University American College Skopje School of Business Skopje
Toni Ivanoski, BA
Outdoor AN OPEN CONVERSATION A Master’s Thesis on the Phenomenon “Outdoor Advertising“
Mentor: Prof. Dr. Nada Sekulovska
Skopje, September 2007
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Creative outdoor advertising pictures, taken from site www. Ffickr.com
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Outdoor AN OPEN CONVERSATION A Master’s Thesis on the Phenomenon “Outdoor Advertising” By Toni Ivanoski
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Abstract
This thesis, articulate an analysis, theory and research of why, choosing the outdoor advertising. It will examine how the paid form of no personal presentation and promotion, outdoor spaces have impacted businesses and communications, how can create revenue and greatly boost the spread of information, how the outdoor places add richness to the media landscape, how it works and what the future of the Outdoor advertising may be. Increasing the traffic usage means the business will increase emphasis on outdoor advertising. The people stay home less and are on the road more, on the ways to their homes, to their workplaces, on the way where they are going to drink their coffee and anywhere. The enormous message is better communication, received any time of the year, 30 days per month, 7 days per week and 24 hours per day. The outdoor advertising is the most successful medium in using the reach for adult population. It enables people to see the picture of the potential, or build brands. Choosing it, you are selecting the most cost-effective and the high-impact advertising medium available, that grabs the attention of potential customers. Build the brand and find out why is the best, - THE
OUTDOOR MEDIA.
.
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THESIS READERS
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Outdoor AN OPEN CONVERSATION A Master’s Thesis on the Phenomenon “Outdoor Advertising”
By Toni Ivanoski BA Agricultural science and food, 2005
THESIS
Submitted in partial fulfillment of the requirements for the Master degree of General Management with sub major Marketing Management in the University American College Skopje
June, 2007
Approved:__________________ Date: __________________
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TABLE OF CONTENTS
Abstract…. …. …. …. …. …. …. …. …. …. …. …. …. …. …. …
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Thesis Readers …. …. …. …. …. …. …. …. …. …. …. …. ……
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Table of Contents …. …. …. …. …. …. …. …. …. …. …. …. …
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Chapter 1: INTRODUCTION … …. …. …. …. …. …. …. …. …..
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History, today and expect from the future … …. … ....
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Why Outdoor Advertising ……………………… …… …
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Objectives, Goals and Purposes …. …. …. …. …. …. ....
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Chapter 2: THE ADVERTISING COMMUNICATION, THE ROLE OF INFORMATION AND PERSUASION ….
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Outdoor Advertising Communication …. …. … ….. ….
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Role of Information … .. …. …. …. …. …. … …. …. ….
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Persuasion in Advertising Communication … …. …. ...
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Chapter 3: THE MANAGEMENT OF OUTDOOR ADVERTISING… …. …. …. … … …
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Market Structures for Outdoor Advertising … … … .....
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Outdoor Advertising Functions and Processes … …. …
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Budgeting the Outdoor Advertising .. …. … …. . … ….
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Outdoor Advertising Strategy … …. …. …. … … … ….
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Advertising Agency … ….. ….. ….. ….. … … ….. … ..
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Advertising Agency Organization …. …. …. …. …. ..
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Principles of OA Agency with Client relationship …
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Outdoor Advertising Agency Compensation … … …
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Advertising Plan and Strategy … … …. … …. …. … .
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Pricing Strategies …. …. …. … …. … …. …. …. …. … …. ... 49 -
Setting the Price…. …. … …. …. … … …. … …. … …... 50
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Adjustment the Price ….. … … … … … … …. … …. …
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Selling Outdoor Advertising Space …. …. … …. ….. …. ... 53
Chapter 4: THE OUTDOOR ADVERTISING PRODUCTS … .
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Outdoor Media …. … …. …. …. … …. …. … …. … …. ...
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Stationary Billboards …. …. …. .. …. . …. … …. …. …. ..
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Rolling Billboard ….. …. …. …. …. …. …. … …. …. … …
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Big Board Advertising …... …. … … …. …. … …. … … ..
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Wallscape Advertising .. …. …. ….. …. ….. ….. …. ….. …
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Vertical Format …. … …. … …. …. … …. …. … …. ….
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Mega Format …. …. … …. … … …. … … …. … … … .
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TV Format .. …. … …. .… … … … … …. … … … … …
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Prizma Billboard … …. …. … …. …. …. …. … …. …. …. .
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Digital Advertising … …. …. … …. … …. … …. … …. ….
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Roof Top Signage Advertising ….. … …. … …. … …. … .
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City Light and Mega Light Advertising …. …. … …. … ..
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Mall Advertising … … … … …. … .… … .. … … … … … .
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Mobile Advertising … …. …. … ….. …. … …. …. … …. ..
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Mobile Billboards …. …. …. …. ….. ….. ….. ….. …. ..
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Taxi Advertising … …. ….. …. ….. ….. …. …. …. …. …. ..
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Transit Advertising and Bus Advertising…. … …. … …..
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Inflatable Advertising …. …. … … …. … … …. … … …..
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Other Creative Outdoor Advertisements…. …. … …. ….
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Chapter 5: ANALYSING THE OA …. … … …. …. .… …… ….. .
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Market Research and Research Customer Behavior …. …
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Focus Group Research …. ….. … … … … .. .. .. …. …. .
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The customer behavior …. …. …. …. …. …. …. …. ….
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Brain Activity Research … …. … … …. … … … …. ….
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Analyzing the Outdoor Advertising in Macedonia …. ….
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Analyses for the best positioning ad in Skopje City …. ..
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OA Agencies in Macedonia and their types of ads … …..
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Effects from the OA in Macedonia … …. …. …. … …. ….
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CONCLUSION ….. …. …. …. … …. … …. … …. … …. …. ..
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ENDNOTES …. … …. …. …. …. …. … …. …. …. …. …. ….
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BIBLIOGRAPHY …. …. …. …. … …. … … … … …. … … ..
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GLOSSARY ….. …. …. …. …. …. …. …. …. … …. …. …. ….
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Chapter 1:
INTRODUCTION
History, today and expect from the future of the Outdoor Advertising
The outdoor advertising is a proven feature of the modern economic life. The outdoor advertising is the oldest form of advertising and is inflection point in the unfolding history of mass communication. Trace its lineage to the 12
earliest civilizations. By writing or drawing on walls has been since, the very origins of human civilization. The Egyptians, 5000 thousands years ago, were using the tall stone obelisk for publicizing and announcing the treaties and the laws. In 1440 was invented movable type printing in moderate sense for the first time. It was created by the German goldsmith Johannes Gutenberg with hand press, in which the ink was rolled over the raised surfaces of moveable hand-set block letters, held within a wooden form then pressed against a sheet of paper. In 1796 the lithographic process came in perfected form and the illustrated poster became a reality. Mass communication was laborious, time consuming and naturally expensive before the invention of printing. Just few locations where traffic was heavy, were in order to be offered and to be taken, to exposure a message for a period of time. The powerful and only privileged classes had a chance for maintaining the control, over this technology. The formats and the other features have changed. That brings, keeps and answers the given questions why the outdoor is still life and is still here. In 1894 was founded the R.C. Maxwell Company by Robert Chester Maxwell. For the first time when the railroads became primary means of travel and commerce and Mr. Maxwell built the “billboards”. The first biggest mega board was built, constructed and designed in 1926, by the Maxwell Company (see figure 1.1). Today, the advertising on “out of home” places is used as a space with original news, features and latest trends with new technology. The best and different creative kind of works, researches, new campaigns where anyone can feel it, see it and learn about the consumer became reality. It is great information from the players of the outdoor advertising industry which is rapidly evolving and with more scope in terms of application of the new innovation or new technologies. It includes global, national or local news, 13
features of new design products and all new trends about and for the companies.
Figure 1.1_____________________The first biggest mega board
Figure (1.1)source: www.wikipedia.com/outdoor advertising - Steeplechase Pier at Pennsylvania Avenue and Boardwalk in Atlantic City finishing in a burst of gold and white before fading out to begin again.
Today the people are using different kind of signage and different kind of solutions for advertising, especially in the outdoor view. The most favorable and one of the most used kinds of advertising today are: billboards, big boards, mega boards, rooftop signage, outdoor lighted signs, flags, bus shelters, notices, placards, posters, mega light, city light, wall panel (see figure 1.2) and etc. Assessing the perspective for this concept is to be moderate, always in for the design, installation, placements and service of landscape and architectural illuminating systems. The beauty, safety and security are common buyer motivators. What the company hopes to accomplish from the placed
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advertisement, should be clear, concise, precise, and can help to measure the success at the end of the campaign. The expectation from the successful campaign is to increase the product salary, the brand awareness and changing the consumer attitudes.
Figure 1.2_____________________
Example for Wall Panel
2006 Sofia, Bulgari advertising wall panel (source: “Radea Marketing Agency, Bulgaria”)
In 2000 the United States was the leading advertising market in the world with total advertising spending of $147.1 billion. Japan ranked second with $39.7 billion, followed by Germany with $20.7 billion, the United Kingdom with $16.5 billion, and France with $10.7 billion. This article deals primarily with advertising practices in Canada and the United States.¹ The future of Outdoor Advertising is indeed bright. The great strides have been made in the development of panels, screens and other formats with high technology. The need for effective mass outdoor media is growing increasingly in the whole worldwide. ² More people are spending their time out
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of their homes and that’s why the Outdoor Advertising is the most perfect medium in conjunction with on line with degree of 99% revisited. Digital and scrolling technology transformed the industry from handpainted boards and replaced by computer-painted outdoor advertising formats. Outdoor companies will offer an increasingly diverse selection of advertising formats. All out of home media suffer expansion and their revenues are rapidly increasing. The Outdoor Advertising Association of America (OAAS) analyzed the revenue the previous 15 years in USA. (See figure 1.3) It is expecting the next years to increase more the revenue and the outdoor advertising to be more presented on public and private places.
Figure 1.3_________________Facts and Figures for revenue of OA in USA
Source: the site at http://www.oaaa.org/outdoor/facts/.
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Why Outdoor Advertising The Outdoor Advertising (OA) contains many good reasons why a business is advertising: ³ -
To create awareness, desire and customer interest;
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To build and maintain brand loyalty;
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To launch a new OA product;
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To build a brand image and build company’s name;
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To change clients attitudes;
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To remind the clients and the customers;
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To offset competitor advertising;
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To support the sales force; Whatever and wherever is advertised, it is important that the message is:
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Seen;
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Read;
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Believed;
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Remembered;
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Action upon by target customers.
Several advantages are enjoyed by outdoor advertising: ⁴ -
Flexibility - OA can create a national saturation campaign or to high spot in selected markets or even in parts of markets.
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High Frequency – The continuous presence and constant exposure is producing frequency level unmatched by any other media.
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Total Reach – OA enables broad coverage and target market reach. It is the most effectively visible media exposed to any person out of home.
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A mobile audience - The consumer views the outdoor advertising in move and many will be potential buyers within a short time after viewing the advertisement.
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Relative absence of competing advertisements – Outdoor advertisements stand alone and are not subject to the competition of other messages.
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Impact – Outdoor is BIG, BOLD and COLORFUL media.
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Repeat exposure – It is great opportunity for repeating the exposure, cause it is the only media which can be seen at the same place and the same time. A unit of a sale reaches over 80% of all adults in the market the first week. At the end of the month 89,2% of the adults will have seen the message an average of 31 times.⁵
Objectives, Goals and Purposes The objective of the campaigns from offered places for outdoor advertising is to increase the awareness for all products, at everyday market place. The new marketing campaign has an objective, to inspire the potential clients and investors with all viewed signage. With the clear point of view, any advertising agency will progress, even on the road full of barriers. It is a unique communication task, where the target is accomplished with a specific audience. OA can be found in Outdoor form differentiates from 18
the other important forms in the advertising. OA can be seen and in other important help for communication using some of specific forms such as:
1. Informative OA, with generating a good reputation and carried out on informative manner; 2. Persuasive OA, which can increase the brand awareness and the demand; 3. Reminder OA, in which the advertising company’s are supposed to remind their clients; 4. Specialty advertising, found in a form of sales promotion, designed for increasing the public recognition and the company’s name. ⁶
The goals for every advertising agency are to increase the sales. But the people are asking themselves how to do it. Exist steps following to understand the entry: first and most important, is to gain the consumer attention. After the visibility and the view, people start with receiving the message or information and the Brand Awareness is mostly increasing. Connecting with the consumers on emotional level, must be mentioned if the implementation desire is to have an easy entry on the market and sales to be increased. Increase the probability of keeping the current customers and developing their loyalty. Attracting the competitor’s customers is also very important idea in achieving the goal in the outdoor advertising agency. Advertising realize the goals, when they are developed to meet a certain specific goal at a time.
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Chapter 2:
THE ADVERTISING COMMUNICATION, THE ROLE OF INFORMATION AND PERSUASION
Outdoor Advertising Communication The consumers may accept the messages which are interesting. If we want to interest the consumer, the message must be stronger, have more noise and be different then the others.¹ The people can remember around 25% form the seen and heard, because they don’t have interest for the propagated
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message.² The OA companies use the advertising communication and it is a mean in which they inform, persuade and remind the client customers about the products and brand they sell. It describes the process of sharing meaning by transmitting messages through media such as words, behavior or material artifacts. ³ The communication serves four major functions within a group or organization: control, motivation, emotional expression and information. The elements of communication process are: ⁴
1. The sender (the sender of the message); 2. Encoding (using the communication message in a symbolic form); 3. The message (what kind of communication is using); 4. The channel (the medium selected by the sender and traveling to the receiver); 5. The receiver (the acceptor of the message); 6. Noise; 7. Feedback.
