A long time ago, in the fall of 1995, Swiss Post launched its first network of advertising screens. This info channel was called Canal Jaune, later renamed Canal Poste, and continues to help (apparently) shorten waiting times at counters at 234 locations with a mix of postal information and advertising. In the years that followed, new screen advertisements kept popping up in public spaces, but digital outdoor advertising has hardly gained strategic importance for advertisers. Even when new displays - larger, flatter, more luminous - appeared and this genre increasingly went under the title "Digital out of Home" ( DooH), there was no talk of a breakthrough.
This could now change: At the end of June, Affichage subsidiary e-Advertising launched 43 new ePanels, initially in six major train stations. These full HD screens are well suited for animated spots, which are striking not least because they come in portrait format. Ulrich Ritschard, Managing Director of e-Advertising, reports an "enormously good response" in an interview with Werbewoche. The first few weeks were sold out, and some of the fall ads are already fully booked. He wants to gather feedback and experience by the fall and then expand the offering accordingly. A framework agreement with SBB allows e-Advertising to set up ePanels in other stations. Based on the passenger frequencies, this could ultimately be of interest at 30 to 40 locations throughout the country.
A look at Germany shows that optimism for digital outdoor advertising is justified. There, at the end of last year, one of the major outdoor advertisers, the Ströer Group, began rolling out a network of digital billboards comparable to e-Advertising's ePanels. By the end of the year, 1000 sites are planned at more than 200 stations. Florian Rotberg, managing director of Invidis Consulting, a consultancy specializing in digital outdoor advertising, reports that this initiative has triggered "insane demand" for digital outdoor advertising. Based on such new launches, the DooH business model has started to work on a large scale in the last six to 12 months, he said, and it is now a matter of rolling out large-scale networks. These ePanels are "an important signal to the market," says Fredy Grau, who heads ad screen marketing at Goldbach Media, adding, "I think it's exciting and I welcome it because it helps the whole genre." But then Grau also finds critical comments on the offer of the big competitor: Although there are many people in the stations, it is unclear how many look at the advertising screens for more than two seconds and how many watch the entire passage (loop) of the spots. If you put the attention factor into play, the whole thing becomes relative. It's not just about reach, but also about the quality of the target groups. This is better with the umbrellas at gas stations, for example, with a duration of stay of more than one minute and a well-defined target group.
It is long overdue that the DooH market in Switzerland is now also starting to move. Ever since Media Trend Journal published a survey of the ad screen market in Switzerland four years ago (see issue 9/2007),
time seems to have stood still. Helvetic reality is still characterized by a religious war, which Ulrich Ritschard and Fredy Grau quite actually embody. Grau presides over the industry organization IG AdScreen, which Ritschard's e-Advertising turned its back on years ago and left. The APG offshoot sees advertising screens as a product extension to the poster and not as a new product or a basic medium. Accordingly, e-Advertising consistently reports no revenue figures to Mediafocus because a new category "digital advertising media " has been created for it. It believes its sales of advertising screens should be included in the billboard category. Ritschard wants nothing to do with the small screens, for which the term AdScreen has become established in Switzerland, and in an interview with Werbewoche he reveals: "Because we don't see the economic potential," they have already turned down requests to take over smaller networks. In addition, he points out that e-Advertising is active in the outdoor advertising industry association and therefore does not indicate any willingness to rejoin IG AdScreen. But for Fredy Grau it is clear: "e-Advertising definitely belongs in our market", and he lets it be known that there are always talks to get e-Advertising to rejoin IG AdScreen. The ePanel initiative could be a further hook for this. If digital outdoor advertising is to take off in the near future, it would certainly be advantageous for the industry to pull together. Because not only in Switzerland, but also abroad, the market for digital outdoor advertising is hyper-fragmented, there is a lack of accepted standards for performance measurement, and there are no integrated planning and booking tools. Thus, many questions remain open around DooH, the solution of which could promote acceptance among advertisers and agencies. As with online advertising - also launched a good 15 years ago - the advertising industry will not be able to avoid understanding and learning to handle digital displays in public spaces as a new genre. And it can be assumed that - as with online advertising - a better understanding of the specific characteristics of this new media group will result in a differentiated range of different forms of application.
