S9.P1 - TOPIC 10 Marketing Communication
10 Marketing Communication
LEARNING OUTCOMES
By the end of this topic, you should be able to: 1. Define the concept of integrated marketing communications (IMC) and discuss its benefits and challenges; 2. Identify marketing communication tools and how each one contributes to IMC; 3. Discuss how to develop a campaign for IMC; and 4. Analyse how to evaluate an IMC programme. INTRODUCTION Integrated marketing communication is a way of looking at the whole marketing process from the viewpoint of the customer. Kotler and Keller (2009)
The information revolution has led to consumers being exposed to many types of communications, and has impacted the way marketers communicate with the consumers. The audiences that marketers seek, as well as the media and strategies for reaching them, have become increasingly fragmented. Advertising and promotional efforts have become more targeted to specific audiences. Marketers expect their promotional dollars to generate immediate sales and are demanding more accountability from their agencies.
Many companies are coordinating all their communications efforts so that they can send cohesive messages to their customers. With the extent of Internet communication and the rapid growth of the online audience, many companies are building brands with more use of digital and online media. Many advertising agencies have involved themselves with sales promotion, direct-marketing, public relations companies and interactive agencies to better serve their clients marketing communications needs. The objectives of this topic is to appreciate the meaning of Integrated Marketing Communications (IMC) and its vital tools which an efficient marketer can use in order to strategically position his or her products very well in the ever dynamic and competitive market. This topic will also give a comprehensive analysis of the steps involved in developing an effective IMC programme.
ACTIVITY 10.1 Explain the following job description assigned by a company for the post of Integrated Marketing Manager: Integrated Marketing Managers are responsible for helping develop, implement and measure strategic integrated marketing campaigns. They research industry trends, social media or engagement tools and use them within targeted IMC campaigns. They utilise public relations, advertising, brand management and design together to form a cohesive marketing communications campaign.
10.1 CONCEPTUAL DEFINITION
Based on the examination of current literature on IMC, one of the most updated definitions for integrated marketing communication which is believed to embrace the essence and inherent distinctive elements of the IMC concept is by Kliatchko (2005): „IMC is the concept and process of strategically managing audience-focused, channel-centred and results-driven brand communication programmes over time‰. There are four basic elements in this definition: (a) IMC is both a concept and a process; (b) IMC requires the knowledge and skills of strategic thinking and business management;
(c) IMC is based on three essential elements or pillars audience-focused, channel-centred and results-driven; and (d) IMC involves an expanded view of brand communications. The first formal definition of IMC was developed at Northwestern University in 1989 and was used in a survey of major advertisers and advertising agencies in the US, jointly sponsored by the American Association of Advertising Agencies (4As), and the Association of National Advertisers. A review of the literature indicates that this definition has been the most widely used and the most often cited by academics and practitioners. This definition states that IMC is: „A concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines general advertising, direct response, sales promotion, and public relations and combines these disciplines to provide clarity, consistency, and maximum communication impact‰. This definition stresses the need for a marketing communications with a unified and synergistic plan that uses multiple tools of marketing communications. This is different from traditional advertising, as IMC: (a) Capitalises on the strengths of each element in order to achieve maximum communication impact; (b) Highlights the importance of having one communication strategy or plan as the unifying element and the integrative factor of the various tools or disciplines employed; and (c) Stresses the importance of achieving greater synergy that would otherwise be absent if the tools were to be used independently without supporting and reinforcing one another; According to Kitchen, Brignell, Tao and Jones (2004) IMC must show five significant features. These features are: (a) The main objective of IMC is to affect behaviour through direct communication; (b) The process starts with the customer or prospect and then works backwards to the brand communicator;
(c) IMC should use all forms of communications and all sources of brand or company contacts as prospects message delivery channels; (d) The need for synergy is paramount with coordination helping to achieve a strong brand image; and (e) IMC requires that successful marketing communication needs to build a relationship between the brand and the customer. The integration in IMC covers all areas and elements as shown in Figure 10.1: Figure 10.1: Areas and elements of the Integration in IMC Now, let us discuss the areas and elements one by one. (a) Horizontal Integration This occurs across the marketing mix and across business functions ? for example ? production, finance, distribution and communications should work together and the people involved should be conscious that their decisions and actions send messages to customers. (b) Vertical Integration Marketing and communications objectives must support the higher level corporate objectives and corporate missions. Check out the Hall Of Fame later for more about missions.
(c) Internal Integration This requires internal marketing which means keeping all members of staff informed and motivated about any new developments such as new advertising campaigns, new corporate identities, new service standards, new strategic partners and so on. (d) External Integration This integration requires external partners such as advertising agencies, PR agencies, or event management companies to work closely together to deliver a single seamless solution which means a cohesive and integrated message.
10.2 IMC TOOLS
Next, the communication tools are examined briefly. It is commonly indicated that there are numerous different communication tools available to a marketer. The tools include the following: (a) Advertising; (b) Sales promotion; (c) Direct marketing; (d) Personal selling; (e) Public relations; (f) Sponsorship; (g) Exhibitions; (h) Packaging; (i) Point-of-sale and merchandising; (j) Word of mouth; (k) Corporate identity; and (l) Website.
The wide range of marketing communication tools as listed earlier as well as the range of messages and audiences make it imperative for companies to move towards the IMC approach in an effort to ensure clarity and credibility of messages, consistency and competitiveness. Some of the main tools are explained here: (a) Advertising The role of advertising in the communication mix is to inform, remind or persuade present or potential customers of the presence of a product. With simple messages, advertising can reach huge audiences although the cost may be high. It can also communicate with specific audiences. (b) Sales Promotion This tool is used through contests, premium offers, free goods and services, demonstrations, displays or incentives. It is used to accelerate short-term sales by building brand awareness and encouraging repeat buying. All these tactics are intended to achieve exposure for the promoted product. Some may offer the target audience an incentive to respond actively. The International Chamber of Commerce (ICC) defines sales promotion as: „Marketing devices and techniques which are used to make goods and services more attractive by providing some additional benefit, whether in cash or in kind, or the expectation of such a benefit‰. According to Kempf and Smith (1998) there are three main categories of sales promotion: (i) Customer promotions (premiums, gifts, prizes and competitions, for example, on the back of breakfast cereal boxes); (ii) Trade promotions (special terms, point-of-sale materials and free pens, diaries, competition prizes, etc.); and (iii) Sales force promotions (incentive and motivation schemes). Other promotional items include premium offers of all kinds, reduced prices and free offers, the distribution of trading stamps, vouchers and samples, charity-linked promotions and prize promotions of all types, including incentive programmes. (c) Direct Marketing This is the method of selling directly to the end buyer from the manufacturer with no middle man or intermediary involved. This tool utilises e-mail, mail order, catalogues, direct-mail shot, direct-response advertising, door-to-door selling, mail drop, telemarketing and fax messages. It encourages direct responses to radio and television, in order to reach targeted audiences to increase sales and test new products and alternate marketing tactics. Direct marketing techniques according to Olander and Sehlin (2000) can be used to move buyers through various stages of the buying process. This is to get buyers to visit an exhibition, call into a showroom for a test drive, establish contact, etc. Direct marketing should be used on a more strategic basis by integrating it with other marketing communication tools and in the longer term by developing a database. Direct marketing also includes computerised home shopping (link home computer with a store so that one can browse around the aisles, pick up merchandise, inspect it by turning it around on screen, etc.), home shopping networks, and miscellaneous items which include stuffers, inserts and leaflets for house-to-house distribution. (d) Personal Selling Personal selling is the sellerÊs oral face-to-face communication with one or more potential customers with the intention of closing a deal. It is also a promotion via a sales pitch by a sales representative to a potential customer or by a retail assistant to a customer. While selling itself embraces both personal and impersonal communication, personal selling focuses on face- to-face personal communication. One of the skills used in personal selling is salesmanship, an art of successfully persuading customers to buy products from which they can derive suitable benefits. Thus, personal selling is a communication tool while salesmanship is a skill largely used to implement the personal selling effort. Personal selling may include the following: (i) Face-to-face sales meetings; (ii) Telephone sales calls; (iii) Video conferencing; (iv) Trade shows; (v) Exhibitions; (vi) Conferences; (vii) Seminars; and (viii) Word of mouth.
The many types of personal selling jobs include sales people, sales representatives, account executives, agents etc. In the integrated marketing communication, personal selling involves communication between sales people and individual customers whether face to face or by other means. It enhances advertising in complex selling situations because it develops relationship marketing which is the process of creating, maintaining and enhancing strong relationships with customers.
ACTIVITY 10.2
Personal selling has several advantages and disadvantages. Explain the following points on advantages and disadvantages of personal selling. Advantages: (a) Direct access to customers on a planned basis. (b) Control over presentations and approaches. (c) Increase in the number of employees that, if the situation warrants, can be rotated into other assignments. (d) A degree of accountability of the funds that are spent on this activity. (e) Salespeople can report directly back on the success or failure of their efforts. Disadvantages: (a) A lengthy process to recruit and train individuals, and a possibility of loss of control of some aspects of the marketing mix. (b) If there is a need to lower the marketing effort, reducing the sales force is a painful process.
(e) Public Relations Public relations is the development of and maintenance of good relationship with different publics which include employees, investors, suppliers, customers, distributors, legislators, regulators, governments, pressure groups, the community, the media and even competition. This IMC tool is initiated through public appearances, press releases, event sponsorships, publicity events, speaking engagements, video and audio news releases, newsletters, blogs, social media, press kits and other forms of communication. The objective is to build trust and goodwill by presenting the product, company or person in a positive light. Positive publicity is dependent primarily on good media relations. (f) Sponsorship Sponsorship has been defined as the provision of resources by a sponsor directly to an individual or organisation (sponsee), to enable the latter to pursue some activities in return for benefits contemplated in terms of the sponsorÊs promotion strategy. The benefits of sponsorship which is often cited are awareness and image building of the brand, product, and company. Sponsorship increasingly provides organisations with the opportunity to reach their target audiences in a manner that facilitates engagement and encourages relationship development. Sponsorship is facilitated through event or activities such as community projects, social responsibility campaigns, sports events, music concerts or cultural programmes. The expectation is to get secondary exposure via attribution to the sponsor during media coverage. (g) Website The website is something of a mix between direct selling and advertising where it can engage in a dialogue as well is designed to generate awareness, explain and demonstrate the product and provide information. The integration of the website with other traditional marketing media is very important to the success of the website itself. The presence of the Internet addresses on printed materials projects a modern, up-to-date image for a company but the site must be continually promoted and updated.
Table 10.1 explains the main applications and specification of IMC tools.
Table 10.1: Main Applications and Specification of IMC Tools IMC Tools Applications Specification Advertising Non-personal Brand awareness One-way Brand image Paid Encourages a response Sales promotion Short term Facilitate the buying Encourages an immediate decision response Direct marketing Direct and two-way Enabling dialogue with Data based customer Using wide range of Product and services media customisation Personal selling Face-to-face Dominant tool for B2B and communication special products in B2C The most effective and Brand message expensive MC personalisation Public relations Create and control brand Formal channel of news communication with No media spending society specially in crisis The most credible MC management Reinforcement and modification of brand image Packaging Containing product Brand identity information reinforcement Free medium Delivering the last brand message Events and Create, sponsor or Active involvement of sponsorship participate in celebration, customers contests and trade fairs Brand public announcement and reinforcement Customer service Managing brand-customer Customer retention interactive relationship Customer satisfaction CompanyÊs attitude and behaviour toward customer Source: Ekhlassi, A., Maghsoodi, V., & Mehrmanesh, S. (2012). Determining the integrated marketing communication tools for different stages of customer relationship in digital era. International Journal of Information and Electronics Engineering, 2(5), 761765
10.3 1. Collect a weekÊs worth of direct mail that comes to your mailbox. Analyse how personalised it is. Prepare an oral presentation to your class that sets up a continuum of personalisation for your set of direct mail pieces. In other words, which one is the most personalised, which one is the least personalised, and where would you put the other pieces in between? 2. Take several issues of a magazine or newspaper and take all of the direct response advertisements and separate them into two categories: (a) First, one that represents good examples of direct response messages. (b) Second, one that you consider to be weaker. Write an analysis of each group of these ads, explaining how the good ones differ from the weaker ones. 3. Find the websites of three companies (get the addresses from product packages and in brand messages). Contact these companies with an inquiry or complaint using the response instructions on each of their websites and keep track of: (a) How long it takes each company to respond? (b) Rate each response on how personal it is (was response personalised or a stock message?). (c) Record to what extent your question was answered or your complaint addressed. (d) Record to what extent company made an effort find out more about you.
