TCRP Project B33: - PowerPoint PPT Presentation

About This Presentation
Title:

TCRP Project B33:

Description:

OF 'BEST AT' VOTES AWARDED TO TRANSIT, BILLBOARD AND PLACE-BASED ... National advertisers generally want only top 20 media markets ... – PowerPoint PPT presentation

Number of Views:71
Avg rating:3.0/5.0
Slides: 48
Provided by: nsto
Category:
Tags: tcrp | b33 | billboard | project | top

less

Transcript and Presenter's Notes

Title: TCRP Project B33:


1
  • TCRP Project B-33
  • Practical Measures to Increase Transit Industry
    Advertising Revenues
  • Findings, Conclusions and Recommendations
  • September 2008

2
Agenda
3
U.S. Advertising Current Situation
  • US advertising in a severe slump
  • Down 1 in 2007 to 230B
  • Down another 3 in 2008
  • Important developments in media industry
  • Decoupling of advertising and media services
  • Advertisers no longer look to one agency to both
    develop media plan and develop advertising
  • Recognition that there are many more media
    choices than TV, print, radio
  • Advent of specialization
  • Internet
  • Out-of-home
  • Direct marketing

4
U.S. Advertising Current Situation
  • Advertiser trends
  • Intense pressure to show results of marketing
    spending is driving demand for media that
  • Can deliver sales and prove it
  • Are highly targeted for maximum efficiency and
    effectiveness
  • Can accommodate multiple ads (tailored by
    audience)
  • Can break through the clutter
  • Can get in the face of the consumer
  • Promote consumer loyalty
  • Are easy to change quickly

5
Transit advertising revenue down 2 in 2007
2007 Out-of-Home Media Spending 7.2B
3 of Total U.S. Media Spending in 2007 (230B)
Source Outdoor Advertising Association of America
6
Agenda
7
Conclusions
  • Transit advertising has serious image and product
    deficiencies, particularly among media
    generalists serving local and regional
    advertisers
  • Transit advertisings positioning is neither
    highly motivating nor differentiated from
    billboards
  • The level of product innovation is insufficient
  • Aside from sales activities, there is no
    promotion of the product to its target audiences
  • The challenges of growing ad sales is greater
    among transit agencies not in top 20 media
    markets
  • Transit advertising sales materials are not as
    effective as they could be at making the case
  • The overall level of satisfaction with transit
    media sales reps is low

8
Media Planner Survey 153 Respondents
  • Director-level and above
  • Employed by advertising agencies, general media
    agencies and out-of-home media agencies, but not
    advertisers
  • Balance of major media agencies (annual billings
    gt50 million) and smaller agencies
  • National distribution
  • 20-30 minutes, 100 incentive to participate

9
Out-of-home specialists have greatest familiarity
and recommend most frequently
FREQUENCY OF RECOMMENDING TRANSIT MEDIA
FAMILIARITY WITH TRANSIT MEDIA
BB 86
BB 67
Percent of Media Planners
  • There is an opportunity among all segments to
    increase familiarity, which drives recommendations

Which of the following best describes your
familiarity with transit media, e.g., its
products, benefits, product requirements,
purchasing, etc.? How often is transit media
included in your recommended plan?
10
Experience with transit media positive
EXPERIENCE WITH TRANSIT ADVERTISING Agreement
with statement, Ive had a good experience with
transit advertising
11
Transits greatest perceived strength Reaching
captive audiences
OF BEST AT VOTES AWARDED TO TRANSIT
Percent of Media Planners
  • Other strengths saturating a market, extending
    reach and frequency
  • Not a strength building brand awareness or
    building a brands image

Among transit, place-based, billboards,
electronic billboards, television and the
internet, which medium does the best job at
12
With the exception of captive audience,
billboards perceived to do everything transit
does, but better
OF BEST AT VOTES AWARDED TO TRANSIT,
BILLBOARD AND PLACE-BASED
Percent of Media Planners
Among transit, place-based, billboards,
electronic billboards, television and the
internet, which medium does the best job at
13
Transit seen as supplemental, second tier media
ATTITUDES and HABITS concerning TRANSIT MEDIA
  • Over three-quarters of media planners view
    transit as supplemental
  • Over half agree that transit is rarely requested
    for inclusion in a media plan

