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Out-of-Home advertising Global trends, Legislation & Marketing Strategy

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PAU Paper

  1. 1. Presented on February 22, 2012 at School of Media & Communications, Operational Business Strategy for Media Effectiveness programme PAN African University By OUTDOOR ADVERTISING TODAY BABS FAGADE General Manager Emotion Advertising & Publisher, Outdoor Republic
  2. 2. GLOBAL TRENDS LEGISLATION Dubai Roads & Transport Authority MARKETING STRATEGY Lagos State Signage and Advertisement Agency
  3. 3. Outdoor Has Come a Long Way Paint and Paste Circa: 1906
  4. 4. What’s our Business
  5. 5. Intro • Out-of-Home advertising is fast regaining position, being the oldest form of advertising. • Today we talk about the “Attention Economy”. • The Attention Economy states that human attention is a scare commodity. • Hence, getting the attention of people on the move is our business.
  6. 6. Top activities of People on the move Driving Saw Ads on Billboards Walking Using mobile devices Shopping Watching in parks Spontaneity
  7. 7. Global Trends
  8. 8. Scrolling across the world • Paris - - Lisbon
  9. 9. •Sites upgrades •More legislation & regulations •OOH + Mobile (QR Codes, NFC etc) •Improved Research • Reduction in DOOH investment Global Trends
  10. 10. More changes • The centre point is that same location/sites are upgraded to command better rates. • Maximization of value in every site. • Decrease in supply because less is more. • Restrications and prohibition on hoardings. • Using Apps on mobile devices with OOH. • DOOH market continues to grow with concern over rates.
  11. 11. • U.S.A - United Kingdom Digital poster world
  12. 12. • The digital billboards continues to outshine conventional billboards with high luminance. • Digital billboards operating at a luminance levels produce much fewer lumens into the night sky than conventional bottom mounted lighting systems. • Getting photographs and other critical information in front of the public and updated in real time will be a tremendous benefit in quickly finding lost children, taking criminals off the street, and notifying our residents of other public emergencies. Digital OOH
  13. 13. • DOOH advertising recently surpassed its forecast of €626m by 2012. DOOH share expectation growth of approximately 10 per cent of total OOH ad revenues is already a reality. • Presently, fewer global players dominates the DOOH market. • Uses LED technology and cutting edge interactive digital media platforms. • Architects are beginning to think screens when designing new public spaces or facilities. • The beauty of DOOH is interactivity, for downloads and uploads for mobile people. Digital OOH
  14. 14. • Outdoor screens are at the same stage as the Internet 15 years ago…the technology exists but users don’t understand the potential and try to apply traditional thinking. • Advertisers and sponsors may have to forget footfall and ‘cost per 1000’ and think about unique opportunities to spend time with the brand. •Like other Media strands content is the king...informative, relevant and entertaining. •Content need to be compelling and engaging or screens will at best be ignored and at worst be resisted. Digital billboards
  15. 15. • Digital signage is not an innovation – it is a commitment. • Short term for OOH is long term for DOOH. •DOOH is changing the functional positioning of Out-of-Home media. Digital billboards
  16. 16. … help the community with emergency information … are attractive 13% 14% 73% 32% 21% 47% Disagree or Strongly Disagree Neutral or Don’t Know Agree or Strongly Agree Digital Billboards Viewed as Attractive and Helpful Source: Arbitron Outdoor Billboard Report: 2009 Los Angeles Case Study Digitalpostalfacts
  17. 17. … are a cool way to advertise … have current and relevant information 27% 16% 57% 20% 25% 55% Disagree or Strongly Disagree Neutral or Don’t Know Agree or Strongly Agree Digital Viewers Have Positive Attitudes Toward Messages Source: Arbitron Outdoor Billboard Report: 2009 Los Angeles Case Study Digitalpostalfacts
  18. 18. Popular formats • The construction wrap in Dubai. • Cut-outs in India. • Buses in London • Wall drapes in New York. • Unipoles in Nigeria.
  19. 19. Legislation Industry Friend Or Foe If you want the rainbow you have to put up with the rain
  20. 20. Legislation • This is where we say, all eyes on Out-of-Home. • Licensing fee is not new to Outdoor Media Owners (OMO) but recent legislations can be somewhat. • There was paid signage on the London Railways as early as 1863. • Being first to be noticed, as canvass on the roadside – the medium is facing various forms of legislation from Governments world over. • The self explaining road – legislation.
  21. 21. Le-t gis-t in court •UAC Vs LASAA – Lagos, Nigeria •PromoWorld in Court against LASAA – Lagos, Nigeria •Lamar Advertising sues the City of Detroit – Michigan, USA •California State legislation blocks billboard restriction bill •OMO Vs Environmentalist in India
