outdoor advertising master thesis - toni ivanoski
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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…. …. …. …. …. …. …. …. …. …. …. …. …. …. …. … 5
Thesis Readers …. …. …. …. …. …. …. …. …. …. …. …. …… 6
Table of Contents …. …. …. …. …. …. …. …. …. …. …. …. … 9
Chapter 1: INTRODUCTION … …. …. …. …. …. …. …. …. ….. 12
History, today and expect from the future … …. … .... 12
Why Outdoor Advertising ……………………… …… … 17
Objectives, Goals and Purposes …. …. …. …. …. …. .... 18
Chapter 2: THE ADVERTISING COMMUNICATION, THE
ROLE OF INFORMATION AND PERSUASION …. 20
Outdoor Advertising Communication …. …. … ….. …. 20
Role of Information … .. …. …. …. …. …. … …. …. …. 23
Persuasion in Advertising Communication … …. …. ... 25
Chapter 3: THE MANAGEMENT OF
OUTDOOR ADVERTISING… …. …. …. … … … 28
Market Structures for Outdoor Advertising … … … ..... 28
Outdoor Advertising Functions and Processes … …. … 31
Budgeting the Outdoor Advertising .. …. … …. . … …. 34
Outdoor Advertising Strategy … …. …. …. … … … …. 38
- Advertising Agency … ….. ….. ….. ….. … … ….. … .. 39
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- Advertising Agency Organization …. …. …. …. …. .. 41
- Principles of OA Agency with Client relationship … 45
- Outdoor Advertising Agency Compensation … … … 45
- Advertising Plan and Strategy … … …. … …. …. … . 46
Pricing Strategies …. …. …. … …. … …. …. …. …. … …. ... 49
- Setting the Price…. …. … …. …. … … …. … …. … …... 50
- Adjustment the Price ….. … … … … … … …. … …. … 51
Selling Outdoor Advertising Space …. …. … …. ….. …. ... 53
Chapter 4: THE OUTDOOR ADVERTISING PRODUCTS … . 57
Outdoor Media …. … …. …. …. … …. …. … …. … …. ... 57
Stationary Billboards …. …. …. .. …. . …. … …. …. …. .. 59
Rolling Billboard ….. …. …. …. …. …. …. … …. …. … … 62
Big Board Advertising …... …. … … …. …. … …. … … .. 63
Wallscape Advertising .. …. …. ….. …. ….. ….. …. ….. … 64
- Vertical Format …. … …. … …. …. … …. …. … …. …. 65
- Mega Format …. …. … …. … … …. … … …. … … … . 65
- TV Format .. …. … …. .… … … … … …. … … … … … 66
Prizma Billboard … …. …. … …. …. …. …. … …. …. …. . 67
Digital Advertising … …. …. … …. … …. … …. … …. …. 68
Roof Top Signage Advertising ….. … …. … …. … …. … . 69
City Light and Mega Light Advertising …. …. … …. … .. 70
Mall Advertising … … … … …. … .… … .. … … … … … . 72
Mobile Advertising … …. …. … ….. …. … …. …. … …. .. 73
- Mobile Billboards …. …. …. …. ….. ….. ….. ….. …. .. 74
Taxi Advertising … …. ….. …. ….. ….. …. …. …. …. …. .. 75
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Transit Advertising and Bus Advertising…. … …. … ….. 76
Inflatable Advertising …. …. … … …. … … …. … … ….. 77
Other Creative Outdoor Advertisements…. …. … …. …. 77
Chapter 5: ANALYSING THE OA …. … … …. …. .… …… ….. . 81
Market Research and Research Customer Behavior …. … 83
- Focus Group Research …. ….. … … … … .. .. .. …. …. . 85
- The customer behavior …. …. …. …. …. …. …. …. …. 87
- Brain Activity Research … …. … … …. … … … …. …. 87
Analyzing the Outdoor Advertising in Macedonia …. …. 89
Analyses for the best positioning ad in Skopje City …. .. 92
OA Agencies in Macedonia and their types of ads … ….. 93
Effects from the OA in Macedonia … …. …. …. … …. …. 94
CONCLUSION ….. …. …. …. … …. … …. … …. … …. …. .. 99
\ ENDNOTES …. … …. …. …. …. …. … …. …. …. …. …. …. 103
BIBLIOGRAPHY …. …. …. …. … …. … … … … …. … … .. 107
GLOSSARY ….. …. …. …. …. …. …. …. …. … …. …. …. …. 108
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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
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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,
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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 hand-
painted 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;
- To build and maintain brand loyalty;
- To launch a new OA product;
- To build a brand image and build company’s name;
- To change clients attitudes;
- To remind the clients and the customers;
- To offset competitor advertising;
- To support the sales force;
Whatever and wherever is advertised, it is important that the message is:
- Seen;
- Read;
- Believed;
- Remembered;
- 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.
