Market Summary - Outdoor Advertising
Media Update:
Outdoor Advertising
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Date:
QTR 1 2012
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Sponsor:
IPM
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At a Glance
Out of home (OOH) or outdoor advertising is just that; advertising on spaces in the public arena which talk to a wide audience. Over 80% of people in the UK see outdoor advertising. You can’t miss it. You don’t tune in to it, you don’t edit it, you can’t search for it, it is simply there.
It is a traditional broadcast medium which has the enviable space to evolve and thrive and will reach 10% of all media spend in the near future.
The ‘three Bs’– buses, bus shelters and billboards are the backbone of outdoor media and enable a brand to reach a massive audience. As a creative canvas they help to meet business objectives by making brands familiar and then maintaining that familiarity. This might be on large glossy backlit billboards on busy roads or on bus shelter 6-sheets across the UK’s high streets.
However, there is much more to outdoor advertising than the typical billboard. It has the ability to make sure you are communicating with your audience at the right time in the right place. It accesses many environments; cinemas, gyms, GP surgeries, chemists, football grounds, supermarkets to name a few. It is this relevant placement which creates the connections you need with your audience.
Outdoor media includes: Huge banners on urban buildings; the handles of petrol pumps and the backs of rickshaw bikes; sampling stands in shopping centres and digital screens on the London underground.
As the medium evolves and technology develops, so does its tactical potential. Not only can it build brand awareness, it can encourage consideration (by filling dead time with copy heavy messaging on trains and buses) and activate conversions using mobile technology or POS messaging.
With the phenomenal growth in digital screen advertising there is a new reactive angle to OOH. It now delivers day part messaging and the ability to react instantaneously to breaking news, weather conditions & media events. Digital screens and the experiential side of OOH can also facilitate shared social experiences, which are increasingly important communication objectives.
There is now a clear determination to make the medium more accountable, acting on the ongoing demands from you to understand how OOH works. The involvement of media agencies has been instrumental in adding credence to the cause and the drip feed of legitimising research into the market is changing things. In the last year, BrandScience have given solid econometric evidence that OOH delivers ROI and Mindshare/OAA research has provided empirical data to prove that OOH drives search.
This is how the age old ‘poster’ medium continues to maintain its heritage whilst ensuring it can deliver new ways of communicating.
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Hot Topics
2010 – year for recovery?
OOH revenue was up 12.5% YOY in 2010, outperforming many early predictions. This was driven by the return to spending of the automotive sector, retail and the media, with BSkyB being the biggest spender. Predictions for 2011 are for single figure growth of around 5-6% YOY.
The growth of digital
Digital OOH spend in 2010 reached £100.7m, up 37.3% YOY. £1 in every £8 spent on OOH is now spent on Digital. Digital development slowed during t he recession, however we are now starting to see media owners invest again, obviously in London, but now also in some of the regional cities. Digital formats are now commonplace in transit and mall environments in particular, and can be bought by day part and for shorter posting cycles. This makes Outdoor a much more flexible medium, and in a position to compete with the shorter lead times of press and TV.
Media Owners
The media owner landscape has settled following the demise of Titan outdoor in 09/10. The focus is on continuing the growth of OOH across 2011, and with the Olympics around the corner the next 2 years should see both growth and investment continue for the foreseeable future.
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How does Outdoor Advertising work?
How do we plan Outdoor Media?
At ipm we use POSTAR to target 32 different audience groups, and we use Optimum, our bespoke planning tool, to plan the right panel weights and distribution to reach your audience in the most cost efficient way. We also have Censys, the most sophisticated mapping tool of its kind, which enables us to map audiences using Mosaic and TGI data, and to buy sites in proximity to particular locations.
How do we buy Outdoor Advertising?
As with our planning, each campaign is bespoke and bought to strict targeting and distribution criteria. To ensure that we extract the best value we have three tools: WOW helps us monitor market trends, what quality is available to us, and what a client’s competitors have been buying. Tracker tracks rates and enables us to forecast and predict trends based on previous years’ expenditure. Market Monitor provides live market availability. Add the expert knowledge of our buyers and you have a system that tells us the optimum time to buy where price meets quality.
We also employ a field force whose job it is to buy regional campaigns, reinforce the buying of national campaigns with their own regional expertise, and to survey new and existing sites. The field act as our eyes and ears on all things outdoor.
How is Outdoor measured ?
Outdoor is measured using POSTAR. POSTAR measures the audience characteristics of each panel and provides a netted down OTS across 32 different audience groups. POSTAR II is due for release in Q2 or Q3 2011, and will give better audience data, and include new environments such as malls and transport. POSTAR provides a quantitative measure by giving a VAC panel score in the form of eyeball contacts per week and campaign.
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