Commentary

Solving Those Pesky ROI Issues With Out-Of-Home Video Answers

With today's rapidly-changing and ever-evolving digital landscape, buyers and planners have their work cut out for them probably more than at anytime in the history of electronic media. DVR penetration today is at 18% nationally and Jupiter Research says that by 2010, 50 million American households will be ruled by TiVo and other DVR devices. To their client's growing ad-zapping fears, many agencies have compensated by shifting some of their buys away from so-called "traditional" media and instead putting a heavy focus on alternative platforms such as broadband and video-on-demand. However, from a ROI standpoint, these buys are leaving significant amounts of impressions out of sale.

Meanwhile, according to Arbitron, 35 per cent of consumers watch television outside of their homes and there's no question that out-of-home video networks are an intriguing solution to ad-zappping and a viable alternative broadcast platform. Yet, with 700-plus out-of-home video companies popping up in recent years, how does a marketing executive choose the platform(s) that will most benefit their client's brand while delivering the most ROI?

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What the out-of-home video category needs is a litmus test for success that answers the major questions key decision makers need in order to make an informed decision. Speaking to a recently-unveiled Arbitron study that was conducted in fitness centers and health clubs, Arbitron Senior Analyst of Custom Research Diane Williams commented that "destination out-of-home television viewing is a growing platform for advertisers. The results of this study demonstrate the unique opportunity advertisers have to connect with targeted and coveted consumers when they are highly engaged with the medium."

Let's use some of those Arbitron numbers -- along with general common sense -- to shine a klieg light on out-of-home video viewership in relation to six key factors: dwell time; sight; sound and motion; scale; demographics; relevance; and engagement.

Dwell Time

Sizing up out-of-home viewers, are they viewing content on the alternative broadcast platform for long periods of time? According to Arbitron's study, 70 percent of health club members watch television while at the gym and spend an average of 40 minutes actively watching per visit.

Sight, Sound and Motion

Does the specific network platform provide marketers with the ability to seamlessly redeploy their video assets while maintaining the integrity of their brand? Not many do, and in most instances the format of the network requires costly reediting.

Scale

Does the platform support a national campaign rollout, or at least to a wide region? Only a small handful can implement this today.

Demographics

Does the audience profile match the needs of the brand? Data from the recent "Arbitron Cinema Advertising Study 2007: Making Brands Shine in the Dark" noted that movie theaters reach over 124 million or 45% of Americans 12 or older in a month. Eighty-one percent of teens and 67% of young adults age 18-24 have been to the movies in the past 30 days. In its health club study, Arbitron found that 75% of health club members are between the ages of 25-54, with 61% living in a household with an annual income above $100K. Twenty-one percent live in homes with an annual income above $200K. Are you investing your ad dollars in cinema, at health clubs, or towards other similarly valuable out-of-home video networks?

Relevance

Does video in a particular out-of-home environment enhance the experience, for example by being entertaining, informing viewers of important news developments and/or helping the audience pass the time?

Engagement

Do credible third-party metrics show that the audience is engaged by the spots? At what level of recall? In theatres, according to Arbitron's cinema study, 59% of moviegoers recall having watched on-screen commercials before the movie began on their most recent trip to the theater. Seventy-six percent of those surveyed noted that they received a majority of their news and current affairs information from IdeaCast network partners while at the health club. As well, 55% of these viewers recalled one or more advertisements on a brand aided basis.

I've asked a lot of questions, but asking them prior to investing in an alternative broadcast platform is imperative. By answering "yes" in all six of the above categories, an out-of-home video network has passed the litmus test, and it is now time to start thinking up a promising campaign to reach the very desirable targets that are slipping through marketers' fingers as each new DVR is installed.

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