Posted by: Posterscope SA | July 13, 2011

THE REDUCTION IN ADVERTISING BUDGETS OFFERS OPPORTUNITIES

Strategic advertising spend encouraged but accurate insights are what is needed

It is no hidden fact that brands across the globe are tightening their marketing budgets. Many brand managers are up in arms at not being able to be as liberal with their advertising spend as they are used to. In fact, this is a wakeup call for the advertising industry and the budget cuts are not necessarily a bad thing. The reduction in budgets has enforced more strategic planning in terms of a “less is more” approach. Maximizing the effectiveness of our advertising spend with the small amount of money that we have has now become a common request.

Therefore media owners in all formats have to now, more than ever, justify their presence and why their platforms are the most effective for the brands they are negotiating with.  Historically the transaction between agency and publication or media owner has been short, sharp and to the point and, if the truth be known, millions upon millions of rands have been wasted on advertising placement where little strategic thought has been put in place with no direct benefit to the bottom line.

Out-of-Home advertising is a medium that has been around as long as time. It has always been a no-brainer for brands to merely purchase a billboard on the highway because people drive by it to and from work every day and are bound to see it.  Nowadays, brands want to know detailed specifics on their prospective Out-of-Home investment. Where is my billboard in proximity to my competitors? Who will be looking at my billboard, and when? Is my target audience actually seeing my advert? Why should my billboard be in a township as opposed to a major freeway? What will my billboard look like as I drive around that bend? Thankfully, there are now tools in place that can give a very close indication of the effectiveness of an Out-of-Home advertising campaign.

Posterscope has been ahead of the game in terms of capturing data pertaining to every single billboard that it purchases on behalf of its clients. Various tools (known as the PRISM tools) enable the company to answer the aforementioned questions with confidence.  GPS locations, comprehensive Out-of-Home competitor analysis and billboard campaign previews are just some of the tools that Posterscope uses when making strategic recommendations to Out-of-Home advertising buyers. The advertising industry is lapping up these insights simply because their strategic planning when placing adverts is being justified by a set of predicative tools that have the ability to forecast the success of an Out-of-Home campaign and justify the investment.

Aside from their hands-on PRISM tools, Posterscope has gone one step further to revolutionize Out-of-Home advertising with the introduction its Out-of-Home Consumer Survey (OCS). The survey has given in depth insights to consumers’ thought patterns and directly correlated these to their awareness and perceptions of Out-of-Home advertising.  What are consumers thinking when driving to and from work? How are they feeling when walking through a shopping mall? Where and when are consumers most likely to take note of a billboard? The OCS survey is just one more element that assists media buyers in making the correct strategic Out-of-Home purchasing decision.

To conclude, a reduction in advertising spend has encouraged a more strategic allocation of marketing budget.  For the strategic planning process to be simply more strategic, tools such as PRISM are needed to give an accurate forecast on the predicted effectiveness of the campaign’s purchase. Media owners therefore need to pay attention to detail regarding their Out-of-Home products as the detail will be under scrutiny when it comes to purchasing decisions to be made. Decision makers and brand managers need to make use of the tools available to them as every cent of their financial investment counts and has to be justified.

About Posterscope South Africa:
Posterscope is the world’s largest out-of-home communications agency, with offices in 21 countries. Posterscope is at the vanguard of cutting edge developments in out-of-home (OOH) such as digital, interactivity and experiential.

In South Africa, Posterscope’s mission is to grow OOH to 10% market share of total advertising spend in the next 5 years (currently sitting at 4.6%). At present, the company has approximately 20% of South Africa’s OOH spend under its management, positioning Posterscope as an influential leader in this fast growing category.

By helping clients understand what consumers are thinking and how they are spending their time, and by enabling them to communicate with consumers at the right moments and in the best way, Posterscope leads the way in enhancing the effectiveness of campaigns and increasing the media value that advertisers achieve.

Furthermore, Posterscope has developed PRISM Benchmark, Forecast and Creative, a proprietary set of tools that ensures that Posterscope delivers the best price against tracked market movements gaining further advantage for their clients, whilst allowing them the opportunity of seeing their “Creative Design” in situ, pre-campaign.

No one in this sector offers greater accountability than Posterscope.

About PRISM Tools:
Posterscope South Africa, SA’s leading out-of-home advertising agency, has taken the art of buying out-of-home exposure a step further. The introduction of the Prism Benchmark Tool enables Posterscope’s planners to accurately measure and forecast out-of-home spend across format type, media owner and time of year.

The Prism Benchmark Tool has monitored rates paid on out-of-home over a 3-year period.  Amongst some of the advantages of Prism Benchmark, Posterscope now has the ability to distinguish which months have the highest billboard usage, thus enabling them to negotiate lower rates during quieter months. Furthermore, Prism Benchmark allows Posterscope to calculate what rates their clients should be paying on any format, and which media owners are the most cost-effective.

About OCS:

Posterscope’s OOH Consumer Survey (OCS) is the world’s most in-depth study of consumer behaviour in relation to OOH communications and has over 3,000 respondents in SA. Audiences can be segmented attitudinally, behaviourally, or demographically and analysed by environment, with a level of detail unavailable through other syndicated research systems.

New for OCS 2

OCS 2 contains updated data regarding technology use, direct benchmarking against other above-theline media such as TV and print, more industry specific data (including Automotive, Financial, Alcohol, Snacks, Soft Drink, Communication, Electronic and Travel) and how media actually influences buying decisions.

 

 


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Responses

  1. The article is reassuring. I am just wondering if there is any study or research conducted about effectiveness of different media like T.V., Radio, Print and even internet and text messages via cellular phones? The reduction in budget spend is a clear indication that clients want more cost effective and even response-predictable media as opposed to the conventional media.


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