Using of external advertizing for achievement of the marketing purposes became more conscious and intelligent. Our life is changing and the model of media consumption is changing too. The yesterday's model of an effective advertizing campaign doesn't work anymore and won't work tomorrow.
Advertizing agencies keep watch over changes and trends of the market, developing for each client the unique effective decision. The clients don't buy only billboards, they buy the potency: attention of potential audience, buyer or contacts with the consumer Ratings are used as a basic comparative scale (RP, GRP).
The review of OOH market must be done on GRP (the current and future OOH currency), but not just on the basis of traditional approaches on SOV (Share of Voice – a share of advertizing influence) and SOS (Share of Spend – a share of advertizing expenses).
The outdoor advertizing agency Master AD offers the full review of the outdoor advertizing market on the basis of the data obtained from the research company Doors Consulting*.
What potential has the national outdoor advertizing got and how is this potential used? The answer to this question is a key to understanding of level of advertizing impact on audience in different months of activity.
How many OOH ratings are available in the market of Ukraine, and how many of them were realized last year? (See the graph No. 1)
Graph 1 General potential and sold-out of the OOH market
The quantity of advertizing stock almost didn't change for the last year, as well as population of the country. Therefore the fluctuations of the general level of the Ukrainian GRP are insignificant and are in limits of 270 thousand ratings a month.
Insignificant fluctuations of ratings are connected with recalculations of passenger traffics. Employment (the sold ratings) allows to trace seasonality in outdoor advertizing: winter period (January-February) and beginning of summer (usually June-July). The cost of placement during these periods is less. Therefore it is possible to solve problems with smaller investments and smaller quantity of billboards at this time. First of all billboards with the maximum ratings and adequate cost on locations with active traffic are bought.
We will consider how GRP are distributed on categories (Graph No. 2):
Graph. 2 TOP10 categories
Trade takes leading positions. 13% are occupied by the category "Advertising and Marketing" among all the ratings available in the market. The category "Entertainments" gains advertizing weight.
Shares on ratings practically correspond to expenses in categories:
Graph. 3 TOP10 categories. Distribution of budgets (one million UAH, without taxes)
Geography distribution:
Graph. 4 TOP10 Cities, December 2013. GRP distribution
80% of all ratings are the share of cities TOP10. Kiev is the leader with the big share of 43% and with the share of investments of 44%. There is no wonder because the capital occupies 13% in a money equivalent of whole country turnover (according to Goskomstat, January-November 2013).
Graph. 5 TOP10 cities, December 2013. Distribution of budgets (SOS).
The following two graphs will answer the questions: who and how buys ratings in outdoor advertizing:
Graph. 6 TOP10 advertisers, December 2013.
The TOP 10 of advertisers have 13% of market ratings, other 7 722 advertisers have a share in 90%.
It is necessary to consider both activity of specific competitors and activity in advertized category in planning advertizing campaigns. There aren't enough advertisers in one category but there is a lot of them in another, someone is more active but someone is less.
"GRP will become the "currency" of the outdoor advertizing market. Therefore its analysis, forecasting and planning on the basis of advertizing influence level is an important step which agencies, operators and advertisers need to make", summed up Andrey Nikitich, the director of Master AD.