SELF-CHECK 10.1
Indicate whether the following statement is right or wrong concerning IMC. Statement Yes or No
Vertical integration requires a marketing information system to collect and share relevant data across different departments. IMC avoids duplications and takes advantage of synergy among promotional tools and develop more efficient and effective marketing communications. External integration requires the keeping of all staff informed and motivated about any new developments from new advertisements, to new corporate identities, new service standards, new strategic partners and so on. Internal integration requires external partners to work closely together to deliver a cohesive and integrated message. In IMC, personal selling plays the role of the interpersonal arm; it involves communication between sales people and individual customers. IMC highlights the importance of having many communication strategies or plan as the unifying element and the integrative factor of the various tools or disciplines employed. IMC stresses the importance of achieving greater synergy that would otherwise be absent if the tools were to be used independently without supporting and reinforcing one another.
10.3 ADVANTAGES AND CHALLENGES As the strategic coordination of marketing communication mix elements is to afford an organisation a clear, consistent, impactful and result-driven communications about its brand and corporate image in the eyes of its customers and other stakeholders, integrated marketing communication has its advantages and disadvantages. Some of the main points are indicated in the next subtopic. 10.3.1 Advantages The following are some advantages of integrated marketing communications or IMC: (a) The strategic integration of the various communication functions would avoid duplications and take advantage of synergy among promotional tools and develop more efficient and effective marketing communications. (b) By stretching messages across several communications tools, IMC creates more avenues for customers to become aware, aroused, and ultimately, to make a purchase. (c) IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons. (d) A unified message has more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and clear message has a better chance to compete with a hundred commercial messages which bombard customers every day. (e) Carefully linked messages help buyers move comfortably through the stages of their buying process by giving timely reminders, updated information and special offers. (f) Consistent images and relevant, useful, messages help nurture long-term relationships with customers. Here, customer databases can identify precisely which customers need what information when throughout their whole buying life.
(g) IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communications. When there are several agencies, time is saved when meetings bring all the agencies together for briefings, creative sessions, tactical or strategic planning. 10.3.2 Challenges Despite its many benefits, integrated marketing communications, or IMC, has certain limitations and challenges. Several factors have been identified as challenges of the integration process, both of internal and external nature. The internal factors include the lack of management understanding of the benefits of IMC, the present organisational structure, the battle between departments for supremacy, the fear of budget and staff reduction and lack of expertise in IMC. Some of the challenges are explained briefly here: (a) Practitioners and academics have noted the difficulty of effectively implementing IMC. Defining exactly what IMC is has already been difficult. For example, merely coordinating messages so that all promotional efforts speak in unity and harmony do not fully capture the meaning of IMC. (b) Changing the organisation to accommodate the integrated approach challenges the control structure of organisations. Some structures isolate managers, communications and data from each other, for example, the separation of the corporate communication, marketing, sales and public relations departments. (c) IMC may restrict creativity to fit into the overall marketing communications strategy. The joy of creativity may be stifled and the creative challenge may be greater but may ultimately be more satisfying when operating within an integrated creative brief. (d) Different time horizons need to be addressed. Time horizon is estimated length of time for a campaign or plan to complete. For example, a longer term campaign to nurture the brand may conflict with a shorter term sales promotions campaign to boost quarterly sales. The two objectives must be accommodated within an overall IMC plan.
(e) The lack of expertise in the IMC discipline due to the tradition or practice in single discipline agencies. There appear to be very few people who have real experience of all the marketing communications disciplines. This lack of know-how is then compounded by a lack of commitment.
ACTIVITY 10.4 List of IMC Tools: (a) Advertising; (b) Personal Selling; (c) Internet advertising; (d) Brochures; (e) Direct mail; (f) Coupons (with special offers); (g) In-store displays; (h) Telemarketing (phone); (i) Local letterbox drops; and (j) Discounts or sales promotions. Questions: Using the list give, select the most appropriate IMC mix for: (a) A new hairdresser in a busy shopping mall. (b) A large firm introducing a new line of cereals. (c) A charity launching its national campaign. (d) A multinational 5-star hotel on the beach, starting to offer business conference services. (e) A budget airline company offering free tickets to families during school long holidays.
ACTIVITY 10.5 Answer the following questions after reading the text given which is adapted from Print Power, at http://www.printpower.eu. An effective marketing campaign works best when print is used with other media as one element of an integrated solution. Adding magazines to a mix of television and Internet increases brand favourability by 44 per cent and purchase intention by 15 per cent. The combination of online and newspapers also increases effectiveness, with brand engagement 26 per cent higher than using just print or online media. Print media can now offer quick and simple ways to access digital content using „bridging technologies‰ such as QR codes, Augmented Reality and near-field communication. These innovations form a bridge between print media and a brandÊs online space, inviting consumer reaction, feedback and purchase, all via a smartphone. Such innovations increase the effectiveness of print media, as well as enhances the consumer experience. Newspapers are still the number one medium for shaping public opinion. Their credibility, knowledge, values and information-gathering skills remain a formidable force on the high street, and with titles now separated into sections with more lifestyle content, their potential for brands has increased further online and offline. Add Print, Add Power, has never been so apt. But the success of newspapers largely boils down to a single truth: they are effective in shaping opinion. They possess a large amount of power when it comes to public perception. Used well, that power can completely transform your brand. Questions: (a) How would you explain the research finding that adding magazines to a mix of television and Internet increases brand favourability by 44 per cent and purchase intention by 15 per cent? (b) How would you elaborate the finding that the combination of online and newspapers increases effectiveness, with brand engagement 26 per cent higher than using just print or online? (c) What do you understand by „bridging technologies‰? (d) Identify and discuss the reasons for the significant role of newspaper as a communication tool.
10.4 DEVELOPING IMC PROGRAMME In order to achieve better results from the use of IMC, the following guide may be used and taken into consideration when designing the message. Let us examine the steps involved in developing an IMC programme or campaign. (a) Identify the Target Audience The marketing communicator must have a clear target audience in mind. The audience may be potential buyers or current users; those who make buying decisions or those who influence it. (b) Specify Communication Objectives After the target audience is identified, a decision must be reached on what the communication should accomplish. Marketers must know where the target audience now stands and what AIDA stage it needs to be moved to. The purpose of marketing communication is to move the customer along these stages and ultimately to achieve final purchase. (c) Set the Budget Determining the ideal amount for the budget is difficult because there is no precise way to measure the exact results of spending promotion dollars. However, several methods can be used to set the promotion budget such as percentage of sales budgeting, comparative parity, objective and task budgeting, and all-you-can-afford budgeting. (d) Select the Right Promotional Tools The combination of the five basic IMC tools, advertising, personal selling, sales promotion, public relations and direct marketing can be specified. An analytical approach and experience are important to make the right decision. Many factors provide direction for selection of the appropriate mix. (e) Schedule the Campaign Determine the most effective timing of the campaign. The campaign schedule describes the order in which each communication tool is introduced and the frequency of its use during the campaign.
Choosing the correct marketing communications tools for a particular promotional task is largely influenced by a number of factors such as the following: (a) Business missions; (b) Business objectives; (c) Marketing objectives; and (d) Promotional objectives. However, in todayÊs marketing communication world, computers can carry out matching consumer characteristics with media databases very rapidly. Promotional budgets can also be evaluated for a variety of different mixes. Generally, a media mix includes radio, television, print and online channels. The media mix is the total amount of marketing communication that an agency, marketing communication company or media buyer has budgeted for a specific communication strategy and media plan. Media mix refers to the various advertising channels through which a company communicates with its audience in order to fulfil a campaign as outlined in the media plan. For any given communication campaign, the best media mix depends greatly on the demographics of the target market. 10.5 MONITORING, EVALUATION AND CONTROL It is vital for firms to determine how well the marketing communication programme meets the objectives; how and why the promotion programme is performing; if there are deviations from the plans or whether there is need for modification. Monitoring, evaluation and control is designed to provide managers with continued feedback concerning the effectiveness of the promotional programme. This feedback can be used as input into the planning process.
The integrated marketing communication model portrays the development of a marketing programme which requires an in-depth analysis of the market. This analysis may make extensive use of marketing research as an input which provides the basis for the development of marketing strategies. As this plan serves as the guide to follow in achieving marketing goals, each of the steps requires a detailed analysis. When the detailed analysis has been completed and objectives have been established, each of the marketing mixes must contribute to a comprehensive integrated marketing programme. Table 10.2 indicates programme elements that can be measured and correlated to tactical and strategic goals.
