A definitive insight into the UK Out of Home industry
10
viewpoint
the road to the 2012 Olympics Gideon Adey on the implications and communications opportunities for the OOH industry
proving accountability with OOH Nick Mawditt on why OOH is an accountable medium
focus on insight Uncovering the growing synergy between traditional and social media
innovations A showcase of the latest innovative and effective campaigns from around the UK
02
introduction
welcome to our newly refreshed viewpoint newsletter. We hope you like the new look and enjoy Kinetic’s perspective on industry developments, trends and innovations in the UK. In this issue, we focus on the implications and developments building up to the 2012 Olympic Games and the exciting opportunities for advertisers to communicate to this largely mobile audience. We also uncover how OOH can deliver accountability in a media world that continually shifts with changes in technology and consumer behaviour. As people increasingly spend more time out of home, they are finding ways to take their personal and work lives with them. Kinetic’s latest Social Pioneers and Proximity research demonstrates the value of understanding environments in which people engage, how this translates to talkability in the online world, and how distances impact how far people are willing to travel to make purchases. And finally, we have included several innovative and effective campaigns featuring the latest augmented reality and digital OOH executions in the UK, hopefully leaving you with several fresh and creative inspirations for 2011.
A definitive insight into the UK Out of Home industry
the road to the 2012 Olympics implications for the OOH advertising industry
Gideon Adey business development director UK gideon.adey@kineticww.com
Next summer, it is predicted that 11.4 million people will be going to an Olympic venue to watch the Olympic and Paralympic Games. More than 8 million will be visitors to London and an estimated 2 million non-UK residents will be joining in the fun. Alongside the sporting events, the UK will see its biggest ever cultural festival, with more than 3 million people expected to attend a diverse range of events such as food fairs and music concerts, between June and September 2012 (source: Olympic Delivery Authority).
The event will be a perfect opportunity for advertisers to target an excited and engaged audience, and not only en route to Olympic sites: 45% of those planning to visit the Games say they will visit other attractions while in London. And despite a concern about the ability to deal with the increasing number of passengers anticipated on London’s transport system, 81% of people will use public transport during their visit to the Games, 56% exclusively.
Focus on London London is one of the world’s leading OOH markets and the UK industry is at the forefront of technological advancement so marketers could not have a better platform for reaching their target audiences. People will be travelling to the UK from around the world, giving advertisers targeting both corporate and consumer audiences the chance to promote their messages. London will hold the focus of the world come next summer; advertising platforms like this don’t come along very often. According to the latest Kinetic Panel data, 51% of Londoners and 40% of people from across the UK are already excited about the Olympics, up 5% since October 2010, and that was before the tickets went on sale.
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04 the road to the 2012 Olympics continued
The opportunity for OOH With a little over a year to go, the OOH industry is now in full swing preparing for the Games, with media owners across the board finalising their investment in new and exciting sites. There will be 1,601 products available to sponsors on the LOCOG trading platform with a media value (at the reserve rate) of more than ÂŁ147 million. Nearly 250 of those will be available to sponsors only, at a reserve value of over ÂŁ25 million.
51% of Londoners and 40% of people from across the UK are already excited about the Olympics
Official sponsors will have the chance to secure sites at auction or on a protected price basis, ensuring everyone has the opportunity to use OOH. Whilst it is recommended to have a buying strategy in place by Q2, there will be plenty of opportunities for non-sponsors. The vast majority of OOH inventory will remain available, including premium and targeted locations. East London will be a key location for OOH advertising, with the Stratford hub of activity as home to the Olympic stadium and village. There will be no
branding other than key sponsors allowed within a couple of hundred metres of each venue but there will be plenty of opportunities in the surrounding area and key arterial locations. By September 2011, Stratford will be home to the largest shopping mall in Europe, which will include an extensive digital OOH offering, while the stations that serve Stratford and the Olympic site will incorporate 10 train lines with a capacity of 240,000 people per hour. Spectators will not be allowed to drive to the Park so public transport hubs will be critical for attendees and an ideal opportunity for advertisers.