- Total Reach – OA enables broad coverage and target market reach. It is
the most effectively visible media exposed to any person out of home.
- 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.
- Relative absence of competing advertisements – Outdoor advertisements
stand alone and are not subject to the competition of other messages.
- Impact – Outdoor is BIG, BOLD and COLORFUL media.
- 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
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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.
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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 – 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
- The type of management system and organization that is using in the OA
company;
- The type of information and planning system that is using in the OA
company;
- 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;
- The degree of the monopoly power each firm has;
- The degree in which the company influence on the price;
- Profit level and index;
- Pricing strategies, output levels and non-price competition;
- 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
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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.
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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.
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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.
– Good and frequent locations.
– New innovative products and services.
Figure 3.1_______________Vertical MM_SWOT Analysis
Helpful Harmful
to achieve the to achieve the
objective objective
Source: www.supermarketingmedia.com/swot_analysis
Weakness
- When costs of expenses for the advertisement are high.
- When can be afforded to sell for less the ad and low pricing.
- Damaged reputation.
Strengths
- knowledge
- relationship
Threats
- Computer and
appliances
- Administration
Opportunities
- Internet
- Training
-
Weakness
- Cost structure
- Price
Internal -
attributes
of the
organization
External –
Attributes of
the
environment
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Opportunities
- Offering through the Internet areas can be strength the opportunity.
- Training the employees and yourself is more in demand for executing
all determined tasks.
- 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.
- It is typical for non developed countries to have low skilled
administration and too much corruption.
- New competitors on the market place.
- 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).
35
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
Strategy I mplementation
Advertising Strategy
� Setting Objectives
� For mulating Budgets
� Creating Ad Messages
� Selecting OA for m
Assesing OA Effectivenss
Source: Terence A.Shimp, Sixth Edition, year 2003, Part Four, Chapter Eight, “Managing the Advertising Process” page 234-
235⁷³
36
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
37
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 ______________________Life Cycle of the Company
Source: Nigel Piercy, “Advertising Budgeting:Process and structure as Explanatory Variables”, Journal od Advertising,
Chapter 16, year 1987, page 113
VALUE
TIME
Opening
Low salary
Low increase
Low profit
or wastes
Flying
Increasing the sales
High profit
Entertainment
High salary
Delayed growth
Profit stability
Readiness and
experienced
company
Constant salary
Constant profits
Decreasing
Decreasing the salary
Profit decrease or
wastes
38
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.
39
- 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.
40
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
41
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
Source from: Karachidiaries.blogspk.com/2005/09/23/advertising-campaigns-for-the-
intellectually-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,
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
42
CEO
Executive
Manager
Account
Department
Finance
Department
Creative and
Service
Department
Media
Department
Commercial
Department
Copyrighter
Chief
Design
Chief
PR
Art Director
Promotion
managers and
Media Planners
Marketing
Managers and
Commercialist
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
Source from: Vertical MM Outdoor Advertising Agency, Macedonia
43
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.
44
- 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;
45
- 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
46
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
47
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
48
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
49
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
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Figure 3.7 Types of possible_reference Prices
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.