Ursula Stalder heads a research focus on digital outdoor advertising at the Lucerne University of Applied Sciences and Arts and explains that digital outdoor advertising, as a new media genre, combines the characteristics of various conventional media genres: In terms of their location in publicly accessible space and reception "in passing," they are comparable to posters. In terms of their ability to display moving images in high resolution even in daylight, however, they are more similar to traditional audio-visual media such as TV or cinema. However, if we take digital networked online technology as a starting point, they are most comparable to online communications such as WWW, e-mail and SMS, and the ability for interactivity comes to the fore. For brand and product communication, Stalder continues, these digital media in public spaces not only offer an additional mass-media advertising medium, but also the opportunity to underpin spatial scenographies and installations in urban spaces with specially conceived service designs. From the poster, DooH has inherited the shortcoming of difficult measurability. Grau reports that the IG AdScreen agreed last year that the frequency of passers-by was not the only decisive factor for calculating gross contacts. To calculate TKP prices for 10-second spots, the passer-by frequency would have to be combined with the measured attention level and the opportunity-to-see (OTS) factor (average duration of a passer-by's stay divided by the length of the broadcast loop) (frequency x attention level x OTS=gross contacts). In this way, comparable prices could be created for customers. On the other hand, it is more difficult to standardize the formats (in terms of sizes and technical methods) because every player uses different formats.
It is quite possible that these issues will not be resolved in Switzerland, but at the international level. Just as the Internet Advertising Bureau, IAB, and its various offshoots have been able to establish standards for online advertising, supraregional organizations are now also becoming active in the field of digital outdoor advertising. In the USA, it is the Digital Place-based Advertising Association (DPAA) and in Europe the Out-of-Home Video Advertising Bureau Europe (OVAB). Closely associated with this is Florian Rotberg's Munich-based consultancy Invidis Consulting, which aims to drive the European DooH market forward. This includes a regular market survey, which will be published for the first time soon. (In Switzerland, 17 networks with 4,711 screens at 2,018 locations were surveyed). The aim is to make the market transparent so that developments can be better evaluated.
Rotberg sees the biggest task for the OVAB in standards. When it comes to gross advertising revenues, the industry has completely agreed on CPM. Other billing models have not been accepted. There are "many possibilities and great discussions" when it comes to reach measurement. Thanks to the successful emergence of the major networks, professional reach measurement based on uniform standards is now possible. IG President Grau is open to such solutions from abroad. "If there are standards that we can incorporate into the market mechanics of Switzerland, we will definitely join in," he states, adding: "It makes no sense to adopt a standard that cannot be enforced in the home market."
The success of the big players with their new DooH offerings could also spur the solution of another problem that is holding back the digital outdoor advertising market. Today, anyone wanting to book a campaign has to collect and book the ideal locations or networks individually from the respective providers or marketers. This opens up a business opportunity for companies that aggregate DooH networks on an online booking platform, simplifying the booking process. Geneva-based Neo Advertising, for example, operates such an offering with Booking- DooH.com. Invidis-Rotberg knows that many players, especially from the USA, want to push into this market. He says this has not yet been noticeable, but will be in the coming months. Unlike previous such offerings, future providers will also provide access to live vacancies. Just as Google in particular advanced the online advertising market with the real-time marketing of individual ad impressions in an auction process, such aggregators could dynamize the DooH business. The fact that a joint approach is needed for future success has apparently also been noticed by us. Fredy Grau hints that talks are underway to set up a booking pool.
Once the teething problems have been overcome, the only thing left to do to achieve the final breakthrough is to get advertising clients, media planners and creative professionals on board. According to Fredy Grau, there is "still a lot of catching up to do" here, and IG AdScreen is organizing workshops to impart know-how on how to use the screens. Although there are already creative agencies that have made campaigns just for AdScreens, he says, digital outdoor advertising has had too little relevance so far. "It's like a word you know when you hear it, but you don't have it in your active vocabulary," he says, summing up the situation. Often, he says, clients don't have an advertising medium for the promotional umbrellas and have to produce one specifically for them, which is often too costly and not worth it for small budgets. Now that the volumes are getting bigger, this is improving. Urs Brugger, Head of Development at Neo Advertising in Zurich, comes to a similar assessment: "DooH is well known, but has not yet caught on." And he is confident: "Those who have booked spots keep coming back, but many have never booked before."
Thus, there is a mood of optimism and optimism: industry experts assume that DooH today accounts for around 1 to 2 percent of the outdoor advertising market. Based on the surveys for the industry report, Florian Rotberg assumes gross sales for DooH in Switzerland of 10 million euros (Austria is estimated in the same order of magnitude and 48 million euros apply to Germany). He predicts growth of 38 percent from 2009 to 2010 and expects the German-speaking region to now overtake the European leader, the United Kingdom (110 million euros). All DooH practitioners interviewed for this article expect the DooH share of the Swiss outdoor advertising market to be in the 5 percent range over the next five years. Christoph J. Walther