By: Beroe Inc. --
02 August, 2016
By Imran Firoz, Senior Research Analyst - Marketing Services
The demand for out of home (OOH) display usually goes up during a mega sporting event like Olympics.
Advantages of OOH Media
Amplification of message
Connection to the audience
Real-time consumption
OOH Landscape in Brazil
Source: latinlink.usmediaconsulting.com Source:http://www.brasilsignage.com.br/en
Supplier Landscape
Key Take-away: Marketers should adopt a model where out of home spend is routed through one of the top network agencies, who will centrally manage the entire advertising campaign including the OOH, as this media forms only 3-6% of the total ad budget. Consolidating OOH with other traditional media will help marketers to negotiate a bigger account with the supplier. At the same time, specialized local agencies can be used for specific channels like airport-based digital displays.
With the advent of new techniques to measure ROI, marketers are expected to gain more confidence while investing in OOH media. Eye on Impression technique for measuring the return on investment will bring OOH on par with other traditional media like Television; this will help marketers to evaluate the entire campaign effective
Primitive Technique
Traffic Count: under this method of ROI calculation, machine counting is done for the number of vehicle passing by in a geographic location. PROS Gave the advertisers an accurate count of vehicles passing by the location CONS People passing by during the night might not be looking at the display board DEC (Daily effective circulation): Also referred to as daily impressions. This technique of ROI calculation takes into consideration the number of people exposed to the display advertising for un-illuminated and illuminated display for 12 and 18 hours respectively PROS This method also takes into account data counts when the outdoor unit is not visible CONS Data accuracy is still not 100%
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Modern Technique
EOI (Eyes on impression): Under this technique both vehicle and pedestrian traffic is taken into account along with the count of number of people actually viewing the outdoor unit. This technique takes an integrated approach by utilizing several measurement tools like visibility adjustment indices, census data, data modelling and analytics. Advantages of EOI: Advertisers can measure data on the basis of demographic characteristics like age, sex or a combination of several demographic factors like Asian, American or Hispanic between the age of 40-50 having a house hold income of above $50,000. More reliable reach and frequency data: EOI measurement system also helps in differentiating between a dispersed and clustered campaign, a dispersed campaign may have higher reach rate but a lower frequency and vice versa.
With EOI technology, outdoor can be comparable to other traditional media such as TV and print while evaluating the entire campaign. |
Digital trends such as geo location can help marketers to place more targeted advertising: digital technology helps in targeting customers within a certain range or location. Trends like dynamic content on digital OOH formats (like digital clock) may help marketers to display their message with variable data such as time of the day and climate condition.
Digital Trends |
Description |
OOH Format to be Impacted |
Display according to Inventory |
Suppliers offer digital signage with software that helps the inventory manager to display the products available. Out of stock product are not displayed. |
Digital signage |
Geo Location |
Suppliers would customize an ad using geo location technology. The products and services are displayed on the OOH format depending upon the type of customer within a certain range or location |
All digital formats |
Online Publishing |
This technology helps advertisers to change their ads using a predefined template as per communication needs. Variable fields can be changed online |
|
Customized Marketing |
The suppliers, through processing their database network, can understand and customize messages according to demography, category, channels and brand names in each point of display. |
|
Dynamic Content |
This technology links the ad on the digital OOH format according to variable data such as time of the day, weather condition and others. |
Digital Clock and all digital formats |
1) Rise in OOH space rent to property owner: OOH space rent has the highest share in the cost structure. 38-47% is generally paid by the agencies to the vendor/property owner for spots in prime location, and this is expected to increase during large sporting events such as Olympics (43-53%).
2) Maintenance of OOH formats: Maintenance of billboards and other formats of OOH constitutes up to 10% of the total cost structure. This is expected to increase by 1% this year owing to the expected rise in the upkeep of various formats such as billboards, digital wall and displays in areas with high foot fall. The digital clocks on the beach areas would require regular cleaning to avoid unclear message.
Among several challenges, marketers in the CPG sector may look for various opportunities to effectively manage OOH spend during a large sporting event like Olympics. Center-led strategy for sourcing OOH display is mostly adopted by marketers in Brazil. However, a slightly decentralized approach may help develop a local media strategy, and optimum planning and placement of OOH media, considering the high cultural and language disparity in Brazil. A shift to medium term contract between 1-3 years along with the rate-contract may help marketers to save on expected rise in price of OOH space during mega sporting events. Marketers in the CPG sector can also channelize a part of the OOH spend in alternatives like athletes/sports sponsorship.