14
Image of transit media needs updating and greater
credibility
Fundamental attributes of a medium need to be
higher
HOW WELL EACH OF THE FOLLOWING ADJECTIVES
DESCRIBES TRANSIT MEDIA
Only 1 in 4 find transit media to be innovative
Almost 2/3rds of respondents think transit is
expensive
Not perceived as hip, sexy or intrusive
A positive finding Downscale not as prominent
an issue as expected
Perceptions of clean are very weak
A positive finding being complicated is not a
barrier
15
Media generalists with local-regional clients
have poorest image of transit advertising
HOW WELL EACH OF THE FOLLOWING ADJECTIVES
DESCRIBES TRANSIT MEDIA
Percent saying the adjective describes extremely
well or describes very well
16
Most important media attributes reliability,
value, targeting, measurement
IMPORTANCE OF MEDIA ATTRIBUTES of media
planners who rated attribute as extremely
desirable or highly desirable
MUST HAVE
REALLY SHOULD HAVE
SHOULD HAVE
NICE TO HAVE
17
Transit medias strongest attributes not aligned
with media planners most important attributes
GREEN 0
RED 5
18
Billboards performance on important attributes
better than transits
GREEN 3
RED 3
19
Preferences for new media point to digital
MOTIVATING POWER OF NEW MEDIA
of respondents saying the new medium would
significantly increase the likelihood of their
recommending more transit advertising to their
clients
20
Though comfortable selling transit, two-thirds of
media planners dont disagree that its difficult
to sell
ATTITUDES and HABITS concerning TRANSIT MEDIA
  • Only 46 of media planners agree that clients
    perceptions of transit media are positive

21
Satisfaction with sales reps shows weakness
SATISFACTION WITH TRANSIT MEDIA SALES REPS
SATISFACTION WITH TRANSIT-ONLY SALES REPS
  • More dissatisfaction with multi-media sales reps
  • Only 42 of planners with multi-media reps could
    agree that rep spends as much time on transit as
    on other media

SATISFACTION WITH MULTI-MEDIA SALES REPS
22
Summary of the Obstacles to Transit Advertising
Growth
  • Transit advertisings positioning the benefits
    its target audience perceives it to offer is
    neither highly motivating nor differentiated from
    billboards
  • Transit advertising has serious image and product
    deficiencies
  • The level of product innovation is insufficient
    to generate interest and enthusiasm among media
    planners and advertisers
  • Aside from sales activities, there is no
    promotion of the product to its target audiences
  • Transit agencies not in top 20 media markets face
    greater obstacles to growth than those in the top
    twenty
  • Transit advertising sales materials are not as
    effective as they could be at making the case
  • The overall level of satisfaction with transit
    media sales reps is low.

23
Agenda
24
Transit is very well positioned to grow
  • Media dollars are shifting out of traditional
    media and into alternative forms
  • Internet is the fastest growing medium, but
    out-of-home is the second fastest
  • Public transit ridership is increasing as fuel
    becomes cost prohibitive
  • Advertisers demand for new and different formats
    is whats driving out-of-homes growthsomething
    transit could deliver
  • Advertisers also looking to connect in a more
    personal, one-on-one way with consumerssomething
    transit does deliver

However, transit advertising has many issues to
address
25
Transits positioning is neither highly
motivating nor differentiated from billboards
  • Today, transit advertising sits in the shadow of
    the out-of-home advertising 800-pound gorilla,
    billboards
  • Transit is seen to have the same uses as BB, but
    performs less well across the board
  • Consequently, 77 of the sample agreed that
    Transits best use is as a supplement to other
    media
  • All 3 media planner segments view Reach a
    captive audience as transit advertisings
    greatest strength, as well as its unique strength
  • Our judgment and knowledge of media tells us that
    this is not a highly sought after media objective
  • Advertiser trends indicate demand for highly
    targeted media, and for media that can break
    through clutter, connect one-on-one with
    consumers, trigger consumer action

