April 2011 Newsletter
Advertisers & AgenciesMedia Sellers
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Feature Story
Key Takeaways From OAAA/TAB Convention
Article by: Kim Ramser, DOmedia Business Development & Industry Relations Guru
Last week, the Outdoor Advertising Association of America (OAAA) and the Traffic Audit Bureau (TAB) held their Annual National Convention and Trade Show in Miami’s beautiful South Beach. I saw many of you walking around, watching the general sessions and attending the cocktail parties. This year’s theme, “Grab Your Share,” was evident in the speakers’ presentations, workshops, and various council meetings. Outdoor’s share of annual advertising expenditures are much lower in the US than in many other countries.
What can we as an industry do to get our “share” of the pie?
There were many recurring ideas throughout the conference. The trending topics were Innovation, Measurement/Research, Mobility/Location and Targeting. Ron Cooper, CEO, Clear Channel Outdoor and David Payne, CEO, Kinetic Americas, opened the conference by stating that our goal should be to increase our share by 1% in 2011, bringing OOH to 5.4% of the US Advertising Expenditures. The presenters gave us several big ideas to help you so we can accomplish this goal together:
Shorter Sales Cycles
The industry has been shortening the advertising sales cycle by introducing new digital products and technologies that allow advertisers to implement campaigns more quickly than ever before. Better inventory management, creative technologies, faster turnaround on production and installation are all things that can help you shorten your planning time and get campaigns running quickly. Copy changes no longer take 30 days or more.
Online Tools (both internally and externally)
Use external online tools, like DOmedia, to get company and product information quickly. Download media kits, and stay on top of what products are available in which markets. This is especially helpful when you land a new client who is in markets you aren’t used to buying. These resources are also great for new client pitches.
Better Research
Outdoor has better metrics with EYES ON, but what does that mean? We need to work together to better explain the numbers and make them more relevant to you. Media sellers should tie in additional research and provide third party research where applicable. The numbers alone may not present the opportunities you believe are available. Integrating social media can create online measurement opportunities by including it in the creative.
Tell Your Story
Together, we need to provide more case studies and better speak the language of your audience. Outdoor should brand the medium by appealing to "creatives." Media Sellers should become the local market experts that agencies can depend on.
Understand Your Client's Consumers
The industry should conduct better research to find out where your customers are going to see the advertising message. Outdoor needs to understand cultures by differentiating and targeting customers - for instance, Hispanic may mean Cuban or Puerto Rican. Unlock Multi-culturalism and other demographic factors to better market to consumers.
Innovation
Make the creative more relevant by using social media, QR Codes, projection, interactive kiosks, digital billboards and other technologies. Partner with other companies to create the experience you want the consumer to have.
It was clear throughout the conference that Out-of-Home (OOH) is much more relevant now than ever. It is no longer just the “awareness” medium. OOH can be used to gather feedback, entertain, distribute samples, create an event and much more.
Use DOmedia to look for new products and success stories that you can take back to your clients. Request proposals directly from media sellers in the marketplace and help the companies better understand what you need to help sell their products to your clients.
Together, we can Grab our Share...
Product Spotlight
Airport Media
Reaching Elusive On-the-Go Consumer
Reaching the elusive on-the-go consumer is easy with airport media. Depending on the market, time of year and placement, you can build a targeted campaign to reach frequent business travelers, vacationing families, spring breakers, or international tourists. Many advertising opportunities exist to reach travelers before they arrive and once they enter the airport including on and off-premise parking facilities & transit shuttles, security bins, baggage carousels, terminal dioramas, digital screens, jet bridges, luggage carts, retail stores, kiosks and club lounges—just to name a few.
Benefits of the Medium
Airports provide a captive audience, whether on a transit shuttle going to and from the airport, or in the terminal, security lines, baggage claim or concourses. Another benefit is the frequency in which you can reach a traveler. There are many touch points between airport arrival and baggage claim.
How It is Used
Advertisers can target different demographic segments with airport media by contracting specific types of airports, markets, and seasons. Frequent business travelers are targeted year-round. College students on spring break can be reached by targeting destination markets in March. Families can be reached during the holidays and summer months.
In addition, advertisers can target specific consumer groups through airport selection. For instance, if a company wants to reach a very high income level, airports located near thriving business centers as well as private airports are the perfect places to do so. On the other hand, if an advertiser is trying to reach parents, airports in high travel family markets should be used—like Orlando. Other targets might include beach markets, cruise markets, international destination markets—the possibilities are endless. Many advertising categories work well in airport venues. Every category from shoes to computers has used airport campaigns successfully.
How It is Measured
Currently, on and off-premise airport parking and traffic data are used to calculate impression levels at parking facilities and on shuttle buses. Airport traffic data is used inside the airports. Transaction and visitor numbers are used for the retail and club lounge locations. Both Arbitron and Nielsen can conduct airport research studies. According to a 2007 Arbitron Airport Study, frequent fliers (defined as those who take four or more trips per year) have an average household income of $100,000. They also account for 60 percent of impressions, and 43 percent consider themselves early adopters of new products and services.
