MEA­SUR­ING UP

Gra­ham Medcalf takes a look at the progress be­ing made in mea­sur­ing view­er­ship on OOH.

New Zealand Marketing - - Contents -

2017's Me­dia Is­sue of NZ Mar­ket­ing fea­tured an ar­ti­cle that posited that per­haps the big­gest chal­lenge for the New Zealand out­door in­dus­try was au­di­ence mea­sure­ment, with lit­tle progress hav­ing been made in in­tro­duc­ing an in­dus­try-wide stan­dard to mea­sur­ing view­er­ship on OOH, as Aus­tralia did in 2018. How has this changed? Gra­ham Medcalf finds out.

Me­dia icon Derek Lind­say, for­mer chair of the CAANZ Me­dia Com­mit­tee, was em­ployed in 2017 as gen­eral man­ager at OMANZ (Out­door Me­dia As­so­ci­a­tion of New Zealand) with the ex­press brief of get­ting the ball rolling on the mea­sure­ment front. With a cou­ple of decades ex­pe­ri­ence in lead­ing roles as an in­dus­try busi­ness leader de­liv­er­ing prof­itable growth to both pre­vi­ously es­tab­lished and ini­tial start-up busi­nesses in the com­mu­ni­ca­tion and me­dia sec­tor, it was hoped Lind­say could make some rapid progress in an area seen to be hold­ing back the out­door sec­tor.

Lind­say’s brief was to re-in­vig­o­rate the OMANZ op­er­a­tion with a key fo­cus of de­vel­op­ing and in­tro­duc­ing an in­dus­try au­di­ence mea­sure­ment sys­tem in con­junc­tion with the OMANZ mem­bers.

In re­cent dis­cus­sions with NZ Mar­ket­ing, Lind­say says that as part of his rep­re­sen­ta­tion of the out­door in­dus­try, he has spent a sig­nif­i­cant amount of time re­search­ing the best ap­proach and the key is­sues sur­round­ing the devel­op­ment of an in­dus­try au­di­ence mea­sure­ment sys­tem (AMS).

And while Lind­say has been de­vel­op­ing an in­dus­try au­di­ence mea­sure­ment sys­tem, oth­ers have not been slow in de­vel­op­ing their own.

Ad­shel has al­ways been very sup­port­ive of a uni­fied ap­proach and is work­ing closely with OMANZ, and in 2017 APNO de­vel­oped and launched Cal­i­bre, an au­di­ence mea­sure­ment tool. At the same time, VMO (Val Mor­gan Out­door) in­tro­duced DART, Dig­i­tal-out­door Au­di­ences in Real Time, to the New Zealand mar­ket.

By us­ing AMD’S (Au­di­ence Mea­sure­ment De­vices), DART of­fers anony­mous au­di­ence an­a­lyt­ics that de­mon­strate who has ac­tu­ally viewed a cam­paign and how long they are en­gaged. It's VMO’S ex­clu­sive real-time au­di­ence mea­sure­ment sys­tem and mea­sures more than 15,000 New Zealand view­ers on a weekly ba­sis.

To en­sure DART’S ac­cu­racy, VMO com­mis­sioned PWC to in­de­pen­dently con­duct pro­ce­dures to as­sess DART'S abil­ity to ac­cu­rately cal­cu­late cer­tain met­rics data con­tained in VMO’S DART insight re­port­ing.

The pro­ce­dures were un­der­taken and de­scribed in a re­port of fac­tual find­ings is­sued by PWC and in­di­cated that for a sam­ple of cam­paigns, the en­gage­ment score was be­ing cal­cu­lated cor­rectly.

"The pro­ce­dures in­de­pen­dently per­formed by PWC pro­vides VMO with com­fort over DART'S abil­ity to ac­cu­rately cal­cu­late en­gage­ment ra­tios re­ported on cam­paigns,” says Me­gan Brown­low, part­ner at PWC.

Advertisers have also en­thu­si­as­ti­cally em­braced ooh!me­dia’s au­di­ence mea­sure­ment sys­tem, CRAFT, as it gives them the abil­ity to mea­sure their cam­paign reach and fre­quency across the re­tail en­vi­ron­ment against mul­ti­ple de­mo­graphic groups for the first time.

With this as a back­drop, Lind­say is con­tin­u­ing his work and says es­sen­tially OMANZ wants to pro­vide cus­tomers, the agen­cies and advertisers, with a cur­rency au­di­ence mea­sure for each out-of-home bill­board site - all sites are mea­sured on the same ba­sis and can be directly com­pared with each other.

