Out-of-Home Media CHAPTER 10 10-1 Copyright © 2009 Pearson Education Canada

Learning Objectives Differentiate between the various forms of out-of-home media advertising Explain the advantages and disadvantages of the key types of out-of-home media Describe the factors considered in, and procedures used for, buying the various forms of out-of-home media 10-2 Copyright © 2009 Pearson Education Canada

Out-of-Home Media Out-of-Home media includes various forms of outdoor advertising, transit advertising, and in-store and point-of-purchase (at-retail) advertising. Out-of-home advertising messages reach a massive cross-section of a city’s population 24 hours a day, 7 days a week. 10-3 Copyright © 2009 Pearson Education Canada

Out-of-Home Media The factors contributing to outdoor advertising’s popularity are: Specialization and fragmentation in other media, especially radio and TV which has led to more outdoor Shift in thinking behind media buying. Media buyers are paying attention to when and why consumers come into contact with messages. New technologies have transformed outdoor into a dynamic and interactive medium Outdoor advertising is going through a rebirth of popularity, mainly due to the specialization that has occurred in television and magazines. Right now it is growing at a rate faster than any other media form. In an increasingly mobile population, outdoor ads provide a convenient way to get a message to consumers. It is also a viable medium in an era where timing is becoming a more important strategic consideration. 10-4 Copyright © 2009 Pearson Education Canada

Outdoor Media Research The Canadian Outdoor Measurement Bureau (COMB) is responsible for compiling reliable data and information about outdoor advertising. COMB audits the circulations based on municipal and provincial traffic counts 10-5 Copyright © 2009 Pearson Education Canada

Out-of-Home Media Out-of-home media includes various forms of: Outdoor advertising Transit advertising Point-of-purchase (at-retail) advertising Outdoor Advertising - Outdoor advertising includes posters (commonly referred to as billboards), backlit posters, spectaculars (often called superboards or bigborads), mall posters, and electronic signage. Transit Advertising - Transit advertising includes various forms of interior and exterior transit cards, station posters and backlits, and super buses (totally painted with a single advertising message). Point-of-Purchase Advertising – POP advertising includes various forms of shelf-takers, to store windows, to smart shopping carts, to giant digital screens. Advertiser purchase outdoor advertising space either in single panels or a showing. A showing refers to buying multiple panels to achieve a desired level of reach and frequency in a market. 10-6 Copyright © 2009 Pearson Education Canada

Outdoor Advertising Outdoor advertising offers significant variety: Posters (billboards) Backlit Posters (backlits) Superboards (Spectaculars) Mall Posters Transit Shelters Digital Signs Full-Motion Video Displays Street-Level Advertising Wall Banners and Murals 10-7 Copyright © 2009 Pearson Education Canada

Advantages & Disadvantages of Outdoor Advertising Target Reach & Frequency Targeting Flexibility Size & Quality of Message Media Compatibility Creating Product Awareness Cost Content Flexibility Creative Limitations Lack of Target-Market Selectivity Costs Lack of Prestige Unobtrusive Medium Advantages of Outdoor Advertising The advantages of outdoor-oriented advertising include target reach and frequency (cross-section of the population daily), targeting flexibility (market-by-market selection), size and quality of message (large and visually attractive), compatibility with other media (message reinforcement), creating product awareness (ideal for launching new products), cost (efficient when CPMs are considered), and content flexibility. Reach and Frequency - large reach in short period; concentration of traffic on main arteries; frequency due to habitual traffic patterns. Targeting Flexibility – you can only advertise in certain areas if you want to. Market-by-market selection; good complementary medium to increase weight in a certain market. Size and Quality of Message – the reproduction is of high quality. Although the messages communicated by outdoor must be short, a strong visual impression can attract the attention of people passing by. A picture is worth a thousand words. Media Compatibility - can reinforce the message of other media (extend reach and frequency). Creating Product Awareness – can generate product awareness when used as a primary medium, particularly if a shotgun media strategy is used. Cost – when the absolute cost of outdoor is evaluated in terms of reach potential, the medium is a fairly efficient media buy. Content Flexibility – content can be changed quickly, in particular with digital signs and full-motion video screens. Disadvantages of Outdoor Advertising The disadvantages include creative limitations (instant visuals only), lack of target-market selectivity (wasted circulation), costs (production costs for backlit posters and absolute dollar costs if a regional or national market list is considered), lack of prestige (clutter of all types of outdoor), and being unobtrusive (pass by without noticing). Creative Limitations – the medium is such that it must rely on instant visual impact to get attention. The message itself must be short and simple to read and it must quickly draw attention to the brand name. Limited space is a creative challenge. Lack of Target Selectivity - non-specific audience is reached; good for shotgun strategy. Costs – the cost of producing the finished materials for vehicles such as backlits, mall posters and transit shelters are high. The absolute costs of buying media space is high. A 25 GRP level in Toronto/Oshawa/Hamilton, Montreal and Vancouver would be $210 000 for 91 panels and $316 000 for 159 panels depending on the minimum and maximum number of panels desired. Lack of Prestige – does not always enhance the image of the product, whereas advertising in a quality magazine can really of the surrounding editorial content to aid in image development. Unobtrusive Medium – despite the reach and frequency potential of the medium, people who pass by may not notice outdoor ads. Unless the message catches the attention of passersby, the outdoor board will blend into the background and not break through the consumer’s perceptual barriers. 10-8 Copyright © 2009 Pearson Education Canada