Table 10.2: Measuring IMC
IMC Component
Elements to Measure
Marketing
Message reach and adoption, brand awareness or recall. communication
Public relations
Media coverage analysis, advertising value equivalents, impressions (or exposures) by media type, tonality of coverage, influence of spokespeople, prominence of brand vs. competitors. Marketing or sales Response rates, number of inquiries, number of qualified promotion: Advertising, leads from respondents, customer acquisition costs (total events, direct mail, number of new customers or marketing costs), increase in e-mail marketing average sales price. Employee Employee surveys, sales of companies products to communication employees, recommendations to friends and family. Source: Woods, J. A. (2014), Measuring integrated marketing communication from start to finish. JW Bulletin . Retrieved from http://www.iabc.com
ACTIVITY 10.6
Read the cases given and answer the subsequent questions. Choose just one case and brainstorm in your group a good advertising strategy (creative and media) and look also at the bigger picture and determine how the other components of the marketing communications mix will be useful in finding a solution for the case that you have chosen. The Case High Five bread was once a very popular bakery brand but it has fallen due to a certain incident. The factory at Nilai was raided and the Health Ministry team issued a warning to the operator for operating under unhygienic conditions under Section 11 of the Food Act 1983. It was also found to be employing illegal workers and using cooking oil without a halal certification. The raid at Stanson Bakery Sdn Bhd, which produces the High Five bread, revealed that the factory floor was dirty, some workers were found working without gloves or aprons, while the factory was badly-lit and poorly-ventilated. The factory's management volunteered to close down for two weeks after the raid. The brand has not received any meaningful marketing communications support for several years. The Task The task is to reintroduce the brand to the market and get it into the top bakery in Malaysia. When preparing a case solution it is expected that you conduct additional secondary research. Good factual information will enhance the quality of the analysis and the recommendation. Here is a guideline for your discussion and oral or written report. The Guide Follow this guide to engage in your discussion. (a) Identifying Problem Identify the problem, not symptoms, in a clear, concise manner. Do not state the problem as choosing between a number of alternative strategies. The problem should pose a question searching for a solution. (b) Situation Analysis Conduct SWOT analysis. Typically, strengths and weaknesses are internal in nature while opportunities and threats are external in nature. (c) Alternatives Identify a series of alternatives that could resolve the problem. Make sure that issues such as segmentation and targeting, positioning, and the pros and cons of each alternative are discussed. (d) Recommendation Make a specific recommendation to resolve the problem. Proper justification must accompany the recommendation and company objectives, marketing objectives, and the resources of the company must be considered. (e) Summary Plan Being concise as possible while providing proper detail on the various components of the marketing communications mix you are recommending, provide details about the following: (i) Marketing objectives; (ii) Marketing communications objectives; (iii) Target market profile; (iv) Positioning strategy statement; (v) Marketing communications mix; (vi) Timeline for activities; and (vii) Budget allocation for recommended activities. Source: Adapted from Course Hero (n.d.) The objective of this topic is to appreciate the meaning of Integrated Marketing Communications (IMC) and its vital tools which an efficient marketer can use in order to strategically position its products in the dynamic and competitive market. This topic also gives a comprehensive analysis of the steps involved in developing an effective IMC programme. Based on the examination of current literature on IMC, one of the most updated definitions for integrated marketing communication is IMC as the concept and process of strategically managing audience-focused, channel- centred and results-driven brand communication programmes over time. The choice of the marketing promotional tool is largely influenced by a number of factors such as business missions, business objectives, marketing objectives, promotional objectives and choice of correct while the best media mix for any given communication campaign depends greatly on the demographics of the target market. It is vital for firms to determine how well the marketing communication programme is meeting the objectives; how and why the promotion programme is performing; if there are deviations from the plans or whether there is need for modification. Monitoring, evaluation and control is designed to provide managers with continued feedback concerning the effectiveness of the promotional programme. This feedback can be used as input into the planning process. Corporate identity Personal selling Direct marketing Point-of-sale IMC Sponsorship Packaging
TOPIC 10 INTERGRATED MARKETING COMMUNICATION
Ekhlassi, A., Maghsoodi, V., & Mehrmanesh, S. (2012). Determining the Integrated Marketing Communication Tools for Different Stages of Customer Relationship in Digital Era, International Journal of Information and Electronics Engineering, 2(5), 761765. Im_cases. (2015). Retrieved from https://www.coursehero.com/file/4235898/ imcases/ Kempf, D. S., & Smith, R. E. (1998). Consumer processing of product trial and the influence of prior advertising: A structural modelling approach. Journal of Marketing Research, 35 (8), 325338. Kitchen, P. J., Brignell, J., Tao, L., & Jones, G. S. (2004). The emergence of IMC: A theoretical perspective.Journal of Advertising Research, 44 (1), 1930. Kliatchko, J. G. (2005). Towards a new definition of integrated marketing communications (IMC). International Journal of Advertising, 24(1), 734. Kotler, P., & Keller, K. L. (2009). Marketing management . Upper Saddle River, NJ: Pearson Prentice Hall. Chicago. Olander, C., Sehlin, S. (2000). The use and integration of marketing communication tools in business-to-business firms: Case studies of three Swedish firms. Retrieved from http://epubl.ltu.se/1404- 5508/2000/112/LTU-SHU-EX-00112-SE.pdf Woods, J. A. (2014), Measuring integrated marketing communication from start to finish. JW Bulletin . Retrieved from http://www.iabc.com
Thursday, 23 June 2016
S9.P1 - TOPIC 9 OUT-OF-HOME ADVERTISING
S9.P1 - TOPIC 9 OUT-OF-HOME ADVERTISING.
TOPIC 9 OUT-OF-HOME ADVERTISING
LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Identify various types of outdoor advertising and their features; 2. Explain the advantages and disadvantages of outdoor advertisements; 3. Analyse the main ideas in the general guidelines for out-of-home advertising set by the state or local authorities; and 4. Discuss some of the main ideas in the code of ethics for out-of- home advertising.
INTRODUCTION "Over the years, advertising has been both condemned and eulogised. By some, it has been characterised as an insult to the intelligence of thinking men. Others profess that advertising is a necessary and desirable catalyst of our private enterprise system". (Enfield, 1969) Out-of-home media has evolved to become one of the most innovative media in recent times. From the early days of the 50s, the market has continued to grow. Having existed for decades, it is equally effective in today's age and with all inventions of modern media, out-of-home advertising has reached new technological peaks and attracts a broader audience range than ever before. It has expanded from being represented by posters and billboards at the beginning to currently being made up of numerous different media types. It ranges from high-tech electronic billboards in urban areas to video walls at airports and huge posters in remote rural villages. Standards were introduced, not only to establish order in the environment and generate revenue but also to improve the profession. With the advent of technology, the industry has metamorphosised and become technologically-based. This new development has increased competition in the industry. Many new outdoor advertising companies have emerged to carve a niche for themselves by producing new ideas to promote and position the brands.
ACTIVITY 9.1 There are many kinds of out-of-home advertising choices. Based on your observation, give specific examples of out-of home advertisements by the following companies or places that you have seen. If possible take photographs using your mobile phone of the advertisements that you have come across. (a) Restaurants and hotels companies which commonly make use of highway billboards to steer customers in for a rest or a bite. (b) Bus benches which feature advertisements for local businesses and bus shelters which display a major movie promotion. (c) Food and beverage companies which make use of sporting events and arenas. (d) Taxis, buses, railways, subways and wall murals which offer certain forms of promotion.
9.1 OUT-OF-HOME ADVERTISING INDUSTRY This section examines the global trends in out-of-home advertising industry, challenges and the industry players. 9.1.1 Global Trends Out-of-home media has grown tremendously over the past decade. The trend in the global scenario indicates a growing industry at a great pace. It is expected to continue to witness stable growth which is mainly due to increasing popularity of this segment in comparison with other segments of the advertising industry. The main reason is also because more and more people are spending time outside of their homes. This enables out-of-home media to become an increasingly more efficient advertising media. Unlike other forms of media, out- of-home media can create an impression with consumers close to a point of sale or be a constant reminder throughout the course of daily activity. The greater proportion of outdoor advertising expenditure is spent on the traditional paper based or vinyl based billboards. It is offered by the bigger companies to large national advertisers on a national basis for short- to medium- term advertising campaigns. With all inventions of modern media, outdoor advertising signs have reached a new technological climax and attract a broader audience range than ever before. Now, out-of-home media is becoming more digital especially in the out-of-home markets which are concentrated in high-traffic, captive and measurable locations such as the roadside, healthcare and transit. Digital out-of-home advertising has been building momentum in recent years resulting in digital signage media becoming the world's second fastest-growing advertising medium as it quickly becomes a vital component of the media ecosystem.
TOPIC 9 OUT-OF-HOME ADVERTISING Digital or non digital, the key growth drivers included the following: (a) Consumers spending a record amount of time with media outside their homes; (b) Increased engagement during the day with corresponding content on out- of-home media including media that are linked to wireless devices; (c) Longer work commutes; and (d) Consistent growth in leisure travel and shopping hours.
9.1.2 Challenges and Issues There is a huge potential of the outdoor advertising industry at the global and national level. While better days are ahead to make the sector robust, it could achieve its deliverables while yielding huge returns for players and government. There are many issues and challenges facing the industry players. Here are some of the main ones to consider: (a) Government Policies and Regulation In many local scenarios, there seems to be certain confusion among governments and their agencies. For instance, local governments are normally given the right to outdoor advertising control and levies through their agencies. But this arrangement is sometimes not harmonised properly in some quarters. So outdoor advertising agencies find themselves subjected to difficult and complex arrangements. The other part of government control has to do with rates and levies for the use of permitted outdoor space. (b) Human Resource The out-of-home advertising practice is still evolving. The industry will be better serviced by a continuous growth in the number of adequately educated, trained and experienced practitioners while the trends are growing and the situation is looking better. The focus should be on achieving high level of professionalism in the industry. Therefore, companies should train or retrain their staff to be competent, creative and competitive. (c) Innovation, Research and Strategic Planning Out-of-home advertising practices will do better with research and strategic planning. Out-of-home advertising agencies must be able to tell what the trends are at the market place, gauge extent of efficiency and effectiveness as well as understand the target audience expectation, traits and habits. Outdoor advertising businesses must begin to look at introducing more of strategic planning and research for greater effectiveness and ultimate market performance. This is necessary because many advertisers and agencies continue to think that out-of-home is a non-core and secondary medium. (d) Space It has been reported that worldwide, at least 1,500 cities and communities prohibit the construction of new billboards. In the US, the States of Vermont, Hawaii, Maine and Alaska prohibits all billboards. In Brazil, the City of Sao Paulo banned all billboards within the city. In South Africa, companies must abide by the operating manual known as South African Manual For Outdoor Advertising Control.
(e) Environmental Concern A growing number of people feel overwhelmed by the volume of outdoor advertising. Advertisers and media owners should be aware of their responsibility towards the urban environment and more could be done to promote controls in certain markets. (f) Diverted Attention With the popularity of portable technology such as handphones, out-of- home advertising is increasingly facing a disengaged audience whose attention has been diverted from the outdoor displays and environment around them. 9.1.3 Industry Players The industry players comprise outdoor advertising companies, affiliates vendors and contractors who are dealing with the works and activities related with out- of-home advertising. The outdoor advertising contractor is a company, organisation or body that offers for rent, outdoor spaces as a medium for advertising. This space is usually on specially designed structures erected for that purpose, but the contractor may also secure the rights for displaying third party advertising on buildings, road cuttings and existing bridges. A latest report on the Global Outdoor Advertising Industry by ReportLinker indicates that the competition in the global outdoor advertising market is intense with few large players. Among them are JC Decaux, Lamar Advertising Company, Clear Channel Outdoor Holdings, Inc., CBS Corporation, Adams Outdoor Advertising, AdSpace Networks, Inc., and EuroMedia Group S.A.
SELF-CHECK 9.1
What Is Digital Out-Of-Home Media (DOOH)? Compare the following various definitions of Digital-Out-of-Home Media and discuss their differences and similarities. Definition 1: DOOH refers to digital media used for marketing purposes outside of the home. This excludes television advertising and radio advertising, but includes digital signage. The term is usually used in relation to advertising-based networks. Definition 2: DOOH is made up of at least two distinct categories: Digital signage (which includes electronic billboards) and digital place- based content networks. The first category is found on roadsides. The second category, of which we consider Captivate Network to be a part, targets niche audiences in a particular venue and provides customised content and promotions for that channel. DOOH content is typically distributed through a digital infrastructure and is therefore more targetable and interactive than more traditional media (Mike DiFranza, Captivate Network). Definition 3: DOOH refers to dynamic media distributed across placed- based networks in venues including but not limited to cafes, bars, restaurants, health clubs, colleges, arenas and public spaces. DOOH networks typically feature independently addressable screens, kiosks, jukeboxes and/or jumbotrons. DOOH media benefits location owners and advertisers alike in being able to engage customers and/or audiences and extend the reach and effectiveness of marketing messages (Stephen Randall, LocaModa). Definition 4: DOOH is any signage that is running content and/or advertising in a public space. This could be four-inch shelf talkers in a grocery store all the way to massive LED billboards on the side of the road and everything digital in between. The differentiation is the word "digital". Regular „outdoor‰ equals static signage · static billboards, static signage on the sides of buses or buildings, static signs at bus stops or in airports, static taxi toppers, just to name a few. Displays in the DOOH space have to be powered by a media player or PC in order to accept "digital assets". (Ashley Flaska, NEC Display Solution). 9.2 OUT-OF-HOME ADVERTISING IN MALAYSIA Malaysia's out-of-home sector is an industry on the rise. The country has experienced one of the fastest advertising markets in recent years. While the conventional media like newspaper has been experiencing steady growth in terms of billings and sales, a large portion of this growth is attributed to out-of- home advertising. This is mainly because of the unique consumer landscape among Malaysians today. Despite a growing number of media channels on offer to marketers, confidence in the outdoor industry in Malaysia also continues to be strong. Out-of-home vendors have expanded their offering for the digital era and won client confidence in the process. PwC estimates MalaysiaÊs out-of-home industry grows at 14.5 per cent each year, proving out-of-home remains an important part of marketers overall media strategy. In a recent media rankings survey, marketers were asked which out-of-home media owners they are most likely to work with. Adex in Malaysia recorded a steady growth over the last two decades, rising from about RM0.5 billion in 1988 to approximately RM11.2 billion in 2012, with a compound annual growth rate (CAGR) of about 13.8 per cent between 1988 and 2012. When examining the Adex spent on different mediums, Adex growth rates for television, radio, newspaper and cinema and point-of-sale are the strongest in Malaysia, with CAGRs of 13.9 per cent, 11 per cent, 9.4 per cent and 20.8 per cent respectively between 2005 and 2012. The outdoor medium has also grown, with a CAGR of about 9.8 per cent between 2005 and 2012. The digital out-of-home transit media is considered to be at infancy stage in its industry lifecycle. The estimated Adex for OOH media and digital out-of-home media has grown continuously over the past few years. Players in digital out-of- home transit media industry in Malaysia should be well-positioned to reap the benefits from the growth of the industry.