� 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
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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.
52
• 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 Market-
Penetration.
Excellent skilled sales management team from any of the Outdoor
Advertising companies can achieve positive feedback, and poor skilled can
53
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
54
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 so-
called 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.
55
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
56
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 non-
expected 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.
57
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”,
58
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,
59
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
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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
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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 Source: GA Newark Bears; Newark, NJ Video Max Model
Advertising Agency) www.lamaroutdoor.com (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) Source: Dallas, Texas – Big Board ( 8 x 12m)
Arrington outdoor Advertising Arrington outdoor Advertising
Wallscapes
Wallscapes are one of the boldest creations which can be found in out-
of-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 Digital Billboard
Source: www.venixmedia.com Venix media 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 wall display metro stations
Source: www.wikipedia.org Source: www. wikipedia.org 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” Skopje, Macedonia –Source: “Vertical MM OA
Roof top signage format, 18 x 5 = 90m2 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 Mega Light
Portugal, Lissabon V30/15-5 112m² England, London on High Street, 18m2
Source: www.flickr.com/photos/ 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
mall advertising lightn mall kiosk mall advertisement Source: www.flickr.com/photos/ Source: www.flickr.com/photos/ 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.
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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 new-
product development process.
The creative team is responsible for “kicking ideas” or
“brainstorming”, a process in which the idea is allowed to stimulate another
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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 Creative billboard ads
Root billboard, 2006 ™ ad for “Gain” soil laundry detergent
Taken photo from© FeedBlitz 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
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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 owner-
managers 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
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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
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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.
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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.
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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.
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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 the methods, means
communication and data gathering in finding customer information
(satisfaction level, use of the focus groups and the surveys).
92
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.
93
Figure 5 The most frequent locations in Skopje City
Name of Street Left Straight Right
- Dimitria Cupovski
- Dame Gruev
- Vasil Glavinov
(Paloma Bjanka)
Auto
Bus
TR
Auto
3514
Bus
136
TR
113
Auto
2013
Bus
39
TR
76
-MitoHagivasilev Jasmin
- Makedonija
- Dame Gruev
(Hotel Bristol)
Auto
Bus
TR
Auto
3646
Bus
TR
Auto
2290
Bus
TR
- 11 Oktomvri
- Koco Racin
(Red Cross)
Auto
2855
Bus
294
TR
172
Auto
2922
Bus
225
TR
165
Auto
Bus
TR
- Nikola Karev
- Krste Misirkov
- Cvetan Dimov
(Cair Ambulance)
Auto
Bus
TR
Auto
4495
Bus
96
TR
1656
Auto
Bus
TR
- Partizanski Odredi
- Franklin Ruzvelt
(Simpo Furniture)
Auto
4605
Bus
TR
420
Auto
5856
Bus
TR
455
Auto
3800
Bus
TR
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.
94
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.
95
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
96
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
97
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
98
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.
99
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
100
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.
101
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 price-
adaptation strategies: geographical pricing, price discount and allowances,
102
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.
103
ENDNOTES
Chapter 1
1. http://encarta.msn.com/encyclopedia_761564279/Advertising.html#s2
2. James F. Engel, Promotion Strategy, The Outdoor Advertising Future, Chapter 11, Section 4, page
300
3. LL Berry - Journal of the Academy of Marketing Science, 2000 - jam.sagepub.com
4. James F. Engel, Promotion Strategy, The Outdoor Advertising Future, Chapter 11, Section 4, page
298
5. W. R. Simmons and Associates Research, Inc, Reach and Frequency of exposure of Outdoor Posters,
for the Institute of Outdoor Advertising, Inc
6. 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
104
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. http://en.wikipedia.org/wiki/Market_form
2. http://links.jstor.org/sici?sici=0022-
2429(198524)49%3A1%3C13%3ATOOMAA%3E2.0.CO%3B2-O
3. James Webb Young, “Advertising Age” November 21, 1973, Chapter 12
4. 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
5. http://www.freshthinkingbusiness.com/swot-analysis.html
6. http://www.adcracker.com/index.htm
7. 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
8. Ibid
9. Nigel Piercy, “Advertising Budgeting:Process and structure as Explanatory Variables”, Journal od
Advertising, Chapter 16, year 1987, page 113
10. Ibid
11. http://instructional1.calstatela.edu/sstretc/513 BUS/Contents of the Marketing Plan 04.doc
12. 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
13. http://encarta.msn.com/encyclopedia_761564279/Advertising.html
14. 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
15. Karachidiaries.blogspk.com /2005/09/23/advertising-campaigns-for-the-intellectually-disabled
16. , 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
17. 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
18. Ibid
19. Ibid
20. www.answers.com/topic/advertising-strategy
21. 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
105
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. Clear Channel Outdoor and CBS Outdoor, www.mediabyuerplanner.com
2. http://www.ankuender-stmk.at/home/Produkte/Prismenwender/rotating_billboards.php
Chapter 5
1. www.marketingpower.com/content4620.php
2. Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong,Principles of Marketing, Fourth
European Edition, Part 1, Marketing now, page 30-31
3. Ibid
4. Ibid
106
5. Customer Behavior, A managerial Perspective (from the book use in UACS), Focus Group as
Qualitative Research, page 232, 233
6. www.programevaluation.org/focusgroups.htm
7. Customer Behavior, A managerial Perspective (from the book use in UACS), Focus Group as
Qualitative Research, page 232, 233
8. Ibid
9. Ibid
10. Ibid
11. www.som.umd.umich.edu/3265
12. www.computers.now2007.com/website,2622,The_Customer_Respect_Group.html
13. 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.
14. www.programevaluation.org/focusgroups.htm
107
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
108
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.
Advertising
message
Refers to any form of communications directed by an
advertiser/sponsor to any mass audience, whether
readers, listeners or viewers.
Agency
Commission
Amount paid to advertising agency by media for placing
business.
Alternative Media
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
advertisers.
Approach
The distance measured from the point where a display
becomes visible to the point where the display is no
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.
109
Billboard
Off-premise, large format sign viewed from a street or
highway. Meadow only provides this type of outdoor
advertising.
Boards Common term for poster panels and bulletins.
Brand Name
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 Traffic volume in a market
Competition
The act of striving against individuals or groups, for the
purpose of achieving survival, income, pride, status, or
other gain.
Comprehension
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.
Extension
The area of design made as a cutout that extends beyond
the basic rectangular space of an advertising structure.
Focus Group
Research
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.
110
Frequency
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.
GRP
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.
Illuminated A lighted sign so that copy is visible at night.
Inflatables
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.
Impact
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.
Lease
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.
Location
A panel or group of panels or any painted display facing
the traffic in the same direction measured along the line
of travel.
Mall Displays
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.
111
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.
Permit
A license granted by the state and/or locality to authorize
a sign structure on a site.
Pixel
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
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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.
Rotating billboard
The process of moving the advertiser's message from one
painted display location to another at stated intervals in
order to achieve more complete coverage of a market.
Saturation
The color intensity of an image. An image high in
saturation will appear to be very bright.
Scrolling
billboard
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.
Sign
Any structure used to display information regarding a
product or service. An outdoor unit is a sign.
Stationary
Billboard Billboard situated on fixed place.
Street Furniture
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 in-
store 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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Target Audience
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.
Taxi Advertising
Advertising structure on taxicabs, either on roof or at rear.
Roof panels are called taxi tops and are generally backlit
at night.
Traffic
department
Official agency of the federal, state or city governments
which regulates and studies traffic flow, and issues
statistics on same.
Traffic Count
Number vehicles that pass an off-premise sign in one
day. Traffic counts are obtained from the state highway
department.
Transit
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.
Wallscape
Murals painted or attached directly onto the exterior
surface of a building
Wrapped Vehicle
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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