Markets Available
Most airports in the U.S. have advertising opportunities available. Airports have different product opportunities available, so check with the media companies or individual airport advertising offices to see what is available.
New Technology
Key airport programs have digital opportunities targeting travelers on the concourse level, baggage claim, and inside on and off-premise premium airport transit shuttles with many having audio capabilities. Some airports also have interactive kiosk advertising options available.
Who Provides the Products
DO in the News
NEC's VUKUNET and DOmedia Announce Strategic Partnership
Partnership Aims to Create End-to-End Solution to Propel Digital Out-of-Home Industry Growth
CHICAGO and COLUMBUS, Ohio – April 7, 2011 – NEC Display Solutions and DOmedia announced today the formation of a strategic partnership that creates an end-to-end solution for the challenges related to the buying and selling of digital out-of-home (DOOH) advertising.
DOmediaTM Powered by VUKUNET allows for the efficient planning, buying, management and measurement of large DOOH advertising campaigns across many different DOOH networks. This new ability to scale and measure effectiveness of DOOH advertising during the life of a campaign addresses two of the last remaining obstacles to the widespread adoption of DOOH advertising.
According to PQ Media, the digital out-of-home ad medium is one of the fastest growing media in North America, with 18.1 percent compounded annual growth projected for the next four years. Advertising agencies have indicated a willingness to invest more money in DOOH, but first require the industry's adoption of standards in the areas of creative, ad serving, audience measurement and performance reporting.
DOmediaTM Powered by VUKUNET allows for the seamless integration of advertising agency and DOOH network activities from campaign planning through execution. The solution incorporates DOmedia’s web-based, front-end media search, planning and buying tools with NEC’s back-end VUKUNET technology, which provides comprehensive ad inventory management, ad campaign placement, tracking, measurement and reporting capabilities to display to media buyers. The combined solution is aimed at resolving issues with technology fragmentation by creating a standards-based solution that will benefit the entire DOOH market.
“The partnership with DOmedia will be the industry standard that will generate incredible growth in the DOOH industry,” said Pierre Richer, President and COO, NEC Display Solutions. “While the market matures, an open end-to-end solution will create value for both buyers and sellers by lowering operating expenses, increasing transparency and creating innovation like we’ve seen in the online and mobile advertising industries.”
Sue Danaher, President of the Digital Place-based Advertising Association (DPAA), said: “Companies like DOmedia and NEC coming together help to propel the overall industry and bring innovative products to market for buyers and sellers to choose from. The investment from companies like these is a true testament to the exciting future opportunities for the digital place-based industry.”
Among the benefits to media agencies and advertisers include an easier way to purchase and track DOOH media and a lower operational cost attributed to the buying process. DOOH network operators will benefit from technology integration through inventory management, ad delivery, collaboration with agencies, and increased revenue potential. VUKUNET’s unique approach allows the technology to work across many software platforms currently being used by network operators.
“One end-to-end solution from planning to execution for digital out of home advertising campaigns will enable advertising agencies to buy the medium on a larger scale more efficiently,” said John Muszynski, Chief Investment Officer, Starcom Mediavest Group. “This kind of technology innovation ultimately helps agencies effectively service clients and puts them at a competitive advantage in the marketplace.”
Rich Langdale, CEO of DOmedia, said: “The DOOH industry has a need for technology to solve a lot of problems with inefficiencies and standardization, and we are taking a step in the right direction. The open, end-to-end approach we are building with NEC will ultimately benefit both the media buyers and sellers. Everybody wins.”
Learn more about DOmedia Powered by VUKUNET »
Do the Math
72% DOOH Revenue Attributed to 10 Networks
PQ Media Notes Pareto's Law Applies to DOOH
During The Big Buyers Panel at MediaPost's 2011 Digital Out-of-Home Forum, Patrick Quinn, CEO of PQ Media, noted that almost three fourths of the digital out-of-home industry's advertising revenue is attributed to just the top 10 networks. Why? These networks have the largest footprint, a valuable target audience, technology, campaign metrics and products to support national advertising campaigns. The PQ Media Global Digital Out-of-Home Media Forecast 2011-2015 report also anticipates U.S. digital OOH spending will grow 15.1% to $2.07 billion in 2010, with worldwide spending up 16.3% to $6.47 billion, and is expected to expand another 16.7% in 2011.
It will be interesting to see what happens as the industry continues to go through consolidation and more advertising dollars shift to digital out-of-home.
View a recorded video of The Big Buyers Panel check out MediaPost Live's Ustream Channel ».
Click here for more information on the PQ Media Global Digital Out-of-Home Media Forecast 2011-2015 ».
DO You Know?
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