The Audience Metrics Guidelines that the Out-of-home Video Advertising Bureau has been working on for the past year are now ratified and will be presented at the OVAB’s Digital Summit on October 29 in New York. The event will bring together major players on Madison Avenue with members of OVAB, which today include some of the largest digital out-of-home networks and vendors in North America.

Although I was involved in the reviewing of the Guidelines and provided some input as well, I cannot disclose any details of the document until the official presentation. Essentially it is a set of principles long-used in mainstream media buying that are applied to standardize the DOOH ad space and make it easy to plan and buy. The result is a simple formula to calculate the audience metrics in a way that would make sense to media buyers and their clients. The ultimate goal of OVAB is to turn DOOH from an alternative media option, an innovation, into a commodity, i.e., a line item on the media plan, with appropriate budgets allocated ahead of time, and not as an afterthought.

As Suzanne Alecia, President of OVAB, explained, the Guidelines are not the actual standards yet, but once adopted by members, they will lay the foundation for ‘best practices’, which will then gradually evolve into standards by way of wide-spread usage by the selling and the buying parties.

It is interesting, though, that the OVAB event comes at a time when a financial crisis urges advertisers to look away from overpriced and not-so-accountable TV and into more pragmatic and sales-oriented media like DOOH. Before, we have seen a lot of upward pressure from networks trying to reach out to advertisers through the barricades of reluctant agencies. Today, as several sources indicate, the pressure on the agencies is also being exerted from above, from the advertisers themselves, who increasingly instruct agencies to explore the digital out-of-home opportunities and report back.

Against this background, the OVAB Digital Summit comes in handy, as a facilitator of relationship between sellers of the new space and potential buyers.

Media Post’s Digital Outsider newsletter shed some light on the forthcoming event: “…the main reason for Alecia’s visit with the Digital Outsider was to update us on plans for OVAB’s Oct. 29 Digital Summit, a day-long event in New York designed to help marketers, and agency media planning and buying executives, understand the state of out-of-home video technologies and advertising issues.

The day will be structured around three key issues: Creative, research and planning, and will feature a variety of case studies from some recent successful out-of-home video ad campaigns. The day caps off with a panel of client-side executives sharing their views, hopes and aspirations for out-of-home video, as well as any pitfalls they’ve encountered along the way.

But the highlight of the summit will likely be the official release of the just ratified OVAB guidelines for audience metrics and measurement. Draft versions of the guidelines already are being circulated among the OVAB membership, as well as key stakeholders in the advertising and research community, and Alecia says they’ve already gotten the tacit blessing of key bodies like the Media Rating Council and the Advertising Research Foundation.”

“Madison Avenue is bracing for the worst ad slump since 2001 as a drop-off in consumer spending is likely to lead marketers to rein in their budgets”, reports New York Post on September 21. “The anticipated drop in spending in 2009 comes on the heels of a slight decline in 2007 and a more noticeable dip so far in 2008, according to industry data,” writes New York Post’s Holly M. Sanders. Most major press relayed a similar sentiment in the wake of last week’s meltdown on Wall Street.

New York Times quoted the CEO of WPP: “In the last couple weeks, you could smell the fear in New York,” said Martin Sorrell, chief executive at the WPP Group, which owns agencies like Grey, JWT and Ogilvy & Mather, as “institutions that were regarded as invincible have gone down or had to be bailed out.””

The downturn in ad spending had started well before the “Black Sunday”: “… the Nielsen Monitor-Plus division of the Nielsen Company reported last week that ad spending in the first half of 2008 fell 1.4 percent compared with the same period a year ago. The laggards included ads in national magazines, down 3.1 percent; national newspapers, down 8.1 percent; and spot radio, down 10.1 percent,” says New York Times.

Reports forecast that traditional media is going to be the segment worst affected by the financial crisis, followed by online display advertising, which had already suffered a 6% drop in the first half of 2008, according to Nielsen. Display ads on the Internet have been largely dependent on financial and insurance advertisers.

New York Post writes that last week’s turmoil triggered memories of not-so-distant past: “No one wants a repeat of 2001, when the dot-com bust and an economic slowdown caused ad spending to plunge 9.8 percent, according to figures from ad researcher TNS.

During that recession, widespread cutbacks led to layoffs at many agencies, including some closings, shrinking budgets for many TV and cable outlets and the failure of several print publications,” (New York Post, September 21, 2008)

However, in 2001 the media landscape was quite different. Internet’s paid search advertising was not yet as proven and accountable as it is now, thanks to Google AdWords. Outdoor was less prominent and not yet regarded as ‘the only true mass medium left’, and the digital out-of-home ad space was almost non-existent. There are clear indications that these media may benefit from today’s difficult times, as marketers will cut budgets and look for more cost-efficient media placement options.

“It’ll be more pragmatic. More measurable. More digital.” — Nick Law, exec VP-chief creative officer North America of digital agency R/GA told Ad Age (“How Creativity Can Carry Your Business through a Recession”).

