogether, therebyeliminating the gas transmissions occurring in transport.And yes… even billboards can be turned into an energy saving device, as this Californiaenergy company (PG&E) did by placing a solar panel atop one… 27
  • 28. But all this news and cool stuff wouldn’t matter much if the medium didn’t WORK andwork it does, as evidenced by the hundreds of case studies in dozens of categories thatreadily available for view on OAAA’s website.I’d like to close today with highlights of a few that were recently featured at the 2010Media Plan of the Year event held last week in New York.Judged by a jury of industry experts, these awards recognize the importance of a wellconceived strategic plan in maximizing outdoor’s great potential.I’ll feature today two SILVER Awards, two GOLD Awards as well as the Best of Show forNational and Local campaigns. 28
  • 29. A SILVER Award was given to MediaVest for its campaign for Kraft’s Miracle Whipsandwich spread.Miracle Whip had developed a loyal user base in the 18-34 segment and wanted toenergize this group and make them vocal advocates for the product by igniting a debateover what has more “zing”: Miracle Whip or ordinary mayonnaise. 29
  • 30. Using high-impact locations in trendy neighborhoods in New York, Los Angeles, Chicago,Boston, Philadelphia and San Francisco, the plan took advantage of digital formats inaddition to a full complement of traditional out of home venues to drive conversation inbars and restaurants.In the post-period of the campaign, gross revenue in the markets where the campaignran shifted up 11.8 percent. 30
  • 31. The campaign also created a stir among the consumer base, with comments on thecreative cropping up on social networks like Twitter. 31
  • 32. Another SILVER was given to MacDonald Media for its work on ESPN’s 2010 World Cuppromotion.As popular as the World Cup is globally, there were some distinct challenges in gettingviewership in America. For one, soccer is not as popular a sport as other events playedin the states such as baseball, tennis and golf. Next, given that South Africa is 7 hourshead of Eastern Time, major events were airing in the US either early AM or midday,hardly a high viewing period, particularly during the work week.ESPN’s primary goal was to increase its audience numbers from the 2006 World Cup, butit also wanted to establish itself as the premient source for soccer content. 32
  • 33. The creative was developed by South African artists and posted throughout major citiesin high traffic areas, using wallscapes, storescapes, bus shelters, commuter rail cards,subway posters, and painted murals.The campaign also included digital media formats to provide tune in details with livescores to spur interest. 33
  • 34. In addition wherever possible, creative executions were strategically placed to appeal toa specific demographic; for example, a poster of a Mexican player was placed next to agrocery store in a Latino neighborhood in Chicago.Overall TV viewership for the 2010 World Cup on ESPN was up 41 percent vs. the 2006games and the final game set a new viewership record for soccer match aired in the US. 34
  • 35. Onto the GOLD Awards –Coca Cola’s Powerade Zero had recently signed tennis champion Venus Williams as itscelebrity spokesperson, yet at the premier tennis event in America – the US Open – itwas not able to advertise within the stadia since Pepsi owned in-stadium pouring rights.MediaVest came up with an ingenious method to tackle this problem: providetransportation TO the event via custom wrapped water taxis which also provided asampling opportunity for the brand. Not only did this garner a LOT of attention, it was amore expedient, and certainly a more fun way, to travel to the event, which was anhour’s subway ride from Manhattan.The company advertised the service in local media leading up to the event, andtelevisions on board ran tennis content as well as commercial spots for Powerade Zero. 35
  • 36. All in all, the ferries shuttled 4800 fans to the event and created massive buzz on lineand in the press, stretching the budget way further than it could have gone with mediaplacement alone. 36
  • 37. Kirstie Alley’s Big Life was a new reality series that A&E hoped would draw more femaleviewers and in turn, female-focused advertisers.New York & Los Angeles audiences were pivotal to the show’s success, so efforts werefocused in these two metro areas with a broad spectrum of outdoor media used tomaximize awareness: bulletins, wallscapes, phone kiosks, bus wraps, bus posters, andcommuter rail interior cards. 37
  • 38. While such immersion insured consumers were aware of the show, more was needed toengage the core audience W 25-54 so Horizon Media added some experientialcomponents… 38
