Bucharest July , 2001 Hilton Hotel Agenda Planning Efficiency Budgeting Characteristics OOH campaigns management OOH easy Goals OOH to became an easy manageable medium Effective planning, media efficiency Improvement of OOH campaigns impact Comparable figures with other media Improved quality of boards and services supplied Improvement of OOH professional standards Transparent and regulated market Control Consistent price policy Industry Characteristics Clients need to buy OOH media exposure, but they rent boards instead Suppliers dont know what they sell Clients dont buy what they need Result: Budgets loss due to panel under evaluation Budgets loss due to the buying of non impact boards Price pressure on suppliers Poor board and services quality Less market transparency Personal relations Media Considerations Number of TV stations that are received by households is increasing Number of TV sets by household is increasing Resulting media split on many TV channels Similar situation in Print media Traffic flows inside cities are limited OOH media has the lowest CPT costs combined with the highest frequency figures OOH media strengths 24 hours exposure Allows geographical target control Allows geographical target personalization High affordability High reach and frequency if properly planned High advertising elasticity to sales ratio Large variety of supports Advantages in impact based buying Clients pay what they get OOH media became manageable There are no good or bad boards Suppliers may ask for a consistent price policy OOH media budgets are consistent OOH impact may be compared with other media impact Consistent media mix optimisation OOH media usage Maintaining brand awareness Reminder for BTL campaigns Geographical targeting Sustainer for large reach media Price promotion campaigns Buying Activity (Romania) Client has a certain OOH budget Buyer is asking for a certain number of boards based on a rent / board ratio from previous experience with the supplier As no effective evaluation criteria exists, all clients are asking for so called premium locations Other suppliers are asked for a higher number of boards in the limit of the same budget The initial supplier reduces the price or offers a bonus in terms of extra media Some suppliers and a certain number of boards are finally selected after the price was pushed down Buying Effects (Romania) Some boards are never asked by media buyers Some suppliers try to sell the boards in networks Due to price pressure, suppliers cut maintenance costs Initial locations (the planned ones) are sold to other clients that pay a better price, have better payment conditions or have a longer contract Some locations are never posted Bonus locations are poor maintained Campaign suffers What if? Clients would pay for what they are really interested in Suppliers would charge the price of the impact, board services and support quality Planners would select boards based on campaign brief and objectives The suppliers are able to guarantee for the exposure The quality of supports, services and price policy would be standardized Principles of OOH Buying based on impact Boards are not equal They differ from various points of view They have to have different rates Each board contributes to the total campaign impact Board selection is done according to campaign objectives Impact measurement and board evaluation is a must OOH Management Due to the last developments, the Romanian OOH market has reached the step when it can become transparent and regulated Key to outdoor media effectiveness Impact measurement Monitoring Board rating OOH Campaign Management System Planning Control Administration Organization Evaluation Impact Measurement How many people will see the campaign? How often? Who are these people? Do they match my target? Efficiency: How much do I pay for this? Does it worth? Main planning and post campaign evaluation tool Board Rating Is the board visible? How visible is it? When two panels are identical in terms of impact which one should I chose? Based on panel characteristics Monitoring Are the boards up? How do they look like? Assures campaign control Evaluation tool for Supplier services Posting Contract Planning Methodology Empirical planning
Planning based on board characteristics
Planning based on impact measurement Advertising Efficiency Sales a function of advertising spent Creative and planning are correct done Pricing policy is correct established Distribution channels are correct used Advertising elasticity Economic Marginal Analysis Advertising Efficiency advertising sales sales advertising expenditures profit Optimal Advertising Level High CPP Low CPP Advertising Efficiency sales advertising More TV More OOH More OOH Empirical Planning The planner visit location by location and select boards according to his appreciation Based on planner experience and luck Based on the assumption that the selected boards are welt located Results: Boards became good and bad Traditional boards Poor efficiency Negotiation and personal relations are crucial Planning by board characteristics The planner is basing his selection on panel mounting characteristics and proximity Based on a scoring methodology and descriptive data Fundamentally is similar to the empirical planning as does not take into consideration impact figures Results: Specialized buyers Less added value Databases of boards good an bad Poor efficiency Tougher negotiations Planning by board impact Planner uses impact figures in bard selection Based on traffic figures, traffic profiles, impact indicators and board characteristics Professional market Results: Campaign efficiency All boards became comparable and important in a campaign Price differentiation Transparent buying and selling process Personal relations became less important Easy to plan Allows real optimization Pricing policy Impact (#GRP, GRP, DEC) Traffic profile Efficiency indicators (CPT, CPP) Board characteristics Support characteristics Influences Impact Number of potential viewers of the board / campaign (OTS) Main indicator in board measurement Main influence in board price Measured by traffic indicators Total Traffic DEC #GRP GRP Other indicators: reach, frequency Influences - Traffic profile Potential viewers characteristics (sex, age, income, etc.) Descriptive indicators Board selection due to traffic profile assures budget spending on desired target Saves budget or improves effective budget spending Used in campaign optimisation Influences - Board characteristics Even located in the same traffic boards have different viewing characteristics Measured by scoring and rating systems Measure of board visibility Measured in points Take into account different objective or subjective criteria Influences Support characteristics Does a Dacia have the same price with a BMW? Do you pay extra for air conditioning? Transmits indirect image regarding the brands promoted Important ion associating feelings with brands Service differentiation Exposure time Efficiency indicators CPT, CPP Indicators for money spent to achieve desired impact on desired target Global indicators for campaign Base of board and campaign pricing policy Conclusions Easy OOH campaigns management Consistent OOH policy Higher professional standards Better services Increased customer satisfaction Better results control