Profile of Big Tree Big Tree Outdoor Sdn Bhd (Big Tree) is the leading outdoor advertising outfit in Malaysia. Since its incorporation in 1994, Big Tree's aggressive growth has been fuelled by continued investments in major expressways, transportation, retail concessions and key market centres in Malaysia. Its primary activities consist of undertaking outdoor advertising business, carrying out related advertisement production works, advertising contractors and agents as well as the sale of advertising spaces. Big Tree has a number of exclusive advertising concessions with expressway, transportation and retail concessionaires. In the expressway segment, Big Tree secured exclusive long-term contracts for advertising rights along the country's major expressways including amongst others, the North South Expressway, the New Klang Valley Expressway, Linkedua and the Elite Highway. Big Tree currently has over 15 exclusive concessions nation-wide. The outdoor advertising products of BTO are sold under the following brands: (a) Big Drive: E Expressway and Freemarket (b) Big Ride:Transit (c) Big Buy: Retail Big Tree is a wholly-owned subsidiary of Media Prima Berhad and spearheads the Group's strategy in outdoor advertising with GOTCHA, UPD, The Right Channel (TRC) and Kurnia Outdoor sites and assets under Big Tree's management. Source: Media Prima (n.d.) ACTIVITY 9.2 New and Out-Of-Home Media in the Malaysian Advertising Industry As it is universally known, Malaysia is a multicultural and multiracial country. Therefore, advertising in the masses are needed although they might not necessarily be as effective as other countries. This is a market which out-of-home advertising can play a major role, offering advertisers with the rare opportunity of reaching their target market more effectively. For instance, advertising boards using LED technology can be placed along the streets of residential areas known for a majority of a certain community which can then play advertisements for that group. This is one factor that cannot be achieved using radio or television. Table top advertising, too, has been gaining a lot of momentum in recent years. This is where one would see advertisements by sports brands and apparels like Nike and Adidas to reach its customers in mamak shops who usually go to these outlets to watch football or just to have a "teh tarik" or "nescafe ais". Another good example of out-of- home advertising in Malaysia is the use of posters and banners in the KL Monorail stations. Each of the stations is named after a specific brand and these brands are intended for its specific target market of the people residing around the area where the station is located. Answer the following questions: 1. What major role can out-of-home advertising play? 2. What is table top advertising? 3. Why are posters and banners in the KL Monorail stations considered a good example of out-of-home advertising in Malaysia?
9.3 DEFINITION
The term "out-of-home media" refers collectively to all forms of media outside the home that carry advertising messages for consumer audiences. It is any type of communication media that reaches an individual while they are out of the home. Out-of-home media encompasses many forms of media; from the large bulletins and posters we encounter on streets and highways to the panels we see near stores, on transit vehicles, rail or subway platforms, on bus shelters, in airports and in shopping malls.
9.3.1 Outdoor and Transit
Generally, the term "out-of-home media" comprises outdoor and transit. It excludes radio, print and television. Outdoor advertising medium is a rented medium for displaying and transferring commercial information in a visible manner on structures and signs erected out of doors. It is a legitimate land-use form of advertising which is an integral part of the western economic system with direct and indirect benefits for the community as a whole. Advertising displays are found where there is a public amenity, positioned in close proximity to pedestrians and shoppers for eye-level viewing, or at curbside to influence traffic. Transit advertising is advertising displays affixed to moving vehicles or positioned in the common areas of transit stations, terminals and airports. MalaysiaÊs Outdoor Advertising Association defines outdoor advertising as a large display which advertises products, activities or services. It categorises outdoor advertising into six groups namely billboard, wrap, sign, poster, display and gantry. MalaysiaÊs out-of-home sector is an industry on the rise and the country has experienced one of the fastest advertising markets in recent years and while the conventional media like newspaper has been experiencing steady growth in terms of billings and sales, a large portion of this growth is attributed by out-of-home advertising. According to the Outdoor Advertising Association of America, outdoor advertising market comprises four major segments namely billboards, street furniture, transit advertising and alternative media.
(a) Billboard A billboard is a large outdoor advertisement for which rent is charged according to the amount of traffic that passes its location, its visibility and its size.
(b) Street Furniture These are advertisements on objects and pieces of equipment installed on streets and roads such as benches, traffic barriers, bollards, post boxes, phone boxes, streetlamps and traffic lights.
(c) Transit Advertising These include advertising displays affixed to moving vehicles or positioned in the common areas of transit stations, terminals and airports.
(d) Alternative Media Alternative media are media which provide alternative information to the mainstream media in a given context, whether the mainstream media are commercial, publicly supported, or government-owned. T
able 9.1 explains some types of outdoor advertisements while Table 9.2 shows out-of-home media categories according to Outdoor Advertising Association of America (OAAM).
Table 9.1: Types of Outdoor Advertisements by Outdoor Advertising Association Malaysia (OAAM) - An outdoor advertisement is a large display which advertises products, activities or services which are not necessarily offered at the location of the advertisement. The definition and types of outdoor billboard or advertisements have been discussed and accepted to be uniformly adopted by the Outdoor Advertising Association Malaysia (OAAM) which represents 65 per cent of the outdoor advertisement firms in Malaysia. - There are 17 types of outdoor advertisements which are grouped into the following: Billboard Free-standing, Wall, Roof top, Overhead Bridge, Fly-over, Fence, Tri-vision Mechanical, Mechanical Scrolling and Electronics. Wrap Building, Pillar and Column. Sign Projecting. Poster Paper and vinyl. Display Street Furniture and Mobile. Gantry Gantry and Spectacular. Source: Outdoor advertisement planning guidelines (GP021). (n.d.). Retrieved from http://www.townplan.gov.my/download/021_gpp_pil__english_.pdf
Table 9.2: Out-of-Home Media Categories by Outdoor Advertising Association of America (OAAM) Billboards Street Furniture Transit Alternative ? Bulletins ? Bus shelters ? Busses ? Cinema ? Digital ? Urban furniture ? Airports ? Digital place - billboards such as phone ? Subway and rail based kiosks ? Posters ? Arena and ? Truckside or ? Newsracks stadiums ? Junior posters mobile ? Walls or ? Taxis or ? Interior place - based such as spectaculars wrapped vehicle convenience stores, health clubs and restaurants or bars ? Exterior place- based such as airborne, marine, resorts and leisure ? Shopping malls Source: Out of home advertising. (2015). Retrieved from http://www.oaaa.org/ outofhomeadvertising 9.3.2 Advantages and Disadvantages Effective advertising methods vary among different types of businesses and industries. To find out if out-of-home advertising is right for your business, weigh both the advantages and the disadvantages as shown in Table 9.3:
Table 9.3: Advantages and the Disadvantages of Out-Of-Home Advertising
Advantages
Disadvantages
? One of the most cost-effective
? Short exposure time. mediums of advertising.
? External conditions affect the visibility
? Effective medium of awareness (for example, traffic jam and fog). advertising especially in brand
? Prime locations are controlled by big awareness and strong name players for months even years. recognition.
? Travellers who see the hoarding
? Builds company reputation and several times over months become product image. blind to it.
? Colourful, creative and eye-catching
? Limited scope for message and only ads have more impact. brief messages (for example, no space
? Targets a large and diverse market as it for detailed text, phone number and reaches out to thousands of people on a location map). daily basis.
? Anti-environmental if the advertiser
? Targets a specific audience according has to chop off trees for visibility. to location.
? Hazardous during hurricanes or strong
? Ads are not lost in the mix of winds, can cause damage to life and competitors and editorials. property.
? Increased frequency of consumer
? Cluttered travel routes with the major exposure where messages are arteries such as traffic jam, traffic stops delivered continuously and frequently. for signals or at stop signs. ? Directs potential clients and customers
? Little segmentation possible. to your place of business.
9.4 OUT-OF-HOME ADVERTISING FORMAT
Out-of-home advertising is traditionally associated with large billboards carrying printed, painted or projected images that may be internally or externally illuminated. Signs may be on buildings, windows, walls and roofs. Freestanding signs may be in frames, on poles and pylons and on street furniture such as bus shelters as well as on balloons, inflatables, trailers, buses, suburban trains, taxis and other commercial vehicles.
Out-of-home media is a way of reaching customers when they are not at home, watching television or reading newspapers or magazines. Out-of-home media usually works best in high traffic locations throughout cities. Street posters are one of the most popular forms of out-of-home media because they target the consumer at eye-level while they are walking down the street. Posters have become a major form of out-of-home-media and are widely recognised as part of pop culture.
ACTIVITY 9.3
Based on the guidelines provided by different government authorities, discuss different standardised formats in different countries for out-of- home media.
(a) Outdoor Advertisements and Signs: A Guide for Advertisers This booklet, prepared by communities and the local government, aims to explain to everyone who wants to display an outdoor advertisement how the system of advertisement control works in England. Refer to https://www.gov.uk/government/uploads/ system/uploads/attachment_data/file/11499/326679.pdf
(b) Specialist Property Guidelines for Outdoor Advertising Signs These guidelines are to be used when valuing Outdoor Advertising Signs for rating and taxation purposes in Australia. Refer to http://www.dtpli.vic.gov.au/__data/assets/pdf_file/ 0007/218752/VGV_MGV_OASigns_August-2011.pdf
(c) Garis Panduan Pembinaan Papan Iklan di Kawasan Majlis Perbandaran Subang Jaya A guideline for outdoor advertising under Subang Jaya Municipal Council. Refer to http://bizwizard.mpsj.gov.my/sites/default/ files Out of Home Advertising Format by NSW Government, Department of Planning Freestanding and Wall Advertisements Freestanding advertisements are mainly displayed on structures mounted on the ground by supports, while wall advertisements are generally painted on or fixed flat to the wall of a building. The following freestanding and wall advertisement classifications are commonly used: Spectacular, Supersite and Billboard. Roof or Sky Advertisements Roof or sky advertisements are advertisements that are displayed on, or erected on or above the parapet or eaves of a building. They may be freestanding structures or wall advertisements and range from billboard size up to spectacular size (over 50 square metres). Building Wrap and Hoarding Advertisements Building wraps are materials such as vinyl mesh used to cover or wrap buildings or land that may be under construction, renovation or demolition. Hoardings are a type of building wrap generally made of wood that are often placed as temporary walls around construction sites. Building wrap advertisements use the wrap material (for example, mesh or wood) as the mounting surface for the advertisements. Special Promotional Advertisements A special promotional advertisement is an advertisement for an activity or event of a civic or community nature (for example, public exhibitions and festivals, sports or charity events etc.). Events may be advertised on different media including walls, building wraps or bridges, and may vary in size from small posters to spectacular size. As with building wraps, specific rules apply to special promotional advertisements, including limits on how long the advertisements can be displayed for and also controls on signage content. Advertisements on Bridges Advertising structures may be permitted on railway, road and pedestrian bridges or overpass structures. Normally rules apply to the type of advertisements allowed on bridges and overpasses to ensure that the architectural qualities of the bridge and safety along the transport corridor are not compromised.