Transit is lacking relevance and distinctiveness
in todays advertising market
26
Recommendation 1. Reposition transit to
differentiate it from billboards, elevate its
importance and update its image
  • Give transit a compelling positioning in its own
    right
  • Transit has something different from billboards
    to offerand just as compelling
  • Permission to believe
  • Transit advertising is at eye levelin stations,
    outside stations, on the street, in the cars
  • Transit advertising can encompass a
    consumerwhether they are in a station domination
    or an interior-wrapped bus or railcar
  • Transit media lend themselves to innovative
    creative (e.g., bus wraps)
  • Transit media travelcustomers can confront your
    transit ad multiple times during a day, not just
    at rush hour
  • Transit is affordable you can be in your
    audiences faces with one campaign after another
  • Test positioning among target audiences before
    launching

Transit media are the mass media that get up
close and personal with your consumers so that
they dont just see, they experience your brand
message.
27
Aside from direct selling activities, there is no
promotion of the product to its target audiences
  • Many media have industry associations that
    focused heavily (if not exclusively) on promotion
    of the medium to the advertising world
  • Promotional tactics include
  • Websites for providing news and information
  • Events showcasing the mediums best uses to media
    planners and advertisers, often in collaboration
    with associations of national advertisers
  • Advertising campaigns expressing the unique value
    proposition of the medium
  • We found no evidence of wide-scale promotion of
    the medium to media planners or advertisers

In the highly active and highly competitive media
market, transits diminished presence is a
liability
28
Recommendation 2. Promote transit media among
both advertisers and media planners
  • Commence national advertising, e.g., in
    professional trade journals and on websites
  • Develop tools to make media planners jobs easier
  • Create a searchable directory of transit agencies
    with demographic data and advertising sales
    contact information
  • Identify transit agencies in the directory by
    audiences reached, e.g., college students, the
    elderly, Latinos, etc.

29
Recommendation 3. Create a transit media trade
group
  • Mission to promote sales of transit media
  • Activities, e.g.
  • Organize industry events / showcases
  • Forge alliances with national advertisers
  • Advocate for legal and regulatory changes to
    permit new product development
  • Ease access for media planners
  • Develop national marketing and communications
    strategies
  • Organize and promote multi-transit agency
    offerings, e.g., transit agencies that serve
    college populations or senior populations

30
Transit has serious image and product deficiencies
  • Most fundamental attributes perceived weakly
  • Efficient only 38 said this describes transit
    advertising
  • Effective only 58 said this describes transit
    advertising
  • Reliable only 50 said this describes transit
    advertising
  • A good value for the money only 37 said this
    describes transit advertising
  • Image perceptions especially weak among media
    generalists with local-regional advertisers as
    clients
  • Having audience measurement, demographic data,
    the ability to demonstrate that what was bought
    was actually delivered are all must haves for
    media planners
  • Transit perceived to not deliver on any

31
Recommendation 4. Develop a credible audience
measurement system
  • Develop an audience measurement system to address
    weak perceptions of efficiency, effectiveness,
    value, reliability
  • In the short term, conduct a series of market
    research studies to explore/prove transits
    effectiveness
  • Multi city
  • Multi media (buses vs trains vs stations, etc)

32
The level of product innovation is insufficient
  • Advertisers demand venues that are new, exciting,
    fresh so that they can make a statement with
    their choice of medium
  • Perceptions of transit advertising as innovative,
    fresh, exciting are low
  • The product innovation ideas in the ASCs
    pipelines are not among media planners most
    highly rated ideas.
  • Transit agencies indicate willingness to try new
    media
  • However, advertising sales contractors perceive
    many transit agencies to not be fully aligned
    with this objective
  • We want to come in and show transit authorities
    additional revenue opportunities, but theyre not
    so interested its the difference between an
    entrepreneurial/creative business and a
    government bureaucracy.

