Chapter 12 Out-of-Home Advertising Kleppner’s Advertising Procedure, 18e Lane * King * Reichart

Learning Objectives Understand the basic marketing strategy of out-of-home advertising. Describe the legislative environment of outdoor advertising. Identify various types of out-of-home media. Explain how outdoor advertising is bought and sold. Describe measurement of the outdoor audience. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Pros of Out-of-Home Advertising Advertising exposure to entire geographic market High frequency Low cost per exposure Excellent supplemental media Good for reminder messages Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Cons of Out-of-Home Advertising Unable to communicate detailed messages Copy limited to 7-10 words Viewed as a visual pollutant Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The Outdoor Industry The Outdoor Advertising Association of America (OAAA) is the primary trade and lobbying organization. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The Outdoor Industry The Traffic Audit Bureau for Media Measurement (TAB) measures traffic for the outdoor industry. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Growth of Out-of-Home Advertising More than 40 types of out-of-home media Why? Increasingly mobile population Cost of out-of-home advertising Media fragmentation Advertiser diversification Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 12.1 Categories of Out-of-Home Advertising Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Types of Out-of-Home Media Billboards Bulletins, spectaculars, murals, posters, etc. Street furniture Bicycles, benches, kiosks, etc. Transit Airports, buses, taxis, etc. Alternative media Cinema, stadiums, place-based ads, etc. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Heavy Product Users of Outdoor Advertising Local services and amusements Media and advertising Retail Insurance/real estate Public transportation, hotels, resorts Restaurants Communications Automotive Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 12.3 Top Outdoor Advertisers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Advantages of Out-of-Home Buys Quickly builds awareness Maintains and reinforces brand identity Creates continuity by extending advertising themes beyond traditional media Offers localized approach for national campaigns High adaptability for messages and brands Provides point-of-purchase reminder Enhances direct-response offers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 12.4 Enhancing Direct Response Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Changes in Out-of-Home Industry Consolidation of ownership Research Better creative opportunities Terminology Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Federal and State Controls of Out-of-Home Advertising Billboards allowed in commercial/ industrial areas Billboard controls apply to Federal-Aid Primaries (FAPs), routes noted by state DOTs to be of significant service value States that do not comply with guidelines are subject to a reduction in highway allocations No new signs may be erected along scenic byways Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The Outdoor Advertising Plan Clearly state objectives Define the target market Specify measurable goals Coordinate the buy Inspect postbuy (ride the boards) Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Forms of Outdoor Advertising Poster panels Eight-sheet posters Painted bulletins Spectaculars Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 12.8 Standardized Posters and Bulletins Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 12.10 Outdoor Design Some color combinations are more effective Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Buying Outdoor Poster advertising purchased on the basis of GRPs Audience for outdoor is known as the daily effective circulation (DEC) GRPs normally bought in units of 50 or 100 Allotment is the number of posters used in an individual buy Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 12.12 Transit Advertising Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 12.18 Shelter Advertising: Street Furniture Advertising Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

For Discussion Why is a diversity of product categories important to the outdoor industry? What are the primary uses of outdoor for most advertisers? Why has transit advertising grown in recent years? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall