Research focusing on the viewing opportunity is helpful if it can determine the average number of exposures per screen, from which the CPM can be calculated. The quality of the venue’s demographics and viewing opportunities will also play a role in determining rates.
It is important to avoid making rates too complex, especially early on in the launch phase. The sales cycle should represent the norm for other media, which is four weeks for OOH ads in North America. For the retail sector, promotional cycles are often shorter, so the selling cycle should be shorter too.
The temptation to promote the maximum flexibility of the network should also be resisted. One example would be trying to sell specific dayparts or time frames, e.g. to a restaurant that only wants to buy time in the morning hours to promote breakfast items. This limits reach, leaves the remainder of the day to be sold to other advertisers and makes both the sales and inventory management processes much more challenging.
In some cases, digital signs complement static ads at the same venue.
Support materials—including both print and video materials in a marketing kit—need to reflect the vision of the DOOH network. As the network gains traction, information about advertisers’ successes and their own testimonials, along with measured results, will help generate interest from more potential customers.
Of course, no matter how good the network and its audience are, revenue will depend on the quality of the sales team’s efforts. Setting up a dedicated sales force is an expensive proposition and represents a long-term investment, but there are also other options. Representative agreements with digital signage sales specialists are already common in the industry, as are aggregators.
Some aggregators are currently developing multi-venue and multi-platform DOOH networks. Their advantages are that they offer a single source, simplify the buying process and have no ownership stake, since their role is predominantly sales.
No shortcuts to success
The success of a DOOH network results from the interaction between a wide array of factors. There are no easy shortcuts to success. A combination of careful and thorough planning, common sense and understanding how to apply the aforementioned five key success factors will be needed. With the right ‘component mix,’ a DOOH network will be in a strong position to maximize revenues and profits and achieve long-term viability.
Alan High was formerly president and general manager (GM) of OOH firm Clear Channel Outdoor’s Spectacolor and mall divisions. He was instrumental in launching digital signage at Toronto’s Yonge-Dundas Square and Pearson International Airport. For more information, contact him at alanhigh@optonline.net.
Why do airports earn much more DOOH revenue than shopping malls, even though their pedestrian numbers are roughly the same? For Alan High’s special bonus real-world comparison of how metrics impact profitability, click here.