Despite
this, must be use and other forms of Nonverbal
Communication: ⁵
1. Facial expressions; 2. Body language (body posture, clothing, cosmetics, hairstyles, etc.); 3. Body contact (touching); 4. Eye contact; 5. Color symbolism; 6. Paralanguage.
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Most of the OA companies use some internet tools as communication, what can connect the people world wide. The point is that the linking via internet the communication will be much closer, easier and always on-line. The internet telephony in any OA office is important, as much as the office phone.
Negotiating is the most useful (face to face) tool in communication and must be implement with several tactics fulfill with speech. It describes the process of discussion between two or more parties, reaching a mutually acceptable agreement. When you communicate, be concise. Be patient. Talk to be understandable only about yourself about your company and about your job, not for them and for the others. Conduct business personally, not by correspondence or telephone. Communicate with clear point of view and listen actively. Avoid all expressing doubts or criticism when other people are present. Get to the point and adapt to the norms of flowery speech and the body language. It can help you to have more knowledge, to have more information about everything you need for and to become a better managerial leader. The body language must be full with self-esteem, near to the public when is necessary, and fulfill with gestures on the right place and right time. I believe that if the people decide to advertise, they should advertise on Outdoor media. Cause it speaks, talks, says on every language and it is the most beautiful picture hanged on the wall, or the streets, fully of pleasure and gorgeous. Today the people are using some internet tools in the communication. People use something, what can connect the people world wide, and can be receive even in the mobile phones. All managers linked with the customers use E-mail - Electronic Mail as the most important kind of communication.
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Role of Information To carry out marketing analysis, planning, implementation and control, managers need information. It is an input for marketing better decisions and gives competitive advantage of strategic importance.⁶ Outdoor companies obtain information every day and use information technology. It is their need, because they are disseminating information every day and every minute. A Marketing Information System (MIS) consist of people, equipment and procedures to gather sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers.⁷ The information needed by marketing managers comes from internal company records, marketing intelligence and marketing research.⁸ MIS distributes information gathered from internal sources, marketing intelligence and marketing research to the right managers at the right times. Using the Information Technology (IT), the OA companies can better the communication and send or receive more information. It is a need for disseminating the information every day and every minute. The results are some kind of communication between the drawing’s on the vinyl cloth or the paper and the clients. Outdoor advertising is the most successful medium you can use to reach the adult population. It can give us a big information of what is advertising, what is maybe the cost, is it competitive the with the quality, what is selling or even what is and who is on the screen! When you choose billboard advertising, you're selecting the most cost-effective, high-impact advertising medium available. Billboard advertising grabs the attention of potential
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customers. These guidelines will assure you that your investment gets you a maximum return. It is information, which has lower price than the other mediums and still has better communication. It can speak the brand language of the consumers. The Outdoor Advertising Company must design its marketing mix to make prospects aware of and knowledgeable about its brand. If it fails to do this, the OA Company has lost its opportunity to sell to the customer. Also this, the company must learn and get information in which other brands customers consider. ⁹ From the Out of home advertising the people can get the information 24 hour per day, 7 days of the week, 30 days of the month. It is a creative, colorful, eye - catching ads and reach hundreds or thousands of people daily. Perceiving the information from the people, consumers, potential customers, means we’ve already identified the problems and we’ve already found the indicators for the problem or the situation. For example, most of the customers are thinking of getting the information from the advertising magazines that are much better, than getting the information from the outdoor advertising. Cheaper kind of advertising distinguishes the expensive ones and the feedback is much different. Another example of identifying the problems are the information of people thinks for advertising that is a waste of money. There are a lot more of indicators for the problems but this kind of thinking can teach us a lot. Outdoor advertising is a source of information for all the people who are going on their ways to their homes, on the way to their work place, on the way where they are going to drink their coffee and see each other with their friends. Currently they are still driving the cars and watching all the beauty paint stuff, mega lighted, deep in the nights. 24
From the out of home media, the consumers will get successful information of the company which will advertise on. That information can help in building the brand for the company because it is the only link between the manufacturer and the consumer.
Persuasion in Advertising Communication Sales people attempt to convince customers to purchase one product rather than another. ¹⁰ Advertisers are creating desired images for the brand names of the companies in expect someday to be purchased from them. The outdoor advertising managers in order for better success and better approach to the client sometimes is using types of promotions, coupons, rebates, samples, price incentives and etc. Persuasive outdoor advertising attempts to increase the demand of the advertising product. It is also a competitive type of promotion suited to the growth stage and the early part of the maturity stage of the product life cycle. Persuasion is the essence of the marketing communication. ¹¹ The OA managers attempt to guide people toward acceptances of their innovative decisions, attitudes, beliefs for better advertising campaign. Advertisers use many devices to attract attention. Message elements such as words, graphics and design affect comprehension. ¹² The information processing has five basic stages: ¹³ 1. Exposure – It begins when the advertising message activate at least one of the five senses.
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2. Attention
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Attention
is
the
cognitive
process
of
selectively
concentrating on one thing. ¹⁴ 3. Comprehension – The level of understanding the outdoor advertising message. 4. Acceptance – refers to degree to which a stimulus influences a person’s knowledge, beliefs and attitudes. 5. Retention – where the information is transferred into long – term memory.
Six tools of influence tactics cut across persuasion practices: ¹⁵
1. Reciprocation – Where communicators give gifts or samples in hope that the customers will reciprocate by purchasing product. 2. Commitment – Where the communicator commit with hope that the consumer will continue to act in a manner consistent with this commitment. 3. Social Proof - Where appropriate amount to give is unclear and than may be contribute similar amount. 4. Liking - Where exist facts, attitudes, persons that are likely to be adapted and the likable person promotes that action. 5. Authority – Where exist respectability for authority figures and to exhibit a sense of duty toward them (politicians, directors and etc.) 6. Scarcity – Where things become more desirable when they are in great demand but short supply.
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In the outdoor advertising, managers or account executives have to negotiate. You have to convince the people. You have to be strong. Don’t give to much information. Be concise. Communicate with clear point of view and listen actively. Negotiate and use your technique to help you develop your approach for problem solving. And again there is a need and always follow one rule: accept much more information and give less information. It can help you to have more knowledge, to have more information about everything you need for and to become a better managerial leader.
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Chapter 3:
THE MANAGEMENT OF OUTDOOR ADVERTISING
Market Structures for Outdoor Advertising
Market Structures, describes the state of a market with respect to competition.¹ Market Structures follow the advertising strategies with giving necessary platform for implementation. They are those company systems which
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may to allow marketing to be implemented through the marketing functions. Marketing Structures have decisions that give the implementation framework for the functions: ²
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The type of management system and organization that is using in the OA company;
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The type of information and planning system that is using in the OA company;
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The marketing channel structure that is using the OA company.
The market structure identifies and analyses how the market is made up in terms of: -
The numbers of marketing and advertising companies that exist in the country;
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The degree of the monopoly power each firm has;
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The degree in which the company influence on the price;
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Profit level and index;
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Pricing strategies, output levels and non-price competition;
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The extent of barriers to entry on the market place.
When you look at the real world examples, you have to focus on the attitude of the company in relation to what the model forecast to be happen – that gives the basis for evaluation and analysis of the real world situation. The models are based on certain assumptions and in the real world some of them may not be valid and that allows us to draw comparisons and contracts. The OA is everyday confronting with the competition. It depend in what kind of product from the OA, and as a part of economic sciences that 29
describes the state of the market with respect to the competitor’s, can be found major, market forms:
1. Perfect competition – where the market consists a large number of OA companies. The product’s are homogenous (identical) and the consumer has no reason to determine a preference for any company. The company’s are price takers and do not have control over the price. With this form the consumers and producers have perfect knowledge for the market. 2. Monopolistic competition – It is also called imperfect competition or competitive market. Where the conditions of perfect competition do not hold, imperfect competition is existing. This form consist large number of independent companies and may have some element of control over the price. They are able to differentiate the products from OA in some way from their rivals. This competition embrace, mostly the marketing agents from the OA company’s. The consumers and producers do not have perfect knowledge of the market. 3.
Oligopoly – It’s competition between the few, where the market dominate by small number of OA companies which own more than 40% of the market share. In this form are embracing the brand and the brand loyalty as a potent source of competitive advantage. The Barriers are very high for entry. The goods and the products can be homogenous or highly differentiated.
4. Duopoly – is market structure where the market is dominated by two large producers or companies. The price leadership from the two companies may exist and the smaller company follows the price lead of the larger one. The barriers for entry, when exist this kind of competition form, are very high and they may be high interdependent. 30
5. Monopoly – where only one OA company or producer exists on the market. It is called pure monopoly, where only one company, dominates the market. The monopoly power refers to cases where the companies influence the market in some way through their behaviour. It can influence on the price and output, erecting barriers to entry, encourages unwanted entrants to the market, pricing strategies to prevent, etc. The innovation may be high, in cause of high profits, and may encourage high investment in research and development. The monopoly likes the branding and advertising and always is on the high level.
Outdoor Advertising Functions and Process Each OA company has a specific function. When one department completed its work, it goes to the next department in the advertising process until the OA campaign is completed. Advertising can perform five critical communication functions: ³
1. Informing – Advertisement are informing the consumers about new product or maybe to inform them to repeat the purchase; 2. Persuading – Advertisement is influencing and persuading the potential customers to buy the product; 3. Reminding – Advertisement is reminding the customers to purchase the product. 4. Adding Value – Offering the innovation, improving quality and altering consumer perceptions. 31
5. Assisting the Company Efforts – Assist the sales team, especially in price deals from the advertised company, assist with the Promotional tools and etc. ⁴
It is always important for the OA process to know and understand how fits in and interacts with the surrounding environment on both internal (in the marketing and advertising company) and external view (the outdoor advertising business processes outside the world). The best and the most influential way of doing it, is performing SWOT analysis (See Figure 1.3) It is a phrase, where the Strength may provide an insight Business Opportunity and phrase where the Weakness of the business can cause an Immediate Threat. ⁵ In practice the OA agencies in Macedonia are performing the same tasks as the responsible SWOT team in making the analysis. The SWOT team is an independent adviser within the Outdoor Advertising and can give the advice about the best possibilities of achieving the goals and offering good value for money. They are advisors and decision makers with adding more than text and fun ideas to the marketing. SWOT is a strategic management tool and should be on of the first steps in the preparation of a business plan, marketing plan and advertising strategy. ⁶ The following is the SWOT analysis included in its marketing plan for OA Company with their Internal and External attributes of the organization and environment (See figure 3.1):
Strengths –
Good knowledge with improved quality about the system, process, technology, operations, financing, marketing and etc.
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–
Through the selling process and other processes the outdoor advertising account executives and other employees are building the relationship with the customers.
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Good and frequent locations.
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New innovative products and services.
Figure 3.1_______________Vertical MM_SWOT Analysis Helpful
Harmful
to achieve the objective
to achieve the objective
Strengths
Weakness
Internal attributes of the organization
-
knowledge relationship
-
Cost structure Price
Opportunities
Threats
External – Attributes of the environment
-
-
Internet Training
-
Computer and appliances Administration
Source: www.supermarketingmedia.com/swot_analysis
Weakness -
When costs of expenses for the advertisement are high.
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When can be afforded to sell for less the ad and low pricing.
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Damaged reputation.
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Opportunities -
Offering through the Internet areas can be strength the opportunity.
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Training the employees and yourself is more in demand for executing all determined tasks.
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A new local market.
Threats -
Changing technology, services, low skilled IT employee can be threat in processing the tasks on the computer and other appliances.
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It is typical for non developed countries to have low skilled administration and too much corruption.
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New competitors on the market place.
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The Competitor offers new products and services.
A SWOT analysis is a process to identify where you are strong and vulnerable and where you should defend and attack. SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses, and for looking at the Opportunities and Threats you face. It is the first stage of planning and helps marketers to focus on key issues. Running the business can be undermined by the unique – key element – the ability for managing. Having the necessary resources and money for starting a business may come in loosing any of the following “Tangible losses”: productivity, sales, revenues, profitability and any of the “Intangible losses” such as honesty, respect, hope and effort. The OA management process is illustrated graphically in (See figure 3.2).
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Before starting and managing the advertising business it is a need for certainty of the successful demonstrated idea for the: 1. Need and lack for new OA product on the market place; 2.
Ready market for receiving the new form of OA;
3.
Abilities for ensuring solidly return on the investment from the advertisement.
The OA campaigns are very important for the company and for the organization, especially for those who wish domination on the market. Using the real system of steps, lead to success in the competition. Good organization can be improved by the plans with realization in the OA campaigns.
