[tweetmeme]
by Garry McGuire IMedia Connection
Digital-out-of-home (DOOH) is demonstrating its value as a relevant, consistent, and effective medium for advertisers. It’s predictable and easy to buy. But reaching maturity, and realizing broad acceptance and prosperity, will take more work.
Here’s my point of view on the key issues facing DOOH network operators, and how they should be addressed.
Focus on audience
DOOH media is planned and bought much the same way as broadcast, online, and print — by audience profile. The significance of people consuming more media out of the home than in-home has become important to advertisers. The right message delivered to the right consumer, at the right time, along the path to purchase — this premise is now particularly important when targeting an audience.
Stay informed.
For more insights into the latest trends in emerging marketing technologies, attend the iMedia Breakthrough Summit, March 20-23. Request your invitation today.
The chief marketing officers and the agency planners out there don’t buy place. They are not looking to get their message running in certain kinds of venues. They want to reach a certain viewer profile broken down by characteristics like age, gender, and lifestyle. The only exception to that is true out-of-home shops that are selling billboards and, thus, selling specific locations and areas.
Digital-out-of-home is more of an online and broadcast environment than it is out-of-home. By selling audience and not place, the medium is going to get bought more broadly. Place is a great qualifier on a media buy, but the big dollars in the media world right now are in broadcast and online, and those are bought based on audience.
Here’s the sort of pitch that we see resonating with people who control media budgets.
If you operate a gas station network, for example, don’t talk about how many screens are running. Talk about the demographics of the people spending time in front of those screens as they pump gas. You want to convey the size of the audience of men and women, 18 to 52 years old, who have an average household income of $100,000 or higher, and are in front of those screens repeatedly. If you have a retail network, don’t talk about the fact that your screens are in a convenience store environment. Talk about how you represent a viewing audience of 10 million alpha moms, or whatever most powerfully characterizes your viewership.
Make this easy for advertisers and media partners
It’s been pointed out many times by media pros, but I’ll repeat it. It takes far more time and energy right now to plan and execute a small DOOH buy than it does to book a much larger broadcast buy. That has to change. The DOOH industry has to make it easy for advertisers and media planners if it wants to firmly be part of the mainstream.
Make yourself available
The biggest agencies have their own internal media planning systems. If you want to be part of major buys next year and beyond, you must figure out how your media inventory shows up in those systems. If you’re not in there, you’re not on the plans. The biggest agencies that control media dollars have in-house systems for broadcast, and they are quickly moving to systems for DOOH, as well. Starcom MediaVest is already using such a system.
If you can’t beat them, join them
You need to use the common nomenclature, measurement metrics, and pricing methodologies of the media business. You can’t invent your own and force them on a well-established industry.
Adapt to the industry’s needs
Be ready to transact the way that media industry members want you to transact with them. It has got to be the way they want to measure it. It has to be the way they want to price it. If you have a sight, sound, and motion DOOH network, and you are positioning it up against broadcast, you better be able to convert from cost-per-thousands (CPMs) to gross rating points. You cannot walk into a broadcast buyer’s office and talk about CPMs. That’s not how they work.
What happens is that planners struggle and then give up on trying to execute a cross-network buy because they can’t do an apples-to-apples comparison. That then means those DOOH networks that don’t report and sell the way agencies want simply don’t get bought.
Get better at data and analytics
Major media research firms are all now very active in the DOOH sector, and we’re seeing substantial work — such as Arbitron’s “Digital Place-Based Video Study” and Nielsen’s “Fourth Screen Network Audience Report” — being done to define audience characteristics.
We’re also seeing guidelines emerge and be refined in North America and Europe that encourage common ways to measure and report audience metrics, network by network.
Big research is really important in this sector because it makes DOOH easier to buy. The exciting thing is that all the research that is coming back from the field is coming back largely the same. There’s a positive trend reinforcing the impact and efficiency of DOOH. Those great results can’t be dismissed as anomalies because the body of evidence is now too large and consistent.
It’s that breadth of research that will hopefully stop what has emerged as a bad trend in this sector — the willingness to do custom research on media buys. We all want to sell our media so much that we offer custom research on every single ad buy. But that’s a mistake. The costs are too high, and it only adds to a story that’s now well established. Let’s focus instead on the larger industry research.
Speak with a common voice
DOOH network operators need to stop sniping at each other and start talking together about how this media format reaches, engages, and has an impact with consumers outside their homes. As long as we are fighting with each other about who has the best fitness network, or coffee shop network, or whatever it is, none of us will get bought. The media business doesn’t want to listen to us as we air our dirty laundry.
There is a lot of media money out there, and it is constantly moving around from different buckets. DOOH networks have a far better chance of drawing down from those buckets if they move off of trying to sell against their direct competitors and focus, instead, on selling the efficacy of the category.
The tide will rise for everyone if we speak with a common, positive voice.
Garry McGuire is the CEO of Reach Media Group