Buying Outdoor Media Space Space is quoted on a 4-week basis. Minimum purchase of 12 weeks apply to some forms of outdoor. Space is purchased on the basis of GRPs (e.g., 100 GRPs = the equivalent of 100% market coverage). With outdoor you reach the same people frequently. All outdoor space is sold in four-week periods and is available on a market-by-market basis. Media space is purchased on the basis of weight expressed in GRPs. In outdoor advertising a GRP is defined as the total circulation of a specific outdoor showing as a percentage of the market's population (e.g., a 50 GRP would reach half of the market's population). It is recommended that the rate card included in the chapter and the media buying examples be discussed in class. 10-9 Copyright © 2009 Pearson Education Canada

Creativity in Outdoor Insert Figure 10.9 Turn to page 323 in your textbook describe the ad; discuss the effectiveness of this outdoor ad. 10-10 Copyright © 2009 Pearson Education Canada

Transit Advertising Transit options include: Interior Cards Door Cards Exterior Bus Posters Superbuses and Murals Station Posters and Backlits Subway-Onestop Network Transit riders are a captive audience that often has a need for visual stimulation. Therefore, it can be a good environment for advertising. Transit advertising alternatives include interior and exterior transit cards, door cards, station posters, superbuses and bus murals, station posters and backlits, platform posters, and online subway advertising (a form of video advertising). Some new and innovative concepts include stair risers (ads appearing on the sides of steps), ceiling decals (appearing in vehicles), and floor advertising. Interior Cards - overhead cards or car cards contained in racks above windows or on panel near door exits on subways. Door cards are positioned on either side of the doors on subways, LRTs and many commuter trains. Exterior Cards - small and large posters on the backs and sides of buses. Superbuses and Bus Murals - totally painting the outside of a bus with an advertisers message (costly). Station Posters and Backlits - ads contained on platforms and the entrances and exits of subway and light rapid transit systems. Triples are a new offering (three transit posters placed side-by-side in subway station areas. Subway – OneStop Network – these are digital communications that employ 40-inch LCD screens. They are mounted above subway platforms for easy viewing by waiting passengers. Station domination is another option. With domination one advertiser occupies all advertising spaces in the station 10-11 Copyright © 2009 Pearson Education Canada

Advantages & Disadvantages of Transit Advertising Continuous Exposure & Creativity Reach and Frequency Flexibility Market Coverage Cost Lack of Target-Market Selectivity Media Environment Creative Limitations The advantages of transit advertising include continuous exposure (habitual riding patterns), reach and frequency (general cross-section of population repeatedly), flexibility (geographic market coverage), market coverage (all areas of city), and cost (cost-efficient if reaching a mass audience). Continuous Exposure & Creativity- average ride is 30 minutes; bored riders read the ads. Commuters tend to be creatures of routine, so they are exposed to the same messages on a daily basis. Reach and Frequency - reaches a mass audience quickly; habitual travel patterns build frequency. Flexibility – certain transit media are flexible because the message can be changed easily. Market Coverage - covers all sections of a community; good complementary medium for adding weight in a local market, where other forms out-of-home may not be available. Cost – on a market-by-market basis, the dollar outlay for transit media space is relatively low, and considering the number of consumers reached, the cost per thousand is low. The disadvantages include lack of target-market selectivity, media environment (lack of status and clutter of interior advertising messages), and creative limitations (small space parameters). Lack of Target-Market Selectivity – for advertiser trying to reach a precisely defined target, the use of transit results in wasted circulations. Media Environment - environment is hectic, people are coming and going quickly, particularly in morning and evening rush hours. In such an environment, advertising messages are easy to avoid. Creative Limitations – offers good colour reproduction, the actual amount of space it provides advertisers to work with is quite small. 10-12 Copyright © 2009 Pearson Education Canada