Figure 3.2______________________________OA Management process
Advertising Strategy
Setti ng Obj ecti ves For mulati ng Budgets Creati ng Ad Messages Selecti ng OA for m
Strategy I mple me nt ation
Assesing OA Effectivenss
Source: Terence A.Shimp, Sixth Edition, year 2003, Part Four, Chapter Eight, “Managing the Advertising Process” page 234235⁷³
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The new offerings require considerably more advertising to make customers aware of their existence. In the Outdoor Advertising is very important the road of campaign realization. Developing the plan is the first step in creating the necessary campaign for the companies. It must be estimate all plans before creating the idea with visual and media effect. The idea must contain all important and necessary innovative and creative claims from the consumers. After finding the real creation and design, must be estimate and calculate the budget as the most difficult task for all Outdoor companies. Scheduling the campaign as another step is also very important task. The companies must analyze what time, where, what media and other important factors will be selected for the campaign. Finally the purpose statement will describe the results for the past scheduled campaign.
Budgeting the Outdoor Advertising It is one of the most important decision made by advertisers is the advertising budget.⁷ The reasons for budgeting decisions underlay the significance as expensive proposition because it is a need for purchasing outdoor space and in the fact that with little money for campaign, the sales volume will not achieve good profit. ⁸ The decisions made for budgeting in the outdoor advertising are very complicated.
The
advertising
budgets
are
obtaining
larger
result
of
organizational political processes with various organization units. It is also, complicate to forecast how effective future advertising might be. ⁹
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Through all managing days or any time of year, marketing or advertising companies are deciding the budget and it is mainly on the disposable budget and the stage of the firm life cycle is shown in the diagram (See Figure 3.4). ¹⁰ The budgeters must consider three factors when establishing advertising budgets: 1. What is the objective that outdoor advertising is designed to accomplish; 2. The competitor activities about they spending in the outdoor advertising; 3.
The amount of funds available for outdoor advertising.
Figure 3.4
VALUE
______________________Life Cycle of the Company Flying Increasing the sales High profit
Entertainment High salary Delayed growth Profit stability
Decreasing Decreasing the salary Profit decrease or wastes
Opening Low salary Low increase Low profit or wastes
Readiness and experienced company Constant salary Constant profits
TIME
Source: Nigel Piercy, “Advertising Budgeting:Process and structure as Explanatory Variables”, Journal od Advertising, Chapter 16, year 1987, page 113
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Outdoor Advertising Strategy
The Outdoor Advertising Strategy is a section of the Marketing and Advertising plan that the manager outlines the broad marketing strategy or “game plan” for attaining the objectives. It is the logic by which the business unit hopes to achieve the objectives. It should detail the market segments on which the company will focus. The OA Company should put its efforts into those market segments it can best serve from a competitive point of view. ¹¹
The Outdoor Advertising Strategy must be developed for each marketing segments: ¹²
-
Marketing mix – using the marketing mix elements for each target market such as: the new OA products, prices, discounts and etc. The manager should explain how each strategy responds to the threats and opportunities and critical issues.
-
Action programmes – must be followed the questions: what will be done with the eventually situated ad, when will be situated, who will be responsible and what is the cost.
-
Budgets – The manager is obliged to make support that is essentially a projected profit and loss statement. The budget is the basis for materials buying, production scheduling, personal planning and marketing operations.
-
Controls -The higher management review the results of each period and to define everything that are not meeting the goals. 38
-
Implementation – is the process when marketing plans and strategies turns into marketing actions, to accomplish strategic marketing objectives.
Advertising Agency Outdoor Advertising can be divided into two broad categories: consumer advertising and trade advertising. Consumer advertising is directed at the public. Trade advertising is directed at wholesalers or distributors who resell to the public. When the OA organization knows where it belongs than can start with the planning internally. ¹³ Advertisers have three alternative ways to perform the advertising function: ¹⁴
1. In – House Advertising Operation – When the companies are using their advertising responsibilities and use the Outdoor Space mostly, from the private buildings. 2. Full – Service Advertising Agencies – When the OA Companies perform research, provide creative services, conduct media planning and buying and undertake a variety of client services. They can be involved and in all advertising processes (sales promotions, strategic planning, forecasting, publicity and etc. 3. A la Carte – When the agencies perform all advertising and related functions and the advertisers may recruit the service of a variety of firms with professional work of media selection, production, research, creative work and etc.
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The Advertising Agencies must examine the competitors. They must take the detailed notes on when, where and how often they advertise and analyze them. If they are successful, they are doing the right kind of advertising in the right place at the right time. When the determination from the notes of when, where and how they advertise will be complete, it is time for starting with contacting on the same or very similar way. Determine the frequency with the wanted way of advertising as a use. Finally, develop the budget, necessary for all activities. The OA organizations are making the business and media planning in which my opinion is that they are interlinked and inseparable. A business plan makes the analysis especially from the best factors, while the media plan has a lot to do with the SWOT factor and it depends on how the competition ranking the pricing policy and the position availability. The key element of a successful Outdoor Advertising Agency is knowledge of the organization’s customers and their likes, dislikes and their expectations. OA is an investment in the business for expectations to improve and expand the business. The most important component of all advertising parts is the management part. Managing means something more, than desire to be the boss. The management sets the foundation for and facilitates the success of an organization. It also involves the research for the organization’s target markets and developing the messages for communicating with the audience. Public relations and media strategies are the ones who promote the organization with increasing awareness about what the organization’s offers. Other
component of
the
outdoor
advertising
agency
involves
conducting a financial assessment of the organization with setting up realistic operating budget as well as identifying and implementing the policy for leading 40
and ensuring the financial obligations. It explores the potential accounting systems and inventory control systems and leading to the financial projections with ensuring long-term success and sustainability. In creating an advertising campaigns by the Outdoor Advertising agencies must be followed and realized four steps showed on the table (See figure 3.5) ¹⁵
Figure 3.5 _____The Four steps for creating campaign 1
Development the promotion
2
Placing the advertising
3
Carrying and monitoring the OA campaign
4
Estimation the efficiently and effectiveness from the OA campaign
Source from: Karachidiaries.blogspk.com/2005/09/23/advertising-campaigns-for-theintellectually-disabled
Advertising Agency Organization Most full-service outdoor advertising agencies are organized by several functions, lead by the management of the Outdoor Organization. The outdoor advertising organization is responsible for all functions within the company and contains many departments which perform the tasks and duties of the OA Company (see figure 3.6). The managers are those who run the businesses. Marketing, advertising, promotions, PR and sales managers work close to the top managers. The objective for any outdoor advertising company is to fulfill the empty places with a capture of reality and to make profit. In small firms, the owner or chief executive officer (CEO) might assume all responsibilities. In large companies, 41
which offer a lot of services, an executive manager manage in marketing, advertising, promotions, PR and sales managers work. They coordinate the market research, sales, pricing, advertising, marketing strategy, promotions and PR activities. Usually in small companies managers may serve as liaisons between their advertising company and the companies which want to build their brands. In large companies, the advertising managers oversee and monitor in account, creative and media services departments.
Figure 3.6 __________Organization Chart for OA Company
CEO
Executive Manager
Account Department
Finance Department
PR
Creative and Service Department
Media Department
Copyrighter Chief
Commercial Department
Promotion managers and Media Planners
Marketing Managers and Commercialist
Design Chief
Art Director
Source from: Vertical MM Outdoor Advertising Agency, Macedonia
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The account executive manager – manages with the account service department and he is the contact for the agency for clients that hire themselves for services. He directs the preparation of the advertising strategy, deciding how and to whom the service and the product will be presented, assigns priorities, reviews, oversees the budget, assesses the need for advertising and maintains the accounts of the clients. He manages with the account managers.
-
Financial officer – manages with the financial risks and he is responsible for the financial planning, financial reporting to higher management. The (Chief Financial Officer) CFO must be close to the CEO for reporting the final results and the analysis made from the financial statements of the firm.
-
The creative director – manages in the creative services department. He monitors the copyrighter chief, design chief and art director. He overlooks the design of branding and advertising the clients, ensuring new brandings and advertising to fit in with client requirements. The copywriter is the person who writes the OA message. The design chief is the person for finding creative ways for delivering the message. Art director is the person who oversees the design of the ad.
-
Media director – manages with the media planners department and oversees the group, which is responsible for all outdoor advertising media and signs. The media planner wants to reach the largest possible percentage of the target audience. To accomplish that goal, the media planner must employ the media that have audiences closely resembling the target audience.
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-
Promotions manager - manages with the promotion specialists. Promotion programs may use any kind of OA communication: billboards, big boards mega boards, etc.
-
Marketing manager – manages with the marketing management team developing the company’s marketing strategy. They estimate and assess the demand for locations and services from the clients identifying the potential markets. They develop the pricing strategy for maximizing the profits and market share.
-
PR manager – manage with the PR specialist. It is communication and must be close to the CEO and company executives. It’s helping and always making the efforts to establish and maintain a company’s image with the public. Helps in the liaisons between the organization and the public, mutually each other. They observe social, political and economic trends that might affect the company. They assist company executives in drafting speeches, arranging interviews, responding the request for any information approved by the company executives or other forms of public contacts.
-
Sales managers – manages with the commercial or the sales department. The commercials are everyday runners for potential customers ensuring long term contracts. They assign sales territories and set the goals. Sales managers maintain the contacts between the clients and the companies. The professional sales managers must have excellent knowledge for the products and services, the products from the competition and the market.
All employees in the OA Agency must: -
know the mission and follows the goals and the responsibility;
-
be trustworthy, give positive energy, be prestigious, and don’t late; 44
-
be informed, always ready for research, with good organizing teams,
-
take the time with looking and acting satisfied.
The management team in OA Companies, combined with a select group of media-solution providers, is committed to helping firms in the advertising industry, to use their technology strategically to increase their profits and grow their businesses.
Principles of OA Agency with Client Relationship Four basic principles are established to serve as the foundation of the Outdoor Advertising Agency – Client relationship: Client approval of expenditures, client obligation for payment, forwarding of cash discounts and the major issue avoidance of a relationship with competitors. ¹⁶
Outdoor Advertising Agency Compensation Exist three basic methods by which clients compensate agencies for services: ¹⁷
1. The commission system – commissionable media in that the agency is paid by percentage systems when it place an order for time or space. The commission is usually 15%. 2. Labor-based fee system – compensation only by a fee based on costs plus an appropriate markup, with all commissions. It involves price negotiations between advertisers and agencies and is based on mutual agreement concerning the worth of the services (lawyers, consultants). ¹⁸
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3. Outcome based programs – it is the newest approach and involves compensation system whereby negotiates a base fee with its agencies to cover all cost of services provided and offers incentive payments tied to brand performance goals. It is based on a percentage of sales that the client obtains. The percent in this compensation system may decline or increase. ¹⁹
Advertising Plan and Strategy The first step in creating efficient and effective outdoor advertising messages is to decide what general message will be communicated to consumers. An outdoor advertising strategy is campaign which is developed to communicate ideas about the products and services to potential customers in the desire of convincing them to buy the products and services. The most outdoor advertising strategies are focusing on achieving three general goals: ²⁰
1. promote awareness of the business and its product or services; 2. stimulate the sales directly and attract the competitors customers; 3. establish or modify a business' image. In other words, advertising seeks to inform, persuade, and remind the consumer.
Advertising strategy is what the advertisers say about the brand being advertised. Formulating the advertising strategy requires that the advertiser and its agency follow process with five step program: ²¹
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1. Specifying the key fact – Identifies why the consumers are not purchasing the outdoor product; 2. Stating the Primary Marketing Problem – three problems can occur: an image problem, competitive problem and the perception problem); 3. State the Communication Objective – how to persuade the potential consumers and what effect the advertising is intended to have on the target market; 4. Implement the Creative Strategy – sometime called copy platform or copy strategy and forms the basis on which the art director and copyrighter work to create the actual advertisement to be used in a campaign; ²² 5. Establish Mandatory Requirements – Relatively technical and uncreative. It reminds the advertiser to include the logo, slogan, standard tag line and etc.
If the Outdoor advertising companies, want to be successful must be creative and keep the customers. It can be done by providing better value for the customer than the competition. The strategic planning involves decision-making about production and operations, finance, HRM, etc. It has an objective to set the direction of a business to provide the products and services to meet the overall business objectives. ²³ The OA has a key role to play in the strategic planning, because it is a link between the environment and the business.
.
OA Strategy offers an overview of the necessary information to identify the elements of the OA advertising mix, to determine appropriate OA objectives and to select the types and PR tools for implementation. With other
47
words, details the procedures for creating an OA campaign, the types of OA Strategies and the steps of the selling process. Many companies are trying to make strategic changes for its positioning on the market as advertising services in which the clients will understand better the difference of the competitors. In the previous couple of years the customers from the OA companies, have changed a lot and the companies must accommodate on the new market require. Objectives, strategies, and tactics (i.e. programs or action plans) - these are the parts of a solid strategic marketing plan. Objective defines the big picture, strategies provide the framework, and tactics fill in the details. ²⁴ Tactics are where the action takes place - these are the things you will do, to bring your plans to life and "work" your marketing mix. Advertising strategy determines the target market, choosing how and where to position the product, deciding how the market will accept it, creating reason why the customers should outdoor advertise and developing a consistent message with focusing for the advertising business. Strategy objectives include identifying, motivating, communicating. ²⁵ The solutions that are made about how to take an OA product to the client also affect marketing strategies related to:
1. The pricing; 2
The format and quality of the advertisement;
3. Promotions and campaigns.
After considering the determination, it can show that a profit maximizing company set the outdoor advertising on level when the marginal
48
revenue from OA, is equal to the ordinary elasticity of the demand for the companies products. Exist and other alternative styles or forms of creative advertising that are in wide use: Unique selling proposition strategy, brand image strategy, resonance, emotional, generic and preemptive.
