Catching up on the highways
International In the U.S., outdoor advertising was long considered the poor relation of the advertising industry. More liberal regulations, TiVo’s ability to skip TV commercials, and new technologies are helping this advertising medium experience a boom.
International In the USA, outdoor advertising was long regarded as the poor relation of the advertising industry. More liberal regulations, TV spot fade-outs
TiVo and new technologies are helping the
Until recently, billboards along highways were not permitted in many US states. Television was clearly the most important medium for advertisers. But that is now a thing of the past. The industry's revenues have more than doubled in the last 15 years, reaching a record 6.3 billion dollars in 2005. And according to a study by auditing firm PricewaterhouseCoopers, business is set to increase by a further 26 percent over the next two years. "The stepsister has become a real Cinderella," says Stephen Freitas, Head of Marketing at the Outdoor Advertising Association of America (OAAA), commenting on the development. Popular "street furniture "The reasons for the growth are manifold: in the TiVo age, where TV advertising can be easily skipped by using the digital hard disk recorder, advertisers are looking for new ways to reach consumers. And outdoor advertising is the only area that customers cannot avoid by zapping away or switching off.
The biggest players in the USA are ClearChannel Outdoor, the French group JCDecaux and CBS Outdoor, all of which are also active in Europe. However, outdoor advertising is much more widespread in Europe than in the USA. "Unlike many US cities, Europe's metropolitan areas have an urban center and a much better public transport network than in America," says Coline McConville, CEO of ClearChannel Outdoor Europe in London. "This has allowed outdoor advertising to establish itself earlier."
The new boom in the USA has been made possible above all by more technologically sophisticated forms of outdoor advertising. In addition to billboard advertising, which still accounts for 62% of outdoor advertising, the industry has now identified other advertising media: Transit advertising on means of transport such as buses and cabs now accounts for 19 percent of outdoor advertising, while so-called street furniture - i.e. advertising at bus stops, kiosks or in shopping centers - accounts for 14 percent. The remaining five percent is made up of alternative forms, such as digital displays in elevators, advertising in leisure resorts and colorfully designed manhole covers.
Striking response campaigns Industry representatives are particularly proud of the technological innovations that have found their way into advertising. Interactive technologies using Bluetooth software in particular are on the rise. One of the most spectacular campaigns last year was an award-winning electronic billboard from Nike iD, a Nike subsidiary, which allows customers to design a personalized shape for their sports shoes. The wall spanned 23 floors of the Reuters building in New York's Times Square.
Passers-by were prompted by a notice on the wall to dial a toll-free number and were then instructed to design their own shoe using their cell phone: they could select the model, color and size and then see the finished product on the billboard. "Pretty cool," recalls Matt Howell, Executive Producer of the project at R/GA in New York, the agency responsible for developing the technology. "It's fun and puts the client in control." Users then received a text message with a link to buy the shoes. Although the sports outfitter does not disclose exact user numbers, the project received enormous media coverage. "Nike iD is about self-expression and we used Times Square as our world stage," says Howell.
Accuracy has its priceA project by the leader ClearChannel Outdoor, which installed seven electronic billboards with an LED display on the highways around Cleveland/Ohio last summer, also caused a stir in the industry. In addition to ClearChannel, competitors CBS Outdoor, JCDecaux and Lamar Advertising have also used LED walls. The advantage of this technology is that the advertising on it can be changed continuously. It even changes every eight seconds during rush hour in the evening. This makes it possible for advertisers to display promotions that are limited in time or to advertise a sale or special offer. Local and regional marketers are particularly interested in this.
But it also has its disadvantages: "This technology is very expensive and therefore has to be set up in places that are frequented by a large audience," says McConville. After all, they cost between 200,000 and 600,000 dollars per "billboard", whereas a simple poster only costs 20,000 to 60,000 dollars. But for marketers who can afford it, LED offers an unbeatable advantage: "Companies can tailor their messages to a specific audience and really get them interested in their product," says Freitas. And the best thing about it is: "You don't have to build up a readership first. It simply already exists."
