"From now on there will be merciless transparency" was the title of a communiqué issued by out-of-home advertiser APG this week announcing that it will be switching its tariff system to reach values from the SPR+ measurement system from 2009. The switch from surveyed to GPS-measured performance values will lead to "fair" tariffs from 2009 and will be "price-neutral" across the entire range, APG Head of Marketing Roger Möschler continued.
At first glance, however, what APG is now serving up to the advertising market looks like a price increase. This is because it is raising the weekly rate by up to 20 percent for 27 of the 38 poster networks presented, although only three poster networks will have a higher reach in future. The price reductions, on the other hand, amount to a maximum of 7.2 percent, in some cases with massively lower reach.
But beware, this first impression is deceptive. It is true that most weekly poster networks will actually cost more in future. However, a direct comparison of performance, price or CPM is not permissible because there will be a currency break in terms of reach. In addition, two- and three-week network assignments will be cheaper in many cases. Thirdly, APG has completely reorganized its networks. And fourthly, it has reduced their number: Whereas half of APG's approximately 30,000 street spaces were previously integrated into networks, from 2009 this will only be 40 percent. The large remainder will be sold as individual sites. According to Möschler, the majority of these will be cheaper, with the exception of those in top positions that generate more than 100,000 weighted poster contacts per week (four percent of all spaces).
Where is the transparency here?
In view of this multipack of changes, some APG customers will ask themselves what is supposed to be "fair", "price-neutral" or even "transparent" about the new tariff system. The cart may have been overloaded. But APG has one thing to its credit: The new currency according to SPR+ is markedly better. A comparison of the previous and the new survey methodology shows this.
Previously, Switzerland's largest out-of-home advertiser used the Copland method to survey poster reach: people were asked about the distances they had traveled in the last seven days. Based on this, it was determined which poster sites they must have passed. Each of these areas was then credited with one contact, regardless of whether it was actually observed. The reach was then extrapolated based on the size of the town (population). It was therefore assumed that all poster sites within the same locality were regularly visited by all residents.
The SPR+ (Swiss Poster Research plus) measurement system also tracks routes, but using small GPS devices that record the distances travelled by the test subjects every second for a week. If the routes are transferred to digital maps, it is possible to determine which poster sites the test person has passed. It is true that SPR+ does not provide any information as to whether a particular poster was actually seen. Quite apart from the fact that the quality of contact is also influenced by the direction of movement, the speed of passage, the time of day, the poster format or the number of posters at the same location. However, the SPR+ measurement system takes precisely these factors into account by defining a visibility space for each poster. For example, if a test person moves at 10 kilometers per hour and in daylight in the visibility space of a single poster, and approaches it head-on, this is weighted as one contact. If, on the other hand, the person passes the poster at night, this results in one contact for illuminated posters, but no contact for non-illuminated surfaces. And if the person walks past the individual poster at the same time during the day, this still counts as half a contact. In other words: Whereas with SPR+ several hurdles prevent a passage from being prematurely counted as a contact, according to Copland every passage, however fleeting, was counted as a contact.
However, APG goes even further when calculating the reach of its networks: it also takes into account the fact that the contact quality also depends on the poster design (art work). Its network design is therefore such that an average advertising message on F12 must generate at least three full contacts in order to count as reach at all (= contact class KK 3). An F200 even requires four contacts (= CC 4). This has an impact on the reported reach: The current "City200 Big9" network, for example, which covers the nine largest cities with 482 areas, generates 80 percent reach according to Copland. The evaluation of the same 482 areas according to SPR+ and with KK 4, on the other hand, results in a reach of only 72 percent. However, if the CC is set to >0, which means that a contact is still weighted more heavily than with Copland, the reach of "City200 Big9" increases to over 80 percent. This shows that SPR+ results in significantly higher range values. In general, APG is setting a new standard with this range calculation. Presumably worldwide. Because hardly any other medium sets the bar so high.
More expensive Bahnhofstrasse Zurich
However, a direct comparison makes no sense, not only because of the new reach currency, but also because APG is completely reorganizing its networks as of 2009: some networks, such as the "Big Cities F12", will include up to 65 more posters than today, but there are also some with fewer spaces. The fact that APG is nevertheless retaining the previous network designations is somewhat unfortunate, at least from the customer's point of view.
Pricing is also not as transparent as Roger Möschler claims. He is happy to believe "that the individually measured performance is the new price basis for the F12, F24 and F200". It is therefore understandable that a poster on Zurich's Bahnhofstrasse will cost more in future than one in Altstetten. However, it is unclear what proportion of the sales price is attributable to the contact performance of the poster space. The only thing that is certain is that it is one of five price components. "We don't provide any information on the percentage distribution," Möschler simply says.
A positive aspect from the customer's point of view is that APG is introducing a performance guarantee. "The media data per network are now defined as guaranteed minimum values and the prices are fixed across the board," says Möschler. Customers can rely on this, even if, for example, poster spaces are temporarily unavailable due to roadworks. Möschler: "In such cases, we guarantee customers at least an equivalent replacement."
Incidentally, APG will also be granting a group discount from 2009. In doing so, it is following the example of other media categories and meeting a long-standing demand of the Swiss Advertisers Association (SWA).
Markus KnöpfliAlthough Clear Channel Outdoor Plakanda (CCOP) left the former SPR three years ago, the successor system SPR+ is still able to show the reach of the CCOP areas. Although these values are not listed anywhere, they are available: you can have SPR+, a wholly-owned Affichage subsidiary, evaluate a CCOP offer or order confirmation. However, APG marketing manager Möschler emphasizes that he does not know the CCOP performance values. He has also never commissioned an evaluation, not even via a friendly agency.
At the time of going to press, CCOP itself was unable to comment on the question of whether its own services or tariffs will be based on the new range values.
At Star Plakat, on the other hand, owner Roberto Schena will not be changing anything for the time being. Firstly, because SPR+ can only identify Star Plakat's 800 street sites, but not the 800 (covered) petrol station sites. In addition, he first wants to observe exactly what APG is doing as the market leader. (mk)