Pricing Strategies
Outdoor Advertising can be cost-efficient and an effective way for entrepreneurs to spread the sentence for their products and services. Companies spent a lot of money in advertising and OA is on the rise all over the world. Price is the one element of the marketing mix that produces revenue. The other elements produce costs. They are perhaps the easiest element from the marketing program that can adjust. It also communicates to the market. ²⁶ The price is everywhere. We are paying for mobile phones, materials, equipments and etc. The companies are pricing on a variety of ways. It depends of size of the company. If it is a small company the pricing is regulate by the boss. When the company is larger, can be use management team responsible for pricing and authorized for creating the pricing strategies. ²⁷ We consider three key topics in understanding the consumer perception of prices:
1. Reference prices (see figure 6.1) –
consumers often compare it to
internal reference price (pricing information from memory) and external reference price (regular retail price) ²⁸ 49
Figure 3.7
Types of possible_reference Prices
Fair price (what the product should cost)
Typical Price
Last Price Paid Upper-Bound Price (reservation price or what most consumers would pay)
Lower-Bound Price (lower threshold price or the least consumers would pay)
Competitor Prices Expected Future Price Usual Discounted Price ²⁹
2. Price – quality interferences – When consumers use price as an indicator of quality. Usually high priced products are higher priced. ³⁰ 3. Price cues – It is obviously seeing the pricing in some OA agencies worldwide. We can find prices at $599 instead of $600. Research has shown that clients are showing more time on the offered location and they are more acceptable by the consumers.
Setting the Price After placing the construction with illumination the Outdoor Advertising Agencies are setting the prices. The OA Agency has to consider the six step procedure for setting its pricing policy.
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1 Step: Selecting the Pricing Objective’s - deciding where to position its market offering.
2 Step: Determining Demand - Each Price can distinguish from the different level of demand. Mostly the demands are lower and the prices are higher.
3 Step: Estimating Costs - The Company, must give a price which will cover all expenses and make profitability.
4 Step: Analyzing competitor’s Costs, Prices and Offers - Must be considers the nearest competitor’s price and then to decide whether it can charge more, the same or less than then competitor.
5 Step: Selecting a Pricing Method – After implementing all previous steps the company is ready to select the price.
6 Step: Selecting a Final Price – It is the price where finally can be calculated after considering additional factors including the impact of marketing activities, risking and the impact of price on other parties.³¹
Adjustment the Price It is very important to adapt the price for the OA market place. In many smaller cities or communities from longer distances through out the cities, where the frequency is low, usually the prices for OA are smaller. Exist, several price-adaptation strategies: •
Geographical Pricing - where company decides how to price its advertising products to different clients in different locations.
•
Price Discounts and Allowances – it is usually using for early payments, volume purchasing and non season buying.
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•
Promotional Pricing - Is often zero-sum game. This include: cash rebates, longer payment terms, warranties for the leasing time of advertisement space and services, psychological discounts ($1999 instead of $2000).
•
Differentiated Pricing – The price discrimination where the seller charges a separate price to each customer; where the seller charges less to buyers who buy a larger volume and where the seller charges different amounts to different classes of buyers (location pricing, time pricing, product – form pricing, customer segment pricing.
•
Psychological Pricing – This can be used when the OA Company wants to respond on an emotional rather than rational basis. ³²
The price of Outdoor Advertising products can change the client reaction, competitor reaction, suppliers and even governmental reaction. A price can increase, when in the OA agency is over demand or by cost inflation. Despite this the price can decrease when the market share is declining, when is a need for domination on the market or if the country is suffering an economic recession. The price, don’t need to be very low, because the OA product will not be taken seriously. Despite this, if the Price is too high, the potential client will not take the risk to be advertised. Setting high prices to “skim” revenue layer by layer from the market is called the Market-Skimming and is setting the low initial price in order to penetrate on the market very quick and getting deeply to win a large market share, in the Outdoor Advertising this is called MarketPenetration. Excellent skilled sales management team from any of the Outdoor Advertising companies can achieve positive feedback, and poor skilled can 52
achieve the negative result. It is very important in selecting excellent management team which can manage with the pricing strategies. The sales manager team from the OA companies can provide direct control over the team, getting an active role in the planning, and executing the pricing strategies. The person who is responsible in pricing strategies must own several features: 1. To be motivate of money; 2. The desire for training, learning and developing; 3.
To be ready for playing the game with the competition;
4.
Excellent writing, hearing and speaking facilities.
Selling Outdoor Space Selling is the oldest profession on earth. The people who are doing the selling in the outdoor advertising have names: sales people, account executives, media planners, marketing representatives and other. Robert Louis Stevenson once noted that “everyone lives by selling something”. It is a short term incentives, in addition to the basic benefits offered by the product or service, to encourage the purchase or sale of a product or service. ³³ Personal selling can be the most useful kind of selling and is a process that provides face-to-face contact with the loyal or potential customers, to inform about the service offerings or eventually new product and to persuade them to buy. It is a presentation of making sales and building relationship. The private property owners usually sell the advertising space to one of the outdoor advertising companies, which it makes and owns billboards called
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plants. The media sellers are approaching directly to the owner of an interesting property and make a bid. When the agreement or the contract is signed, the media seller erects a structure for displaying the ads and rents out the space to its clients and customers. Plants have historically sold poster-advertising space in terms of socalled showings. Showing is a percentage of the population that is theoretically exposed to an advertiser’s billboard message. ³⁴ The plants have converted in the recent years to gross rating points (GRP) as the metric for quoting poster prices. It means that reaching 1 percent of the population in a particular market a single time. GRP represent the percentage and frequency of an audience being reached by an advertising vehicle. If the OA company owns 100 billboard in a city of 800,000 people achieve a daily exposure to 200,000 people, the result is 40 gross rating points. ³⁵ Outdoor spaces have always been made on the basis of the desired showing. For example a 100 showing is supposed to provide enough signs to reach 93% percent of the population an average of 21-22 times in a monthly period of 30 days and a 50 showing is supposed to enable signs to reach 85% an average of 10-11times in this same period. ³⁶ All showing researches can define that in different areas exist different reach percentage. This means that they are differentiating and from the prices. Some advertisement with high audience reach can have very big prices. When selling outdoor space, the price depends on the type of construction where the advertisement is supposed to be placed. Normally the Roof Top Construction cost more to be constructed, so the advertisements on that spaces will be more expensive than the other which are placed on the street or on the building walls.
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The material of the advertisements may be crucial in selling the outdoor space. The vinyl cloth, the paper or maybe an empty space is needed by the client. The price will differ from what type will be elected. Advertising account executives engage in a variety of activities including selling or soliciting advertising. They negotiate with clients regarding the use of sales promotion display items and obtaining leases for the outdoor advertising spaces. All sales person involved in the OA business should be outgoing, articulate, enthusiastic, self - motivated and a lot creative. The selling is continuous with considerable overlapping of the steps it is useful to consider the steps described by Belch and others in writings that have endured the test of time. ³⁷ The steps include:
1. Prospecting - where the account executive attempts to locate all potential clients who have desire or need for using the outdoor products and services. He must prepare all necessary information as strategic tool for convincing the company, why to start with advertising out of home. 2. Pre approach - Where the account executive is facing with the problem of how to approach the prospect with the greatest effectiveness. All researches and analyzes are always in help, because the potential customer need to know why to use this way of advertising. 3. The approach – It is the step where the account executive first meets the client. He must start with good communication, because the first couple of seconds are the most important in the negotiating. The person must use its communication verbal and non verbal skills. especially the body language. 4. The presentation – The objective of this step is the account executive to create in the prospect’s mind a desire for the offered OA products and 55
services. The person must use his knowledge why the company should be out of home advertised, he must feel free and to be ready for any nonexpected challenges and questions. 5. Meeting Objections – where the account executive knows what the true purpose of the objection is. He must negotiate answering the questions without any mistakes. In this step the parties feel free and comfortable. 6. Closing the sale – In this step the goal of the account executive is to obtain action and preferably a commitment on the part of the prospect and the expectations for the potential company to become a buyer. When and what will be done, who is responsible for doing this and how much will cost are some of the questions that must be answered and contracted. This is the step where the sale is finishing and the parties are or are not satisfied from the meeting and from the past conversation. The Account executive must close the sale with good attention using great non verbal and verbal communication skills. 7. Follow – up – Also called after-sale and is happening when the account executives end the selling efforts and when the order is signed. The successful contract between both parties can be appreciated after signing the order or the contract. Both parties must follow and their future meetings and challenges with having an excellent working coordination together.
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Chapter 4:
THE OUTDOOR ADVERTISING PRODUCTS
Outdoor Media
There is a huge variety of outdoor media or products which are available through which a business can conduct an advertising campaign. The starting point in the selection of appropriate OA media is the “media analysis”, 57
which can be defined as investigation into relative effectiveness and relative costs of using the different OA media in an advertising campaign. It is always necessary to be considered and balanced some elements into a plan of a campaign that can effectively reach the target place at a reasonable cost:
1. potential customers; 2. reading and watching the OA space; 3. how many times the advertisers wish the potential customers to see an advertisement; 4. how many percentage of the market they wish to reach. Today, the Outdoor media can watch and count the viewer of the advertisement. The technology, improve the abilities for reaching the target in the out of home advertising. The portable device can recognize when eyeball are actually turned toward the signage. They track and count the number of people who look at it. When TV channels are different, the radios turned off, the OA structures still impact the customers and captivating attention. It is proven, that the outdoor advertising is the most cost-effective way to reach a desired target audience. The number of the personal vehicles increased more than 130% in the last fifteen years. Outdoor products are much more today than couple of years ago. Today all companies are using some kind of advertising. The outdoor view is the reaches one and the most favorable kind of OA. Most of the chosen and commercial kind of OA products are: stationary billboards, mobile billboards, big boards, rooftop signage, digital advertisement, wall panel, taxi advertising,
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mall advertising, fuel station advertising, outdoor lighted signs, flags, bus shelters, notices, placards, posters, mega light, city light and many more.
STATIONARY BILLBOARDS
The major forms of billboard advertising are poster panels, painted bulletins and vinyl cloth. It is usually 12 meter square and can be found bigger ones with 18 meter square and 24 meter square. The 12 meter square is mostly with dimension 4m x 3m and 2,4m x 5m. The 18 m2 is 6m x 3m and the 24m2 is doubled than stationary billboard and have dimensions 3m x 8m. Today people spend countless hours on the streets. The stationary billboard advertising is the most successful medium in reaching the target audience. It is the most useful media with high impact and the most cost – effective advertising medium, available today. It can grab the attention of the potential clients and it can be experienced 24 hours a day and seven days of the week. By research from the Outdoor Advertising Association of America in 2006, advertisers spent $6.8 (up 8%) billions of dollars in OA, and the billboards commands with 62% of the spending, followed by transit 19%, street furniture at 15% and alternative outdoor media accounting for 4% of total revenue. The billboards have enormous dimension with different sizes and they are affordable mostly for the companies. It has no barriers and can reach the target audience, as no one else can do. Exist, several types of stationary billboard formats: lyastovitsa billboard (see figure 3.1.1), pizza billboard (see figure 3.1.2 and 3.1.3), raketa billboard (see figure 3.1.4) and etc. All of each is diminishing
59
in their specific dimensions, the manner of illumination, the strategic position of the ad, their type of construction and etc.
Figure 3.1._
Lyastovitsa billboard
Source: Kulata, Bulgaria – Radea Advertising agenvy (Lyastovitsa billboard 8 x 4m)
Figure 3.1.2
Pizza billboard
Source: Sofia, Bulgaria – Radea Advertising agenvy (Lyastovica billboard 4 x 3m)
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Figure 3.1.3_____________________Pizza billboard
Source: Sofia, Bulgaria – Radea Advertising agenvy (Piza billboard 4 x 3m)
Figure 3.1.4 _________Raketa billboard
Source: Burgas, Bulgaria – Radea Advertising agenvy (Raketa Billboard 1,20 x 1,80m)
The study by “Product Acceptance and Research”1000 made an analysis
61
with measured consumer awareness and sales between static billboards, billboards utilizing scrolling motion and lighting and no billboards. 43% of the respondents recalled the static billboards over no billboards. However, 94% of the respondents recalled the scrolling lit billboard, but in addition, 80% recalled the specific advertisement. Of even greater importance, static billboards resulted in an increase of sales of 54%, but lit scrolling billboards resulted in an increase of sales of 107%.
Rolling Billboards The rolling billboards (see figure 3.1.5) are in the fastest area of growth within the medium. They create displays or vinyl cloth that look much like the stationary billboards, but they can change message as needed to suit the needs of the advertising campaigns. ¹ The rolling billboards are replacing the old static billboards using different advertisements and mandate the image to change every couple of seconds. With their move, may attract the attention and can make combination with illustration, ready for telling the story. Today with help of the digital rolling billboards can be shown more pictures and illustration and may have bigger dimensions. They have many popular names: moving sign, motion poster, rolling banner and other names. This variation all refer to a display technology that the images are moving physically through a viewing window to increase an advertiser ability to make impression for the target audience. It can be seen on the streets, on the sport games, on the walls and many other places.