Advertisements on Bus Shelters or Street Furniture Bus shelter poster displays are often positioned as an integral part of a freestanding covered structure at a bus stop. Often the poster displays are internally illuminated. Street furniture displays commonly are 1.8 metres ? 1.2 metres or 1.5 metres ? 1 metre in size and are often backlit. They are generally located within urban centres, entertainment areas and railway platforms. Source: „NSW Government: Department and Planning‰ (2007)
9.4.1 Out-Of-Home Media Categories This subtopic will discuss further the categories of out-of-home media (SARD, 2015). (a) Place-Based The following are the list for place-based media: (i) Airport Wall dioramas, clocks, posters and kiosks. (ii) College Campus or School Display racks, bulletin boards, kiosks, sponsored television ads and college magazines. (iii) Convenience Store Advertising at convenience store locations, targeted to particular demographics. (iv) Hotel In-room television or cable television advertising and electronic displays. (v) Indoor Billboards in the restrooms of restaurants, health clubs, arenas, movie theaters and night clubs. (vi) In-Flight Magazine binders, in-flight movies, seat backs and disposal bags.
(vii) In-Store Shopping carts, store shelves, clocks, audio and checkout coupons. (viii) Movies or Theaters Movies, theaters, videocassettes and videocassette boxes. (ix) Shopping Mall Kiosks and wall displays at shopping malls. (x) Sports, Fitness or Leisure Facility Television with sound, digital signage, wall displays, bulletin boards, display racks at health clubs, resorts and fitness facilities. (xi) Stadium, Arena or Sports Team Wall displays, scoreboards and programmes. (xii) Truckside or Truckstop Display panels on sides, rear, front of trucks. Display signage at truck stops and interstate travel centres. (xiii) Event Marketing Special events, promotions and product sampling or demonstrations. (b) Traditional Outdoor The following is the list for the traditional outdoor media: (i) Aerial or Inflatables Balloons, blimps, skywriting and banners. (ii) Bus Shelter Backlit displays and posters. (iii) Bus Bench Display panels on benches. (iv) Digital Media Advertising on mobile telephones or wireless PDAs. (v) Mobile Advertising Mobile billboards on trucks. (vi) Outdoor Billboards including posters, bulletins and painted walls. (vii) Sampling or Street Teams Product sampling at high-traffic venues or locations. (viii) Taxi Advertising within and on top of taxis. (ix) Telephone Kiosk Printed displays on free-standing public telephone enclosures. (x) Transit Commuter transit platforms, trains and buses. (xi) Vehicle Wraps Integrated mobile advertising that often incorporates staffing, routes or timing, or sampling into client programmes. (c) Other Specialised Media Out-of-home media not classified elsewhere in this directory, includes interactive and audiotex opportunities. 9.4.2 Specification for Freestanding and Wall Advertisements Based on NSW Department of Planning, Australia, here is the specification for outdoor advertising formats: (a) Spectacular Poster displays over 50 square metres in area (standard dimensions are 18.9 metres ? 4.5 metres). These are often located on highways and generally illuminated. (In the US, standardised large format advertising displays intended for viewing from extended distances are generally more than 50 feet). (b) Supersite Large displays around 42 square metres (often 12.66 metres ? 3.35 metres) in size. Generally illuminated and located on major arterial roads and national highways. (c) Billboard 24 Sheet Poster: Measures 6 ? 3 metres in size and tends to be located mainly on building walls in commercial and industrial areas, along roads and in railway corridors. (d) Poster Small format 6 Sheet Poster: Posters 3 metres ? 1.5 metre in size with the same proportions as a 24 sheet poster. Mounted mainly on walls and often located in suburban areas.
ACTIVITY 9.4 Indicate whether each of the following points which are referring to out- of-home advertising is an advantange or disadvantage and then explain the point or statement. One of the most cost-effective mediums of advertising. Short exposure time. Effective medium of awareness. External conditions affect the visibility. Target large and diverse markets. Travellers become blind to it. Colourful, creative and eye-catching. Targets a specific audience according to location.
9.5 RULES AND GUIDELINES
Many country, state or city authorities have policies, rules and guidelines governing outdoor advertising. These policies, rules and guidelines are necessary because outdoor advertising involves public spaces such as neighbourhood spaces in residential areas, high streets, parks, playgrounds, street markets, shopping malls and community centres. These spaces play a vital role in the social life of communities and they are commonly under the jurisdiction of the city or local authorities. Copyright © Open University Malaysia (OUM)
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240 ? TOPIC 9 OUT-OF-HOME ADVERTISING 9.5.1 Objectives of Rules and Regulations The objectives of out-of-home advertising rules and regulation are generally to:
(a) Regulate and minimise visual clutter and the proliferation of signs in public places;
(b) Ensure out-of-home advertising is planned as part of an overall signage package for a city;
(c) Incorporate out-of-home advertising into the design of new buildings and major renovations to ensure signage is an integral component of the building fabric and is planned for at the beginning rather than at the end of development;
(d) Ensure out-of-home advertising is appropriate with regard to the architectural design of buildings on which signs are displayed;
(e) Require that out-of-home advertising does not adversely impact the safety and function of a road, walkway or other public passages; and
(f) Require that out-of-home advertising does not obscure traffic signals, directional signs and street signs. Malaysian Outdoor Advertisement Planning Guidelines The following are the summary for the outdoor advertisement planning guidelines (GP021).
(a) The Outdoor Advertisement Planning Guidelines was approved by the Cabinet on the 31st October 2008 and by the MNKT on 2nd December 2008. These guidelines are prepared to guide the instalment and control of outdoor advertisement uniformly in all local authoritiesÊ areas.
(b) The installation of outdoor advertisement is based on four principles which are ensuring public safety; preserving environmental quality; ensuring public comfort and with appropriate advertisement content.
(c) The scope of the guidelines is divided into structure and content. Structure include location and design, while content include the use of Malay, display of appropriate message and image as well as design. (d) This guideline is a supporting document to the by-laws prepared under the Local Government Act, 1976 (Act 171) and the Development Plans, that is, the Local Plan and Special Area Plan prepared under the Town and Country Planning Act, 1976 (Act 172). It specifies locational and design aspects of outdoor billboards and the application of this guideline with reference to other related laws. The technical details on the installation of outdoor billboards on highways or federal roads are subject to the Rules on the Installation of Billboards on Highways/Federal Roads prepared by the Ministry of Public Works under the Road Transport Act 1987. However, there are other aspects that are not covered under the rules which have been considered in this guideline such as: (i) The new size control is 110 sq.m (18m ? 6m) or 1,200 sq. ft (60 ft ? 20ft). (ii) Setback for the billboard is enforced based on the presence of clear zone as determined by the Malaysian Institute of Road Safety Research (MIROS). (iii) The allowable location of billboards is subjected to: not being a traffic hazard to road users as determined by the road authority. (e) Appropriate road limit (to control size, setbacks and the distance between billboards). The distance of visual field and time of driverÊs focus decreases with the increase in speed. Consequently, the size and distance need to be increased as speed increases.
9.5.2 Code of Ethics
A professional code of ethics is normally drawn up with the purpose of providing professional and ethical norms for those engaged in a professional activity. Out-of-home advertising is a medium that reaches almost every member of the community when they are travelling outside of their home. The code of ethics in outdoor advertising is a set of voluntary principles that defines the industry's standards for doing business with advertisers and regulators. It also sometimes sets a guideline that defines its responsibilities towards the community and the environment. As guidelines, these codes supplement the obligations that members are required to comply with under the existing laws such as federal and state law. Outdoor advertising is almost everywhere. It can be seen at any time of the day or night and cannot be turned off, fast-forwarded, put aside or left unopened. This is the reason why it is important for the industry to have its own Code of Ethics to ensure that it operates its business responsibly in the environment. This is also to ensure that advertisers do not defraud, offend or mislead the public. If they do, it is not to the detriment of the public but also to the advertising industry as a whole, because it compromises its credibility to the companies and practitioners who refrain from causing offence and harm for their own purposes. Outdoor Media Association Code of Ethics, Australia The Code of Ethics formulated by Australia's Outdoor Media Association is a set of voluntary principles that defines the industry's standards for doing business with advertisers and regulators, and its responsibilities towards the community and the environment. The document is divided into four categories as follows:
(a) Principles for doing business with advertisers;
(b) Principles of doing business with regulators;
(c) Responsibilities towards the community; and
(d) Responsibilities towards the environment. Source: Outdoor Media Association's Code of Ethics (n.d.)
Outdoor Advertising Association of the Philippines (OAAP) The OAAP was established on August 13, 1964 along with the creation of the Code of Ethics. The Code takes an eight-point framework which standardises the structures and operating practices of outdoor advertising displays. It stresses urgent need to fall within governmental policies, objectives and code of ethical conduct.
(a) Avoid installing billboards or advertisements of competing products or firms side by side or on the same line of vision; (b) All outdoor signs must be properly identified; (c) Temporary structure erected on proposed locations to identify the actual site of construction must be respected; (d) Avoid the installation of a board to cover another board. As to outdoor advertising copy, it shall not in any way contain a statement or convey messages or visual displays that are: (i) Obscene or offensive to public decency; (ii) False, misleading or deceptive; (iii) Offensive to the moral standards of the community; and (iv) Violate any national or local law. Source: „Code of Ethics‰ (n.d.)
ACTIVITY 9.5 A professional code of ethics is normally drawn up with the purpose of providing professional and ethical norms for those engaged in a professional activity. Compare the Codes of Ethics of America, Australia and the Philippines and discuss to what extent the code of each country provided professional and ethical norms for outdoors advertisers and agencies.
9.6 Outdoor Issues: OAAM Slams Billboard Advertising Company KUALA LUMPUR: The Outdoor Advertising Association of Malaysia (OAAM) has strongly condemned an alleged unscrupulous attempt by a billboard advertising company to circumvent Petaling Jaya City Council's (MBPJ) policies by abusing legal processes and court procedures. The association said it had tirelessly engaged with the Ministry of Urban Wellbeing, Housing and Local Government and MBPJ since early 2006 to jointly come up with new policies and guidelines to standardise billboard governance in the country. „MBPJ was the first local authority to invite OAAM to jointly formulate a revenue-sharing policy‰, said the association's vice-president Jeff Cheah in a statement yesterday. Read the Given News Article and Answer the Following Questions: 1. Find out from the Internet the following organisations and explain what they are and their relevance to outdoor advertising. (a) Outdoor Advertising Association of Malaysia; (b) Petaling Jaya City Council; and (c) Ministry of Urban Wellbeing, Housing and Local Government. 2. What are the "new policies and guidelines to standardise billboard governance in the country? Source:
Business Times (2011)
SELF-CHECK 9.2
Explain the following elements and how they contribute to the development of out-of-home advertising:
(a) Code of professional ethics;
(b) The Outdoor Advertising Association of Malaysia;
(c) Digital out-of-home advertising; and
(d) The outdoor advertisement planning guidelines. Out-of-home media has grown at almost twice the rate of in-home media over the past decade. The main reason is because more and more people are spending time outside of their homes, which enables out-of-home media to become an increasingly more efficient advertising media. Out-of-home advertising is traditionally associated with posters and billboards carrying printed, painted or projected images that may be internally or externally illuminated. Signs may be on buildings, windows, walls and roofs. Freestanding signs may be in frames, on poles and pylons and on street furniture such as bus shelters as well as on balloons, inflatables, trailers, buses, suburban trains, taxis and other commercial vehicles. Many country, state or city authorities have policies, rules and guidelines governing outdoor advertising. These policies are necessary because outdoor advertising involves public spaces such as neighbourhood spaces in residential areas, high streets, parks, playgrounds, street markets, shopping malls and community centres. These spaces play a vital role in the social life of communities and they are commonly under the jurisdiction of the city or local authorities.