According to the Olympics Delivery Authority, 70% of all attendees will visit the London venues, the vast majority of whom will travel by train. A third of all people (3.6m) going to any Olympic venue will go to the Olympic Park itself and 98% will use public transport. Natural drive towards digital OOH The 2012 Olympics will be the first Games in which digital OOH will really come into its own. There will be breaking news every minute of every day throughout the Olympics, such as medal alerts, record breaking achievements and reporting exciting news; it is what digital can really deliver. The immediacy of digital will allow advertisers to change their messages to reflect exactly what is happening in the Games at that time. There is going to be a natural drive towards more digital sites in the next couple of years anyway and this will be seen particularly in areas such as Manchester, Cardiff and Newcastle where hosting Olympic events will provide media owners with a good opportunity to encourage Local Authorities to get digital technology installed across OOH. Consumers on the move From a marketing point of view, there will be the opportunities to communicate with a hugely mobile UK audience. Holidays will likely be
A definitive insight into the UK Out of Home industry
A third of all people (3.6m) going to any Olympic venue will go to the Olympic Park itself and 98% will use public transport. deferred and the nation will be mobilized to attend or view the Olympics from public places whilst advertising creatives will seize the opportunity to showcase to a national and global audience.
At Kinetic, we are dedicated to finding the best opportunities for all our clients, at home and globally. We are also able to advise them on the brand protection issues surrounding OOH advertising.
Ambush marketing, as seen at last year’s World Cup, will be tightly policed and there are strict rules around the use of the Olympics logo and the presence of brand logos in public spaces.
LOCOG/EPA
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06
how accountable is out of home?
The need for greater accountability across Out of Home – and indeed all media – is not in question. It seems that individual media are increasingly required to prove relative accountability to achieve a place on the schedule and long term top of mind status among clients and planners. Nick Mawditt global director of insight and marketing nick.mawditt@kineticww.com
But as technologies and consumer behaviour develops, proving single medium accountability is increasingly challenging. But it’s not impossible; Out of Home has made great strides in this area of late and there is considerable evidence to show delivery of client return on investment, whether alone or as an integrated solution. Advertising works, but individual media will contribute very different elements of this function. Branding, product messaging, flexible pricing strategies, footfall, calls to action, purchase consideration and sales are all measurable but clients are less willing to run accurate testing of each media’s ability to deliver different elements of performance.
There can never be a ‘one size fits all’ solution to defining accountability. Social media is just the latest complication (in terms of measurement if not effective planning) enabling brand messages to deliver more and amplify all kinds of conversations. The creative impact of any communication will offer differing effect - never more true than in traditional Out of Home. Measuring the client objective is key and better quality and more accessible data is needed to measure performance. However, here are five reasons why Out of Home is an accountable medium, notwithstanding the need to do much more to demonstrate return across various communications objectives.
A definitive insight into the UK Out of Home industry
The impact on consumer decision-making from proximity messaging can be up to 30%. Measurement New Postar research will be launched during Q2, 2011 as media’s most accountable measure of real people interaction. Postar is premised on the basis that a contact or impact measurement is a real OTS and is heavily diluted against a number of factors, including real visibility measures, distances, angles and direction of travel. This makes the measurement of eyeballs to Out of Home content more accountable than any other traditional medium. The application of GPS people meter measurement to the accompanying travel survey makes this data extremely robust and timely. The E-word Econometric analysis should not be underestimated in proving the return on investment of advertising. The exercise of extrapolating the impact of individual media channels is more problematic, particularly when the timing of campaigns often overlaps. Each media channel will likely work towards building perception, brand attributes, proximity of message and – increasingly – generating word of mouth and social media buzz. It is these factors that combine to create sales. Difficulties in pulling apart the real impact of different media in an integrated campaign, creates
real issues for business planning at such a granular level. There is strong evidence that Out of Home campaigns can create strong short-term sales ROI, in addition to creating a branding environment or effective word of mouth. This evidence now exists from multiple sources across sectors ranging from FMCG to retail and telecoms. Increasingly this identifies a cost-benefit to the medium as well as relying heavily on the quality of creative and robustness of available data to deliver accountable research. These factors give us a strong platform to plan better through effective frequency models. But above all, the creative is key. Proximity A significant piece of research for Kinetic across the last year has been our attempt to quantify the impact of proximity-led messaging close to the point of purchase or action. Our research identified a proximity distance effect that calculated an optimum distance for categories, and that differs slightly across sector and demographic. For example, to drive people into a mobile phone outlet with proximity advertising in a shopping environment, you have an optimum distance of 300 meters that will vary slightly according to demographic and even the nature of the message – whether that is a value-led communication or a product proposition.
This is greater for women’s fashion, less for snacks; but quantifiable and straightforward to implement. The impact on consumer decision-making from proximity messaging can be up to 30%.
For the fashion category, the optimum proximity distance is within 500 metres.
For the mobile category, the optimum proximity distance is 0-300 metres.
