OOH Media.

Planning, Budgeting & Evaluation

Bucharest July , 2001
Hilton Hotel
Agenda
Planning
Efficiency
Budgeting
Characteristics
OOH campaigns management
OOH easy
Goals
OOH to became an easy manageable medium
Effective planning, media efficiency
Improvement of OOH campaigns impact
Comparable figures with other media
Improved quality of boards and services supplied
Improvement of OOH professional standards
Transparent and regulated market
Control Consistent price policy
Industry Characteristics
Clients need to buy OOH media exposure, but they rent
boards instead
Suppliers dont know what they sell
Clients dont buy what they need
Result:
Budgets loss due to panel under evaluation
Budgets loss due to the buying of non impact boards
Price pressure on suppliers
Poor board and services quality
Less market transparency
Personal relations
Media Considerations
Number of TV stations that are received by
households is increasing
Number of TV sets by household is increasing
Resulting media split on many TV channels
Similar situation in Print media
Traffic flows inside cities are limited
OOH media has the lowest CPT costs
combined with the highest frequency figures
OOH media strengths
24 hours exposure
Allows geographical target control
Allows geographical target personalization
High affordability
High reach and frequency if properly planned
High advertising elasticity to sales ratio
Large variety of supports
Advantages in impact based buying
Clients pay what they get
OOH media became manageable
There are no good or bad boards
Suppliers may ask for a consistent price policy
OOH media budgets are consistent
OOH impact may be compared with other
media impact
Consistent media mix optimisation
OOH media usage
Maintaining brand awareness
Reminder for BTL campaigns
Geographical targeting
Sustainer for large reach media
Price promotion campaigns
Buying Activity (Romania)
Client has a certain OOH budget
Buyer is asking for a certain number of boards based on a
rent / board ratio from previous experience with the
supplier
As no effective evaluation criteria exists, all clients are
asking for so called premium locations
Other suppliers are asked for a higher number of boards in
the limit of the same budget
The initial supplier reduces the price or offers a bonus in
terms of extra media
Some suppliers and a certain number of boards are finally
selected after the price was pushed down
Buying Effects (Romania)
Some boards are never asked by media buyers
Some suppliers try to sell the boards in networks
Due to price pressure, suppliers cut maintenance costs
Initial locations (the planned ones) are sold to other clients
that pay a better price, have better payment conditions or
have a longer contract
Some locations are never posted
Bonus locations are poor maintained
Campaign suffers
What if?
Clients would pay for what they are really
interested in
Suppliers would charge the price of the impact,
board services and support quality
Planners would select boards based on campaign
brief and objectives
The suppliers are able to guarantee for the
exposure
The quality of supports, services and price policy
would be standardized
Principles of OOH Buying based on impact
Boards are not equal
They differ from various points of view
They have to have different rates
Each board contributes to the total campaign
impact
Board selection is done according to campaign
objectives
Impact measurement and board evaluation is a
must
OOH Management
Due to the last developments, the Romanian
OOH market has reached the step when it
can become transparent and regulated
Key to outdoor media effectiveness
Impact measurement
Monitoring
Board rating
OOH Campaign Management System
Planning
Control
Administration
Organization
Evaluation
Impact Measurement
How many people will see the campaign?
How often?
Who are these people?
Do they match my target?
Efficiency: How much do I pay for this?
Does it worth?
Main planning and post campaign
evaluation tool
Board Rating
Is the board visible?
How visible is it?
When two panels are identical in terms of
impact which one should I chose?
Based on panel characteristics
Monitoring
Are the boards up?
How do they look like?
Assures campaign control
Evaluation tool for
Supplier services
Posting
Contract
Planning Methodology
Empirical planning

Planning based on board characteristics

Planning based on impact measurement
Advertising Efficiency
Sales a function of advertising spent
Creative and planning are correct done
Pricing policy is correct established
Distribution channels are correct used
Advertising elasticity
Economic Marginal Analysis
Advertising Efficiency
advertising
sales
sales
advertising
expenditures
profit
Optimal
Advertising
Level
High CPP
Low CPP
Advertising Efficiency
sales
advertising
More TV
More OOH
More OOH
Empirical Planning
The planner visit location by location and select boards
according to his appreciation
Based on planner experience and luck
Based on the assumption that the selected boards are welt
located
Results:
Boards became good and bad
Traditional boards
Poor efficiency
Negotiation and personal relations are crucial
Planning by board characteristics
The planner is basing his selection on panel mounting
characteristics and proximity
Based on a scoring methodology and descriptive data
Fundamentally is similar to the empirical planning as does
not take into consideration impact figures
Results:
Specialized buyers
Less added value
Databases of boards good an bad
Poor efficiency
Tougher negotiations
Planning by board impact
Planner uses impact figures in bard selection
Based on traffic figures, traffic profiles, impact indicators and board
characteristics
Professional market
Results:
Campaign efficiency
All boards became comparable and important in a campaign
Price differentiation
Transparent buying and selling process
Personal relations became less important
Easy to plan
Allows real optimization
Pricing policy
Impact (#GRP, GRP, DEC)
Traffic profile
Efficiency indicators (CPT, CPP)
Board characteristics
Support characteristics
Influences Impact
Number of potential viewers of the board / campaign
(OTS)
Main indicator in board measurement
Main influence in board price
Measured by traffic indicators
Total Traffic
DEC
#GRP
GRP
Other indicators: reach, frequency
Influences - Traffic profile
Potential viewers characteristics (sex, age,
income, etc.)
Descriptive indicators
Board selection due to traffic profile assures
budget spending on desired target
Saves budget or improves effective budget
spending
Used in campaign optimisation
Influences - Board characteristics
Even located in the same traffic boards have
different viewing characteristics
Measured by scoring and rating systems
Measure of board visibility
Measured in points
Take into account different objective or
subjective criteria
Influences Support characteristics
Does a Dacia have the same price with a BMW?
Do you pay extra for air conditioning?
Transmits indirect image regarding the brands
promoted
Important ion associating feelings with brands
Service differentiation
Exposure time
Efficiency indicators
CPT, CPP
Indicators for money spent to achieve
desired impact on desired target
Global indicators for campaign
Base of board and campaign pricing policy
Conclusions
Easy OOH campaigns management
Consistent OOH policy
Higher professional standards
Better services
Increased customer satisfaction
Better results control