  22. 22. International benchmarking Puts a city into context –one can visualize • Trade-offs • Highlights • Shortcomings • Successes • Gaps • Potential
  23. 23. Legislation in Toronto Sign Ordinance Enforcement Agency: •Introduced, “Harmonized sign by-law” in November 2009 •Proposed an estimated 25% tax on gross revenue •Commercially focused legislation •Strong resistance by Out-of-Home Marketing Association of Canada.
  24. 24. Legislation in Dubai Dubai Road and Transport Authority: •Regulation currently based on traffic safety & aesthetics – no commercial awareness •Few regulatory role models •Room to improve management & control of industry •Opportunities for those that do improve
  25. 25. Source Legislation in Dubai
  26. 26. Source Legislation in Dubai
  27. 27. Source Legislation in Dubai
  28. 28. Legislation in Lagos Lagos State Signage and Advertisement Agency: •Regulation currently based on commercial & aesthetics •Absence of national regulatory role model •Room to improve management & control of industry •Opportunities for those that do improve •Eradication of clutter.
  29. 29. Legislation in Lagos Type of Sign Applications Anticipated/En umerated Number Received Number of Application Difference 1st Party 42,743 2,600 40,143 3rd Party 5,800 5,800 0 Transit Signs 7,000 100 6,900 Temporary Signs 1,000 50 950 Social Responsibility Branding Signs 2,000 30 1,970 Total 58,543 8,530 50,013 Street Lamp Pole, Bus Shelters & other approved forms of advertisement are not included in the table Source 2008 www.lasaa-ng.com
  30. 30. Total 58,543 8,530 50,013 Type of Sign Applications Anticipated/Enum erated Number Received Number of Application Difference Need integrated Enterprise Solution to deliver Revenue Target through: • Operational effectiveness • Visibility across departments • Revenue Tracking and Allocation • Data sharing • Application tracking and monitoring • Eventually enhance an online application process Source 2008 www.lasaa-ng.com Legislation in Lagos
  31. 31. A good time to takes stock of the benefits
  32. 32. Drivers of legislation •Better sites with better commercial value •Regulators can earn, city aesthetics are optimized and commercial value is maximised •More control and aesthetically beautiful city •Assistance in achieving city growth targets •Bridging the gap between audience and opportunity •Traffic Safety
  33. 33. Research shows that talking to wives on the phone while driving (even with hands-free) can be more dangerous than any OoH media format Are wives banned ?
  34. 34. Definitely pretty ladies are way more dangerous on the roadside than any format of OoH media Are pretty ladies banned ?
  35. 35. Marketing Strategy • What if I told you that I don’t understand words like strategy (and that I had never heard of such words outside a military academy!)
  36. 36. Marketing Strategy Perhaps, I’d never even heard of the word – proposal. That I thought it meant to Propose to a lady.
  37. 37. Here comes your five enemies (Five forces framework)
  38. 38. Marketing Strategy • Simply put there is no had and fast rule when it comes to the marketing strategy of a visionary enterprise. • However, there are some basic rules.
  39. 39. •Building a Brand or Image technology – This is when you have created a 5th Factor of production such that people pay habitual obedience to a set of stimuli generated by you.
  40. 40. Market driven focus: •Core Business proposition should be clear like crystal •Sales efforts must deliver core business proposition •Closeness to the client can make the difference •Be Proactive rather than reactive.
  41. 41. •Define your Customers/Clients–
  42. 42. Identify buying pattern
  43. 43. Sales approach • Be an Order getter and not an Order taker •This is achievable when you approach the client or prospect as a solution provider
  44. 44. Ever present • Make your site an ever present sales force
  45. 45. Building a solid network – a classic for all generation •Who do you relate with in your industry? – colleagues, Brand managers, media planners etc •How deep or involved are you in your industry? – need to be as visible as your billboards •How and who do you exchange call cards with? – relevancy is key •How well can you access information within the industry? – trade journals versus grapevine
  46. 46. Relationship management – you are not just selling but marketing •Deep product knowledge is key •Understanding your clients’ need, psyche, wants etc •Establish contacts, regular visit and follow ups •Establish & maintain a good professional image always •Read wide to be versatile so that you can engage and be engaged too •Enhance your clients’ job/business – competitors watch, promptness etc. •Be polite, courteous, listen and be of positive attitude.
  47. 47. Pricing Strategy – here are some tips (Be good at negotiation) •Record keeping •Preparation •Historical comparison •Maintain a benchmark •Have your standby reserve/fall back Make the money
  48. 48. Always ask for a full bottle
  49. 49. Thank you

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