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08 how accountable is out of home? continued
Branding cut-through and driving real consumer response Out of Home can very effectively deliver strong branding – whether around attributes like trust, stature or product knowledge. Our own three-year programme of client research and analysis has focused on measuring the return on client communication objectives. We have quantified this effect across format and objective and our findings indicate that, dependent on the creative strength of the message, Out of Home delivers more against generating effective word of mouth, driving footfall (a real criteria of many
proximity campaigns) and in delivering measurable calls to action than mere response measures like awareness. The use of one ‘domination’ format added 12% in sales, over and above a client’s traditional Out of Home activity and we have collated measurable impacts against a number of formats and communication objectives pertinent to individual campaigns. Other tools - from the Clear Channel Research Monitor to ATM-ad’s measured exposure to a simple communication message yielding £000s in prompted action in-store offer real campaign effect in meeting objectives – the only marketing measure we can be truly accountable for.
Social media and our environments Definitions of accountability are changing with the consumer. Our Social Pioneers research with JCDecaux highlighted the tendency of the socially and technologically active to drive action through word of mouth. Young consumers are not afraid to use traditional media as reference points and engage in the latest technology to drive an action such as viewing content or collecting redemption vouchers through their smartphones. And in measuring the social media buzz for a number of campaigns where talk is generated around a message, communication and even a billboard itself, real brands are now seeking real engagement from consumers against a number of measures beyond short-term sales. Consumers are changing and the opportunities to engage with and drive action amongst segments of the audience are changing. TV is consumed very differently now by different audience types; thus the challenges of reaching people in the right way are greater and we must look increasingly to opportunities that drive action and word of mouth. Instant gratification can also create long term brand association.
A definitive insight into the UK Out of Home industry
The use of one ‘domination’ format added 12% in sales, over and above a client’s traditional Out of Home activity. Our Moving World study provides examples that consumer environments offer improving opportunities to communicate, as we spend more time in places that offer more to do and create happier individuals who are more likely to act and engage with brand and communication alike. So what’s next? In our quest for accountability, sales return is our ultimate goal. Effective advertising provides this metric and can be easily and practically measured. Too often the components of that advertising are ignored or weighted towards the most measurable. Every medium has its part to play in meeting the communication objectives of the sales and marketing strategy. By analysing the environment in which that medium engages the consumer and demonstrating an ability to interact, we can learn more about real performance, to which better data and a greater understanding of the role of technology can only take us forward.
OOH advertising in proximity to stores proven to drive footfall Out of Home (OOH) advertising in proximity to high street stores has a significant and quantifiable impact on footfall, according to Kinetic’s latest research into proximity advertising. The research aimed to prove the assumption that proximity adds real value to a campaign, while quantifying how the distance from the advertising to an outlet affects footfall. The research focused on proximity advertising in town centres, targeting a pedestrian audience.
We identified the optimum distance, for six categories within which proximity offers value over and above brand advertising. This was anywhere between 150m for finance and 500m for fashion. The research also found that the distance within which brands can divert the majority of their audience to go in store is 175m on average. Finally, a critical distance was identified, at which proximity offers extreme value wtih most consumers ready to act. This varied from 25m for personal finance products up to 50m for mobile phone products. Demographics proved to have an impact on the value of proximity across different categories. For example, women will go further than average for health and beauty products and upmarket consumers interested in product enhancements will go further for mobile phones. When examining out of town proximity, Kinetic found that people would be prepared to travel the longest average distance to purchase a car (23 miles) or to visit the theatre (22 miles) and the shortest distances for snacks and drinks (4 miles) and fast food (3 miles). Kinetic is using the data in its mapping tool Locator, to evaluate and select panels that will add value.
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10
uncovering the growing synergy between traditional and social media
Dylan Mouratsing global insight manager dylan.mouratsing@kineticww.com
As consumers continue to spend more time Out of Home, they are also increasingly finding ways to take their work and personal lives with them. The smartphone has given us PC-like computing and broadband on a palm-sized device, and the burgeoning tablet market makes a full work day and a movie possible on little more than a 10-inch slab of aluminium-backed glass. This connectivity liberates people from their desks and living rooms when they want to communicate, and also makes the Out of Home environment hospitable to more of their needs than ever before. All this is far from being the preserve of the wealthy, as it is trickling down through the mobile ecosystem. According to recent reports, some 300,000 Google Android devices are being activated worldwide, every single day. Relevance When thinking about conversing with the mobile consumer, we can learn from the strides made in online media. Internet advertising took flight when Google realised the potential for paid search advertising, showing relevant ads when people have shown an interest in a particular topic.