“From this we can sup­ply a reach and fre­quency mea­sure for a cam­paign across dif­fer­ent bill­board sites no mat­ter the size, lo­ca­tion and own­er­ship.”

This will pro­vide a true mea­sure­ment com­par­i­son ver­sus other main me­dia. Ac­cord­ing to Lind­say, the cur­rency data is likely to in­clude:

• Travel data per site for­mat

• Daily Traf­fic Visu­als data pre­vi­ously de­vel­oped

• Ve­hic­u­lar and pedes­trian traf­fic

• Geo lo­ca­tion data

• Base de­mo­graph­ics (age / sex / in­come / house­hold size / oc­cu­pa­tion / me­dia us­age) in line with ac­cepted me­dia in­dus­try seg­men­ta­tion

• Spe­cific fac­tors which take ac­count of the dif­fer­ing lev­els of vis­i­bil­ity for each site and for­mat, in­clud­ing the mod­el­ling to sup­port mul­ti­ple advertisers

Lind­say adds that at this stage, it’s an­tic­i­pated that the cur­rency data will not in­clude third-party data sources (such as pri­vate bank data and ad­ver­tiser data), which can be in­cluded in each OMANZ mem­bers’ pro­pri­etary au­di­ence pro­fil­ing so­lu­tion.

Hav­ing an­a­lysed the ex­ist­ing au­di­ence mea­sure­ments in a few dif­fer­ent coun­tries, Lind­say de­ter­mined that OMANZ has a num­ber of op­tions mov­ing for­ward. Firstly, to repli­cate the mea­sure­ment sys­tems de­vel­oped in ei­ther the UK or the USA; in­tro­duce the Aus­tralian cur­rency called MOVE or de­velop some­thing lo­cally.

“Even­tu­ally, we de­ter­mined that our ap­proach was to com­bine all of our own New Zealand ex­per­tise and think­ing into a ‘Best of the Best’ strat­egy – es­sen­tially merg­ing some of the ex­ist­ing data­bases held by each OMANZ mem­ber and de­velop a new OMANZ in­te­grated data hub.”

This would com­bine data from sources such as GPS data, mo­bile data, cen­sus, house­hold ex­pen­di­ture sur­vey and spe­cific travel sur­veys amongst oth­ers.

“We pro­pose ex­tract­ing all the data sets from the in­di­vid­ual data hubs to then form a new OMANZ Data In­te­gra­tion Hub (DIH),” ad­vises Lind­say. “This new ag­gre­gated hub should al­low us to ac­cess data more eas­ily, cheaper, faster and ti­dier. Us­ing some of the ex­ist­ing data an­a­lyst tal­ent (from the ex­ist­ing data ag­gre­ga­tors) we can ac­cess the best op­tions and think­ing from what has al­ready been de­vel­oped.”

To do so, it will need to de­velop new pro­pri­etary al­go­rithms for the new Data In­te­gra­tion Hub cov­er­ing in­di­vid­ual site data and, more im­por­tantly, vis­i­bil­ity fac­tors to en­sure that all sites are be­ing com­pared on an ap­ples-with­ap­ples ba­sis. Lind­say says this ap­proach keeps pro­pri­etary mod­els with the in­di­vid­ual mem­bers but

some of that think­ing is used for the greater good (spe­cific mod­els won’t be ap­plied but tech­niques and think­ing is ap­plied).

“Again, us­ing some of the ex­ist­ing re­source, which has de­vel­oped some of the front-end in­ter­faces to date, we would de­velop a new OMANZ in­ter­face for all data out­put; ad­di­tion­ally we would need to en­sure that the data­base has APIS to al­low in­dus­try par­tic­i­pants to ac­cess in­dus­try out­puts directly from their own sys­tems.”

So now, in the first quar­ter of 2018, OMANZ mem­bers have agreed and signed off the key prin­ci­ples and struc­ture of the in­dus­try au­di­ence mea­sure­ment sys­tem and are now go­ing through the process of ap­point­ing an in­de­pen­dent data man­age­ment com­pany, who will be the key part­ner to help them man­age, co­or­di­nate and de­velop their pre­ferred out­come.