If we look at the categories falling under ‘more pragmatic, measurable and digital’, and I would add, ‘targeted’, they all continued to grow at an impressive rate throughout the economic troubles that began in early 2008.

“Despite the overall decline, ad spending for cable television, syndication TV, and outdoor advertising remained fairly healthy. Cable TV grew 8.1%,” writes crainsnewyork.com. Paid search was growing too, according to Nielsen Online. Outdoor was boosted by digital billboards, and in-store digital media (digital signage in retail) was expanding, notwithstanding the lack of standardized buying criteria and measurements.

Online display ads, although digital and targeted, were an exception from the above group due to their exposure to financial ad budgets, and, some say, their intrusive nature. A good example of the exception that proves the rule.

Ad Age’s analysis of what the meltdown means for the advertising industry included this abstract:

For agencies: “… there will be further retrenchment in the financial-services and automotive sectors, with some expecting telecom budgets to be hit hard, too. Across the board, the pressure on shops will intensify to prove return on investment. Expect less-brand-based and more-sales-led metrics.

For media: “…By now, if you are in the media, you know the story: fewer dollars to broad-scale media and more for targeted, accountable media and other marketing disciplines, such as direct and customer-relationship management. Some marketers will double down with their most trusted media partners to create big, provable multimedia programs…” (Ad Age, September 22, 2008, bold and italics mine)

Although it is a fast-growing sector, digital signage is still a minor portion of the Outdoor/Out-of-home media which, in turn, is a modest part of today’s media mix. But that is changing.

The recession will inevitably force marketers to scrutinize ad spending and eliminate a lot of marketing waste. At the same time, it presents a rare opportunity (that occurs only once in every few years) for digital out-of-home networks to demonstrate their unique value as the most flexible, targeted, cost-efficient and accountable medium. The medium that closes a sale.

LONDON — Minicom Advanced Systems, manufacturer of digital signage player-to-screen connectivity, announced that it will be running a 90-minute workshop session at Kioskcom’s Digital Signage Show Europe 2008 in Olympia, London, on Oct. 2, 2008. The European Digital Signage Show will be co-located with KioskCom — Self Service Expo Europe, now in its third successful year.

“We are proud to provide a workshop at Kioskcom’s 2008 free education program,” said Ronni Guggenheim, president of Minicom Advanced Systems Europe. “We will discuss important topics such as how to maximize the return on investment from digital signage networks and protect the total cost of ownership of the whole system.”

The workshop will cover how to distribute content from one single player to any number of screens; protecting the IT investment in an environmentally controlled setting; and a hands-on approach on the digital signage “last mile” and the cost ramifications of player placement.

LONDON — Microsoft and Samsung have announced that the companies will be present at KioskCom Self Service Expo Europe and the Digital Signage Show Europe. The show will be held for the third time in the UK in October, with a focus on the retail technology and interactive marketing sectors.

Joining Microsoft and Samsung on the exhibitor list are the likes of 3M, Cammax, Protouch, Dicoll, Box Technologies, Ritall, Verifone, GWD Media, YesPay, Rafi, St. Clair and Star Micronics, among others.

“With the announcement that both Microsoft and Samsung are exhibiting at Self Service Expo, we can safely say that both the way we shop and the way the advertisers want us to shop is set for a revolution,” said Phil Hunter, managing director, KioskCom Ltd.

TBM - a business leader in the global digital signage arena - currently operates a network of over 1 000 plasma and TV screens across the country, creating a platform for advertisers to share their information with various sections of the population, depending on which audience-specific package is chosen.

Trendsetter in its field, TBM incorporates new technology that provides a basis for revolutionary new communication strategies. Advertisers can now create high-impact campaigns and deliver them virtually instantly via satellite to any of these screens across South Africa. Advertising screens within the TBM network include those at Johannesburg, Cape Town and Durban International Airports, airport lounges at these three airports, Absa banks, American Express, Rennies Bank, Virgin Active, golf clubs, advertising agencies and the Johannesburg Metro Police Department.

TBM also operates “private” television stations for government, NGOs and corporate clients, which can be used for various applications including marketing and promotions, staff training, brand building, product/service information, company communication, promotions, competitive advantage, social responsibility, sponsor extensions and strategic alliances.

In addition, TBM also delivers DVD quality full-motion content to plasma screens located within closed networks, acting as a telecommunications service provider for institutions requiring information distribution to both staff and clients. These are known as hybrid networks, and TBM currently operates such a network for Cell C in over 90 retail centres across the country. By the end of 2006, this figure will have grown substantially. During business hours, the network is used for communicating with the clients in Cell C call centres, stores and franchises.

“Currently, South Africa is lagging behind the international market with regards to digital signage,” says Pierre van der Hoven, CEO of TBM. “Marketers need to start realising that Out-of-Home TV is the way of the future - traditional media has become fragmentised, and has lost the power it once commanded.”