The code of ethics supplements the obligations that members are required to comply with under the existing laws such as federal and state laws. The code is a set of voluntary principles that defines the industryÊs standards for doing business with advertisers and regulators. It also sometimes sets a guideline that defines its responsibilities towards the community and the environment. Outdoor advertising Street furniture advertisements Out-of-home media Transit advertising Freestanding advertisements Wall advertisements Business Times. (2011). Outdoor issues: OAAM slams billboard advertising company. Retrieved from http://www. my.news.yahoo.com Code of ethics. (n.d.). Retrieved from http://www.oaap.org.ph/ Enfield Press. (1969). Thomsonville, Conn: Enfield Printers. Media Prima. (n.d.). Retrieved from http://www.mediaprima.com.my/. NSW Government, Department of Planning. (2007). Transport Corridor Outdoor Advertising and Signage Guidelines. Retrieved from http://www.planning.nsw.gov.au/planningsystem/pdf. Outdoor advertisement planning guidelines (GP021). (n.d.). Retrieved from http://www.townplan.gov.my/download/021_gpp_pil__english_.pdf Out of home advertising. (2015). Retrieved from http://www.oaaa.org/ outofhomeadvertising SARD. (2015). Retrieved from http://next.srds.com
TOPIC 9 OUT-OF-HOME ADVERTISING
LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Identify various types of outdoor advertising and their features; 2. Explain the advantages and disadvantages of outdoor advertisements; 3. Analyse the main ideas in the general guidelines for out-of-home advertising set by the state or local authorities; and 4. Discuss some of the main ideas in the code of ethics for out-of- home advertising.
INTRODUCTION "Over the years, advertising has been both condemned and eulogised. By some, it has been characterised as an insult to the intelligence of thinking men. Others profess that advertising is a necessary and desirable catalyst of our private enterprise system". (Enfield, 1969) Out-of-home media has evolved to become one of the most innovative media in recent times. From the early days of the 50s, the market has continued to grow. Having existed for decades, it is equally effective in today's age and with all inventions of modern media, out-of-home advertising has reached new technological peaks and attracts a broader audience range than ever before. It has expanded from being represented by posters and billboards at the beginning to currently being made up of numerous different media types. It ranges from high-tech electronic billboards in urban areas to video walls at airports and huge posters in remote rural villages. Standards were introduced, not only to establish order in the environment and generate revenue but also to improve the profession. With the advent of technology, the industry has metamorphosised and become technologically-based. This new development has increased competition in the industry. Many new outdoor advertising companies have emerged to carve a niche for themselves by producing new ideas to promote and position the brands.
ACTIVITY 9.1 There are many kinds of out-of-home advertising choices. Based on your observation, give specific examples of out-of home advertisements by the following companies or places that you have seen. If possible take photographs using your mobile phone of the advertisements that you have come across. (a) Restaurants and hotels companies which commonly make use of highway billboards to steer customers in for a rest or a bite. (b) Bus benches which feature advertisements for local businesses and bus shelters which display a major movie promotion. (c) Food and beverage companies which make use of sporting events and arenas. (d) Taxis, buses, railways, subways and wall murals which offer certain forms of promotion.
9.1 OUT-OF-HOME ADVERTISING INDUSTRY This section examines the global trends in out-of-home advertising industry, challenges and the industry players. 9.1.1 Global Trends Out-of-home media has grown tremendously over the past decade. The trend in the global scenario indicates a growing industry at a great pace. It is expected to continue to witness stable growth which is mainly due to increasing popularity of this segment in comparison with other segments of the advertising industry. The main reason is also because more and more people are spending time outside of their homes. This enables out-of-home media to become an increasingly more efficient advertising media. Unlike other forms of media, out- of-home media can create an impression with consumers close to a point of sale or be a constant reminder throughout the course of daily activity. The greater proportion of outdoor advertising expenditure is spent on the traditional paper based or vinyl based billboards. It is offered by the bigger companies to large national advertisers on a national basis for short- to medium- term advertising campaigns. With all inventions of modern media, outdoor advertising signs have reached a new technological climax and attract a broader audience range than ever before. Now, out-of-home media is becoming more digital especially in the out-of-home markets which are concentrated in high-traffic, captive and measurable locations such as the roadside, healthcare and transit. Digital out-of-home advertising has been building momentum in recent years resulting in digital signage media becoming the world's second fastest-growing advertising medium as it quickly becomes a vital component of the media ecosystem.
TOPIC 9 OUT-OF-HOME ADVERTISING Digital or non digital, the key growth drivers included the following: (a) Consumers spending a record amount of time with media outside their homes; (b) Increased engagement during the day with corresponding content on out- of-home media including media that are linked to wireless devices; (c) Longer work commutes; and (d) Consistent growth in leisure travel and shopping hours.
9.1.2 Challenges and Issues There is a huge potential of the outdoor advertising industry at the global and national level. While better days are ahead to make the sector robust, it could achieve its deliverables while yielding huge returns for players and government. There are many issues and challenges facing the industry players. Here are some of the main ones to consider: (a) Government Policies and Regulation In many local scenarios, there seems to be certain confusion among governments and their agencies. For instance, local governments are normally given the right to outdoor advertising control and levies through their agencies. But this arrangement is sometimes not harmonised properly in some quarters. So outdoor advertising agencies find themselves subjected to difficult and complex arrangements. The other part of government control has to do with rates and levies for the use of permitted outdoor space. (b) Human Resource The out-of-home advertising practice is still evolving. The industry will be better serviced by a continuous growth in the number of adequately educated, trained and experienced practitioners while the trends are growing and the situation is looking better. The focus should be on achieving high level of professionalism in the industry. Therefore, companies should train or retrain their staff to be competent, creative and competitive. (c) Innovation, Research and Strategic Planning Out-of-home advertising practices will do better with research and strategic planning. Out-of-home advertising agencies must be able to tell what the trends are at the market place, gauge extent of efficiency and effectiveness as well as understand the target audience expectation, traits and habits. Outdoor advertising businesses must begin to look at introducing more of strategic planning and research for greater effectiveness and ultimate market performance. This is necessary because many advertisers and agencies continue to think that out-of-home is a non-core and secondary medium. (d) Space It has been reported that worldwide, at least 1,500 cities and communities prohibit the construction of new billboards. In the US, the States of Vermont, Hawaii, Maine and Alaska prohibits all billboards. In Brazil, the City of Sao Paulo banned all billboards within the city. In South Africa, companies must abide by the operating manual known as South African Manual For Outdoor Advertising Control.
(e) Environmental Concern A growing number of people feel overwhelmed by the volume of outdoor advertising. Advertisers and media owners should be aware of their responsibility towards the urban environment and more could be done to promote controls in certain markets. (f) Diverted Attention With the popularity of portable technology such as handphones, out-of- home advertising is increasingly facing a disengaged audience whose attention has been diverted from the outdoor displays and environment around them. 9.1.3 Industry Players The industry players comprise outdoor advertising companies, affiliates vendors and contractors who are dealing with the works and activities related with out- of-home advertising. The outdoor advertising contractor is a company, organisation or body that offers for rent, outdoor spaces as a medium for advertising. This space is usually on specially designed structures erected for that purpose, but the contractor may also secure the rights for displaying third party advertising on buildings, road cuttings and existing bridges. A latest report on the Global Outdoor Advertising Industry by ReportLinker indicates that the competition in the global outdoor advertising market is intense with few large players. Among them are JC Decaux, Lamar Advertising Company, Clear Channel Outdoor Holdings, Inc., CBS Corporation, Adams Outdoor Advertising, AdSpace Networks, Inc., and EuroMedia Group S.A.
SELF-CHECK 9.1
What Is Digital Out-Of-Home Media (DOOH)? Compare the following various definitions of Digital-Out-of-Home Media and discuss their differences and similarities. Definition 1: DOOH refers to digital media used for marketing purposes outside of the home. This excludes television advertising and radio advertising, but includes digital signage. The term is usually used in relation to advertising-based networks. Definition 2: DOOH is made up of at least two distinct categories: Digital signage (which includes electronic billboards) and digital place- based content networks. The first category is found on roadsides. The second category, of which we consider Captivate Network to be a part, targets niche audiences in a particular venue and provides customised content and promotions for that channel. DOOH content is typically distributed through a digital infrastructure and is therefore more targetable and interactive than more traditional media (Mike DiFranza, Captivate Network). Definition 3: DOOH refers to dynamic media distributed across placed- based networks in venues including but not limited to cafes, bars, restaurants, health clubs, colleges, arenas and public spaces. DOOH networks typically feature independently addressable screens, kiosks, jukeboxes and/or jumbotrons. DOOH media benefits location owners and advertisers alike in being able to engage customers and/or audiences and extend the reach and effectiveness of marketing messages (Stephen Randall, LocaModa). Definition 4: DOOH is any signage that is running content and/or advertising in a public space. This could be four-inch shelf talkers in a grocery store all the way to massive LED billboards on the side of the road and everything digital in between. The differentiation is the word "digital". Regular „outdoor‰ equals static signage · static billboards, static signage on the sides of buses or buildings, static signs at bus stops or in airports, static taxi toppers, just to name a few. Displays in the DOOH space have to be powered by a media player or PC in order to accept "digital assets". (Ashley Flaska, NEC Display Solution). 9.2 OUT-OF-HOME ADVERTISING IN MALAYSIA Malaysia's out-of-home sector is an industry on the rise. The country has experienced one of the fastest advertising markets in recent years. While the conventional media like newspaper has been experiencing steady growth in terms of billings and sales, a large portion of this growth is attributed to out-of- home advertising. This is mainly because of the unique consumer landscape among Malaysians today. Despite a growing number of media channels on offer to marketers, confidence in the outdoor industry in Malaysia also continues to be strong. Out-of-home vendors have expanded their offering for the digital era and won client confidence in the process. PwC estimates MalaysiaÊs out-of-home industry grows at 14.5 per cent each year, proving out-of-home remains an important part of marketers overall media strategy. In a recent media rankings survey, marketers were asked which out-of-home media owners they are most likely to work with. Adex in Malaysia recorded a steady growth over the last two decades, rising from about RM0.5 billion in 1988 to approximately RM11.2 billion in 2012, with a compound annual growth rate (CAGR) of about 13.8 per cent between 1988 and 2012. When examining the Adex spent on different mediums, Adex growth rates for television, radio, newspaper and cinema and point-of-sale are the strongest in Malaysia, with CAGRs of 13.9 per cent, 11 per cent, 9.4 per cent and 20.8 per cent respectively between 2005 and 2012. The outdoor medium has also grown, with a CAGR of about 9.8 per cent between 2005 and 2012. The digital out-of-home transit media is considered to be at infancy stage in its industry lifecycle. The estimated Adex for OOH media and digital out-of-home media has grown continuously over the past few years. Players in digital out-of- home transit media industry in Malaysia should be well-positioned to reap the benefits from the growth of the industry.