These advertisements delivered far higher click-through rates compared to banner advertising (a stunning 34 times more likely to elicit a response according to comScore, 3.4% from search versus just 0.1% from online display ads). Consumers had learned to ignore the latter after irrelevant commercial messages being presented time and again alongside the content they were actually looking for. We’re now at a closely analogous tipping point. Lifestyle and environment media’s ability to deliver relevance – and not just reach – is increasing exponentially, thanks to technology and our ability to harness data. Advertising in people’s lives away from home is morphing from something akin to branded wallpaper – the spammy online banner ads of old – into a platform with amazing innate knowledge: who’s seeing what, how they’re likely to feel, where they probably came from and even where they are heading. Research conducted by Kinetic and the wider media community has provided us with a wealth of information to better target advertising, by geography according to lifestyle, by daypart according to mindset, and by what they are planning on purchasing and how far they want to travel.
A definitive insight into the UK Out of Home industry
The subtle Facebook Places logo directs people to ‘check in’ to the billboard, giving them access to an exclusive competition to win gig tickets, building engagement
Interaction Following this assertion, rising relevance would be expected to have a knock-on effect on people’s desire to act upon each movie trailer, test drive and free sample offer that we place in front of them. Ad messages will seem uncannily able to increasingly say the right thing at the right time, making action only logical, as with the paid search advertising people are happy to respond to online. Advertisers wanting to capitalise on this must therefore cater to the appetite they’ve created, by making the interaction as smooth as possible, leading people to other parts of the campaign. Early indications are that people are willingly heading towards this interaction. Our own Social Pioneers study, conducted with JCDecaux and insight consultancy Work across summer 2010, explored the worldview of those that thrive on social networks.
Participants expressed they not only understand what QR codes are and how to use them, but can also imagine a near future where scanning becomes as natural as remembering a phone number or web address is today. Indeed, in Japan, scanning these codes with a cameraphone is already a part of daily life, with codes appearing everywhere from advertising (providing extra content) to business cards (to quickly add a contact), snacks (for nutritional information), and even clothes tags (to access a catalogue).
QR codes are beginning to permeate Western cultures, as in Japan, and consumers welcome this Addressing Generation Y needs for self-expression and belonging, trendsetters are shedding some of the anti-commercial sentiment of previous generations, and have warmed to this conspicuous interaction with brands, wearing it as a badge to demonstrate their personality.
As people co-opt their favourite brands, sales becomes just one KPI for campaign success, alongside a growing ecosystem of ‘likes’, ‘shares’ and product recommendations. One extreme example of this trend, Blippy, is a social network that automatically tracks users’ credit cards for new purchases, which are then published for online discussion. Conclusion Where in-home media and shopper marketing influence the start and end of the process of moving from familiarity to paying customer, Out of Home is ideally placed to remind and create advocacy in the consumer’s increasingly mobile lives. The opportunity for advertisers is to recognise how and where people are using technology in their evolving media day, and start conversations that create value for both the advertiser and prospective customer. With the nascent tools currently at our disposal, advertisers have a tremendous opportunity to refine their on-thego marketing by targeting mindset, interest and behaviour to increase relevance. The benefits of this can then be realised when mobile interaction is facilitated and encouraged, to create a seamless and enjoyable experience.
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12
A definitive insight into the UK Out of Home industry
innovations
TomTom targets traffic hot spots in real-time with local live traffic updates
Lynx Angels fall from above in latest augmented reality campaign
Ford C-Max gets innovative in people’s hands with 3D depth imaging technology
TomTom wanted to drive brand awareness of its highly sophisticated HD Traffic system that monitors all roads, in real-time. During the two-week OOH campaign, 31 LED 48-sheets carried traffic updates that broadcast messages on local traffic jams. The traffic information displayed refreshed its data every two minutes to create an intensely accurate picture of how traffic was moving. Each site contained information localised to each LED’s location.
As part of the Excite brand launch, Lynx launched a large format augmented reality campaign in London. In this media first, Lynx Angels fell from above and onto the Transvision screen at Victoria Station. The feed from the camera was augmented with falling angels that interacted and engaged with people in a high dwell-time environment. The video, with over 320,000 hits and counting, can be viewed on the Kinetic YouTube channel.
Ford launched a new campaign to promote its new C-Max vehicle with 3D depth imaging technology on mall 6 sheets in the UK. The interactive technology allowed people to handle and explore mini 3D virtual models of the cars on screen and in the palm of their hands. The user interface was based on natural movement and hand gestures allowed any passerby to immediately start interacting with the car’s features. The video can be viewed on the Kinetic YouTube channel.
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