Im­por­tantly, dur­ing the devel­op­ment process, a Tech­ni­cal Com­mit­tee will be ap­pointed from the ex­ist­ing OMANZ mem­bers who will pro­vide a strong tech­ni­cal con­sis­tency along with rep­re­sen­ta­tives from the Com­mer­cial Com­mu­ni­ca­tions Coun­cil (CCC) Me­dia Com­mit­tee, who will also pro­vide reg­u­lar cus­tomer feed­back.

“As­sum­ing we are able to progress con­sis­tently well across all stages of devel­op­ment, we are cur­rently an­tic­i­pat­ing that we will have some­thing in mar­ket for the mid­dle of 2019,” pre­dicts Lind­say.

Agency spend on out-of-home was up 18.4 per­cent in 2017, with $136.3 mil­lion be­ing spent on the cat­e­gory across the year ac­cord­ing to SMI. Com­pared to all ma­jor me­dia, it sits be­low TV and dig­i­tal in terms of spend, but achieved the great­est growth of 2017.

SMI man­ag­ing direc­tor for Aus­tralia and New Zealand Jane Ractliffe ex­plains that mo­men­tum comes off the back of in­no­va­tion in the in­dus­try. She says as long as out­door com­pa­nies con­tinue to digi­tise their in­ven­tory, the cat­e­gory will con­tinue to grow.

ooh!me­dia is one of those OMANZ mem­bers con­tribut­ing to that up­ward trend and gen­eral man­ager of ooh! New Zealand Adam Mcgre­gor told NZ Mar­ket­ing

CRAFT is New Zealand’s only re­tail au­di­ence mea­sure­ment tool and has been im­por­tant in demon­strat­ing how its re­tail net­work de­liv­ers a strong, na­tional reach of more than 1.6 mil­lion peo­ple ev­ery two weeks.

“While we can’t divulge spe­cific client in­for­ma­tion, we have suc­cess­fully de­ployed CRAFT to help advertisers de­liver more tar­geted re­tail cam­paigns by be­ing able to de­fine and reach more spe­cific au­di­ence groups, us­ing a fu­sion of mul­ti­ple data sets.”

CRAFT has been a pow­er­ful tool in quan­ti­fy­ing the ad­di­tional reach advertisers can ob­tain as ooh!me­dia’s Na­tional Re­tail Net­work ex­pands. For ex­am­ple, CRAFT shows that the re­cent ad­di­tion of Coast­lands Shop­ping Cen­tre has ex­panded its reach to an ad­di­tional 22,000 shop­pers in Welling­ton over two weeks.

New in­no­va­tions such as ooh!me­dia’s Ex­cite in­ter­ac­tive pan­els have re­sulted in a num­ber of cre­ative cam­paigns be­ing rolled out. The Nutella cam­paign, for which the ad­ver­tis­ing im­age on the Ex­cite pan­els changed ac­cord­ing to the fa­cial ex­pres­sions of shop­pers who passed by, is one ex­am­ple. Shop­pers fur­ther en­gaged with the ad­verts by tak­ing their pho­to­graph with an im­age of a gi­ant Nutella jar, named after their mood, and then shared the photo across their so­cial net­works. The cre­ative treat­ment made use of fa­cial de­tec­tion to de­ter­mine what a per­son’s mood was and gen­er­ated a name for their jar ac­cord­ingly.

An­other great ex­am­ple of in­no­va­tion was the Jockey cam­paign, that used 18 of ooh!me­dia’s Shopalive re­tail pan­els, to de­liver a live broad­cast to select shop­ping cen­tres of the All Blacks strut­ting their stuff on the run­way at New Zealand Fash­ion Week.

Back in March 2016, Aus­tralian dig­i­tal-out­door busi­ness Val Mor­gan Out­door launched in New Zealand, trad­ing as VMO with a com­pletely new look and in­tro­duc­ing VMO Work – a new prod­uct to the lo­cal mar­ket. VMO now has screens in 57 lo­ca­tions in New Zealand that reach a cu­mu­la­tive au­di­ence of 547,200 weekly.

The vi­sion is for the com­pany to be a world leader in dig­i­tal out-ofhome us­ing world-class tech­nol­ogy and in­no­va­tion. In a global first, VMO launched a pro­gram­matic out-of-home prod­uct in New Zealand in May 2017 that al­lows advertisers to tar­get spe­cific de­mo­graph­ics in real time across its out-of-home net­works.

This was made pos­si­ble by us­ing DART to de­tect up to 18 dif­fer­ent de­mo­graphic pro­files.