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Figure 3.1.5 _______________________________Rolling billboard
Source: M&M Movie Theatre; Hiram, USA (Lamar Advertising Agency) www.lamaroutdoor.com
Source: GA Newark Bears; Newark, NJ Video Max Model (Lamar Advertising Agency) www.lamaroutdoor.com
Big Board The big boards (see figure 3.1.6) are very popular and the people likes especially when they are driving on the highway. They are much bigger than the billboards and mostly have dimension 10m x 4m. They can be found and bigger than this sizes and mostly the advertisement is placed on a vinyl or paper. The advertising panel or sheet is placed on a construction which is mostly around 6m high. They are prohibited in some European countries with reason of getting the attention of the drivers.
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Figure 3.1.6
Raketa billboard
Source: Dallas, Texas – Big Board ( 4 x 15m) Arrington outdoor Advertising
Source: Dallas, Texas – Big Board ( 8 x 12m) Arrington outdoor Advertising
Wallscapes Wallscapes are one of the boldest creations which can be found in outof-home media. They are advertising panels with large dimensions placed on metal construction or other painted advertisements on different types of vinyl or paper (Belgian vinyl, Dickson – the French vinyl, Starflex, etc.) directly upon the buildings. Their creative sizes and shapes are offering a large scale exposure and high visibility to vehicular and pedestrian traffic. They command major attention possesing huge impact and are highly effective. Mostly they are placed on the walls of the buildings and in reason of big size, can be seen from long distance. The formats are mostly illuminated and have a large scale exposure with high visibility to vehicular or pedestrian traffic. They reach the target audience from long distances and usually are located in downtown areas with intention for long-term exposure. They may be in different formats: Vertical format, Mega format, TV format and other formats.
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VERTICAL FORMATS Vertical formats see (figure 3.1.7) – Big long vertical dimension with shortly spreading. It is excellent way for advertising drink bottles.
Figure 3.1.7
Vertical Wall Panel
Source: Skopje Macedonia “Vertical MM Advertising agency” Vertical formats, 4,15 x 20 = 83m2 vinyl cloth(left) + 4,15 x 14 = 56m (right)
MEGA FORMATS Mega formats (see figure 3.1.8) are large long vertical dimension with large spread.
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Figure 3.1.8
Mega Wall Format
Source: Skopje, Macedonia – “Vertical MM Advertising agency” Mega format, 15 x 10 = 150m2
TV FORMATS
TV Formats (see figure 3.1.9) usually posses small size but may have bigger dimensions than the billboards.
Figure 3.1.9 ___________________TV Wall Format
Source: Sofia, Bulgaria – Radea advertising agency (TV format 4 x 3m)
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PRIZMA BILLBOARDS Prizma billboard (see figure 3.2.1) is advertising medium with a surface area around 40 m2 and more, (3 to 4 surfaces on each side) at very high-traffic sites, e.g. as beside motorways and shopping centers. This kind of outdoor medium some people is calling, rotating billboard. These high-quality rotating billboards are mostly illuminated. Up to 3 or 4 advertisements per surface can be presented owing to the rotation of the panels. They are operated by two electrical motors with adjustable speeds. Top and bottom drums guide the flexible faces. They are made of aluminium frame and exclusive stretchable vinyl or paper. The combination of light and movement is particularly effective in attracting attention.²
Figure 3.2.1 ________
Prizma Billboard
Source: wikipedia.com Prizma advertising for K-Mart, 2004 photo
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Digital Advertisements
The new technology is helping the industry to take some money away from other forms of media. The new digital billboards (see figure 3.2.2) have pixel pitches produced with more than 250 trillion colors, features with more degree viewing angles than other media. They're large, rectangular and target consumers from high above the nation's roadways. Digital billboards, can mostly be found through-out which resemble ballpark jumbo video displays but scroll through several static ads each minute. They help to draw the advertisers back to the outdoor medium as one of the world's oldest forms of marketing is undergoing a renaissance.
Figure 3.2.2
Source: www.venixmedia.com Venix media
Digital Billboard
Source: www.venixmedia.comVenix media
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Other digital advertisements (see figure 3.2.3) may have plasma or LCD screens placed at or near the point of sale if they are placed on malls. Also they can be found in taxis, on walls, in theatres, in metro stations, on the streets and other places.
Figure 3.2.3 ____________________________________Digital advertisiements
Digital mall screen Source: www.wikipedia.org
wall display Source: www. wikipedia.org
metro stations Source: www.wikipedia.org
Roof Top Signage Roof top formats (see figure 3.2.4) – Must be large in cause of view. It is constructed over the building, or constructed on the roof of the buildings. They are one of the largest kinds of advertising, the one of high-impact success in attracting the traffic or public audience, and the most cost-expensive outdoor advertising media. Mostly they are illuminated with electric lighting fixtures as matter of exposing the advertising message in nighttime circulation. They have different dimensions but mostly with large sizes. For this risky way of advertising must be measured the winds from the meteorology institutions. In many countries where exist winds, snows and other similar factors they are prohibited by the government.
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Figure 3.2.4
Roof Top Signage
Skopje, Macedonia –Source: “Vertical MM OA agency” Roof top signage format, 18 x 5 = 90m2
Skopje, Macedonia –Source: “Vertical MM OA Agency” Roof top signage format, 15 x 5 = 75m2
City Light and Mega Light The city light’s (see figure 3.2.5) are usually placed where is a lot of pedestrian traffics, green pedestrian islands, parking places, bus stop’s, mall’s, etc. They are illuminated with dimension around 180 x 120cm. It can increase the efficiency of campaigns. They account 10-20% of total outdoor media ad spending per year in most countries worldwide. City Light as a part of the street furniture, generally has an effect of attractiveness and diversification of the advertising media. Today the City Light is a sure part of the media mix, especially for goods of demonstrative consumption such as fashion and high quality services.
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Figure 3.2.5
City Light
Source: Advertising Communication Research, a Division NOP World company, city parking billboard advertising, city light,
The mega light’s (see figure 3.2.6) are very powerful advertisement and is dedicated to all pedestrian and vehicular traffic. They excellent illuminate and attract any one’s attention. Their dimensions can be different and mostly can be found with sizes from: 6m x 3m, 8m x 4m to large size format with more than 100m2. They are very attractive for the viewers and can seriously grab the attention of the drivers on the roads and highways.
Figure 3.2.6
Portugal, Lissabon V30/15-5 112m² Source: www.flickr.com/photos/
Mega Light
England, London on High Street, 18m2 Source: www.flickr.com/photos/
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Mall Advertising’s Mall advertisements (see figure 3.2.7) are freestanding, illuminated panels located near escalators, near entrances, bathrooms, food courts and other areas in shopping malls. They are excellent opportunity for target consumers who already have shopping on their minds. The shopping malls are on of the most visited destination in the community. In the USA, the advertising agency Sullivan Media made an analysis of visiting the mall’s and they came to the 75% of people who visits mall’s per month. And the average of those who visited the mall is 3,3 times per month. They are ranked by consumer traffic. The innovation of an OA display is the key in making significant impact. It can be defined as “quality consumer communication”
and
can
help
advertisers,
to
achieve
the
maximum
effectiveness. Usually in mall’s can be discovered the mall advertising screen, the mall kiosk, city (mall) lights, placards, promotions and other advertisements.
Figure 3.2.7
mall advertising lightn Source: www.flickr.com/photos/
Mall Advertising
mall kiosk Source: www.flickr.com/photos/
mall advertisement Source: www.flickr.com/photos/
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Mobile Advertising After spending the money for the advertising campaign, the company expect to reach the right people at the right time. Mobile advertising accesses areas, where no other forms of Outdoor Media exist. They can be found on the streets, conventions, concerts, sporting venues and anywhere in any market nationwide. Mobile advertising allows the people to get easy the message. It is viewed principally by persons in automobiles and delivers exposure to both residents and to commuter traffic, with some pedestrian exposure. Contains many product’s which can be offered to the client’s: mobile billboards, inflatables, transit advertising, taxi tops, many promo people and groups (see figure 3.2.8), metro bikes (see figure 3.2.8) and other mobile creative advertisements (see figure 3.2.9). They are innovative, creative and very successful in the last couple of years, researched and analyzed in several developed countries.
Figure 3.2.8
Mobile advertisments
metro bikes
Promo group
Promo people Source: www.promogroup.tv
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Figure 3.2.9
Mobile creative advertisements
Source: MobileBillboardsSD.com, Some Creative MA, Mobile marketing, San Diego, 2006 MBSD
MOBILE BILLBOARDS The winner from the mobile advertising is the Mobile Billboard (see figure 3.3.1). He is replaced with the stationary billboard and can reach the target audience any time and anywhere. MB ad campaign offer unlimited impressions and tremendous exposure. They are custom design vehicles with advertisements. It is created and is perfect for the trade shows, sporting events, all traffic areas, concerts, etc. The Mobile Billboard is large and gets the attention from the potential customers providing a wide variety’s of creative opportunities with sound effects. It can travel just about anywhere. Can be taken out of the sky and to be placed on the streets, where the customers are. Mobile advertising can be located chiefly in commercial and industrial areas on primary and secondary arterial roads. It is a cost – effective OA, it is innovative and on almost on all polls, the Mobile billboards prove their impact, against the stationary billboards. Also, have a lower cost per thousand than any7 other type of advertising. 74
Figure 3.3.1
Mobile billboards
Source: , www.flickr.com/photos/, Usual Mobile billboard2006 Transit Graphic Mobile advertising
Taxi Advertising Taxi advertising (see figure 3.3.2) is superior level of recall reaching a local, business and other audience. It is a very creative way of advertising and provides view, visible in airports, hotels, shopping centers, restaurants and etc.. It can penetrate the heart of the consumer. Delivers high profile exposure and establish brand awareness. The advertising formats are various including the digital taxi tops, taxi backs, Super-Side advertising, Tip-up seat advertising, Full Digital wraps and etc. They have high eye-level impact, lowest overall outdoor advertising investment and lower cost per impression.
Figure 3.3.2
Taxi advertising
Source: www.flickr.com/photos/, Advertising Communication Research, a Division NOP World company
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Transit and Bus Advertising
Transit advertising (see figure 3.3.3 left) gives high visibility and has a great value with a constant daily audience. Companies are usually advertising on this out of home media, because it is economical and instantly effective without wasted circulation. They are mostly viewed by the people, who wait at the bus stations, all people near the roads driving on highways, on streets and other places not limited for this vehicles. Bus advertising, (see figure 3.3.3 right) is a popular way for advertisers in expect to reach the public in city and town areas, bus stations and other road places. Ads are placed in bus shelters or on the back of benches at stops. Inside the ads may be attached to the corners between the walls or monitors throughout the vehicle. Externally the boards can be situated on the front sides and on the rear of the bus vehicle.
Figure 3.3.3
Transit advertising
Source: from www.adsoutdoor.com (truck Advertising) Pinheiros, 2006 (bus advertising)
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Inflatable advertising (Giant Replicas) The inflatable (see figure 3.3.4) is a creative solution for outdoor advertising using the latest in cutting edge technology. They include inflatable signs, pole displays, flags, banners, balloons, punch bags and etc. Mostly this kind of advertising are tall and the attention can be grabbed easy. They are improver of brand awareness, can create an emotional connection with consumers, they are affordable and may be easy relocated.
Figure 3.3.4
Transit advertising
Source: www.adsoutdoor.com Advertising campaign for Casio, Nike and Eukanuba 2006 Above All Advertising, Inc
Other Creative Outdoor Advertisements An organization’s current products face limited life spans and must be replaced by newer products. The key to successful innovation lies in a total-company effort, strong planning, a marketing focus and a systematic newproduct development process. The
creative
team
is
responsible
for
“kicking
ideas”
or
“brainstorming”, a process in which the idea is allowed to stimulate another 77
without reaching a decision about whether any of the ideas are valid. The latest in the OA, can allows you to create an exciting and unexpected OA space, where none existed before. All different formats with architectural and design solutions can bettered and increased the brand awareness, the productivity and profitability of the company. They have new and fresh ideas and can easy approach to the potential customers. The creative solutions in billboard advertising can be mention on this ad, which can mostly be seen on public places (see figure 3.3.5).
Figure 3.3.5
Root billboard, 2006 Taken photo from© FeedBlitz
Creative billboard ads
™ ad for “Gain” soil laundry detergent Taken photo from© FeedBlitz™
A corporate creative advertisement is brand builder, long term ad with emotional and humorous ads. The consumers are enjoying this advertisement, although they don’t know what it is all about. This type of creative ad is focusing more on immediate sales of a particular product. They are often awarded and competing on many glorious prestige world fairs (see figure 3.3.6).
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Creativity is the most powerful force in the business. It’s not only that makes the design different and beautiful, also contains unique idea. The brilliant ideas can achieve extraordinary results. It includes the copyrighters and the creative directors, responsible for advertising copy and campaigns to serve their clients interest. The copywriting is responsible for all new ideas and influences on design solutions. He can be the one using the help of the psychology terms, in attracting the new clients, customers and other target audience.