33
Recommendation 5. Introduce digital and
interactive (experiential) technologies to
transit advertising
  • Get ASCs to collaborate on expediting the
    introduction of new media to transit
  • Address alignment issues within transit agencies
  • Appoint a director of new business development
    within the transit agency whose entire
    responsibility is driving higher advertising
    sales
  • Alert general managers that their attention will
    be needed in a timely manner
  • Explore incentives, e.g., rewarding the
    department driving business development with
    bonuses or extra spending if goals are reached
  • Address obstacles/disincentives to new product
    development in the ASC-TA contract structure
  • Forge a collaborative effort between ASCs and
    TAs to bring about legislative/regulatory
    changes needed to permit digitals use on transit

34
Transit has serious image and product
deficiencies - more
  • Less than 1 in 10 respondents describe transit
    advertising as clean
  • Only 1 in 5 respondents perceive production costs
    to be reasonable
  • Less than half think that transit media offers
    flexible flighting
  • Slightly more than half think that its easy to
    do a multi-city buy in transit advertising
  • More than half think that advertisers
    perceptions of transit advertising are negative

35
Recommendation 6. Address transits other
product and image deficiencies
  • Re-position and promote transit advertisings
    benefits
  • Disseminate examples of best-in-class creative
    (ads) used in transit
  • Further explore extent of negative advertisers
    perceptions to better inform media planners
  • Further explore perception of high production
    costs so that it can be addressed
  • In communications
  • By introduction of cost-lowering technologies
  • Put additional focus on keeping transit ads and
    their environs clean and well maintained

36
The challenges of growing ad sales is greater
among transit agencies not in top 20 media markets
  • General estimates are that 40 of transit media
    is purchased by national advertisers and 60 is
    purchased by local and regional advertisers
  • National advertisers generally want only top 20
    media markets
  • It is more or less up to the media planners
    working with local and regional advertisers to
    drive ad sales growth for transit agencies
    outside of top 20 markets
  • This study shows that media planners whose
    clients are local and regional advertisers have
    the least favorable image of transit advertising
  • This group is the least enthusiastic and most
    skeptical. Most of all, because they are working
    with the smallest budgets, they need to be
    convinced of transit advertisings value for the
    money.

37
Recommendation 7. Develop specific strategies to
promote ad sales of transit agencies outside top
20 markets
  • Arrange individual meetings with media planners
    serving local and regional clients
  • Advertising sales contractor and transit agency
    do meeting together
  • Tailor marketing pitch using each segments
    specific beliefs and attitudes about transit
    advertising, as outlined in this study
  • Use new positioning and market studies to change
    media planners image of transit advertisings
    effectiveness
  • Promote groups of transit agencies that reach
    audiences in high demand
  • E.g., all transit agencies that serve college
    towns
  • E.g., all transit agencies that serve Latino
    markets
  • E.g., all transit agencies that serve senior
    markets
  • Make this information searchable in the transit
    agency database

38
Transit advertising sales materials are not as
effective as they could be at making the case.
  • Media Planners see deficiencies in the sell-in
    tools and materials the receive on transit
  • Media Planners not getting the measurement data
    they must have
  • Many media planners agree that its difficult to
    sell transit media to advertisers (21 agree and
    45 are on the fence)
  • We found no evidence of a selling message other
    than extends reach and frequency, which is of
    value, but not distinct

39
Recommendation 8 Arm sales force with
information, research, case studies (and
ultimately, measurement)
  • Re-position transit to give it a more compelling
    benefit and to differentiate it from billboards
  • Produce high quality sales materials targeted to
    media planners
  • A brochure expressing the benefits and best uses
    of transit, as well as success stories
  • Evidence of transits effectiveness and
    efficiency via a credible research study of
    in-market usage
  • Information on exactly what theyre selling
    routes, times, locations for every market
  • Information on competing out of home media
    locations, cost, availability, etc.
  • In collaboration with media planners, produce
    high quality sales materials targeted to
    advertisers
  • To use in direct to advertiser sales
    opportunities
  • For use by media planners in their pitches to
    advertisers
  • Provide media planners with the necessary
    information to prepare post-buy analyses to
    communicate exactly what was bought