Gerti Schön
TiVo and new technologies are helping the
Until recently, billboards along highways were not permitted in many US states. Television was clearly the most important medium for advertisers. But that is now a thing of the past. The industry's revenues have more than doubled in the last 15 years, reaching a record 6.3 billion dollars in 2005. And according to a study by auditing firm PricewaterhouseCoopers, business is set to increase by a further 26 percent over the next two years. "The stepsister has become a real Cinderella," says Stephen Freitas, Head of Marketing at the Outdoor Advertising Association of America (OAAA), commenting on the development. Popular "street furniture "The reasons for the growth are manifold: in the TiVo age, where TV advertising can be easily skipped by using the digital hard disk recorder, advertisers are looking for new ways to reach consumers. And outdoor advertising is the only area that customers cannot avoid by zapping away or switching off.
The biggest players in the USA are ClearChannel Outdoor, the French group JCDecaux and CBS Outdoor, all of which are also active in Europe. However, outdoor advertising is much more widespread in Europe than in the USA. "Unlike many US cities, Europe's metropolitan areas have an urban center and a much better public transport network than in America," says Coline McConville, CEO of ClearChannel Outdoor Europe in London. "This has allowed outdoor advertising to establish itself earlier."
The new boom in the USA has been made possible above all by more technologically sophisticated forms of outdoor advertising. In addition to billboard advertising, which still accounts for 62% of outdoor advertising, the industry has now identified other advertising media: Transit advertising on means of transport such as buses and cabs now accounts for 19 percent of outdoor advertising, while so-called street furniture - i.e. advertising at bus stops, kiosks or in shopping centers - accounts for 14 percent. The remaining five percent is made up of alternative forms, such as digital displays in elevators, advertising in leisure resorts and colorfully designed manhole covers.
Striking response campaigns Industry representatives are particularly proud of the technological innovations that have found their way into advertising. Interactive technologies using Bluetooth software in particular are on the rise. One of the most spectacular campaigns last year was an award-winning electronic billboard from Nike iD, a Nike subsidiary, which allows customers to design a personalized shape for their sports shoes. The wall spanned 23 floors of the Reuters building in New York's Times Square.
Passers-by were prompted by a notice on the wall to dial a toll-free number and were then instructed to design their own shoe using their cell phone: they could select the model, color and size and then see the finished product on the billboard. "Pretty cool," recalls Matt Howell, Executive Producer of the project at R/GA in New York, the agency responsible for developing the technology. "It's fun and puts the client in control." Users then received a text message with a link to buy the shoes. Although the sports outfitter does not disclose exact user numbers, the project received enormous media coverage. "Nike iD is about self-expression and we used Times Square as our world stage," says Howell.
Accuracy has its priceA project by the leader ClearChannel Outdoor, which installed seven electronic billboards with an LED display on the highways around Cleveland/Ohio last summer, also caused a stir in the industry. In addition to ClearChannel, competitors CBS Outdoor, JCDecaux and Lamar Advertising have also used LED walls. The advantage of this technology is that the advertising on it can be changed continuously. It even changes every eight seconds during rush hour in the evening. This makes it possible for advertisers to display promotions that are limited in time or to advertise a sale or special offer. Local and regional marketers are particularly interested in this.
But it also has its disadvantages: "This technology is very expensive and therefore has to be set up in places that are frequented by a large audience," says McConville. After all, they cost between 200,000 and 600,000 dollars per "billboard", whereas a simple poster only costs 20,000 to 60,000 dollars. But for marketers who can afford it, LED offers an unbeatable advantage: "Companies can tailor their messages to a specific audience and really get them interested in their product," says Freitas. And the best thing about it is: "You don't have to build up a readership first. It simply already exists."
Gerti Schön
