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Contemporary Advertising, 8/e
William F. Arens

Using Out-of-Home, Exhibitive and Supplemental Media

eLearning Session

  1. Media that reach prospects outside their homes-like outdoor advertising, bus and taxicab advertising, subway posters, and terminal advertising - are part of the broad category of out-of-home media.
  2. As a national and global medium, outdoor advertising (69.0K) has achieved great success. It is the one medium that carries a message 24 hours a day, seven days a week, day and night, and without interruption. It's never turned off, zipped, zapped, put aside, or left unopened. And it's big. Some experts now refer to billboards as the last mass medium.
    1. Standardization of the outdoor advertising business
      • Standardized outdoor advertising uses scientifically located structures to deliver an advertiser's message to markets around the world.
      • Plant operators (outdoor advertising companies who own and maintain outdoor structures) find suitable locations, lease or buy the property, acquire the necessary legal permits, erect the structures to conform with local building codes, contract with advertisers for poster rentals, and post the panels or paid bulletins.
    2. Types of outdoor advertising - standardized structures come in three basic forms: bulletins, 30-sheet poster panels, and eight-sheet posters. Some companies use the nonstandard "spectacular" for extra impact.
      • Bulletins/Bulletin Structures
        1. Meant for long use and work best where traffic is heavy and visibility good; may be painted in sections at the shop, then transported to the site
        2. are usually custom-made, larger and longer than posters (14 x 48 feet) normally illuminated
        3. are repainted several times each year may be three-dimensional or have cutouts that extend beyond the frame (time and temperature units called jump clocks) can be justified financially by a rotary plan that moves the bulletins to different choice locations in the market every month or two.
      • Poster Panels (standard billboard)
        1. The 30-sheet poster panel (standard billboard measures 12 x 25 feet) is less costly per unit. It is the basic outdoor advertising structure. It is first printed at a lithography or screen plant then assembled and hung by hand at the site.
        2. Stock posters are ready made and available in any quantity at lower than usual cost for local advertisers
        3. 8-sheet posters (or junior panels) offer a 5' X 11' printing area on a panel surface of 6' tall by 12' wide and are an excellent medium for point-of-purchase coverage and for pedestrian viewing.
      • Spectaculars
        1. Giant electronic signs that incorporate movement, color, flashy graphics to grab attention in high-traffic areas.
        2. Very expensive to produce and are found primarily in the world's largest cities
    3. When advertiser needs to saturate a market to introduce a new product, outdoor advertising makes broad coverage possible overnight.
      • The basic unit of sales for billboards, or posters, is 100 gross rating points daily or 100 showing; local and national advertisers pay the same rates- quoted monthly.
      • 1 rating point = !% of a particular market's population, 100 showing theoretically will read the total population.
      • Rates vary considerably due to variations in property rentals, labor costs and market size.
    4. Location is everything. Increase GRP by increasing number of boards and using better locations. As a rule of thumb, the standard billboard costs $500/month - still the lowest cost per thousand (an average of $1.55 CPM) of any major mass medium.
    5. Technology in outdoor advertising
      • Outdoor companies use global positioning systems (GPS) to unite accurately geographic position with market data for the best results.
      • Digitized videos of each board's environment are available in some cases.
    6. The Highway Beautification Act of 1965 controls outdoor advertising on U.S. highways and other federally subsidized highways. Some states prohibit outdoor advertising (Maine, Vermont, Hawaii, and Alaska), but other states use it to attract tourists.
  3. Transit advertising - is a category of out-of-home media that includes bus and transit advertising as well as posters on transit shelters, terminals and subways.
    1. Pros and cons (65.0K)
      • Good for reaching middle- to lower-income urban consumers
      • Popular with local advertisers.
    2. Types of transit advertising
      • Transit shelters advertising
        1. is a relatively new out-of-home form enjoying great success
        2. reaches virtually everyone who is outdoors: auto passengers, pedestrians, bus riders,
        3. is extremely inexpensive and available in many communities that restrict billboard advertising in business or residential areas
        4. is an excellent complement to outdoor posters and bulletins.
      • Terminal poster-space is sold in bus, subway, and train stations for one, two-, three-sheet posters. Major train and airline terminals offer a variety of advertising opportunities similar to outdoor spectaculars - usually custom-designed.
      • Inside cards, car-end posters, and outside posters
        1. The inside card placed in a wall rack above the vehicle windows; cost-conscious advertisers print both sides of the card so it can be reversed to change the message.
        2. Car-end posters (in bulkhead positions) are usually larger, vary in size, and cost more.
        3. Outside posters are printed on high-grade cardboard and varnished for weather resistance and are placed on side, rear, and front of a bus.
        4. Taxicab exteriors, to display internally illuminated, two-sided posters positioned on the roofs, doors or rear of taxicabs.
      • Buying transit advertising - the unit of purchase is a showing also known as a run or service.
        1. A full showing (or No. 100 showing) means that one card will appear in each vehicle in the system; half (No. 50) and quarter (No. 25) showings are also available.
        2. Rates are usually quoted for a 30-day showing and discounts are offered for long-term contracts.
        3. Special inside buys - in some cities, advertisers can gain complete domination by buying the basic bus - all the inside space on a group of buses. For an extra charge, "take ones" - pads of business reply cards or coupons - can be affixed to interior advertisements.
        4. Special outside buys - some transit companies offer bus-o-rama "signs," jumbo full-color transparencies back lighted by fluorescent tubes and running the length of the bus. A single advertiser may also buy a total bus - all the exterior space, including the front, rear, side, and top.
  4. Other out-of home media
    1. Mobile billboards - advertising on sides of trucks and signs on trailers
    2. Electronics signs and display panels
      • Big electronic screens in sports stadiums