Figure 3.3.6
Creative billboard ads
Taken photo from© FeedBlitz™ - Powering Blog and RSS Email Solutions
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@ Germany, 2003 advertisements for Adidas
Taken photo from© FeedBlitz™
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Chapter 5:
ANALYSING THE OUTDOOR ADVERTISING
Marketing Research and Researching Customer Behavior
Market research and marketing research are often confused. The official definition of market and marketing research by America’s Marketing Association is: “Market research is simply research into a specific market.” Marketing research is the function that links the consumer, customer and public 81
to the marketer through information used to identify and define marketing opportunities and problems, to generate refine and evaluate marketing actions, monitor marketing performance and improve understanding of marketing as a process. ¹ The quality of the marketing decisions depends upon the quality of the marketing research. Marketing research associated with the advertising, including all pricing decisions can be supported by the sales and by the marketing systems. Market research is a wide range of methods and tools used to help marketers understand markets. It follows the breadth of consumer behavior and business to business marketing in having a huge armory of techniques to help with marketing questions. ² Marketing and Advertising research is usually done by specialist within either a marketer’ organization or and advertising agency. They are distinctive and important part of marketing that has professional bodies and qualification. ³ Today the world is defined by the term "information age." All businesses require accurate and timely information to be successful. The OA Company to be successful must know its market. Marketing research is simply an orderly, objective way of learning about people - the people who buy from you or might buy from you. This paper provides an overview of what market research is and how it's done. It introduces inexpensive techniques that small business ownermanagers can apply to gather facts about its clients and the OA Company who like to have clients. With marketing researches can be gathered and monitored all the information that could possibly help out of home advertising companies and they must include knowledge of knowing the market, competitors, customer wants and needs, and what it takes to be competitive. It is not enough to know 82
the answers to what, where, when, and how questions about the OA businesses. They also need to know why people buy OA products and services. The Outdoor Advertising Market Research has many sub-categories: Research about the campaign effectiveness concept development research, creative research execution development research, research for the history, future and today’s status of OA, qualitative researches and many more. It can help the Outdoor advertising companies to define the market better, to measure current market demand and forecast the future demand. It involves collecting information relevant to the advertising problem facing the organization. OA research has a four step process: ⁴
1. Defining the problem with setting the research objectives; 2. Developing the research plan with collecting data; 3. Implementing the research plan by collecting, processing and analyzing the information; 4. Interpreting and report the findings.
OA can focus on the ad or on the campaign and can be directed at a more general understanding of how the outdoor advertising works and how the potential customers use the information in advertising. The greatest tool for OA qualitative research is the focus group research. Exist and other methods and techniques: motivation research, customer visit and interpretative research. ⁵
Focus Group Research Using focus group may be appropriate method for learning about the customer
needs
and
understanding
the
marketplace.⁶
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The term 'focus group' comes from the original term “focused group discussion”. It is a technique available for implementing qualitative research. Focus Groups provide rich qualitative data on market and customer perceptions for such tasks as product development and testing, advertising testing, consumer surveys, feasibility analysis, and brand image development. Marketers in the United States spent more than $1 billion last year on focus groups. ⁷ Focus group is a qualitative research method which can help the Outdoor Advertising Companies gain a deeper understanding from the customer perception, feelings, desires and motivations. They are usually between six to fifteen people and conversation is usually structured. The Focus Group moderator is a trained marketing research professional and he or she generally uses a discussion guideline (a list of issues to probe) ⁸. He endeavors to avoid biasing the opinions expressed by the group members. He must prepare the guide approved by the marketing research client. The qualified participants usually are recruited by telephone, mailing or other forms and offered an incentive to attend a group. Focus groups, differentiates a lot from the survey research methods. It is different from statistically reliable public opinion, from any kind of market surveys, from online surveys and other technique. The focus group discussion may run two hours. It should be maintained in a quite room with chairs as much as persons and a table. The researchers are watching the group, across a mirror seen only by one-way, so the client can watch unnoticed. It is need of totally quietness in the room, with no telephone calls, distractions or any kind of noise. The moderator is very important and he must treat all the guests with respect and to have knowledge in the relative field. He exercise a mild, the control over the group, guiding the topics, raising questions, keeping the group on track and 84
never injecting the idea and the comments as “beautiful, great, etc.” When the session is recorded on the audio or video material, it should be listen, couple of times. Focus group opens the window into the customer’s mind, bringing to surface something that the marketer may not have known about the consumer and his or her view of the product. ⁹ In the Outdoor Advertising the research must improve if the advertising hit the target. Focus groups should play the important role for determining the advertising strategy. Groups can be used for idea generation, and to uncover possible "concepts" that appeal to the participants. Well-received concepts can then be developed into actual advertisements. The principal utility of focus group research is to explore the customer behavior about which marketers didn’t know much to begin with. Focus group, have several application:
-
to generate ideas for product improvements or new products;
-
to understand the customer perceptions of competing brands;
-
to test the new concepts (new product concepts, new brand names, advertising photo boards).¹⁰
The customer behavior Customer behavior is a marketing term with elements of sociology, psychology, anthropology and economics. ¹¹ It refers to how the people purchase, when they are purchasing or getting space for the OA campaigns, what are the products they might purchase and why are they purchasing. It attempts to understand the people wants and their needs.
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The need of researching the customers is a future where the customers steps in. You need not only what the customer wants, but how much and why he wants it. The people are buying the products for the benefits it brings, not for the features. And that’s why is important, what are customers needs, what moves them and how you can link them for purchasing the product. The gain of respect and satisfaction is a crucial factor in the customer experience. Customer respect is used as a critical marketing differentiator as sites look to attract hesitant consumers which have a desire to shop, bank, and research online. ¹² In researching through the satisfaction of the customers is to determine their services. For example: is it a paper, is it a vinyl or what kind of plush is it, is the quality good, is the time of delivery just a couple of hours or days, what are the prices, etc. Customer needs can be defined as being basic, performance and excitement needs. The performance needs are things that we seek. Ex: someone visit and outdoor agency and get a billboard places on couple of locations. If the current campaign with the billboards did not prove the effect, the customer will be unhappy and dissatisfied. It the campaign get the requested effect, the customer will be satisfied. If there exist any space for development, must be used a method necessary for researching the customers need. More customers - more employees, more clients – more advertisement places and more customer researches can be used in creating the development of the OA responsibility. If exists space for developing, it is important to know what type or kind are they. The Outdoor Advertisers may use a method called Brain Activity Method based on Brainstorming in help for improving the advertisement research. 86
Brain Activity In the real world the taste and the smell are not everything. Exists the image of the company, its “brand influence”. Measuring the brand influence may seem like an unusual activity, but it is neuroscientist responsibility. But the many important questions are asked at the neurology lab in all advertising world. It can be able to distinguish between advertisements that people merely like and those that are currently effective. Did you see that commercial? Did you like it? This are questions which can be answered in a flash. New researchers, suggests the right positions where the advertisement can be placed. The great ideas may come anytime and anywhere. It can be in the shower, in the car, in the park and etc. The link between what the people think, what they like and what their brains reveal they like is based on brain activity. It can be proved by the research of: -
select 10 participants;
-
drive them through the public places;
-
let them to watch a mixture of the public advertising outdoor spaces;
-
prepare them to fill in a survey
-
ask them which ads they liked and witch they were familiar with.
The creative thinking can be stimulated as a tool by the brainstorming. It was developed by the American advertising executive Alex Osborn in 1940’s. He was a person who believed that anyone could learn to generate creative
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solutions. Following his beliefs, some tips can help you have brainstorming sessions which can generate results. ¹³
1. Before, scheduling a meeting with the participant be sure to include a history and a brief explanation of the situation. This can help them to prepare mentally for the session and focus on the particular issue. 2. Consider and Select people from different backgrounds and degrees of expertise. Be carefully with mixing management levels. 3. Distribute a copy of the rules of brainstorming before the session begins: o Criticism of ideas isn’t allowed; o All ideas, no matter how wild, are encouraged; o The more ideas, the better; o Every participant should try to build on or combine the ideas of others. 4. The meeting shouldn’t be longer than 40 minutes and not more than six people (feeling comfortable means sharing more ideas). 5. Before starting, explain the meaning of Killer Phrases and emphasize what will not be permitted. You can provide two cards (one green and one red) for each participant, when they enter the room. Ex: When the flow of ideas is positive, participants are holding the green cards. 6. Write the objective of the session where everyone in the room can see it. Give the question starting with either “How can we” or “What can be done…?” Ex: “How can we better understand the buying behavior?” 7. Capture all group ideas. An interactive whiteboard is ideal for brainstorming since ideas are displayed on the whiteboard surface, easily edited and saved to a computer file. Whichever tool you use to record your ideas, be sure that they’re saved for future reference. 88
8. If the flow ideas begin to fizzle, the leader should step in. Some ideas: o Reread every third idea. This may spark additional ideas. o Ask a participant to select an idea and give reasons why he likes it. o Let the conversation go around the idea and provide an opportunity to build on it. o If you’re the session leader, keep an idea or two to yourself. When the conversation dies, share these ideas to initiate more discussion.
When the 40 minute session finish, edit the brainstorming notes, arrange the ideas and send a copy to each participant in the related group. Ask each participant to select the five best ideas for his think. Let him explain why he thinks that are most promising and how would implement them. Include a deadline when you’d like the ideas returned. ¹⁴
Analyzing the Outdoor Advertising in Macedonia OA is a unique media and it communicates to an audience usually in transit and always away from home. OA is visible message 24 hours per day, seven days a week. The billboards printed on vinyl have more life than the posters. They differentiate in the types of the vinyl, the weather, the manner of placement, the construction, etc. The vinyl is very resistant and can have a life more than 4 months. The posters or billboard printed on paper have a life about 30 days.
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Advertising clients can demand better accountability and better proof of return on investment for their marketing spend. Currently in Macedonia is still a problem with convincing the customers for advertising. The people are still thinking that advertising is something which is not important and it is waste of money and time. Others think that advertising on radio is much cheaper and has much better impact with the consumers. It is the most difficult task in Macedonia – to convince the people why to use outdoor advertising. At least 50 % of the target audience is the people who live or work close to the advertisement. It is expecting that the OA business will grow in the next few years for more than 20% per year in Macedonia. The grow will be feedback from increased requirement for the domestic companies for advertising, from foreign brand names and companies, from increasing the budget, the entry’s for the new mobile and fixed companies, etc. The experts are looking optimistic and forecast grows the OA business, because the awareness of the people is much stronger and more understandable. The companies finally are getting the point, that the road to success is the Advertising. And now, starts the game and the level of the type of Media which can be select by the potential customer. Many companies in Macedonia are spending a lot of money for advertising. They usually spend in different kind of media and the Outdoor Advertising is the one who is still fulfilled with placed advertisement. They have portfolio’s with a huge registered list of clients and analyzes can show, that the mostly money last year spent are from the all telecommunication companies, especially Cosmofon and T-Mobile. The banks are next to them, especially “NLB banka”, “IK Banka” and “Stopanska bank” and “Uni Banka”. After the banks we can include “Alkaloid”, “Skopska Pivara” and other drinking and food companies. 90
Increased automobile usage means businesses will increase emphasis on outdoor advertising. The people stay home less and are on the road more, on the ways to their homes, to their workplaces, on the way where they are going to drink their coffee and anywhere. The billboard influences a lot to the pedestrian or vehicular traffic. When the people are waiting on the bus shelters, driving on the rail and bus vehicles, malls, cross roads, highways and etc. The customer’s have a different kind of feelings and different point of views. Some think: “let the billboard do the work”, some other to get something smaller or even bigger. Through the research of the effectiveness for the customer’s eye, can be seen advertisements with more than 1.000.000 viewers per month or not smaller than 10.000 viewings per month for billboard or any wallscape in Skopje, Macedonia. The high – impact, distance visibility, beautiful illuminated design and other features are researched, as effective methods intended for the customer advertisement need. The enormous message as communication type is the most successful medium for using the reach for adult population. It is a good method of advertising. It enables people to see the picture of the potential, or build brands. The outdoor exposure is heavy more than 350.000 viewings/per month (downtown buildings) in Skopje city among the bestselling magazine or even newspaper. This is strong evidence that outdoor media exposure is very strong, can give us big information and can play a crucial role in the media plan to cover significant aspects of the market, not reached on daily newspapers or magazines. Understanding the customers and using communication
and
data
gathering
in
finding
the methods, means customer
information
(satisfaction level, use of the focus groups and the surveys). 91
Out of home advertising can help justify spending money to make life easier and more entertaining. As is the case today, it is necessity for companies to spend a great deal on advertising in order to profit from mass production.
Analyses for the best positioning ad in Skopje City
The out of home advertisement have to be located on the right position. In Macedonia the ads on better position are usually more expensive than the others which are not. In the downtown in Skopje the frequency and the intensity of the pedestrian and vehicular traffic are increasing and tend to be more increased in the next years. The frequency on the streets can differentiate and if contains traffic lights or not. It differentiate and from size of the streets. On that places where can be find big frequency, the billboards and other spaces can be sell easily in Skopje. The price may depend from the frequency. These are the most frequent locations which are used or may be used for outdoor advertising (see Figure 4). All analyzes are made by researches from the Marketing and Advertising Agency “Vertical MM” Skopje, in corporation with the Traffic Department from Skopje city and the Macedonian Ministry of Transport. The same research made 7 years ago, showed for more than 40 % less vehicle movement through-out Skopje City than today.