Ac­cord­ing to VMO, DART’S abil­ity to recog­nise when a ma­jor­ity of a tar­get de­mo­graphic is present is re­defin­ing out-of-home tar­get­ing. It is this in­tel­li­gence that al­lows VMO to tar­get ads in real time to the right au­di­ence.

VMO man­ag­ing direc­tor An­thony Dee­ble said at the time that us­ing DART en­sures it’s de­liv­er­ing the client’s cre­ative dy­nam­i­cally at the right time to the right au­di­ence – a gi­ant leap for­ward in ef­fec­tively tar­get­ing au­di­ences in out-of-home en­vi­ron­ments.

“The ben­e­fit to the ad­ver­tiser is sim­ple; less wastage,” he says.

The first part­ner to trial pro­gram­matic out-of-home in the New Zealand mar­ket was global fast-food group Sub­way, with its agency part­ner Ikon Com­mu­ni­catins. Each time a ma­jor­ity of the tar­get au­di­ence is de­tected across the VMO Work net­work, the Sub­way cre­ative is ad­ver­tised.

Ikon client ser­vice direc­tor Vanessa Wil­liams says it looked at ways to tar­get some of the more chal­leng­ing to reach au­di­ences.

“The pro­gram­matic of­fer­ing from VMO gives us the abil­ity to min­imise wastage and en­sure we are de­liv­er­ing the right mes­sage at

the right time to our au­di­ence. Our client is ex­cited to be the first in New Zealand to test the prod­uct.”

The tech­nol­ogy and method­olo­gies have been rig­or­ously tested and im­por­tantly de­ployed to mar­ket. The op­por­tu­nity for advertisers is enor­mous. All of a sudden they can have mul­ti­ple pieces of cre­ative each de­signed for dif­fer­ent de­mo­graph­ics sit­ting in a cloud ready to be served when the ma­jor­ity of that au­di­ence is present. It is chang­ing the way out-ofhome is able to en­gage, truly tar­get­ing the right au­di­ence with ac­cu­racy and rel­e­vance.

Ad­shel has al­ways been very sup­port­ive of a uni­fied ap­proach and is work­ing closely with OMANZ. How­ever, sig­nif­i­cant as it is, au­di­ence mea­sure­ment is only one part of driv­ing the sec­tor for­ward says Elaine Gib­bons, Ad­shel’s head of mar­ket­ing and part­ner­ships New Zealand.

“We are con­tin­u­ally look­ing to the fu­ture, tak­ing learn­ings from over­seas and other me­dia chan­nels, such as dig­i­tal, as top­ics like au­to­ma­tion, pro­gram­matic and un­bundling be­come more and more prom­i­nent. We are ex­plor­ing the con­ver­gence of out-of-home and dig­i­tal me­dia and the ben­e­fits that can be de­liv­ered to advertisers.”

In an­swer to this, Ad­shel has re­cently launched Ad­shel Day Buy­ing, al­low­ing agen­cies and advertisers the flex­i­bil­ity to buy all 223 of its dig­i­tal screens by the day. This opens up a whole new world of dia­logue not pre­vi­ously privy to the out-ofhome sec­tor. With the in­tro­duc­tion of day buy­ing across the Ad­shel Live dig­i­tal road­side net­work, advertisers can now ef­fec­tively com­mu­ni­cate time sen­si­tive mes­sag­ing reach­ing a large-scale au­di­ence within a short pe­riod. Advertisers who hadn’t con­sid­ered out-of-home as a tac­ti­cal medium be­fore are now em­brac­ing the flex­i­bil­ity and ben­e­fits that day buy­ing can of­fer.

Mike Watkins, gen­eral man­ager of APN Out­door New Zealand, of­fers a note of cau­tion re­gard­ing the move to dig­i­tal. “As we look for­ward we will con­tinue to see the digi­ti­sa­tion of sites, how­ever, as an in­dus­try we must be care­ful how deep this goes to en­sure that we do not over sat­u­rate the mar­ket and com­modi­tise the prod­ucts,” he warns. “The em­pha­sis will move to­wards the data we col­lect from our sites and how that can be com­mer­cialised. We are, after all, sell­ing au­di­ences, not me­dia space. With this, will come the in­tro­duc­tion of re­tar­get­ing and at­tri­bu­tion which will bring a whole new layer to the power of out­door.”