  • 39. A two-day event in select nail salons was held the weekend before the show’s premiere.Offering free manicures with a nail polish color developed specifically for the event, thesalons aired a sneak preview of the season premiere, taking advantage of their captiveaudience.The campaign also incorporated branded water bottles with a picture of Kirstie Alley onthe interior label that transformed from “fat” to “thin” as the bottle was emptied. Streetteams passed out the water bottles to female gym-goers in front of high-profile gyms inthe three days leading up to the premiere.Did it work? The net results say it all: New York & LA respectively delivered well abovethe national viewing: nearly 2 ½ times in New York and 50% greater in Los Angeles. 39
  • 40. Now onto the Best of Show for which there are two awards: one for a local effort andanother for a national one.The local Award was given to Bernstein-Reind Advertising on MacDonald’s launch of itsAngus Burger. The agency wanted to take a broad national campaign and ‘bring it home’to the Kansas City market by targeting consumers who were most likely to become loyalfans of the burger: young adults with big appetites.The campaign began with teaser bulletins that alerted consumers to “prepare forAngus.” 40
  • 41. The reveal creative featured the Angus Third Pounder with catchy two-word headlinesand then began to engage customers via in-store advertising and social media to submittheir own headline at HonorAngus.comSubmissions were then rated by website visitors with the top 2000 qualifying for posting(and attribution) on MacDonald’s digital billboards 41
  • 42. Over 5,000 customers submitted taglines and on the appointed day, 2,000 weredisplayed with the writer’s name noted, rotating through 10 second intervals. Inaddition, the winners could claim a free Angus burger as part of the deal, deepeningconsumer satisfaction.All in all, the Honor Angus website garnered 1.9 million hits with an interaction rate of7.3 percent and an interaction time of 24 seconds, both of which are almost double theindustry standard. McDonald’s locations in Kansas City outpaced the region in sales bothduring and after the campaign, and the work was featured on the cover of Nation’sRestaurant News, the leading quick service restaurant industry publication. 42
  • 43. Finally, the winner for the 2010 National Media Plan of the Year Award was MediaVestfor KRAFT Blue Box Macaroni & Cheese.Kraft’s goal for this campaign was to broaden product interest beyond moms with kids 6-11 and it choose to do this with an extensive out of home campaign featuring thenostalgic appeal of the noodle and featuring interactive tactics to engage the consumer.In one clever tactic, storescapes and mallscapes featured facial recognition technologyas illustrated above. 43
  • 44. A bold station domination program was grounded by a huge adstep staircase, flanked bybusy escalators.The combination of unique positioning and cheeky creative combined to generate a lotof buzz and consumer interest. (note that the campaign finished only recently so actualsales improvement figures are not yet available.) 44
  • 45. In a unique twist, the campaign also incorporated a prop installation called the BigNoodle, branded with the words “You know you love it.” and positioned in areas withhigh pedestrian traffic such as Chicago’s Wrigley Field, San Francisco’s Fisherman’s Wharfand the Santa Monica Pier to increase buzz and excitement around the campaign.The Big Noodles quickly became a viral sensation, appearing in user photos on Facebookand mentioned on local radio programs. With one installation appearing at WrigleyField, the Chicago Cubs even found themselves fielding questions about the installationin interviews. 45
  • 46. I could go on and on and as mentioned earlier, there is a lot more where this came fromon OAAA’s websiteStill, one thing seems perfectly clear:Despite the state of the economy, the fragile environment, our political uncertainty,outdoor is poised for takeoff.It’s got the right stuff – value, effectiveness, versatility – to make it appealing to virtuallyany category of business and what’s more, it catches attention better than anything elseout there.Add a healthy dose of imagination and creative oomph and you’ve got it made! 46
  • 47. Want to learn more?Here’s a few websites to visit for ideas, information and news.And of course, if you need to reach me:www.cimineenterprises.comdianecimine@gmail.com212-227-2052 47
  • 48. One last note… I’d love to see you all on the mainland next April at the OAAA/ TAB 2011National Convention. Themed Grab Your Share, the event will feature big tent speakers,stimulating workshops, the 2011 OBIE Awards, an expansive trade show and lots ofopportunity to connect with others in the industry.As former OBIE Judge and Creative Director Alex Bogusky tweeted today: ‘Collaborationis the new Competition’ …So as they say in America: ‘Be there or be square’.Thanks so much for your time & interest! 48