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Figure 5
The most frequent locations in Skopje City
Name of Street
Left
Straight
- Dimitria Cupovski - Dame Gruev - Vasil Glavinov (Paloma Bjanka) -MitoHagivasilev Jasmin - Makedonija - Dame Gruev (Hotel Bristol) - 11 Oktomvri - Koco Racin (Red Cross) - Nikola Karev - Krste Misirkov - Cvetan Dimov (Cair Ambulance) - Partizanski Odredi - Franklin Ruzvelt (Simpo Furniture)
Auto Bus TR
Auto Bus TR
Auto Bus TR 2855
294
Auto Bus TR
Auto Bus TR
3514
2013
4605
113
39
76
Auto Bus TR
3646
2290
Auto Bus TR
Auto Bus TR
225
165
Auto Bus TR 4495
Auto Bus TR
136
Auto Bus TR
172 2922
Auto Bus TR
Right
96
1656
Auto Bus TR
420 5856
Auto Bus TR
455
Auto Bus TR 3800
496
The numbers can show the number of vehicles “Auto” for Automobiles, “Bus” for busses and “TR” for transport vehicles and trucks. The research is made in a period time from 8:15 – 17:00h one working day of the week in 2007 year.
Outdoor Advertising Agencies in Macedonia and their types of advertisements
The OA business has its self a lot of barriers and a lot of problems in performing the tasks and the activities. The first and most important barrier is the competition. The OA companies from Macedonia are confronting with it.
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But everyone needs to love the competition, especially those who thing that their products are one of the best one. The Strategic Marketing and Media Research (SMMR) from Macedonia made a research of the Outdoor advertising and prove that possess more than 5% of total market shares in Macedonia. Currently exists couple of Outdoor Advertising Companies. Two of them have the concession for placing advertisements on public places in Skopje city. They are “Akzent Media” and “Eurolinija”. Their mostly useful instrument for increasing the brand awareness is the billboard advertising. In this area exists more than, 3200 billboards. Akzent Media owns more than 2000 billboards and Eurolinija around 800. With the newest mega lights they have more and number may increase up to 1200. They can be found with different dimensions. Some of them are 6m x 3m and some are with dimensions 8m x 3m and the most numbers are owned by “Eurolinija”. This numbers are one sided for both types of most useful ads in OA –billboards and mega lights and must have in mind that the most billboards are made to have ads on the both sides. The Marketing and Advertising Agencies in Macedonia owns and other forms of advertisements such as the city lights which can be found with dimensions of 120cm x 180cm. “Vertical MM” is agency which owns wall surfaces on the buildings in Macedonia. It has 24 wall positions in Skopje city and it makes the first place for wall space formats in Outdoor Advertising Business. They own total surface with more than 1800m2 on building walls. Mostly of them have vertical formats and the drinking companies with the bottle packages have the priority to be advertised on. The telecommunication companies are using this kind of advertisement and the automobile companies often are using the squares format or horizontal formats.
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Other variety forms of ads are: -
Prizma – usually have three sides and have billboard sizes;
-
Wallscapes – different format with different dimensions;
-
Rollo Boards – same as the billboard sizes;
-
TV Screen – Akzent Medias electronic display is with dimension 3,5m x 4,5m;
-
Big Boards – is usually with dimension 4m x 10m and can be found on the highways;
-
Mega Boards – may be over 100m2;
-
Taxi advertising;
-
Bus advertising;
-
Promo people and Promo bikes;
-
Other forms of advertising.
On Macedonian market place can be found and some other forms of OA. The promo people using their movement with the ads on their rear can be interesting for the population as a relatively new introduced product. The Giant inflatables may be seen when determining campaign. Often the banks are using this kind of advertisement and telecommunication companies. Macedonia is relatively small country with limited number of companies which use outdoor advertisements. But the billboards are most useful ads in OA. More than 13000 billboards annually are printed in Macedonia. Only the “Media Market” - Rock ‘n Roll Studio has more than 70% of market share for poster panels and printed bulletins. The C.O. Slavco Talev, hopes that this year he’ll get around 80 % of the market share and he will prove the quality and quantity printed posters for billboards with achieving the
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number over 10.000 printed poster billboards per year. The vinyl cloth are mostly useful for the wall panels and couple of rolloboards.
Effects from the Outdoor Advertising in Macedonia
The outdoor advertising is the most successful medium for using the reach, for adult population. It is a good method in choosing the advertising form. It can be seen the picture of the potential, or the build brands. OA is the most cost-effective form of advertising in Macedonia. Outdoor advertising conveys the right message, to the right audience, at the right time, in the right place. Around the Mobile operators can be seen the ads of the same company. One example is when you pass the rail and bus station in Skopje, you can see that the most ads are advertisement of Cosmofon. Sometimes a picture can be enough to express an emotion or idea. It can say sometimes more than a thousand words. All visual forms of advertising have enough effectiveness and don’t need their creative explanation. The outdoor advertising, have a right to beatify and to make design and esthetic values within the environment. The advertisements of Coca Cola or other famous companies are made to look excellent. With the beautiful, extraordinary firs and Christmas trees the consumers are captured. As much is the draw and color bettered, the consumers are increasing. The visual effect can be proved when outdoor creative designs can be easy to read. It must be paid attention in choosing the colors. It can be choose colors with high contrast in both hue (identity of color, such as red, yellow or blue) and the value (measure of lightness or darkness). With contrasting the
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colors the view can be bettered from great distances and colors with low contrast can blend together and obscure a message. The research demonstrates that high color contrast can improve OA recall by 38 percent. The Fonts must be easy to read from long distances. Adequate spacing between letter, words and lines can enhance visibility. The use of humor or drama can influence in consumer decisions and selling products or services. A call to action is effective technique for engaging a viewer. The advertisements that include addresses, telephone numbers, special offers can produce impressive results in the OA. Another important factor in searching for effective OA is the distance. The impact which OA unit can produce is relative to the distance from where it can be viewed. The viewing time can vary by location and media format. For larger advertisements such as billboards usually the messages are placed not longer than 1 month and not less than 14 days. It is the best time for influencing in people’s mind. OA encompass a number marketing approaches and may vary a great beneficial deal for the companies, since they go with whatever approach or method would be more effective for them. Not all companies are able to get the maximum exposure from the outdoor ad, when it comes to different types and formats of OA media. As a result, it is difficult for the companies to come to a conclusion, as to why they should invest in OA and make that type of trial and error maneuver. The fact is that the OA in virtually, is influential on many people because of the way in which individuals are exposed to the marketing campaign. There are so many different types and forms of OA that can be used and the potential companies will have no problem in finding which method works best for them. As all vehicles interact with each other, can be seen the powerful effects of OA. So many people are exposed to OA as opposed to other 97
methods, such as advertising in a magazine – which is an approach only beneficial to those that read the magazine. Compared to those that regularly read the magazines, including the ads, more people are exposed to OA.
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CONCLUSION
The study presents the people who drive a lot of kilometres or walk through the cities, driving bikes, have attractive socioeconomic profiles, higher education and experience and high presence of children. Those who drive and others are significant consumers of out-of-home media.
I passionately believe in the unlimited power, advantages and big opportunities of the outdoor media. The outdoor advertising is so powerful and it is the only truly public media. The Outdoor Advertising as the oldest form of advertising is dating more than 5000 ago. Today the “out of home” with the latest trends with new technology is rapidly evolving in all different kind of media and the future together with the digital and scrolling technology is indeed bright. All Outdoor advertising continuously generate and makes the most dangerously powerful media, that in the right hands is achieving amazing
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results. Whatever was advertised it’s important that the message was seen, read, believed, remembered and action upon by target customers. All researches, analysis, estimations, evaluations and other methods are important for the management of OA. The market structure described the state of a market with the market forms of competition. The five critical communication functions and processes were described: informing, persuading, reminding, adding value and assisting the company efforts. The expensive proposition as a need for purchasing the outdoor space is making the budgeting very important decision. Another important decision is to attain the objectives, to make the game plan or the advertising plan and strategy. They must determine the target market, their position, acceptability of the product and etc. The advertising agencies have that task and responsibility. They must develop the promotion, place the ad, carry and monitor and finally estimate the efficiency and effectiveness from the campaign. All employees working in different departments are obliged for their responsibilities. The outdoor media speaks, talks on every language, communicate with its hanged picture fully of pleasure. The people who show interest for the advertised product are potential target people. The message is communication element and must be strong with more noise or other effects, but to diminish from the others. The elements of communication process are: sender, encoder, message, channel, receiver, noise and feedback. It can be used and the other forms of nonverbal communication: facial expressions, body language, body and eye contacts, color symbolism, paralanguage and other forms. We described and the negotiation as the most useful tool in communicating. The information is crucial element for carrying out all marketing researches and analysis, planning, implementation and monitoring. Persuasion is the essence of the marketing communication. 100
Today on the out of home spaces are available and may be seen the street furniture, transit and alternative outdoor media. Most of them are the stationary or the mobile billboards, big boards, wall panels, taxi advertising, transit adverting, mall advertising, mega lights, city lights, digital ads and other creative commercial products and advertisements. In one of the previous chapters was described and the marketing research as a form of business research that examined all aspects of business environment. The focus group is a tool of the qualitative research and may be used as a method about the customer needs and understanding the marketplaces. How the people purchase, when they purchased, what products they might purchase and why they are purchasing is related to the customer behavior. Brain activity is another research based on the link between the peoples thinking, what they like and what their brains reveal they like. The Outdoor advertising in Macedonia is rapidly increasing, same as the increase of the brand awareness of the companies. Today the people are more out of home than staying home. This can be analyzed from the best positioning ad, with frequency level, where the vehicle movement on the streets today, is more than 40% than seven years ago. Different type of ads emphasis the OA in Macedonia: stationary 12m2 billboards, prizma, wallscape, rolo board, mega board, big board, mega and city lights, TV Screen, mall ads, promo people and bikes, bus and taxi advertising and other advertisements. The effects from OA can be proved when the message is read and remembered. From the pricing strategies we’ve seen that pricing is an important strategic issue, because it is related to product positioning. The reference prices are important to be included before setting the final price in selling the Outdoor space and the price must be adjusted through the priceadaptation strategies: geographical pricing, price discount and allowances, 101
promotional pricing, differentiated pricing and psychological pricing. The best selling for OA space can be accomplished by the personal selling (face to face contact).
The steps of sale include: prospecting, pre approach, approach,
presentation, meeting objections, closing the sale and follow-up.
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ENDNOTES
Chapter 1 1. 2. 3. 4. 5. 6.
http://encarta.msn.com/encyclopedia_761564279/Advertising.html#s2 James F. Engel, Promotion Strategy, The Outdoor Advertising Future, Chapter 11, Section 4, page 300 LL Berry - Journal of the Academy of Marketing Science, 2000 - jam.sagepub.com James F. Engel, Promotion Strategy, The Outdoor Advertising Future, Chapter 11, Section 4, page 298 W. R. Simmons and Associates Research, Inc, Reach and Frequency of exposure of Outdoor Posters, for the Institute of Outdoor Advertising, Inc Gene M. Grossman, Carl Shapiro, Informative Advertising with Differentiated Products
Chapter 2 1.
Dr. Nada Sekulovska, Promotions, Promotions and communication, November, year 2000, page 17-20 2. Ibid 3. wps.prenhall.com/wps/media/objects/124/127021/chap04.doc 4. Terence A.Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003, Part Two, Chapter Four, “The communication process” page 81-83 5. www.marin.cc.ca.us/buscom/index_files/page0011.htm 6. Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong, Principles of Marketing, Fourth European Edition, Part 3 Merkets, page 335-377 7. Ibid 8. Ibid 9. Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong,Principles of Marketing, Fourth European Edition, Part 1, Marketing now, page 281-282 10. Terence A.Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003, Part Two, Chapter Five, “Persuasing in Marketing Communication” page 117-147
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11. Ibid 12. James F. Engel, Martin R. Warshaw and Thomas C. Kinnear Promotion Strategy, Working with the Advertising and Promotion Industry, Chapter 2, Section 1, Consumer Response to Persuasive Communication, page 60—73 13. Ibid 14. en.wikipedia.org/wiki/Attention 15. Terence A.Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003, Part Two, Chapter Five, “Persuasing in Marketing Communication” page 140-147
Chapter 3 1. 2. 3. 4.
5. 6. 7.
8. 9. 10. 11. 12. 13. 14.
15. 16.
17.