APN Out­door’s Cal­i­bre uses a com­bi­na­tion of cell tower data, mo­bile data, mo­saics, DTVS and mar­ketview pur­chas­ing data to de­liver an ac­cu­rate and ac­count­able mea­sure on each site in the com­pany’s port­fo­lio. It com­bines in­dus­try stan­dard traf­fic data with ag­gre­gated and anonymised mo­bile lo­ca­tion data to de­ter­mine to­tal reach of each out-of-home as­set, and the fre­quency of vis­its. The traf­fic data takes into ac­count traf­fic di­rec­tion and bill­board ori­en­ta­tion, while a 12-month his­tory of mo­bile de­vice lo­ca­tions from two dif­fer­ent sources are blended and bal­anced to rep­re­sent the to­tal New Zealand pop­u­la­tion. The mo­bile data mea­sures 40 per­cent of the New Zealand mo­bile mar­ket and gives a more ac­cu­rate in­di­ca­tor of where the Kiwi con­sumer spends their time. Ac­cu­rate mo­bile GPS data gives rich in­for­ma­tion about au­di­ence dis­tri­bu­tion at each outof-home me­dia site. The mo­bile data is then en­riched by pow­er­ful seg­men­ta­tion data from Ex­pe­rian’s Mo­saic tool, pur­chas­ing be­hav­iour from elec­tronic bank­ing data via Mar­ketview and cen­sus data.

“With out­door in New Zealand be­ing one of the few me­dia with­out a rig­or­ous mea­sure­ment sys­tem, we wanted to change that and de­liver a ro­bust sys­tem that agen­cies and clients could rely upon,” says Watkins.

Cal­i­bre has both an agency and me­dia part­ner in­ter­face and is now also be­ing used by Go­me­dia and Me­dia5, fur­ther val­i­dat­ing the ac­cu­racy of the tool.

Phil Cle­mas, CEO of Lumo Dig­i­tal, ad­vises that re­search shows good bill­board cre­ative has a shelf life of around seven to 10 days with the im­pact and power quickly di­min­ish­ing over the month. How­ever, dig­i­tal bill­boards can ex­tend its value propo­si­tion well be­yond these fun­da­men­tal sim­i­lar­i­ties by of­fer­ing re­al­time dy­namic con­tent changes, con­sumer in­ter­ac­tiv­ity, and in­te­gra­tion with mo­bile and so­cial me­dia along with much shorter me­dia cy­cles to im­prove the over­all value ex­change.

“This is why the per­ceived im­por­tance of so­lus bill­board ad­ver­tis­ing is quickly be­com­ing far less and lim­ited to a very small se­lec­tion of ‘spec­tac­u­lar’ bill­boards to per­form a very spe­cific job – to re­ally stand out from the crowd,” he says.

Ad spend in dig­i­tal out-of-home con­tin­ues to grow strongly (dou­ble digit fig­ures) in younger mar­kets like New Zealand and Aus­tralia, which are cur­rently cov­er­ing up the de­clines in tra­di­tional static bill­boards. The cost of tech­nol­ogy is re­duc­ing rapidly and dig­i­tal out-of-home of­fers the ben­e­fits of tra­di­tional out-of-home with the added strengths and ca­pa­bil­i­ties of on­line.

“Think of a dig­i­tal bill­board as an­other screen, al­beit thou­sands of times larger than your iphone,” says Cle­mas. But he be­lieves that other than a hand­ful of good ex­am­ples, most advertisers on dig­i­tal bill­boards have yet to take ad­van­tage of the cre­ative and dy­namic ca­pa­bil­i­ties dig­i­tal screens have to of­fer.

“When the penny drops, and it will, there will be an­other wave of growth in dig­i­tal out­door. We es­ti­mate there to be around 2000 road­side bill­boards in New Zealand that are 18sqm or larger. As of the end of 2017, ap­prox­i­mately 65-70 were dig­i­tal bill­boards, less than four per­cent of all bill­boards. We an­tic­i­pate this to grow to be­tween 100 and 110 by the end of 2018.”

Op­por­tu­nity in­deed!

ooh! Re­tail Shopalite, HPA, Westc­ity ooh! Re­tail Shopalive, Ford, North­lands ooh! Re­tail Spe­cial Build, L'oreal, Lyn­n­mall Nutella EX­CITE

APNO Bill­board Khy­ber, night, Prime Khy­ber, night VMO, Rialto Cen­tre

LUMO, East Im­pe­rial LUMO, Green Party

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