Profile of Big Tree Big Tree Outdoor Sdn Bhd (Big Tree) is the leading outdoor advertising outfit in Malaysia. Since its incorporation in 1994, Big Tree's aggressive growth has been fuelled by continued investments in major expressways, transportation, retail concessions and key market centres in Malaysia. Its primary activities consist of undertaking outdoor advertising business, carrying out related advertisement production works, advertising contractors and agents as well as the sale of advertising spaces. Big Tree has a number of exclusive advertising concessions with expressway, transportation and retail concessionaires. In the expressway segment, Big Tree secured exclusive long-term contracts for advertising rights along the country's major expressways including amongst others, the North South Expressway, the New Klang Valley Expressway, Linkedua and the Elite Highway. Big Tree currently has over 15 exclusive concessions nation-wide. The outdoor advertising products of BTO are sold under the following brands: (a) Big Drive: E Expressway and Freemarket (b) Big Ride:Transit (c) Big Buy: Retail Big Tree is a wholly-owned subsidiary of Media Prima Berhad and spearheads the Group's strategy in outdoor advertising with GOTCHA, UPD, The Right Channel (TRC) and Kurnia Outdoor sites and assets under Big Tree's management. Source: Media Prima (n.d.) ACTIVITY 9.2 New and Out-Of-Home Media in the Malaysian Advertising Industry As it is universally known, Malaysia is a multicultural and multiracial country. Therefore, advertising in the masses are needed although they might not necessarily be as effective as other countries. This is a market which out-of-home advertising can play a major role, offering advertisers with the rare opportunity of reaching their target market more effectively. For instance, advertising boards using LED technology can be placed along the streets of residential areas known for a majority of a certain community which can then play advertisements for that group. This is one factor that cannot be achieved using radio or television. Table top advertising, too, has been gaining a lot of momentum in recent years. This is where one would see advertisements by sports brands and apparels like Nike and Adidas to reach its customers in mamak shops who usually go to these outlets to watch football or just to have a "teh tarik" or "nescafe ais". Another good example of out-of- home advertising in Malaysia is the use of posters and banners in the KL Monorail stations. Each of the stations is named after a specific brand and these brands are intended for its specific target market of the people residing around the area where the station is located. Answer the following questions: 1. What major role can out-of-home advertising play? 2. What is table top advertising? 3. Why are posters and banners in the KL Monorail stations considered a good example of out-of-home advertising in Malaysia?
9.3 DEFINITION
The term "out-of-home media" refers collectively to all forms of media outside the home that carry advertising messages for consumer audiences. It is any type of communication media that reaches an individual while they are out of the home. Out-of-home media encompasses many forms of media; from the large bulletins and posters we encounter on streets and highways to the panels we see near stores, on transit vehicles, rail or subway platforms, on bus shelters, in airports and in shopping malls.
9.3.1 Outdoor and Transit
Generally, the term "out-of-home media" comprises outdoor and transit. It excludes radio, print and television. Outdoor advertising medium is a rented medium for displaying and transferring commercial information in a visible manner on structures and signs erected out of doors. It is a legitimate land-use form of advertising which is an integral part of the western economic system with direct and indirect benefits for the community as a whole. Advertising displays are found where there is a public amenity, positioned in close proximity to pedestrians and shoppers for eye-level viewing, or at curbside to influence traffic. Transit advertising is advertising displays affixed to moving vehicles or positioned in the common areas of transit stations, terminals and airports. MalaysiaÊs Outdoor Advertising Association defines outdoor advertising as a large display which advertises products, activities or services. It categorises outdoor advertising into six groups namely billboard, wrap, sign, poster, display and gantry. MalaysiaÊs out-of-home sector is an industry on the rise and the country has experienced one of the fastest advertising markets in recent years and while the conventional media like newspaper has been experiencing steady growth in terms of billings and sales, a large portion of this growth is attributed by out-of-home advertising. According to the Outdoor Advertising Association of America, outdoor advertising market comprises four major segments namely billboards, street furniture, transit advertising and alternative media.
(a) Billboard A billboard is a large outdoor advertisement for which rent is charged according to the amount of traffic that passes its location, its visibility and its size.
(b) Street Furniture These are advertisements on objects and pieces of equipment installed on streets and roads such as benches, traffic barriers, bollards, post boxes, phone boxes, streetlamps and traffic lights.
(c) Transit Advertising These include advertising displays affixed to moving vehicles or positioned in the common areas of transit stations, terminals and airports.
(d) Alternative Media Alternative media are media which provide alternative information to the mainstream media in a given context, whether the mainstream media are commercial, publicly supported, or government-owned. T
able 9.1 explains some types of outdoor advertisements while Table 9.2 shows out-of-home media categories according to Outdoor Advertising Association of America (OAAM).
Table 9.1: Types of Outdoor Advertisements by Outdoor Advertising Association Malaysia (OAAM) - An outdoor advertisement is a large display which advertises products, activities or services which are not necessarily offered at the location of the advertisement. The definition and types of outdoor billboard or advertisements have been discussed and accepted to be uniformly adopted by the Outdoor Advertising Association Malaysia (OAAM) which represents 65 per cent of the outdoor advertisement firms in Malaysia. - There are 17 types of outdoor advertisements which are grouped into the following: Billboard Free-standing, Wall, Roof top, Overhead Bridge, Fly-over, Fence, Tri-vision Mechanical, Mechanical Scrolling and Electronics. Wrap Building, Pillar and Column. Sign Projecting. Poster Paper and vinyl. Display Street Furniture and Mobile. Gantry Gantry and Spectacular. Source: Outdoor advertisement planning guidelines (GP021). (n.d.). Retrieved from http://www.townplan.gov.my/download/021_gpp_pil__english_.pdf
Table 9.2: Out-of-Home Media Categories by Outdoor Advertising Association of America (OAAM) Billboards Street Furniture Transit Alternative ? Bulletins ? Bus shelters ? Busses ? Cinema ? Digital ? Urban furniture ? Airports ? Digital place - billboards such as phone ? Subway and rail based kiosks ? Posters ? Arena and ? Truckside or ? Newsracks stadiums ? Junior posters mobile ? Walls or ? Taxis or ? Interior place - based such as spectaculars wrapped vehicle convenience stores, health clubs and restaurants or bars ? Exterior place- based such as airborne, marine, resorts and leisure ? Shopping malls Source: Out of home advertising. (2015). Retrieved from http://www.oaaa.org/ outofhomeadvertising 9.3.2 Advantages and Disadvantages Effective advertising methods vary among different types of businesses and industries. To find out if out-of-home advertising is right for your business, weigh both the advantages and the disadvantages as shown in Table 9.3:
Table 9.3: Advantages and the Disadvantages of Out-Of-Home Advertising
Advantages
Disadvantages
? One of the most cost-effective
? Short exposure time. mediums of advertising.
? External conditions affect the visibility
? Effective medium of awareness (for example, traffic jam and fog). advertising especially in brand
? Prime locations are controlled by big awareness and strong name players for months even years. recognition.
? Travellers who see the hoarding
? Builds company reputation and several times over months become product image. blind to it.
? Colourful, creative and eye-catching
? Limited scope for message and only ads have more impact. brief messages (for example, no space
? Targets a large and diverse market as it for detailed text, phone number and reaches out to thousands of people on a location map). daily basis.
? Anti-environmental if the advertiser
? Targets a specific audience according has to chop off trees for visibility. to location.
? Hazardous during hurricanes or strong
? Ads are not lost in the mix of winds, can cause damage to life and competitors and editorials. property.
? Increased frequency of consumer
? Cluttered travel routes with the major exposure where messages are arteries such as traffic jam, traffic stops delivered continuously and frequently. for signals or at stop signs. ? Directs potential clients and customers
? Little segmentation possible. to your place of business.
9.4 OUT-OF-HOME ADVERTISING FORMAT
Out-of-home advertising is traditionally associated with large billboards carrying printed, painted or projected images that may be internally or externally illuminated. Signs may be on buildings, windows, walls and roofs. Freestanding signs may be in frames, on poles and pylons and on street furniture such as bus shelters as well as on balloons, inflatables, trailers, buses, suburban trains, taxis and other commercial vehicles.
Out-of-home media is a way of reaching customers when they are not at home, watching television or reading newspapers or magazines. Out-of-home media usually works best in high traffic locations throughout cities. Street posters are one of the most popular forms of out-of-home media because they target the consumer at eye-level while they are walking down the street. Posters have become a major form of out-of-home-media and are widely recognised as part of pop culture.
ACTIVITY 9.3
Based on the guidelines provided by different government authorities, discuss different standardised formats in different countries for out-of- home media.
(a) Outdoor Advertisements and Signs: A Guide for Advertisers This booklet, prepared by communities and the local government, aims to explain to everyone who wants to display an outdoor advertisement how the system of advertisement control works in England. Refer to https://www.gov.uk/government/uploads/ system/uploads/attachment_data/file/11499/326679.pdf
(b) Specialist Property Guidelines for Outdoor Advertising Signs These guidelines are to be used when valuing Outdoor Advertising Signs for rating and taxation purposes in Australia. Refer to http://www.dtpli.vic.gov.au/__data/assets/pdf_file/ 0007/218752/VGV_MGV_OASigns_August-2011.pdf
(c) Garis Panduan Pembinaan Papan Iklan di Kawasan Majlis Perbandaran Subang Jaya A guideline for outdoor advertising under Subang Jaya Municipal Council. Refer to http://bizwizard.mpsj.gov.my/sites/default/ files Out of Home Advertising Format by NSW Government, Department of Planning Freestanding and Wall Advertisements Freestanding advertisements are mainly displayed on structures mounted on the ground by supports, while wall advertisements are generally painted on or fixed flat to the wall of a building. The following freestanding and wall advertisement classifications are commonly used: Spectacular, Supersite and Billboard. Roof or Sky Advertisements Roof or sky advertisements are advertisements that are displayed on, or erected on or above the parapet or eaves of a building. They may be freestanding structures or wall advertisements and range from billboard size up to spectacular size (over 50 square metres). Building Wrap and Hoarding Advertisements Building wraps are materials such as vinyl mesh used to cover or wrap buildings or land that may be under construction, renovation or demolition. Hoardings are a type of building wrap generally made of wood that are often placed as temporary walls around construction sites. Building wrap advertisements use the wrap material (for example, mesh or wood) as the mounting surface for the advertisements. Special Promotional Advertisements A special promotional advertisement is an advertisement for an activity or event of a civic or community nature (for example, public exhibitions and festivals, sports or charity events etc.). Events may be advertised on different media including walls, building wraps or bridges, and may vary in size from small posters to spectacular size. As with building wraps, specific rules apply to special promotional advertisements, including limits on how long the advertisements can be displayed for and also controls on signage content. Advertisements on Bridges Advertising structures may be permitted on railway, road and pedestrian bridges or overpass structures. Normally rules apply to the type of advertisements allowed on bridges and overpasses to ensure that the architectural qualities of the bridge and safety along the transport corridor are not compromised.
Advertisements on Bus Shelters or Street Furniture Bus shelter poster displays are often positioned as an integral part of a freestanding covered structure at a bus stop. Often the poster displays are internally illuminated. Street furniture displays commonly are 1.8 metres ? 1.2 metres or 1.5 metres ? 1 metre in size and are often backlit. They are generally located within urban centres, entertainment areas and railway platforms. Source: „NSW Government: Department and Planning‰ (2007)
9.4.1 Out-Of-Home Media Categories This subtopic will discuss further the categories of out-of-home media (SARD, 2015). (a) Place-Based The following are the list for place-based media: (i) Airport Wall dioramas, clocks, posters and kiosks. (ii) College Campus or School Display racks, bulletin boards, kiosks, sponsored television ads and college magazines. (iii) Convenience Store Advertising at convenience store locations, targeted to particular demographics. (iv) Hotel In-room television or cable television advertising and electronic displays. (v) Indoor Billboards in the restrooms of restaurants, health clubs, arenas, movie theaters and night clubs. (vi) In-Flight Magazine binders, in-flight movies, seat backs and disposal bags.
