Press center

The possibility of targeting in Out-of-Home advertising

05 March 2015

Alexey Dotsenko, Strategic Manager Master AD.

АлСксСй Π”ΠΎΡ†Π΅Π½ΠΊΠΎ

It can be assumed that the relevant communication channel for business will be business centres and airports, and for families - malls. However, I will speak about classical billboard OOH advertising, its share among the other OOH media channels is about 85% (data of All-Ukrainian Advertising Coalition). I mean billboards, prisms, city-lights, scrolling billboards, back-lights and other formats.

Рисунок1

Fig. 1. The number of outdoor advertising billboards, Kiev (2000 Vs. 2014, images of Doors Consulting). The number of OOH carriers has increased by 6 times for 14 years.

There is too much billboard outdoor advertising in Ukraine. Clatter in Kiev is 5 times more than in London. While in London the main format are city-lights, in our country billboards are.

Рисунок2

Fig. 2. The number of outdoor advertising per 10 thousand people (sources: Master AD, Doors Consulting, PosterScope UK)

Why do we have so many billboards? Historically, the first standardized carriers in Ukraine were the billboards 6 metres in width and 3 meters in height. The format of transit shelters came after them, but it was not popular. Therefore, the system advertisers had to use what was available. Tobacco companies (they were major advertisers then ) liked size 6x3. In 2000-ies the OOH advertising was a communication channel with the best ad reach for Philip Morris, British American Tobacco and other monsters of the tobacco industry. They established a huge amount of carriers 6x3 with expensive metal halide lighting across the country.

Рисунок3

Fig. 3. Tobacco OOH advertising (photo: BigMedia)

From January 1, 2009 the ban on advertising of tobacco and alcoholic beverages on OOH carriers came into force, but billboards remained. On the one hand, this is bad, on the other - this makes targeting possible.

To target by the target audience there are two hypotheses:

1. Outdoor advertising is evenly distributed to cities (this follows from its large number).

2. People uniformly move around the city (we have no conglomerates, where people move in a limited area ("home-work").

Measurements of Doors Consulting company allow to calculate media rates (OTS, GRP, ad reach, frequency) for an audience of age 18+. But advertisers are interesting in data on their target audience(TA), their buyers. We will rely on Doors Consulting data to calculate media parameters for a specific target audience.

So, there are only three steps in order to select the desired TA from the data of Doors Consulting:

The First step. The determination of the number and the proportion of the desired TA (according to Nielsen, TNS MMI, SSC, etc. - by any reliable source. I recommend to use Nielsen data, because its TA is in the age to 100 years, and TNS - to 65):

β€’ data on the amount of TA in absolute terms among all
β€’ the share of TA (%) among R18+ (all people aged 18 years and older)

Realizing that our target audience may be more or less active compared to the baseline (18+), there is the Second step. The definition of "mobility ratio" of TA (according to TNS MMI):

Β· determining the ratio of the potential reach of TA with reach P18+.

I want to note that this is very small figure. It's usually less than 1. So it can be ignored without losing the accuracy of the calculations. But it sometimes can be significant and affect the calculations.

The Third step. Calculations according to the formulas OTS, CPT, TRP, REACH, that are slightly modified from the standard formulas of media planning:

β€’ OTS (TA) = OTS(P18+) x share of TA(%) x "factor mobility"

β€’ CPT (TA) = Budget / OTS (TA) x 1000

β€’ TRP = OTS (TA) / (TA) x 100

β€’ REACH (TA) = REACH(18+) x "mobility ratio"

I have tried this methodology on three main TA: all adults aged 18-29 years, women aged 25-45 and men aged 30-50.

Рисунок4

Fig. 4. Test TA (photo sources: Internet resources)

The results of CPT calculation (cost per thousand contacts) were pleasant:

Рисунок5

Fig. 5. The cost of thousands of contacts, UAH, without taxes (data Dentsu Aegis Network Ukraine). CPT OOH calculated by geography 100K+, Internet on an average mix

Talking about the target audience in general for any brand, we are talking about the core of TA (compiled by the marketer or brand manager). However, we do not fully understand how the consumer relates to advertising. There is often a fact that a lot of sales are generated by NON-target audience. Therefore, we need to communicate with NON-target audience too.

The conclusion is that outdoor advertising remains one of the best crisis media due to its low cost and reach potential.