ooh busines The South African out of home (OOH) adverting industry is projected to grow by 6.6% in 2019. This represents total spend in excess of R5 billion. By DANIEL VOROS. P 13 Out of home is still the common sense way to go If you’re travelling down one of our city’s highways, waiting at a taxi rank or taking a train to work, consider yourself one of over 22 million commuters who will be exposed daily to a billboard, street pole ad, information kiosk or hundreds of other forms of OOH media. Despite South Africa’s current economic and political challenges, the OOH marketing segment continues to grow, and currently accounts for 11.5% market share of the country’s R38 billion total advertising spend. If current and historical trends are relied upon, this growth trajectory will continue. There are a number of factors contributing to this growth. One of the most significant is digital out of home (DOOH). This includes mediums such as digital billboards, small format street pole ads, in-store retail digital displays, airport TV displays, information kiosks and so on. No doubt, on-going urbanisation is also helping to fuel development. However, it is evident that media owners are continually replacing their less lucrative ad sites with new locations within malls and on arterial transport routes. New channels are also continually being introduced, such as in-taxi advertising. Digital media offers a huge differential to static ad spaces as it offers advertisers a more versatile advertising medium that can easily change the consumer messaging as well as focus on point-of-purchase marketing by bringing competing brands and specials to the consumer, at the very point of purchase. A more recent insight is that when informational content, such as news, weather and traffic alerts, is provided along with a sponsor’s messaging, it proves to attract more attention than just a static ad message. More informed data analytics is also helping in the growth of the OOH sector. But is this trajectory sustainable? While we have the technological know-how, South Africa still lags when it comes to keeping up with global trends, such as the mainstream adoption of innovations that fuse technologies such as QR codes, Near Field Communication, and Augmented Reality. Whether this will impact on overall growth, remains to be seen. To my mind though, the biggest challenge to the OOH industry is being able to provide meaningful analytics to advertisers in terms of frequency reach and impact data of the collective inventory within an OOH campaign. Certainly, translating this information into an effective media strategy is very difficult, as there are simply a lot of moving parts. To add to the challenge, technology is evolving rapidly and changing measurement criteria for all media, all the time. For example, how effective is a TV campaign where the viewer can record and fast forward through all inter-show commercials? Print is a flash in the pan – one view and it’s gone – while online may be measured on page impressions, but may never actually be viewed by the internet user because they didn’t scroll down to see that banner or embedded message link. OOH, on the other hand, is still governed by common sense, which is by no means an exact science, but it is simply applied logic. For instance, a younger market would be better reached via placement of a billboard or a bus shelter on the route to school or university rather than in an industrial area. A fast food chain would gain benefit to sites in close proximity to their outlets or located near competitor outlets. An in-store digital display at the point of purchase promoting a 2-for-1 special would be far more effective than an information kiosk in the same shopping center, and so on. So, part of our approach in creating Ads2Trade was to build a platform that provides the tools to make these decisions. It shows Google traffic density, allows for points-of-interest proximity measurements, and gives traffic counts, street views and a great deal more. It’s a tool that enables a more informed, common sense approach to making sound advertising decisions. Finally then, although a combined advertising mix of mediums is always ideal, when you compare costs to other mediums such as TV and radio, the CPM rate for OOH continues to make the medium very cost effective and attractive. So I’m bullish about OOH and there’s no doubt that the industry will continue to grow.
THE MEDIA NOV_2018 - TMOL
To see the actual publication please follow the link above