(vii) In-Store Shopping carts, store shelves, clocks, audio and checkout coupons. (viii) Movies or Theaters Movies, theaters, videocassettes and videocassette boxes. (ix) Shopping Mall Kiosks and wall displays at shopping malls. (x) Sports, Fitness or Leisure Facility Television with sound, digital signage, wall displays, bulletin boards, display racks at health clubs, resorts and fitness facilities. (xi) Stadium, Arena or Sports Team Wall displays, scoreboards and programmes. (xii) Truckside or Truckstop Display panels on sides, rear, front of trucks. Display signage at truck stops and interstate travel centres. (xiii) Event Marketing Special events, promotions and product sampling or demonstrations. (b) Traditional Outdoor The following is the list for the traditional outdoor media: (i) Aerial or Inflatables Balloons, blimps, skywriting and banners. (ii) Bus Shelter Backlit displays and posters. (iii) Bus Bench Display panels on benches. (iv) Digital Media Advertising on mobile telephones or wireless PDAs. (v) Mobile Advertising Mobile billboards on trucks. (vi) Outdoor Billboards including posters, bulletins and painted walls. (vii) Sampling or Street Teams Product sampling at high-traffic venues or locations. (viii) Taxi Advertising within and on top of taxis. (ix) Telephone Kiosk Printed displays on free-standing public telephone enclosures. (x) Transit Commuter transit platforms, trains and buses. (xi) Vehicle Wraps Integrated mobile advertising that often incorporates staffing, routes or timing, or sampling into client programmes. (c) Other Specialised Media Out-of-home media not classified elsewhere in this directory, includes interactive and audiotex opportunities. 9.4.2 Specification for Freestanding and Wall Advertisements Based on NSW Department of Planning, Australia, here is the specification for outdoor advertising formats: (a) Spectacular Poster displays over 50 square metres in area (standard dimensions are 18.9 metres ? 4.5 metres). These are often located on highways and generally illuminated. (In the US, standardised large format advertising displays intended for viewing from extended distances are generally more than 50 feet). (b) Supersite Large displays around 42 square metres (often 12.66 metres ? 3.35 metres) in size. Generally illuminated and located on major arterial roads and national highways. (c) Billboard 24 Sheet Poster: Measures 6 ? 3 metres in size and tends to be located mainly on building walls in commercial and industrial areas, along roads and in railway corridors. (d) Poster Small format 6 Sheet Poster: Posters 3 metres ? 1.5 metre in size with the same proportions as a 24 sheet poster. Mounted mainly on walls and often located in suburban areas.
ACTIVITY 9.4 Indicate whether each of the following points which are referring to out- of-home advertising is an advantange or disadvantage and then explain the point or statement. One of the most cost-effective mediums of advertising. Short exposure time. Effective medium of awareness. External conditions affect the visibility. Target large and diverse markets. Travellers become blind to it. Colourful, creative and eye-catching. Targets a specific audience according to location.
9.5 RULES AND GUIDELINES
Many country, state or city authorities have policies, rules and guidelines governing outdoor advertising. These policies, rules and guidelines are necessary because outdoor advertising involves public spaces such as neighbourhood spaces in residential areas, high streets, parks, playgrounds, street markets, shopping malls and community centres. These spaces play a vital role in the social life of communities and they are commonly under the jurisdiction of the city or local authorities. Copyright © Open University Malaysia (OUM)
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240 ? TOPIC 9 OUT-OF-HOME ADVERTISING 9.5.1 Objectives of Rules and Regulations The objectives of out-of-home advertising rules and regulation are generally to:
(a) Regulate and minimise visual clutter and the proliferation of signs in public places;
(b) Ensure out-of-home advertising is planned as part of an overall signage package for a city;
(c) Incorporate out-of-home advertising into the design of new buildings and major renovations to ensure signage is an integral component of the building fabric and is planned for at the beginning rather than at the end of development;
(d) Ensure out-of-home advertising is appropriate with regard to the architectural design of buildings on which signs are displayed;
(e) Require that out-of-home advertising does not adversely impact the safety and function of a road, walkway or other public passages; and
(f) Require that out-of-home advertising does not obscure traffic signals, directional signs and street signs. Malaysian Outdoor Advertisement Planning Guidelines The following are the summary for the outdoor advertisement planning guidelines (GP021).
(a) The Outdoor Advertisement Planning Guidelines was approved by the Cabinet on the 31st October 2008 and by the MNKT on 2nd December 2008. These guidelines are prepared to guide the instalment and control of outdoor advertisement uniformly in all local authoritiesÊ areas.
(b) The installation of outdoor advertisement is based on four principles which are ensuring public safety; preserving environmental quality; ensuring public comfort and with appropriate advertisement content.
(c) The scope of the guidelines is divided into structure and content. Structure include location and design, while content include the use of Malay, display of appropriate message and image as well as design. (d) This guideline is a supporting document to the by-laws prepared under the Local Government Act, 1976 (Act 171) and the Development Plans, that is, the Local Plan and Special Area Plan prepared under the Town and Country Planning Act, 1976 (Act 172). It specifies locational and design aspects of outdoor billboards and the application of this guideline with reference to other related laws. The technical details on the installation of outdoor billboards on highways or federal roads are subject to the Rules on the Installation of Billboards on Highways/Federal Roads prepared by the Ministry of Public Works under the Road Transport Act 1987. However, there are other aspects that are not covered under the rules which have been considered in this guideline such as: (i) The new size control is 110 sq.m (18m ? 6m) or 1,200 sq. ft (60 ft ? 20ft). (ii) Setback for the billboard is enforced based on the presence of clear zone as determined by the Malaysian Institute of Road Safety Research (MIROS). (iii) The allowable location of billboards is subjected to: not being a traffic hazard to road users as determined by the road authority. (e) Appropriate road limit (to control size, setbacks and the distance between billboards). The distance of visual field and time of driverÊs focus decreases with the increase in speed. Consequently, the size and distance need to be increased as speed increases.
9.5.2 Code of Ethics
A professional code of ethics is normally drawn up with the purpose of providing professional and ethical norms for those engaged in a professional activity. Out-of-home advertising is a medium that reaches almost every member of the community when they are travelling outside of their home. The code of ethics in outdoor advertising is a set of voluntary principles that defines the industry's standards for doing business with advertisers and regulators. It also sometimes sets a guideline that defines its responsibilities towards the community and the environment. As guidelines, these codes supplement the obligations that members are required to comply with under the existing laws such as federal and state law. Outdoor advertising is almost everywhere. It can be seen at any time of the day or night and cannot be turned off, fast-forwarded, put aside or left unopened. This is the reason why it is important for the industry to have its own Code of Ethics to ensure that it operates its business responsibly in the environment. This is also to ensure that advertisers do not defraud, offend or mislead the public. If they do, it is not to the detriment of the public but also to the advertising industry as a whole, because it compromises its credibility to the companies and practitioners who refrain from causing offence and harm for their own purposes. Outdoor Media Association Code of Ethics, Australia The Code of Ethics formulated by Australia's Outdoor Media Association is a set of voluntary principles that defines the industry's standards for doing business with advertisers and regulators, and its responsibilities towards the community and the environment. The document is divided into four categories as follows:
(a) Principles for doing business with advertisers;
(b) Principles of doing business with regulators;
(c) Responsibilities towards the community; and
(d) Responsibilities towards the environment. Source: Outdoor Media Association's Code of Ethics (n.d.)
Outdoor Advertising Association of the Philippines (OAAP) The OAAP was established on August 13, 1964 along with the creation of the Code of Ethics. The Code takes an eight-point framework which standardises the structures and operating practices of outdoor advertising displays. It stresses urgent need to fall within governmental policies, objectives and code of ethical conduct.
(a) Avoid installing billboards or advertisements of competing products or firms side by side or on the same line of vision; (b) All outdoor signs must be properly identified; (c) Temporary structure erected on proposed locations to identify the actual site of construction must be respected; (d) Avoid the installation of a board to cover another board. As to outdoor advertising copy, it shall not in any way contain a statement or convey messages or visual displays that are: (i) Obscene or offensive to public decency; (ii) False, misleading or deceptive; (iii) Offensive to the moral standards of the community; and (iv) Violate any national or local law. Source: „Code of Ethics‰ (n.d.)
ACTIVITY 9.5 A professional code of ethics is normally drawn up with the purpose of providing professional and ethical norms for those engaged in a professional activity. Compare the Codes of Ethics of America, Australia and the Philippines and discuss to what extent the code of each country provided professional and ethical norms for outdoors advertisers and agencies.
9.6 Outdoor Issues: OAAM Slams Billboard Advertising Company KUALA LUMPUR: The Outdoor Advertising Association of Malaysia (OAAM) has strongly condemned an alleged unscrupulous attempt by a billboard advertising company to circumvent Petaling Jaya City Council's (MBPJ) policies by abusing legal processes and court procedures. The association said it had tirelessly engaged with the Ministry of Urban Wellbeing, Housing and Local Government and MBPJ since early 2006 to jointly come up with new policies and guidelines to standardise billboard governance in the country. „MBPJ was the first local authority to invite OAAM to jointly formulate a revenue-sharing policy‰, said the association's vice-president Jeff Cheah in a statement yesterday. Read the Given News Article and Answer the Following Questions: 1. Find out from the Internet the following organisations and explain what they are and their relevance to outdoor advertising. (a) Outdoor Advertising Association of Malaysia; (b) Petaling Jaya City Council; and (c) Ministry of Urban Wellbeing, Housing and Local Government. 2. What are the "new policies and guidelines to standardise billboard governance in the country? Source:
Business Times (2011)
SELF-CHECK 9.2
Explain the following elements and how they contribute to the development of out-of-home advertising:
(a) Code of professional ethics;
(b) The Outdoor Advertising Association of Malaysia;
(c) Digital out-of-home advertising; and
(d) The outdoor advertisement planning guidelines. Out-of-home media has grown at almost twice the rate of in-home media over the past decade. The main reason is because more and more people are spending time outside of their homes, which enables out-of-home media to become an increasingly more efficient advertising media. Out-of-home advertising is traditionally associated with posters and billboards carrying printed, painted or projected images that may be internally or externally illuminated. Signs may be on buildings, windows, walls and roofs. Freestanding signs may be in frames, on poles and pylons and on street furniture such as bus shelters as well as on balloons, inflatables, trailers, buses, suburban trains, taxis and other commercial vehicles. Many country, state or city authorities have policies, rules and guidelines governing outdoor advertising. These policies are necessary because outdoor advertising involves public spaces such as neighbourhood spaces in residential areas, high streets, parks, playgrounds, street markets, shopping malls and community centres. These spaces play a vital role in the social life of communities and they are commonly under the jurisdiction of the city or local authorities.
The code of ethics supplements the obligations that members are required to comply with under the existing laws such as federal and state laws. The code is a set of voluntary principles that defines the industryÊs standards for doing business with advertisers and regulators. It also sometimes sets a guideline that defines its responsibilities towards the community and the environment. Outdoor advertising Street furniture advertisements Out-of-home media Transit advertising Freestanding advertisements Wall advertisements Business Times. (2011). Outdoor issues: OAAM slams billboard advertising company. Retrieved from http://www. my.news.yahoo.com Code of ethics. (n.d.). Retrieved from http://www.oaap.org.ph/ Enfield Press. (1969). Thomsonville, Conn: Enfield Printers. Media Prima. (n.d.). Retrieved from http://www.mediaprima.com.my/. NSW Government, Department of Planning. (2007). Transport Corridor Outdoor Advertising and Signage Guidelines. Retrieved from http://www.planning.nsw.gov.au/planningsystem/pdf. Outdoor advertisement planning guidelines (GP021). (n.d.). Retrieved from http://www.townplan.gov.my/download/021_gpp_pil__english_.pdf Out of home advertising. (2015). Retrieved from http://www.oaaa.org/ outofhomeadvertising SARD. (2015). Retrieved from http://next.srds.com
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