18. 19. 20. 21.
http://en.wikipedia.org/wiki/Market_form http://links.jstor.org/sici?sici=00222429(198524)49%3A1%3C13%3ATOOMAA%3E2.0.CO%3B2-O James Webb Young, “Advertising Age” November 21, 1973, Chapter 12 Terence A.Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003, Part Four, Chapter Eight, “Advertising Management” page 231-234 http://www.freshthinkingbusiness.com/swot-analysis.html http://www.adcracker.com/index.htm Terence A.Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003, Part Four, Chapter Eight, “Budgeting for Advertising” page 244-252 Ibid Nigel Piercy, “Advertising Budgeting:Process and structure as Explanatory Variables”, Journal od Advertising, Chapter 16, year 1987, page 113 Ibid http://instructional1.calstatela.edu/sstretc/513 BUS/Contents of the Marketing Plan 04.doc Shantanu Dutta, Mark J.Zbarracki and Mark Bergen, “Pricing Process as a Capability: A resource Based Perspective”, Strategic Management Journal, year 2000, page 615-630 http://encarta.msn.com/encyclopedia_761564279/Advertising.html Terence A.Shimp,Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003, Part Four, Chapter Nine, “The Role of Advertising Agency” page 258-259 Karachidiaries.blogspk.com /2005/09/23/advertising-campaigns-for-the-intellectually-disabled , James F. Engel, Martin R. Warshaw and Thomas C. Kinnear, Promotion Strategy, Working with the Advertising and Promotion Industry, Chapter 20, Principles of the Agency-Client Relationship.page 527 Terence A.Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003, Part Four, Chapter Nine, “Agency Compensation” page 260-261 Ibid Ibid www.answers.com/topic/advertising-strategy Don E.Schults, Dennis Martin and William P. Brown in Discussion in an adaptation, “Strategic Advertising Campaigns” NTC Business book year 1987, page 240-245
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22. , James F. Engel, Martin R. Warshaw and Thomas C. Kinnear, Promotion Strategy Working with the Advertising and Promotion Industry, Chapter 10, The Advertising Message, -Creative Strategy, page 219-221 23. www.tutor2u.net/business/strategy/strategy_marketing.htm 24. globaltrade.net/caps/Applied%20marketing%20for%20Armenia%20ICT%20firms%20-%20pt%202.ppt 25. Ibid 26. Lane Keller and Philip Kotler, Marketing Management, 12 Edition, Kevin copyright 2006 Chapter 14, Developing Pricing Strategy and Programs, page 431 27. Ibid 28. Chris Janiszewski and Donald R.Lichtenstein, “A Range Theory Account of Pric Perception”, Journal of Consumer Research (march 1999), page 353-368 29. Russel S.Winer, “Behavior Perspectives on Pricing Buyers” in issues in pricing Theory and Research, edited by Timothy (Lexington, MA: Lehington books, year 1988, page 35-57 30. Kevin Lane Keller and Philip Kotler, Marketing Management, 12 Edition copyright 2006 Chapter 14, Developing Pricing Strategy and Programs, price quality interferences page 435 31. Shantanu Dutta, Mark J.Zbarracki and Mark Bergen, “Pricing Process as a Capability: A resource Based Perspective”, Strategic Management Journal, year 2000, page 615-630 32. Kevin Lane Keller and Philip Kotler, Marketing Management, 12 Edition, copyright 2006 Chapter 14, Developing Pricing Strategy and Programs, Adapting the Price 450-456 33. Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong, Principles of Marketing, Fourth European Edition, Chapter 18, Sales Promotion, 785-800 34. Terence A.Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003, Part Four, Chapter Twelve, “Traditional Advertising Media” page 357 35. Ibid 36. James F. Engel, Promotion Strategy Characteristics of Outdoor Advertising, Chapter 11, Section 4, Advertising, page 298, 299 37. James F. Engel, Promotion Strategy, Characteristics of Outdoor Advertising, Chapter 15, Section 6, Steps of Sale, page 414-419
Chapter 4 1. 2.
Clear Channel Outdoor and CBS Outdoor, www.mediabyuerplanner.com http://www.ankuender-stmk.at/home/Produkte/Prismenwender/rotating_billboards.php
Chapter 5 1. 2. 3. 4.
www.marketingpower.com/content4620.php Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong,Principles of Marketing, Fourth European Edition, Part 1, Marketing now, page 30-31 Ibid Ibid
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5. 6. 7. 8. 9. 10. 11. 12. 13.
14.
Customer Behavior, A managerial Perspective (from the book use in UACS), Focus Group as Qualitative Research, page 232, 233 www.programevaluation.org/focusgroups.htm Customer Behavior, A managerial Perspective (from the book use in UACS), Focus Group as Qualitative Research, page 232, 233 Ibid Ibid Ibid www.som.umd.umich.edu/3265 www.computers.now2007.com/website,2622,The_Customer_Respect_Group.html In 2005, IBM Business Consulting Services Institute of Business Value, together with OgilvyOne worldwide™, conducted extensive quantitative and qualitative research with consumers, companies and industry experts, to determine how companies are managing the total customer experience: The Customer Experience Study 2005 (“the Study”) uncovered some striking perspectives and examples of best practice for organizations seeking to implement successful customer initiatives. www.programevaluation.org/focusgroups.htm
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BIBLIOGRAHY
1.
Chris Janiszewski and Donald R.Lichtenstein, “A Range Theory Account of Pric Perception”, Journal of Consumer Research (march 1999), page 353-368.
2.
Customer Behavior, A managerial Perspective ( library book from the UACS);
3.
Dr. Sekulovska Nada, Promocija, novemnber 2000, Skopje
4.
Dr. Sekulovska Nada Promocija, novemnber 2005, Skopje
5.
Keller Lane and Philip Kotler, Marketing Management, 12 Edition, Kevin copyright 2006
6.
Kent. M> Lancaster and Judith A. Stern, “Computer – Base Advertising Budgeting Practices of leading U.S. Consumer Advertisers :Journal of Advertsinf” Chapter 12, No4, year 1983, page 6
7.
Kotler Philip, Veronica Wong, John Saunders, Gary Armstrong,” Principles of Marketing”, Fourth European Edition, year 2000.
8.
LL Berry - Journal of the Academy of Marketing Science, 2000 - jam.sagepub.com
9.
Nigel Piercy, “Advertising Budgeting:Process and structure as Explanatory Variables”, Journal od Advertising, Chapter 16, year 1987, page 113
10. Schults Don E., Dennis Martin and William P. Brown, “Strategic Advertising Campaigns” NTC Business book year 1987, page 240-245 11. Shantanu Dutta, Mark J.Zbarracki and Mark Bergen, “Pricing Process as a Capability: A resource Based Perspective”, Strategic Management Journal, year 2000 page 615-630. 12. Shimp A Terenc.,” Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” Sixth Edition, year 2003 13. Wine S Russel, “Behavior Perspectives on Pricing Buyers” in issues in pricing Theory and Research, edited by Timothy (Lexington, MA: Lehington books, year 1988
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GLOSSARY
Acceptance
Refers to degree to which a stimulus influences a person’s knowledge, beliefs and attitudes.
Advertising Agency
Company that creates, prepares and places advertising in various media, working as agent for its client (advertiser).
Advertising executive or account manager
Sales or service personnel employed by companies that sell Out-of-Home media (not to be confused with advertising agency account executive).
Advertiser
Means the "Client" or "Sponsor" in whose behalf and for whose account advertising is produced and disseminated.
Refers to any form of communications directed by an Advertising advertiser/sponsor to any mass audience, whether message readers, listeners or viewers. Agency Amount paid to advertising agency by media for placing Commission business. Outdoor formats that do not fall into the categories of billboards, street furniture or transit. Most alternative media is used to crate customized solutions for Alternative Media advertisers. The distance measured from the point where a display becomes visible to the point where the display is no Approach longer visible. Attention
Attention is the cognitive process of selectively concentrating on one thing.
Audience
The total number of people who have the opportunity to read an advertising message.
Awareness
A measurement of the percentage of viewers remembering an outdoor design in a test market.
Big Board
The advertising panel or sheet is placed on a construction which is mostly around 6m high. 108
Billboard Boards
Off-premise, large format sign viewed from a street or highway. Meadow only provides this type of outdoor advertising.
Brand Name
Common term for poster panels and bulletins. A name selected by the advertiser to identify a product to the consumer, and to set apart from all other products. Several product variations may exist within a designated brand.
Bulletin
A billboard on which the copy is displayed for one year or more without change. Meadow primarily provides this type of advertising.
Circulation
Comprehension
Traffic volume in a market The act of striving against individuals or groups, for the purpose of achieving survival, income, pride, status, or other gain. The level of understanding the outdoor advertising message.
Discount
Reduction in quoted base space rates usually earned by contract continuity.
City Light
Framed Posters on street side with visibility to vehicles and pedestrians.
Digital Advertisements
Digital advertisements which have plasma or LCD screens placed at or near the point of sale.
Efficiency
The degree of value delivered to an audience relative to its space cost. Usually expressed as either CPM (cost per thousand) or CPP (Cost per gross rating point).
Exposure
Represents the reasonable opportunities for advertising to be seen and read. Common to all media.
Competition
Extension
Focus Group Research
The area of design made as a cutout that extends beyond the basic rectangular space of an advertising structure. A research which provide rich qualitative data on market and customer perceptions for such tasks as product development and testing, advertising testing, consumer surveys, feasibility analysis, and brand image development.
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Frequency
GRP Illuminated
Inflatables
Impact
The average number of times an individual has the opportunity to see an advertising message during a defined period of time. Frequency (and reach) in outdoor advertising is typically measured over a four week period. Gross Rating Point. GRP represent the number of impression opportunities expressed as a percent of the population of a specific market normally quoted on a daily basis. A lighted sign so that copy is visible at night. Gas or air filled three-dimensional displays for use at point-of-purchase or special events; usually taking the shape of a product, trademarked character, etc. Can also be placed on bulletins. The combined value of cover age and repetition. It is determined by the number of people exposed to a poster showing multiplied by the average number of times exposed during a 30-day period.
Mall Displays
An agreement, oral or in writing, by which possession or use of land or interests therein is given by the owner or other person to another person for a specified purpose. A panel or group of panels or any painted display facing the traffic in the same direction measured along the line of travel. Backlit advertising structure located at strategic points in shopping malls; usually two or three-side, includes directory format.
Market
The defined area where an out-of-home company operates; can also refer to coverage (percent of population potentially exposed to the advertising).
Media Mix
The combination of media types used together to meet the objectives of a media plan.
Mega Light
Big powerful advertisement dedicated to all pedestrian and vehicular traffic with excellent illumination.
Mobile Advertisements
Mobile advertising accesses areas, where no other forms of Outdoor Media exist.
Lease
Location
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Mobile Billboard
A truck equipped with one or more poster panel units. The truck can either be parked at specified venues or driven around designated localities.
OAAA
Outdoor Advertising Association of America, a national trade organization for outdoor advertising firms.
Off-Premise Sign
A sign that advertises products or services that are not sold, produced, manufactured or furnished on the property where the sign is located.
On-Premise Sign
A sign that advertises products or services that are sold, produced, manufactured or furnished on the property where the sign is located.
Outdoor Advertising
Media that displays advertisements outside the home, such as with highway and transit signs.
Out-of-Home
All advertising that is specifically intended to reach consumers outside the home. Out of home includes, but is not limited to, outdoor media and radio.
Painted wall
Advertising message (not a designation sign) painted directly on building surface for high impact visibility, often several stories high.
Pixel
A license granted by the state and/or locality to authorize a sign structure on a site. The smallest single point of light on a display that can be turned on and off. For LED displays, a pixel is the smallest block of light emitting devices that can generate all available colors. For incandescent displays, a pixel is an individual lamp on the matrix.
Plant
All the Outdoor advertising units in a market that are operated by a single company. Sometimes the term refers to the outdoor company itself.
Poster
A m2 sign face on which copy can be changed monthly. Poster paper is pasted to sign face to change copy. Also called a 30-sheet poster.
Prizma Billboard
Advertising media with a surface area around 40 m2 and more, (3 to 4 surfaces on each side) at very high-traffic sites and is also called rotating billboard
Permit
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Reach
The approximate percentage of a target audience's population which will be potentially exposed to an advertising message at least once during a specified period of time. Reach is normally measured over four week periods.
Retention
The information is transferred into long – term memory.
Roof top signage
A painted display, panel or poster situated on a metal construction structure erected on the roof of a building.
Rolling billboard
Create displays or vinyl cloth and can change message as needed to suit the needs of the advertising campaigns.
The process of moving the advertiser's message from one painted display location to another at stated intervals in Rotating billboard order to achieve more complete coverage of a market.
Scrolling billboard
The color intensity of an image. An image high in saturation will appear to be very bright. A mode of message transition on display where the message appears to move vertically across the display surface
Showing
A group of poster panels distributed throughout a city or marketing area displaying an advertiser's message. Usually displayed for a 30 day period.
Saturation
Sign Stationary Billboard
Any structure used to display information regarding a product or service. An outdoor unit is a sign.
Street Furniture
Billboard situated on fixed place. Advertising displays, many that provide a public amenity, positioned at close proximity to pedestrians for eye-level viewing or at a curbside to impact vehicular traffic. Street furniture displays include, but are not limited to transit shelters, newsstands/news racks, kiosks, shopping mall panels, convenience store panels and instore signage.
SWOT
(Strength, Weakeness, Opportunities and Threats) Simple but powerful tool for identifying the opportunities open to you and managing the threats you face.
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Transit
The profile of the most desired consumer prospects for a product or service, listed by characteristics such as demography, lifestyle, brand or media consumption, purchase behavior, etc. Common to all media. Advertising structure on taxicabs, either on roof or at rear. Roof panels are called taxi tops and are generally backlit at night. Official agency of the federal, state or city governments which regulates and studies traffic flow, and issues statistics on same. Number vehicles that pass an off-premise sign in one day. Traffic counts are obtained from the state highway department. Transit advertising contains displays affixed to moving vehicles or in the common areas of transit terminals and stations. Transit displays include, but are not limited to, bus panels, train/rail panels, airport panels, taxi panels and mobile advertising signage (trucks).
Vinyl
A polymer-based material used for large format, usually printed, advertising which is stretched around a sign face for display. This is Meadow Outdoor preferred medium.
Target Audience
Taxi Advertising Traffic department
Traffic Count
Wallscape
Wrapped Vehicle
Murals painted or attached directly onto the exterior surface of a building Computer printed vinyl panels attached to the exterior of vehicles, to carry advertising messages. Special Translucent material is used over windows to allow the image to fully cover the vehicle.
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Creative outdoor advertising pictures, taken from sit e www. Ffickr.com
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