Innovative Transit Ad Concepts Numerous innovative concepts are being tested. Stair Risers Ceiling and Floor Decals Station Domination 10-13 Copyright © 2009 Pearson Education Canada

Buying Transit Advertising Rates are affected by: Number of markets covered The length of showing Desired weight level in any given market (GRP) The size of the space required Sold on the basis of a 4-week minimum and is available on a market-by-market basis. Transit advertising is affected by factors such as the number of markets being covered, the length of the showing, the weight level desired and the size of the space required. As in outdoor, weight is expressed in GRPs. Advertising flights are a 4-week minimum. 10-14 Copyright © 2009 Pearson Education Canada

Other Forms of Out-of-Home Advertising Advertising can reach consumers in unique and unexpected ways: Airport Display Advertising Washrooms Advertising Elevator Advertising Mobile Signage There always seems to be a unique means of reaching consumers when they least expect it. Some of the more innovative vehicles for sending messages include airport display advertising, washroom advertising, elevator advertising, mobile signage, food court video screens, sports and arena advertising, taxicab advertising, cinema advertising, and wild postings. Wild postings are a fairly new opportunity. Wild postings are ads slapped on the hoardings at construction sites. Many first run advertisers are resorting to this type of tactic to generate a buzz for new product lines. Continued… 10-15 Copyright © 2009 Pearson Education Canada

Other Forms of Out-of-Home Advertising (cont.) Other innovative alternatives include: Food Court Video Screens Sports and Arena Advertising Cinema Advertising Wild Postings 10-16 Copyright © 2009 Pearson Education Canada

Point-of-Purchase Advertising (At-Retail) Advertising at point-of-purchase is designed to: Build traffic Advertise a product Encourage impulse buying The power of point-of-purchase advertising is often underestimated by marketing organizations. Research shows that a high percentage of buying decisions are made in the store. It is a critical medium when promotional incentives such as cash refunds and contests are integrated into the communications mix. Point-of-purchase advertising is advertising or display materials set up at a retail location to build traffic, advertise the product, and encourage impulse purchasing. The dominant reason for using point-of-purchase is to provide consumers with a reminder just prior to making a purchase decision. The importance of these activities is dramatized by the fact that 74% of purchase decisions are made in-store. 74% of brand decisions are made in the store! 10-17 Copyright © 2009 Pearson Education Canada

Point-of-Purchase Advertising Video Displays Exterior Signs Modular Display Racks Display Shippers Display Cards Vending Machines Grocery Carts Shelf Ads Floor Ads (Ad-tiles) Some of the more common types of point-of-purchase advertising include video displays, exterior signs, modular display racks (temporary displays often provided by manufacturers of the displayed product), display shippers (shipping containers that become display units when opened), display cards, and vending machines (prominent and vibrant display panels on soft drink and snack food units). Other forms of point-of-purchase advertising include grocery cart advertising, shelf ads and floor ads. All of these options act as reminders at point-of-purchase and encourage last minute buying decisions 10-18 Copyright © 2009 Pearson Education Canada

Advantages & Disadvantages of P-O-P Advertising Impulse Purchasing Message Reinforcement Message Receptiveness Last Chance (Deciding Factor) in Sale Merchandise Tie-ins Placement Clutter Waste Point-of-purchase advertising offers several advantages: message reinforcement, message receptiveness (right time and place), encourages impulse purchasing (for frequently purchased and inexpensive products), last chance or deciding factor in a sale (e.g., automobile brochures that go home with a prospect), and merchandise tie-in opportunities (promotions). Impulse Purchasing - for frequently purchased categories such as snacks, toiletries, and beverages. Message Reinforcement – while the display itself stimulates action, the incidence of consumer action increases when the display visuals are used to supplement the advertising done in the other media. POP reinforces prior messages, finalizing sales to consumers who have been preconditioned by other forms of advertising. Message Receptiveness - the message addresses consumers while they are shopping (good timing). Last Chance … Deciding Factor - it gets the wallet out; provides information for the customer to savour; high incidence of decision-making in store. Merchandise Tie-Ins – in store communications promote trail of new products, new packaging, and new sizes and flavours. It draws attention to warranties, rebate programs, contests, and other forms of promotional activity. The disadvantages include potential for poor placement (reduces effectiveness), clutter (competition for space in retail outlets), and waste (lack of cooperation for use by retailers). Placement - the most eye catching display will be ineffective if it is not located in the appropriate location. Clutter - a good many displays are in the average store (breaking trough the clutter is a challenge); taken for granted by shoppers. Waste - lack of support and use by retailers because they have so much competing material to choose from. 10-19 Copyright © 2009 Pearson Education Canada