      • Electronic display panels on subway cars
    3. Parking meters and public phone advertising
  5. Exhibitive media includes product packaging and trade-show booths and exhibits.
    1. Product packaging is important since 70 percent of all buying decisions are made at the point of purchase. Packaging encompasses the physical appearance of the container and includes design, color, shape, labeling, and materials. Packaging serves marketers in four major ways: protection, preservation, and promotion.
      • Designers consider three factors: the package's stand-out appeal, how it communicates verbally and nonverbally, and the prestigeor image desired. Bonding brand images and brand personality are overall goals.
      • To sell well on shelves, packaging may use shape, color, size, interesting visuals, or even texture to deliver a marketing message, and reinforce the brand image.
      • Buying packaging includes two major phases:
        1. First phase: concept process involves input from five major groups: consumers, manufacturers, marketing intermediaries, consumer advocacy groups, and government agencies, and production.
        2. Second phase: production process
      • As manufacturers continue to produce environmentally safe packaging "green packaging," the marketer's cost of materials rises. With the publics (40.0K) growing concern for the environment, especially in international markets, recyclable tin-coated steel and aluminum packages are enjoying a resurgence. Dense population makes European regulations more stringent than in North America.
      • The Food and Drug Administration (FDA) and the Nutrition Labeling and Education Act of 1990 imposed stricter labeling requirements for nutrition and health products.
      • Package manufacturing
        1. Packaging comes in many forms and varieties of materials, making package production the task of many specialists.
        2. State regulation can differ from federal regulation. The production phase of packaging, may require the use of many packaging specialists: expert in package engineering (box designers, packaging materials consultants, and specialists in equipment configuration); graphic artists (designers, production/computer artists, illustrators, and photographers); label producers (printers and label manufacturers); die-cutters for custom packages; and package warehousing companies (wholesalers of prefabricated packages and package manufacturers)
        3. Agencies not usually involved in package decisions, but are consulted about design.
        4. Packing should be kept simple: printing resolution not good on chalkboard, folding and die-cutting is expensive, exact fitting hurts structural integrity.
      • There are many reasons to change a package: product alteration or improvement, substitution in packaging materials, competitive pressure, environmental concerns (46.0K) , changes in legislation, or the need to increase brand recognition. Designers often change packaging very gradually to avoid confusing customers.
    2. Trade-Show Booths and Exhibits - trade shows are exhibitions where manufacturers, dealers, and buyers get together for demonstrations and discussion. The construction of trade-show booths and exhibits has become a major factor in sales promotion plans. When establishing an exhibit booth program, managers should consider:
      • Planning - which pivots around four major areas: the budget, the image of the company or brand, the frequency of the shows, and the flexibility of booth configuration. Planning factors include: size and location of booth space, desired impression of exhibit, shipping, installation, and dismantling of literature, and pre-show promotion and advertising.
      • Budgeting - for trade shows and a booth may require an extensive review of over 60 factors. (Budget part 1 (67.0K) , Budget part 2 (75.0K) ).
      • Promotion - marketers send out personal invitations prior to the show and have promotional activities (news releases, telemarketing) and materials (handouts, brochures, giveaway specialty items) to stimulate customer interest.
      • People - the company's representatives staffing the booth personify the kind of service the customer can expect to receive.
      • Productivity - a company's trade show effort may be wasted if prospects' names are not properly collected.
  6. Supplementary media
    1. Specialty advertising - the Promotional Products Association International (PPAI) defines an advertising specialty as a free promotional product, usually imprinted with an advertiser's name, message or logo that is distributed as part of a marketing communication program. The premiums which are also promotional products, typically are more valuable, but usually bear no advertising message, but recipients must buy a product or perform some action advantageous to the advertiser.
      • Consumer specialties - consumers tend to associate the quality of a specialty item with the quality of the company providing it, so companies lean toward more expensive gifts for consumers.
        1. Work best when integrated into broader marketing program and service strategy.
        2. Some business, like financial institutions, are subject to government regulation of gifts.
      • Business-to-business specialties - companies use more structured specialty promotions to improve their goodwill standing over competitors. Gift recipients feel obliged to reciprocate business, but the value of the gift is not crucial. Inappropriate specialty items can backfire no matter what the cost.
    2. Directories and Yellow Pages
      • Directories are published by phone companies, trade groups, and organizations.
      • Directories mainly serve as locators, buying guides, and mailing lists, but they also carry advertising aimed at specialized fields.
      • Yellow Pages is now the fourth largest medium, ahead of radio, magazines, and outdoor.
      • Yellow Pages are often the sole advertising medium for local businesses, and nearly 87 percent of Yellow Pages revenue is derived from local advertisers.
      • Ride-along programs let regional and national marketers deliver coupons and examples with the directory.
    3. As traditional advertising media become more expensive and audiences become more fragmented, many advertisers seek new ways to reach their customers. Several types of alternative media are:
      • Videotapes - placing ads on the videocassette boxes or a video brochure are not as intrusive as a commercial placed directly onto the beginning of the video film.
      • Cinema advertising - is a growing but controversial practice.
      • Product placement - paying a fee to have the product written into the movie. Companies benefit from the association with top films and actors.
      • ATMs - Automated teller machine (ATM) - are commonly found money devices with captive audiences. Retail coupons are printed on back of receipts. Full-motion video ads can be placed on ATM screens.