40
The overall level of satisfaction with transit
media sales reps is low
  • Media planners with multi-media reps are less
    satisfied than are planners with transit
    advertising dedicated sales reps
  • 58 either disagree or are on the fence re My
    media rep spends as much time selling me on
    transit as on other media.
  • Our research confirmed that the practice of
    offering less commission for transit ad sales
    than for the sale of company-owned media exists
    it is unknown how widespread this practice is

41
Recommendation 7 Address the dissatisfaction
with sales reps among media planners
  • Establish sales performance measures and hold
    ASCs accountable to them
  • To the extent that they exist, remove financial
    disincentives of selling transit for multi-media
    reps
  • Conduct further research to gain more detailed
    insights on drivers of dissatisfaction

42
Recommendations for the Proposed Media Trade
Organization
  • Develop the national transit media advertising
    campaign (Recommendation 2).
  • Provide guidance (e.g., selling messages about
    the benefits of transit advertising) for the
    development of sales tools and materials to help
    sales reps be more responsive to media planners
    and advertisers (Recommendation 8).
  • Commission market research documenting the
    effectiveness of transit advertising
    (Recommendation 8).
  • Lead the effort to establish a more effective way
    to portray demographic information depicting
    transit advertisings audiences (Recommendation
    8).
  • Organize conferences that showcase transit media
    to media planners and advertisers and include a
    competition showcasing best-in-class transit
    advertising (Recommendation 2).

More
43
Recommendations for the Proposed Media Trade
Organization
  • Lead the effort to develop an audience
    measurement system (Recommendation 4).
  • Develop tools and information for media planners
    to make it easier for them to use transit media
    (Recommendation 2).
  • Advocate for legal and regulatory changes
    necessary to permit new product development
    (Recommendation 5).
  • Develop package offerings comprising the
    advertising space of multiple transit systems
    (Recommendation 7).
  • Charter a work group to develop strategies to
    expedite the introduction of new technologies
    (Recommendation 5).

44
Recommendations for Transit Agencies
  • Commit to supporting the internal effort required
    to drive advertising sales growth
  • Management needs to make themselves available for
    timely decision-making on such topics as
    introducing new advertising platforms (e.g.,
    digital) and pursuing lucrative, but possibly
    new, opportunities with important advertisers.
  • Appoint an entrepreneurial advertising director
    within the transit agency whose charge is to
    drive sales as high as possible, within
    reasonable limits.
  • Decide that the agency can tolerate the degrees
    of risk that typically accompany new business
    development efforts.
  • Locally assess the performance of the sales force
    and address underperformance as warranted
  • Set performance targets and hold sales
    organization accountable to them
  • Find a mutually acceptable approach to pursuing
    the introduction of new products and technologies
    with sales contractors
  • Require sales contractors to deliver periodic new
    product development progress reports along with
    business reviews

45
Recommendations for Advertising Sales Contractors
  • Find a mutually acceptable approach to pursuing
    the introduction of new products and technologies
    with transit agencies
  • Provide better sales training and materials and
    assess sales incentive structures
  • Survey clients both advertisers and media
    planners on how their needs can be better met
  • Apply the information in this study to tailor the
    sales pitch by type of media planner
  • Out-of-home specialists are transit advertisings
    biggest fans. They just need to be given more
    reasons to use transit as frequently as they use
    billboards
  • Media generalists with national advertiser
    clients are also big fans of transit. Most
    critically, this audience needs to be convinced
    of transits effectiveness
  • Media generalists with local/regional clients, as
    we have seen, are the least enthusiastic and most
    skeptical. Most of all, they need to be convinced
    of transit advertisings value for the money

46
Prioritizing Next Moves
47
End of Presentation
  • TCRP Project B-33
  • Practical Measures to Increase Transit Industry
    Advertising Revenues
  • Principal Investigator
  • Jane Alpers, Executive Vice President
  • Denneen Company, Boston, MA
  • jalpers_at_denneen.com

Draft 3 02 04 09
Write a Comment
User Comments (0)
About PowerShow.com