Research shows that digital media is four times more effective than conventional television advertising. Significantly, digital media is also seven times more effective than conventional print media, and receive ten times the eye contact of static signage.

“Studies also show that 75% of all purchasing decisions are made in-store at the point of sale, and that 85% of retail customers say that multi-media displays make a difference to where they shop,” van der Hoven points out.

According to recent studies by New York research company Weinstock Media Analysis, who defines digital signage as ’server-based advertising over networked video displays’, technology sales to this market in North America totalled $US972-million in 2003 and will rise to $US2.23-billion in 2008. It is predicted that this region will have over 540 000 screens at more than 76 000 sites by 2009.

In the US, the broadcast network of PRN - the largest TV network in the retail environment - reaches an audience of over 150 million shoppers every week in over 5 500 stores countrywide. It delivers information and entertainment-packed programming in stores where customers spend over US$256-billion every year.

Advertisers in the UK have also cottoned on to this highly effective marketing medium, and over 57 000 networked screens are operational in public venues. This figure has made an astounding leap from only 10 000 in 2004, according to the Samsung Screen Survey of last year. Apart from producing a value-adding experience for mall visitors, screens have also been placed in government buildings, banks, hair salons and student unions.

Three years ago, Tesco TV rolled out 5 000 screens in 100 Tesco stores, which reach 14 million shoppers a week. ASDA, the other major supermarket chain in the UK, has completed a six-month pilot in two of its major stores. Results of the Spar grocery trial were also published in 2005, and showed increased sales of between 10% and 40% for targeted products.

Besides Tesco TV, other success stories in the UK include Toni & Guy TV, with 230 salons in Europe and expanding across Asia; the Bullring Shopping Centre in Birmingham, which provides information through plasma screens and kiosks; Abbey National, a dual network in 800 stores that does brand advertising and staff training; and the Camelot network, which promotes the national lottery in 500 supermarket and sales outlets.

If South Africa is set to follow North American and European trends - and the signs are already beginning to show - then astute marketers will start to place emphasis on extracting the maximum value from ad-spend, with the added benefit of avoiding a ‘blanket’ marketing approach, opting rather for one that is focused and targets specific audiences.

“Digital screens with moving images are much more effective than static point-of-purchase material,” notes van der Hoven.

“Even though advertisers spend millions getting shoppers in stores, more than half of those shoppers leave empty-handed because static advertising is unreliable, invisible and difficult to manage. In fact, the Point of Purchase Advertising Institute (POPAI) estimates that 30% to 40% of all point-of-purchase advertising is wasted as a result of incorrect and non-displays.”

TBM is poised to play a pivotal role in developing this market in South Africa, and is currently the only South African company that provides all the necessary elements for an OHTV network. “We see a boom coming for the digital signage market in this country, and we’re prepared,” says van der Hoven. “Marketers should be too.”

Venco Electronica, an electronics solution provider with more than 25 years in the Spanish industrial electronic market, has announced the integration of TruMedia’s iCapture audience measurement solution into its digital signage screens.

Venco’s DS for Digital Screens division produces turnkey DS solutions, including HD resolution screens, platform, audience measurement, and communications. Venco screens are the first to include a fully integrated audience measurement solution with built in iCapture Camera and SmartBox. Embedded screens are available as 46- and 52-inch hi-definition LCD screens as well as 46-, 52- and 65-inch totems.

“We believe that the success of digital signage hinges on the ability to accurately measure ROI and effectively target advertising to the viewing audience,” said Joan Clotet, managing director, Venco. “Venco prides itself in offering cutting edge DS technology and integrating TruMedia’s iCapture audience measurement solution into our screens was a natural progression.”

“We are pleased to see our solution integrated into Venco’s screens and believe that we will continue to see our solution become an integral part of Digital Signage solutions.” Said Jerry Henzen, TruMedia’s vice president of international sales & marketing.

Like all TruMedia products, iCapture is fully respectful of the audience’s privacy: no images are ever recorded, and no uniquely identifiable data is extracted.

Venco will be demonstrating the company’s new integrated screens at shows all over Europe this coming September including – Spanish Malls Association Congress and Exhibition (17 September), TOTAL MEDIA - first Digital Signage Fair (25-26 Sept), VISCOM SIGN POP and POS (16-18 Oct), MATELEC Electronics and Integrated components (28 Oct-1 Nov)

TAMPA, Fla. – Venco Electronica, a Spanish electronics provider, has integrated TruMedia’s iCapture audience measurement solution into its digital signage screens.

Venco’s DS for Digital Screens division produces turnkey digital signage solutions for audience measurement and communication. Venco screens are the first to include a fully integrated audience measurement solution with built-in iCapture Camera and SmartBox. Embedded screens are available as 46-inch and 52-inch hi-definition LCD screens as well as 46-inch, 52-inch and 65-inch totems.

“We believe that the success of digital signage hinges on the ability to accurately measure ROI and effectively target advertising to the viewing audience,” said Joan Clotet, managing director, Venco.