Market Summary - Digital Outdoor Advertising Insight

Media Update:

Digital Outdoor Advertising Insight

Date:

QTR 2 2012

Sponsor:

Clear Channel

At a Glance

Growth of digital outdoor advertising

Digital out-of-home advertising continues to show good growth, beating market growth with an increase in revenue of 17% in quarter four 2010. Digital outdoor advertising revenues passed £30m for a quarter for the first time, and for the year also passed the significant threshold of £100m for the first time, reaching £101m for the calendar year 2010. This gives digital a 12% share of all outdoor revenue for Q4, and 11.4% for the full year. Digital outdoor now wins £1 for every £8 spent on outdoor as a whole.

Click here to view more on the 2010 Digital Outdoor Revenues

In 2011 the sector is set to expand further with Clear Channel looking at new environments and expanding its digital mall network, and other contractors building their networks. The Olympics in 2012 is also predicted to act as a catalyst for digital and traditional out-of-home growth.

Email Contact:

Claire.McGinty@clearchannel.co.uk

Website:

http://www.clearchannel.co.uk

Hot Topics

Pioneering Research into Digital Outdoor Advertising

Clear Channel and Kinetic Worldwide joined together in 2010 to undertake pioneering research to not only prove that digital out-of-home works but how it works. Cutting-edge face-tracking technology from Germany’s Fraunhofer Institute – inventors of the revolutionary MP3 audio format – was employed by Kinetic at Clear Channel digital displays in Westfield Royal Victoria Place and Westfield Merry Hill shopping malls. The cameras were able to capture shoppers’ expressions or moods and contact duration, as well as their gender and approximate age.

The research revealed a strong level of consumer engagement and tells us what types of ads work best and at what times. It also tells us what kind of mood consumers are in, allowing advertisers to target by mood and mindset.

The results also demonstrated that the presence of animation offers a clear impact benefit. However, full video is slightly less effective than the dynamic images now being widely used by advertisers.

These learnings provide crucial insight to help shape digital strategy in the future with the possibility of using camera technology to display different ads for brands that wish to target by age or by sex in the captive mall environment.

A 3D future?

The world’s first outdoor ‘Real 3D’ campaign was launched early in 2010 in London for 20th Century Fox’s film Percy Jackson and the Lightning Thief.

The ‘Real 3D’ surround effect was achieved without the use of glasses through a specialist filter fixed to the HD screen. The gods and monsters characters appeared to reach out of bus shelters in high profile London locations from Oxford Street to Buckingham Palace Road.

This spectacular new technology allows advertisers to reach audiences in ways never seen before, creating real standout

What is Digital Outdoor Advertising? clear channel digital outdoor market insight

Digital technology has changed and continues to change the face of outdoor advertising. It represents one of the many ways the outdoor industry is challenging traditional thinking to explore new technologies and insights.

Examples of digital outdoor products range from the Clear Channel’s LED roadside and shopping mall networks to interactive digital roadside 6 sheets, escalator panels on the London Underground and bus and taxi sides.

Digital out-of-home advertising allows advertising messages to be instantly updated creating the possibility of much more flexibility and interactivity as well as a greater degree of personalisation and targeting. With digital we can now create multiple copy changes with numerous creatives, daypart advertising and incorporate live HD content from sporting events, rolling news and vital public information.

How does Digital Outdoor work?

Digital can be bought by day part, on a weekly or monthly basis as well as by specific location, enabling brands to effectively capture their target audience.

Clear Channel’s 65" HD network of mall screens create high impact at the point of purchase with full-motion animated ads. Advertisers can reach an audience of over 2 million per fortnight in the top five shopping malls and over 8 million per fortnight with the Clear Channel LED roadside network.

Smaller and more specific groups can also be targeted such as consumers during specific times and locations depending on the brief.

Copy for digital can be supplied as ready to go format or in poster form, in which case animation can be added.

The lead time for the main bulk of the copy work is two days and relevant content can be changed or added with immediate effect.

Key features and benefits of digital outdoor advertising

Immediacy

With digital copy can now be updated instantly. Advertisers can tailor time-sensitive messages to their target audience in minutes.

An example of this is the ‘voice from 2015’ campaign created by a group of independent creatives, during the election season. The campaign incorporated a twitter feed to drum up support. The copy pictured was displayed just minutes after a political gaffe by the then Labour Prime Minister. This campaign also demonstrates how out-of-home and particularly digital out-of-home works well with social media.

Flexibility

Digital enables advertisers to buy by day part, with multiple copy changes and on a site specific basis. Good examples of this include displaying quickly updated lottery draw information and live news feeds such as this scrolling Sky News update (see below).

Interactivity

Consumers can interact directly with digital out-of-home and the data from this interaction can be captured and analysed by advertisers, making outdoor more accountable than ever. An example is the Beck’s 2009 ‘Music Inspired Art’ campaign which used interactive, digital, plug and play 6 sheets that filled the advertising space with artwork directly generated from the music being played. The image captured was automatically transferred to a dedicated flickr channel for all to view and share. A great interactive campaign and another example of digital outdoor working in synergy with social media.

Personalisation

Digital represents an opportunity to engage with the consumer in the outdoor social space as never before. The technology is now available to produce every more sophisticated personalised campaigns. This Castrol campaign linked roadside digital sites with Castrol’s oil advice service, to provide recommendations for individual cars passing the sites.

Key Audience Strength of Digital Outdoor Advertising

nvestment into digital has taken place in prime locations throughout the UK, including London. Due to this digital captures a quality, affluent audience.

The Clear Channel Roadside LED Network in London offers the opportunity to reach over 8 million people per fortnight. All sites have been carefully selected to provide maximum exposure for advertisers.

clear channel digital outdoor market insight

The Clear Channel network of shopping mall screens creates high impact at the point of purchase in the UK’s top shopping centres.
There is evidence of a high level of engagement between the consumer and digital screens in the mall environment. Simple digital animation is 9% more engaging than static.

There is an average of 3.4 average contacts per person with digital mall screens and average viewing times of 1.4 seconds on a weekday, which shoots up to 4.0 seconds on a weekend.

Digital advertising in the mall environment is seen in a very positive light by consumers-
•   99% agree that the digital screen shows good quality advertising *
•   90% agree that it is good to have advertising units so close to the shops *
•   83% agree that it is innovative *

And also enhances a brands image and appeal -
•   82% agree that it makes a brand appear upmarket

* Clark Chapman Research at Royal Victoria Place mall.

Back to Market Insight